81 FR 89559 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 67 To Modify the Web site Data Publication Requirements Relating to the Regulation NMS Plan To Implement a Tick Size Pilot Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 238 (December 12, 2016)

Page Range		89559-89562
FR Document		2016-29649
Federal Register, Volume 81 Issue 238 (Monday, December 12, 2016)
[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)]
[Notices]
[Pages 89559-89562]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29649]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79477; File No. SR-NYSE-2016-83]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending Rule 67 To Modify the Web site Data Publication Requirements 
Relating to the Regulation NMS Plan To Implement a Tick Size Pilot 
Program

December 6, 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 30, 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.
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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 67 to modify the Web site data 
publication requirements relating to the Regulation NMS Plan to 
Implement a Tick Size Pilot Program (``Plan''). 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 89560]]

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

1. Purpose
    On August 25, 2014, NYSE Group, Inc., on behalf of the Exchange, 
NYSE MKT LLC, NYSE Arca, Inc., the Bats BZX Exchange, Inc. f/k/a BATS 
Exchange, Inc. (``BZX''), BATS BYX Exchange, Inc. f/k/a BATS Y-
Exchange, Inc. (``BYX''), Bats EDGA Exchange, Inc., Bats EDGX Exchange, 
Inc., Chicago Stock Exchange, Inc., Financial Industry Regulatory 
Authority, Inc. (``FINRA''), NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, 
and the Nasdaq Stock Market LLC (collectively ``Participants'') filed 
with the Commission, pursuant to Section 11A of the Act \4\ and Rule 
608 of Regulation NMS thereunder,\5\ the Plan to Implement a Tick Size 
Pilot Program.\6\ The Participants filed the Plan to comply with an 
order issued by the Commission on June 24, 2014.\7\ The Plan was 
published for comment in the Federal Register on November 7, 2014, and 
approved by the Commission, as modified, on May 6, 2015.\8\ The 
Commission approved the Pilot on a two-year basis, with implementation 
to begin no later than May 6, 2016.\9\ On November 6, 2015, the SEC 
exempted the Participants from implementing the Pilot until October 3, 
2016.\10\ Under the revised Pilot implementation date, the Pre-Pilot 
data collection period commenced on April 4, 2016. On September 13, 
2016, the SEC exempted the Participants from the requirement to fully 
implement the Pilot on October 3, 2016, to permit the Participants to 
implement the pilot on a phased-in basis, as described in the 
Participants' exemptive request.\11\
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    \4\ 15 U.S.C. 78k-1.
    \5\ 17 CFR 242.608.
    \6\ See Letter from Brendon J. Weiss, Vice President, 
Intercontinental Exchange, Inc., to Secretary, Commission, dated 
August 25, 2014.
    \7\ See Securities Exchange Act Release No 72460 (June 24, 
2014), 79 FR 36840 (June 30, 2014).
    \8\ See Securities Exchange Act Release No. 74892 (May 6, 2015), 
80 FR 27513 (May 13, 2015) (``Approval Order'').
    \9\ See Approval Order at 27533 and 27545.
    \10\ See Securities Exchange Act Release No. 76382 (November 6, 
2015), 80 FR 70284 (November 13, 2015).
    \11\ See Letter from David S. Shillman, Associate Director, 
Division of Trading and Markets, Commission, to Eric Swanson, EVP, 
General Counsel and Secretary, Bats Global Markets, Inc., dated 
September 13, 2016; see also Letter from Eric Swanson, EVP, General 
Counsel and Secretary, Bats Global Markets, Inc., to Brent J. 
Fields, Secretary, Commission, dated September 9, 2016.
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    The Plan is designed to allow the Commission, market participants, 
and the public to study and assess the impact of increment conventions 
on the liquidity and trading of the common stock of small-
capitalization companies. Each Participant is required to comply, and 
to enforce compliance by its member organizations, as applicable, with 
the provisions of the Plan.
    The Exchange adopted rule amendments to implement the requirements 
of the Plan, including relating to the Plan's data collection 
requirements and requirements relating to Web site data 
publication.\12\ Specifically, with respect to the Web site data 
publication requirements pursuant to Section VII and Appendices B and C 
to the Plan, Rule 67(b)(2) provides, among other things, that the 
Exchange shall make the data required by Items I and II of Appendix B 
to the Plan, and collected pursuant to paragraph (b)(2) of Rule 67, 
publicly available on the Exchange's Web site on a monthly basis at no 
charge and shall not identify the Trading Center that generated the 
data. Rule 67(b)(3)(C), provides, among other things, that the Exchange 
shall make the data required by Item IV of Appendix B to the Plan, and 
collected pursuant to paragraph (b)(3)(A) of Rule 67, publicly 
available on the Exchange's Web site on a monthly basis at no charge 
and shall not identify the Trading Center that generated the data. 
Supplementary Material .70 to Rule 67 provides, among other things, 
that the requirement that the Exchange or their DEA make certain data 
publicly available on the Exchange's or DEA's Web site pursuant to 
Appendix B and C to the Plan shall commence at the beginning of the 
Pilot Period.
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    \12\ See Securities Exchange Act Release No. 77468 (March 29, 
2016), 81 FR 19269 (April 4, 2016) (Immediate Effectiveness of 
Proposed Rule Change Adopting Requirements for the Collection and 
Transmission of Data Pursuant to Appendices B and C of Regulation 
NMS Plan to Implement a Tick Size Pilot Program) (SR-NYSE-2016-27); 
see also Securities Exchange Act Release No. 78813 (September 12, 
2016), 81 FR 63825 (September 16, 2016) (Immediate Effectiveness of 
Proposed Rule Change to Amend Rule 67 to Modify Certain Data 
Collection Requirements of the Regulation NMS Plan to Implement a 
Tick Size Pilot Program) (SR-NYSE-2016-63); see also Letter from 
John C. Roeser, Associate Director, Division of Trading and Markets, 
Commission, to Sherry Sandler, Associate General Counsel, NYSE, 
dated April 4, 2016.
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    The Exchange is proposing amendments to Rule 67(b)(2) (regarding 
Appendix B.I and B.II data) and Rule 67(b)(3)(C) (regarding Appendix 
B.IV data), to provide that data required to be made available on the 
Exchange's Web site be published within 120 calendar days following 
month end. In addition, the proposed amendments to Supplementary 
Material .70 to Rule 67 would provide that, notwithstanding the 
provisions of paragraphs (b)(2), (b)(3)(C) and (b)(5), the Exchange 
shall make data for the Pre-Pilot period publicly available on the 
Exchange's or DEA's Web site pursuant to Appendix B and C to the Plan 
by February 28, 2017.\13\
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    \13\ With respect to data for the Pilot Period, the requirement 
that the Exchange or their DEA make data publicly available on the 
Exchange's or DEA's Web site pursuant to Appendix B and C to the 
Plan shall continue to commence at the beginning of the Pilot 
Period. Thus, the first Web site publication date for Pilot Period 
data (covering October 2016) would be published on the Exchange's or 
DEA's Web site by February 28, 2017, which is 120 days following the 
end of October 2016.
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    The purpose of delaying the publication of the Web site data is to 
address confidentiality concerns by providing for the passage of 
additional time between the market information reflected in the data 
and the public availability of such information.\14\
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    \14\ See supra note 11.
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    Finally, the Exchange is proposing an amendment to Rule 67(b)(5) 
(regarding data described in Item III of Appendix B) to add a provision 
identical to Rule 67(b)(2) (as amended above pursuant to the proposed 
changes described above to such Rule), which shall require the Exchange 
to make the data described in Item III of Appendix B publicly available 
on the Exchange Web site within 120 calendar days following month end 
at no charge and shall not identify the member organization that 
generated the data. The Exchange is proposing such an amendment in 
order to add a provision in its rules to comply with such requirement 
and provision in the Plan.\15\
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    \15\ See Section VII of the Plan.
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    As noted in Item 2 of this filing, the Exchange has filed the 
proposed rule change for immediate effectiveness and has requested that 
the Commission waive the 30-day operative delay. If the Commission 
waives the 30-day operative delay, the operative date of the proposed 
rule change will be the date of filing.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\16\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\17\ in particular, in that it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, 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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    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(5).

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[[Page 89561]]

    The Exchange believes that this proposal is consistent with the Act 
because it is designed to assist the Participants in meeting their 
regulatory obligations pursuant to the Plan and is in furtherance of 
the objectives of the Plan, as identified by the SEC. The Exchange 
believes that the instant proposal is consistent with the Act in that 
it is designed to address confidentiality concerns by permitting the 
Exchange to delay Web site publication to provide for passage of 
additional time between the market information reflected in the data 
and the public availability of such information.

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange 
notes that the proposed rule change implements the provisions of the 
Plan, and is designed to assist the Participants in meeting their 
regulatory obligations pursuant to the Plan.
    The proposal is intended to address confidentiality concerns that 
may adversely impact competition, especially for Pilot Securities that 
may have a relatively small number of designated Market Makers, by 
permitting the Exchange to delay Web site publication to provide for 
passage of additional time between the market information reflected in 
the data and the public availability of such information. The Exchange 
notes that the proposal does not alter the information required to be 
submitted to the SEC.

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 foregoing 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) \18\ of the Act and Rule 19b-
4(f)(6) thereunder.\19\
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    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \20\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\21\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has filed 
the proposed rule change for immediate effectiveness and has requested 
that the Commission waive the requirement that the proposed rule change 
not become operative for 30 days after the date of the filing so that 
it may become operative immediately.
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    \20\ 17 CFR 240.19b-4(f)(6).
    \21\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange notes that the proposed rule change implements the 
provisions of the Plan, and is designed to assist the Participants in 
meeting their regulatory obligations pursuant to the Plan. The proposal 
is intended to address confidentiality concerns by permitting the 
Exchange to delay Web site publication to provide for passage of 
additional time between the market information reflected in the data 
and the public availability of such information. The proposal also does 
not alter the information required to be submitted to the SEC.
    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it will allow the Exchange to implement proposed changes that 
are intended to address confidentiality concerns. The Commission notes 
that some Pilot data was scheduled to be published on November 30, 
2016. Therefore, the Commission hereby waives the 30-day operative 
delay and designates the proposed rule change to be operative as of 
November 30, 2016.\22\
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    \22\ For purposes only of waiving the operative delay for this 
proposal, the Commission has 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.\23\ If the 
Commission takes such action, the Commission shall institute 
proceedings to determine whether the proposed rule should be approved 
or disapproved.
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    \23\ 15 U.S.C. 78s(b)(3)(C).
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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-2016-83 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2016-83. 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-NYSE-2016-83, and should be 
submitted on or before January 3, 2017.


[[Page 89562]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-29649 Filed 12-9-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Notices 89559

also believes that the Closing will Comments may be submitted by any of SECURITIES AND EXCHANGE
operate to enhance competition among the following methods: COMMISSION
the equity securities markets and
provide new trading and capital Electronic Comments
[Release No. 34–79477; File No. SR–NYSE–
formation opportunities for market • Use the Commission’s Internet 2016–83]
participants and the investing public. comment form (http://www.sec.gov/
As such, the Transaction and the rules/sro.shtml); or Self-Regulatory Organizations; New
proposed rule change will assure that York Stock Exchange LLC; Notice of
the Exchange meets its statutory • Send an email to rule-comments@
Filing and Immediate Effectiveness of
requirements of Section 6(b)(5) of the sec.gov. Please include File Number SR–
Proposed Rule Change Amending Rule
Act to promote just and equitable CHX–2016–20 on the subject line.
67 To Modify the Web site Data
principles of trade and to protect Paper Comments Publication Requirements Relating to
investors and the public interest. the Regulation NMS Plan To Implement
B. Self-Regulatory Organization’s • Send paper comments in triplicate a Tick Size Pilot Program
Statement on Burden on Competition to Secretary, Securities and Exchange
Commission, 100 F Street NE., December 6, 2016.
The Exchange does not believe that Washington, DC 20549–1090.
the proposed rule change will impose Pursuant to Section 19(b)(1) 1 of the
any burden on competition that is not All submissions should refer to File Securities Exchange Act of 1934 (the
necessary or appropriate in furtherance Number SR–CHX–2016–20. This file ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
of the purposes of the Act. The rule number should be included on the notice is hereby given that on November
change is being proposed in connection subject line if email is used. To help the 30, 2016, New York Stock Exchange
with the Transaction that will, upon Commission process and review your LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
completion, change the ownership comments more efficiently, please use with the Securities and Exchange
structure of CHX Holdings. The only one method. The Commission will Commission (the ‘‘Commission’’) the
Exchange believes that the Transaction post all comments on the Commission’s proposed rule change as described in
will result in substantial capital Internet Web site (http://www.sec.gov/ Items I and II below, which Items have
investment into the Exchange, which rules/sro.shtml). Copies of the been prepared by the self-regulatory
will better enable the Exchange to submission, all subsequent organization. The Commission is
compete within the highly competitive amendments, all written statements publishing this notice to solicit
U.S. securities market and better enable with respect to the proposed rule comments on the proposed rule change
the Exchange to further the objectives of from interested persons.
change that are filed with the
the Act. As such, the Exchange believes
Commission, and all written I. Self-Regulatory Organization’s
that there is no burden on competition
communications relating to the Statement of the Terms of Substance of
that is not necessary or appropriate in
furtherance of the purposes of the Act. proposed rule change between the the Proposed Rule Change
Commission and any person, other than
C. Self-Regulatory Organization’s those that may be withheld from the The Exchange proposes to amend
Statement on Comments on the public in accordance with the Rule 67 to modify the Web site data
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be publication requirements relating to the
Members, Participants or Others available for Web site viewing and Regulation NMS Plan to Implement a
No written comments were solicited printing in the Commission’s Public Tick Size Pilot Program (‘‘Plan’’). The
or received. Reference Room, 100 F Street NE., proposed rule change is available on the
Washington, DC 20549, on official Exchange’s Web site at www.nyse.com,
III. Date of Effectiveness of the at the principal office of the Exchange,
Proposed Rule Change and Timing for business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the and at the Commission’s Public
Commission Action Reference Room.
filing also will be available for
Within 45 days of the date of inspection and copying at the principal
publication of this notice in the Federal II. Self-Regulatory Organization’s
office of the Exchange. All comments Statement of the Purpose of, and
Register or within such longer period (i) received will be posted without change;
as the Commission may designate up to Statutory Basis for, the Proposed Rule
the Commission does not edit personal Change
90 days of such date if it finds such
identifying information from
longer period to be appropriate and
submissions. You should submit only In its filing with the Commission, the
publishes its reasons for so finding or
information that you wish to make self-regulatory organization included
(ii) as to which the self-regulatory
available publicly. All submissions statements concerning the purpose of,
organization consents, the Commission
will: should refer to File Number SR–CHX– and basis for, the proposed rule change
A. By order approve or disapprove the 2016–20 and should be submitted on or and discussed any comments it received
proposed rule change, or before January 3, 2017. on the proposed rule change. The text
B. Institute proceedings to determine For the Commission, by the Division of of those statements may be examined at
whether the proposed rule change Trading and Markets, pursuant to delegated the places specified in Item IV below.
The Exchange has prepared summaries,
mstockstill on DSK3G9T082PROD with NOTICES

should be disapproved. authority.113
Eduardo A. Aleman,
set forth in sections A, B, and C below,
IV. Solicitation of Comments of the most significant parts of such
Interested persons are invited to Assistant Secretary.
statements.
submit written data, views, and [FR Doc. 2016–29646 Filed 12–9–16; 8:45 am]
arguments concerning the foregoing, BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1).
including whether the proposed rule 2 15 U.S.C. 78a.
change is consistent with the Act. 113 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.

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The Exchange believes that this A proposed rule change filed under IV. Solicitation of Comments
proposal is consistent with the Act Rule 19b–4(f)(6) 20 normally does not
because it is designed to assist the become operative prior to 30 days after Interested persons are invited to
Participants in meeting their regulatory the date of the filing. However, pursuant submit written data, views, and
obligations pursuant to the Plan and is to Rule 19b–4(f)(6)(iii),21 the arguments concerning the foregoing,
in furtherance of the objectives of the Commission may designate a shorter including whether the proposed rule
Plan, as identified by the SEC. The time if such action is consistent with the change is consistent with the Act.
Exchange believes that the instant protection of investors and the public Comments may be submitted by any of
proposal is consistent with the Act in interest. The Exchange has filed the the following methods:
that it is designed to address proposed rule change for immediate Electronic Comments
confidentiality concerns by permitting effectiveness and has requested that the
the Exchange to delay Web site Commission waive the requirement that • Use the Commission’s Internet
publication to provide for passage of the proposed rule change not become comment form (http://www.sec.gov/
additional time between the market operative for 30 days after the date of rules/sro.shtml); or
information reflected in the data and the the filing so that it may become
public availability of such information. • Send an email to rule-comments@
operative immediately. sec.gov. Please include File Number SR–
B. Self-Regulatory Organization’s The Exchange notes that the proposed NYSE–2016–83 on the subject line.
Statement on Burden on Competition rule change implements the provisions
Paper Comments
The Exchange does not believe that of the Plan, and is designed to assist the
the proposed rule change will result in Participants in meeting their regulatory • Send paper comments in triplicate
any burden on competition that is not obligations pursuant to the Plan. The to Secretary, Securities and Exchange
necessary or appropriate in furtherance proposal is intended to address Commission, 100 F Street NE.,
of the purposes of the Act. The confidentiality concerns by permitting Washington, DC 20549–1090.
Exchange notes that the proposed rule the Exchange to delay Web site
change implements the provisions of the publication to provide for passage of All submissions should refer to File
Plan, and is designed to assist the additional time between the market Number SR–NYSE–2016–83. This file
Participants in meeting their regulatory information reflected in the data and the number should be included on the
obligations pursuant to the Plan. public availability of such information. subject line if email is used. To help the
The proposal is intended to address The proposal also does not alter the Commission process and review your
confidentiality concerns that may information required to be submitted to comments more efficiently, please use
adversely impact competition, the SEC. only one method. The Commission will
especially for Pilot Securities that may post all comments on the Commission’s
have a relatively small number of The Commission believes that
waiving the 30-day operative delay is Internet Web site (http://www.sec.gov/
designated Market Makers, by rules/sro.shtml). Copies of the
permitting the Exchange to delay Web consistent with the protection of
investors and the public interest submission, all subsequent
site publication to provide for passage of amendments, all written statements
additional time between the market because it will allow the Exchange to
implement proposed changes that are with respect to the proposed rule
information reflected in the data and the
intended to address confidentiality change that are filed with the
public availability of such information.
concerns. The Commission notes that Commission, and all written
The Exchange notes that the proposal
does not alter the information required some Pilot data was scheduled to be communications relating to the
to be submitted to the SEC. published on November 30, 2016. proposed rule change between the
Therefore, the Commission hereby Commission and any person, other than
C. Self-Regulatory Organization’s waives the 30-day operative delay and those that may be withheld from the
Statement on Comments on the designates the proposed rule change to public in accordance with the
Proposed Rule Change Received From be operative as of November 30, 2016.22 provisions of 5 U.S.C. 552, will be
Members, Participants, or Others available for Web site viewing and
At any time within 60 days of the
No written comments were solicited filing of the proposed rule change, the printing in the Commission’s Public
or received with respect to the proposed Reference Room, 100 F Street NE.,
Commission summarily may
rule change. Washington, DC 20549, on official
temporarily suspend such rule change if
III. Date of Effectiveness of the it appears to the Commission that such business days between the hours of
Proposed Rule Change and Timing for action is necessary or appropriate in the 10:00 a.m. and 3:00 p.m. Copies of the
Commission Action public interest, for the protection of filing also will be available for
investors, or otherwise in furtherance of inspection and copying at the principal
Because the foregoing proposed rule
the purposes of the Act.23 If the office of the Exchange. All comments
change does not: (i) Significantly affect
Commission takes such action, the received will be posted without change;
the protection of investors or the public
interest; (ii) impose any significant Commission shall institute proceedings the Commission does not edit personal
burden on competition; and (iii) become to determine whether the proposed rule identifying information from
operative for 30 days from the date on should be approved or disapproved. submissions. You should submit only
information that you wish to make
mstockstill on DSK3G9T082PROD with NOTICES

which it was filed, or such shorter time
as the Commission may designate, it has 20 17 CFR 240.19b–4(f)(6). available publicly. All submissions
become effective pursuant to Section 21 17 CFR 240.19b–4(f)(6)(iii). should refer to File Number SR–NYSE–
19(b)(3)(A) 18 of the Act and Rule 19b– 22 For purposes only of waiving the operative
2016–83, and should be submitted on or
delay for this proposal, the Commission has before January 3, 2017.
4(f)(6) thereunder.19 considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
18 15 U.S.C. 78s(b)(3)(A). 15 U.S.C. 78c(f).
19 17 CFR 240.19b–4(f)(6). 23 15 U.S.C. 78s(b)(3)(C).

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89562 Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Notices

For the Commission, by the Division of at www.iextrading.com, at the principal September 13, 2016, the SEC exempted
Trading and Markets, pursuant to delegated office of the Exchange, and at the the Participants from the requirement to
authority.24 Commission’s Public Reference Room. fully implement the Pilot on October 3,
Eduardo A. Aleman, 2016, to permit the Participants to
Assistant Secretary. II. Self-Regulatory Organization’s
implement the pilot on a phased-in
Statement of the Purpose of, and the
[FR Doc. 2016–29649 Filed 12–9–16; 8:45 am] basis, as described in the Participants’
Statutory Basis for, the Proposed Rule exemptive request.14
BILLING CODE 8011–01–P
Change The Plan is designed to allow the
In its filing with the Commission, the Commission, market participants, and
SECURITIES AND EXCHANGE self-regulatory organization included the public to study and assess the
COMMISSION statements concerning the purpose of impact of increment conventions on the
[Release No. 34–79473; File No. SR–IEX– and basis for the proposed rule change liquidity and trading of the common
2016–17] and discussed any comments it received stock of small-capitalization companies.
on the proposed rule change. The text Each Participant is required to comply,
Self-Regulatory Organizations: of these statement may be examined at and to enforce compliance by its
Investors Exchange LLC; Notice of the places specified in Item IV below. member organizations, as applicable,
Filing and Immediate Effectiveness of The self-regulatory organization has with the provisions of the Plan.
Proposed Rule Change To Modify the IEX adopted rule amendments to
prepared summaries, set forth in
Web site Data Publication implement the requirements of the Plan,
Sections A, B, and C below, of the most
Requirements Relating to the including relating to the Plan’s data
significant aspects of such statements.
Regulation NMS Plan To Implement a collection requirements and
Tick Size Pilot Program A. Self-Regulatory Organization’s requirements relating to Web site data
Statement of the Purpose of, and the publication.15 Specifically, with respect
December 6, 2016. Statutory Basis for, the Proposed Rule to the Web site data publication
Pursuant to Section 19(b)(1) 1 of the Change requirements pursuant to Section VII
Securities Exchange Act of 1934 (the and Appendix B to the Plan, IEX Rule
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 1. Purpose
11.340(b)(2)(C) provides that IEX shall
notice is hereby given that, on On August 25, 2014, FINRA and make the data required by Items I and
November 21, 2016, the Investors several other self-regulatory II of Appendix B to the Plan, and
Exchange LLC (‘‘IEX’’ or the organizations (the ‘‘Participants’’) filed collected pursuant to paragraphs
‘‘Exchange’’) filed with the Securities with the Commission, pursuant to (b)(2)(A) and (B) of Rule 11.340,
and Exchange Commission (the Section 11A of the Act 6 and Rule 608 publicly available on the IEX Web site
‘‘Commission’’) the proposed rule of Regulation NMS thereunder,7 the on a monthly basis at no charge and
change as described in Items I and II shall not identify the Member that
Plan to Implement a Tick Size Pilot
below, which Items have been prepared generated the data. IEX Rule
Program.8 The Participants filed the
by the self-regulatory organization. The 11.340(b)(3)(C), provides, among other
Plan to comply with an order issued by
Commission is publishing this notice to things, that IEX shall make the data
the Commission on June 24, 2014.9 The
solicit comments on the proposed rule required by Item IV of Appendix B to
Plan was published for comment in the
change from interested persons. the Plan, and collected pursuant to
Federal Register on November 7, 2014,
I. Self-Regulatory Organization’s and approved by the Commission, as paragraph (b)(3)(A) and (B) of
Statement of the Terms of Substance of modified, on May 6, 2015.10 The Rule11.340, publicly available on the
the Proposed Rule Change Commission approved the Pilot on a IEX Web site on a monthly basis at no
two-year basis, with implementation to charge and shall not identify the
Pursuant to the provisions of Section Trading Center that generated the data.
19(b)(1) of the Securities Exchange Act begin no later than May 6, 2016.11 On
November 6, 2015, the SEC exempted Supplementary Material .09 to IEX Rule
of 1934 (‘‘Act’’) 4 and Rule 19b–4 11.340 provides, among other things,
thereunder,5 Investors Exchange LLC the Participants from implementing the
Pilot until October 3, 2016.12 Under the that the requirement that IEX make
(‘‘IEX’’ or ‘‘Exchange’’) is filing with the certain data publicly available on the
Securities and Exchange Commission revised Pilot implementation date, the
Pre-Pilot data collection period IEX Web site pursuant to Appendix B
(‘‘Commission’’) a proposed rule change and Appendix C to the Plan shall
to amend IEX Rule 11.340 to modify the commenced on April 4, 2016. An
Web site data publication requirements amendment to the Plan adding IEX as a
Rule 608(b)(3) of the Act because it involves solely
relating to the Regulation NMS Plan to Participant was filed with the technical or ministerial matters.
Implement a Tick Size Pilot Program Commission on August 4, 20 [sic].13 On 14 See Letter from David S. Shillman, Associate

(‘‘Plan’’). Director, Division of Trading and Markets,
IEX has filed the proposed rule 6 15 U.S.C. 78k–1. Commission, to Eric Swanson, EVP, General
7 17 CFR 242.608. Counsel and Secretary, Bats Global Markets, Inc.,
change for immediate effectiveness. IEX 8 See Letter from Brendon J. Weiss, Vice dated September 13, 2016; see also Letter from Eric
has requested that the SEC waive the 30- President, Intercontinental Exchange, Inc., to Swanson, EVP, General Counsel and Secretary, Bats
day operative period so that the Secretary, Commission, dated August 25, 2014.
Global Markets, Inc., to Brent J. Fields, Secretary,
proposed rule change may become 9 See Securities Exchange Act Release No 72460
Commission, dated September 9, 2016.
15 See, e.g., Securities Exchange Act Release No.
operative upon filing. (June 24, 2014), 79 FR 36840 (June 30, 2014).
78820 (September 13, 2016), 81 FR 64234
The text of the proposed rule change 10 See Securities Exchange Act Release No. 74892
(September 19, 2016) (Notice of Filing and
mstockstill on DSK3G9T082PROD with NOTICES

is available at the Exchange’s Web site (May 6, 2015), 80 FR 27513 (May 13, 2015) Immediate Effectiveness of File No. SR–IEX–2016–
(‘‘Approval Order’’). 13); see also Securities Exchange Act Release No.
11 See Approval Order at 27533 and 27545.
24 17 CFR 200.30–3(a)(12). 78481 (August 4, 2016) 81 FR 52933 (August 10,
12 See Securities Exchange Act Release No. 76382
1 15 2016) (Notice of Filing and Immediate Effectiveness
U.S.C. 78s(b)(1). (November 6, 2015), 80 FR 70284 (November 13,
2 15 U.S.C. 78a.
of File No. SR–IEX–2016–07); see also Letter from
2015). David S. Shillman, Associate Director, Division of
3 17 CFR 240.19b–4. 13 Securities Exchange Act Release No. 78702 Trading and Markets, Commission, to Claudia
4 15 U.S.C. 78s(b)(1).
(August 26, 2016). Pursuant to the terms of the plan, Crowley, Chief Regulatory Officer, IEX, dated
5 17 CFR 240.19b–4. the amendment was effective on filing pursuant to August 30, 2016.

VerDate Sep<11>2014 18:59 Dec 09, 2016 Jkt 241001 PO 00000 Frm 00138 Fmt 4703 Sfmt 4703 E:\FR\FM\12DEN1.SGM 12DEN1
Document Created: 2018-02-14 09:05:28
Document Modified: 2018-02-14 09:05:28
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 89559