81 FR 90019 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period for the Exchange's Retail Liquidity Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 239 (December 13, 2016)
Federal Register Volume 81, Issue 239 (December 13, 2016)
| Page Range | 90019-90020 | |
| FR Document | 2016-29799 |
[Federal Register Volume 81, Number 239 (Tuesday, December 13, 2016)] [Notices] [Pages 90019-90020] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-29799] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79493; File No. SR-NYSE-2016-82] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period for the Exchange's Retail Liquidity Program December 7, 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 28, 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 extend the pilot period for the Exchange's Retail Liquidity Program (the ``Retail Liquidity Program'' or the ``Program''), which is currently scheduled to expire on December 31, 2016, until June 30, 2017. 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 purpose of this filing is to extend the pilot period of the Retail Liquidity Program, currently scheduled to expire on December 31, 2016,\4\ until June 30, 2017. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 78600 (August 17, 2016), 81 FR 57642 (August 23, 2016) (SR-NYSE-2016-54). --------------------------------------------------------------------------- Background In July 2012, the Commission approved the Retail Liquidity Program on a pilot basis.\5\ The Program is designed to attract retail order flow to the Exchange, and allows such order flow to receive potential price improvement. The Program is currently limited to trades occurring at prices equal to or greater than $1.00 per share. Under the Program, Retail Liquidity Providers (``RLPs'') are able to provide potential price improvement in the form of a non-displayed order that is priced better than the Exchange's best protected bid or offer (``PBBO''), called a Retail Price Improvement Order (``RPI''). When there is an RPI in a particular security, the Exchange disseminates an indicator, known as the Retail Liquidity Identifier, indicating that such interest exists. Retail Member Organizations (``RMOs'') can submit a Retail Order to the Exchange, which would interact, to the extent possible, with available contra-side RPIs. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 67347 (July 3, 2012), 77 FR 40673 (July 10, 2012) (``RLP Approval Order'') (SR- NYSE-2011-55). --------------------------------------------------------------------------- The Retail Liquidity Program was approved by the Commission on a pilot basis. Pursuant to NYSE Rule 107C(m), the pilot period for the Program is scheduled to end on December 31, 2016. Proposal To Extend the Operation of the Program The Exchange established the Retail Liquidity Program in an attempt to attract retail order flow to the Exchange by potentially providing price improvement to such order flow. The Exchange believes that the Program promotes competition for retail order flow by allowing Exchange members to submit RPIs to interact with Retail Orders. Such competition has the ability to promote efficiency by facilitating the price discovery process and generating additional investor interest in trading securities, thereby promoting capital formation. The Exchange believes that extending the pilot is appropriate because it will allow the Exchange and [[Page 90020]] the Commission additional time to analyze data regarding the Program that the Exchange has committed to provide.\6\ As such, the Exchange believes that it is appropriate to extend the current operation of the Program.\7\ Through this filing, the Exchange seeks to amend NYSE Rule 107C(m) and extend the current pilot period of the Program until June 30, 2017. --------------------------------------------------------------------------- \6\ See id. at 40681. \7\ Concurrently with this filing, the Exchange has submitted a request for an extension of the exemption under Regulation NMS Rule 612 previously granted by the Commission that permits it to accept and rank the undisplayed RPIs. See Letter from Martha Redding, Asst. Corporate Secretary, NYSE Group, Inc. to Brent J. Fields, Secretary, Securities and Exchange Commission, dated November 28, 2016. --------------------------------------------------------------------------- 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,\8\ in general, and furthers the objectives of Section 6(b)(5),\9\ in particular, in that it is designed 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. The Exchange believes that extending the pilot period for the Retail Liquidity Program is consistent with these principles because the Program is reasonably designed to attract retail order flow to the exchange environment, while helping to ensure that retail investors benefit from the better price that liquidity providers are willing to give their orders. Additionally, as previously stated, the competition promoted by the Program may facilitate the price discovery process and potentially generate additional investor interest in trading securities. The extension of the pilot period will allow the Commission and the Exchange to continue to monitor the Program for its potential effects on public price discovery, and on the broader market structure. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change simply extends an established pilot program for an additional six months, thus allowing the Retail Liquidity Program to enhance competition for retail order flow and contribute to the public price discovery process. 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)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A)(iii). \11\ 17 CFR 240.19b-4(f)(6). 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. --------------------------------------------------------------------------- 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) \12\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \12\ 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSE-2016-82 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-2016-82. 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-2016-82 and should be submitted on or before January 3, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-29799 Filed 12-12-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Notices 90019
change is consistent with the Act. SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
Comments may be submitted by any of COMMISSION Statement of the Purpose of, and the
the following methods: Statutory Basis for, the Proposed Rule
[Release No. 34–79493; File No. SR–NYSE– Change
Electronic Comments
2016–82] 1. Purpose
• Use the Commission’s Internet The purpose of this filing is to extend
comment form (http://www.sec.gov/ Self-Regulatory Organizations; New
the pilot period of the Retail Liquidity
rules/sro.shtml); or York Stock Exchange LLC; Notice of
Program, currently scheduled to expire
• Send an email to rule-comments@ Filing and Immediate Effectiveness of on December 31, 2016,4 until June 30,
sec.gov. Please include File Number SR– Proposed Rule Change To Extend the 2017.
BatsBZX–2016–83 on the subject line. Pilot Period for the Exchange’s Retail
Liquidity Program Background
Paper Comments In July 2012, the Commission
December 7, 2016. approved the Retail Liquidity Program
• Send paper comments in triplicate
Pursuant to Section 19(b)(1) 1 of the on a pilot basis.5 The Program is
to Brent J. Fields, Secretary, Securities designed to attract retail order flow to
Securities Exchange Act of 1934 (the
and Exchange Commission, 100 F Street the Exchange, and allows such order
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
NE., Washington, DC 20549–1090. flow to receive potential price
notice is hereby given that on November
All submissions should refer to File 28, 2016, New York Stock Exchange improvement. The Program is currently
Number SR–BatsBZX–2016–83. This file LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed limited to trades occurring at prices
number should be included on the with the Securities and Exchange equal to or greater than $1.00 per share.
subject line if email is used. To help the Commission (the ‘‘Commission’’) the Under the Program, Retail Liquidity
Commission process and review your proposed rule change as described in Providers (‘‘RLPs’’) are able to provide
comments more efficiently, please use potential price improvement in the form
Items I and II below, which Items have
only one method. The Commission will of a non-displayed order that is priced
been prepared by the self-regulatory
post all comments on the Commission’s better than the Exchange’s best
organization. The Commission is protected bid or offer (‘‘PBBO’’), called
Internet Web site (http://www.sec.gov/ publishing this notice to solicit
rules/sro.shtml). Copies of the a Retail Price Improvement Order
comments on the proposed rule change (‘‘RPI’’). When there is an RPI in a
submission, all subsequent from interested persons.
amendments, all written statements particular security, the Exchange
with respect to the proposed rule I. Self-Regulatory Organization’s disseminates an indicator, known as the
change that are filed with the Statement of the Terms of Substance of Retail Liquidity Identifier, indicating
Commission, and all written the Proposed Rule Change that such interest exists. Retail Member
Organizations (‘‘RMOs’’) can submit a
communications relating to the
The Exchange proposes to extend the Retail Order to the Exchange, which
proposed rule change between the
pilot period for the Exchange’s Retail would interact, to the extent possible,
Commission and any person, other than
Liquidity Program (the ‘‘Retail Liquidity with available contra-side RPIs.
those that may be withheld from the The Retail Liquidity Program was
public in accordance with the Program’’ or the ‘‘Program’’), which is
currently scheduled to expire on approved by the Commission on a pilot
provisions of 5 U.S.C. 552, will be basis. Pursuant to NYSE Rule 107C(m),
available for Web site viewing and December 31, 2016, until June 30, 2017.
The proposed rule change is available the pilot period for the Program is
printing in the Commission’s Public scheduled to end on December 31, 2016.
Reference Room, 100 F Street NE., on the Exchange’s Web site at
Washington, DC 20549, on official www.nyse.com, at the principal office of Proposal To Extend the Operation of the
business days between the hours of the Exchange, and at the Commission’s Program
10:00 a.m. and 3:00 p.m. Copies of the Public Reference Room. The Exchange established the Retail
filing also will be available for Liquidity Program in an attempt to
II. Self-Regulatory Organization’s
inspection and copying at the principal attract retail order flow to the Exchange
Statement of the Purpose of, and
office of the Exchange. All comments by potentially providing price
Statutory Basis for, the Proposed Rule
received will be posted without change; improvement to such order flow. The
the Commission does not edit personal Change
Exchange believes that the Program
identifying information from In its filing with the Commission, the promotes competition for retail order
submissions. You should submit only self-regulatory organization included flow by allowing Exchange members to
information that you wish to make statements concerning the purpose of, submit RPIs to interact with Retail
available publicly. All submissions and basis for, the proposed rule change Orders. Such competition has the ability
should refer to File Number SR– and discussed any comments it received to promote efficiency by facilitating the
BatsBZX–2016–83 and should be on the proposed rule change. The text price discovery process and generating
submitted on or before January 3, 2017. of those statements may be examined at additional investor interest in trading
For the Commission, by the Division of the places specified in Item IV below. securities, thereby promoting capital
Trading and Markets, pursuant to delegated formation. The Exchange believes that
The Exchange has prepared summaries,
pmangrum on DSK3GDR082PROD with NOTICES
authority.27 extending the pilot is appropriate
set forth in sections A, B, and C below,
because it will allow the Exchange and
Eduardo A. Aleman, of the most significant parts of such
Assistant Secretary. statements. 4 See Securities Exchange Act Release No. 78600
[FR Doc. 2016–29801 Filed 12–12–16; 8:45 am] (August 17, 2016), 81 FR 57642 (August 23, 2016)
(SR–NYSE–2016–54).
BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). 5 See Securities Exchange Act Release No. 67347
2 15 U.S.C. 78a. (July 3, 2012), 77 FR 40673 (July 10, 2012) (‘‘RLP
27 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. Approval Order’’) (SR–NYSE–2011–55).
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![90020 Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Notices
the Commission additional time to C. Self-Regulatory Organization’s • Send an email to rule-comments@
analyze data regarding the Program that Statement on Comments on the sec.gov. Please include File Number SR–
the Exchange has committed to Proposed Rule Change Received From NYSE–2016–82 on the subject line.
provide.6 As such, the Exchange Members, Participants, or Others
believes that it is appropriate to extend Paper Comments
No written comments were solicited
the current operation of the Program.7 or received with respect to the proposed • Send paper comments in triplicate
Through this filing, the Exchange seeks
rule change. to Brent J. Fields, Secretary, Securities
to amend NYSE Rule 107C(m) and
III. Date of Effectiveness of the and Exchange Commission, 100 F Street
extend the current pilot period of the
Program until June 30, 2017. Proposed Rule Change and Timing for NE., Washington, DC 20549–1090.
Commission Action All submissions should refer to File
2. Statutory Basis
The Exchange has filed the proposed Number SR–NYSE–2016–82. This file
The proposed rule change is number should be included on the
consistent with Section 6(b) of the Act,8 rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 10 and Rule subject line if email is used. To help the
in general, and furthers the objectives of
19b–4(f)(6) thereunder.11 Because the Commission process and review your
Section 6(b)(5),9 in particular, in that it
is designed to promote just and proposed rule change does not: (i) comments more efficiently, please use
equitable principles of trade, to remove Significantly affect the protection of only one method. The Commission will
impediments to and perfect the investors or the public interest; (ii) post all comments on the Commission’s
mechanism of a free and open market impose any significant burden on Internet Web site (http://www.sec.gov/
and a national market system, and, in competition; and (iii) become operative rules/sro.shtml). Copies of the
general, to protect investors and the prior to 30 days from the date on which submission, all subsequent
public interest. The Exchange believes it was filed, or such shorter time as the amendments, all written statements
that extending the pilot period for the Commission may designate, if with respect to the proposed rule
Retail Liquidity Program is consistent consistent with the protection of change that are filed with the
with these principles because the investors and the public interest, the Commission, and all written
Program is reasonably designed to proposed rule change has become communications relating to the
attract retail order flow to the exchange effective pursuant to Section 19(b)(3)(A) proposed rule change between the
environment, while helping to ensure of the Act and Rule 19b–4(f)(6)(iii) Commission and any person, other than
that retail investors benefit from the thereunder.
those that may be withheld from the
better price that liquidity providers are At any time within 60 days of the
public in accordance with the
willing to give their orders. filing of such proposed rule change, the
provisions of 5 U.S.C. 552, will be
Additionally, as previously stated, the Commission summarily may
temporarily suspend such rule change if available for Web site viewing and
competition promoted by the Program printing in the Commission’s Public
may facilitate the price discovery it appears to the Commission that such
action is necessary or appropriate in the Reference Room, 100 F Street NE.,
process and potentially generate
public interest, for the protection of Washington, DC 20549 on official
additional investor interest in trading
securities. The extension of the pilot investors, or otherwise in furtherance of business days between the hours of
period will allow the Commission and the purposes of the Act. If the 10:00 a.m. and 3:00 p.m. Copies of the
the Exchange to continue to monitor the Commission takes such action, the filing also will be available for
Program for its potential effects on Commission shall institute proceedings inspection and copying at the principal
public price discovery, and on the under Section 19(b)(2)(B) 12 of the Act to office of the Exchange. All comments
broader market structure. determine whether the proposed rule received will be posted without change;
change should be approved or the Commission does not edit personal
B. Self-Regulatory Organization’s disapproved. identifying information from
Statement on Burden on Competition
IV. Solicitation of Comments submissions. You should submit only
The Exchange does not believe that information that you wish to make
the proposed rule change will impose Interested persons are invited to available publicly. All submissions
any burden on competition that is not submit written data, views, and should refer to File Number SR–NYSE–
necessary or appropriate in furtherance arguments concerning the foregoing, 2016–82 and should be submitted on or
of the purposes of the Act. The including whether the proposed rule before January 3, 2017.
proposed rule change simply extends an change is consistent with the Act.
established pilot program for an Comments may be submitted by any of For the Commission, by the Division of
additional six months, thus allowing the the following methods: Trading and Markets, pursuant to delegated
Retail Liquidity Program to enhance authority.13
competition for retail order flow and Electronic Comments Eduardo A. Aleman,
contribute to the public price discovery • Use the Commission’s Internet Assistant Secretary.
process. comment form (http://www.sec.gov/ [FR Doc. 2016–29799 Filed 12–12–16; 8:45 am]
rules/sro.shtml); or BILLING CODE 8011–01–P
6 See id. at 40681.
7 Concurrently with this filing, the Exchange has 10 15 U.S.C. 78s(b)(3)(A)(iii).
submitted a request for an extension of the 11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
pmangrum on DSK3GDR082PROD with NOTICES
exemption under Regulation NMS Rule 612 4(f)(6)(iii) requires the Exchange to give the
previously granted by the Commission that permits Commission written notice of the Exchange’s intent
it to accept and rank the undisplayed RPIs. See to file the proposed rule change, along with a brief
Letter from Martha Redding, Asst. Corporate description and text of the proposed rule change,
Secretary, NYSE Group, Inc. to Brent J. Fields, at least five business days prior to the date of filing
Secretary, Securities and Exchange Commission, of the proposed rule change, or such shorter time
dated November 28, 2016. as designated by the Commission. The Exchange
8 15 U.S.C. 78f(b). has satisfied this requirement.
9 15 U.S.C. 78f(b)(5). 12 15 U.S.C. 78s(b)(2)(B). 13 17 CFR 200.30–3(a)(12).
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Document Created: 2016-12-13 02:44:22
Document Modified: 2016-12-13 02:44:22
| 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 90019 |
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