81 FR 90389 - Self-Regulatory Organizations; NYSE MKT 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 240 (December 14, 2016)
Federal Register Volume 81, Issue 240 (December 14, 2016)
| Page Range | 90389-90390 | |
| FR Document | 2016-29939 |
[Federal Register Volume 81, Number 240 (Wednesday, December 14, 2016)] [Notices] [Pages 90389-90390] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-29939] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79509; File No. SR-NYSEMKT-2016-112] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period for the Exchange's Retail Liquidity Program December 8, 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, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') 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. 78602 (August 17, 2016), 81 FR 57639 (August 23, 2016) (SR-NYSEMKT-2016-76). --------------------------------------------------------------------------- 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- NYSEAmex-2011-84). --------------------------------------------------------------------------- The Retail Liquidity Program was approved by the Commission on a pilot basis. Pursuant to NYSE MKT Rule 107C(m)--Equities, 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 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 MKT Rule 107C(m)--Equities 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\ [[Page 90390]] 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-NYSEMKT-2016-112 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-NYSEMKT-2016-112. 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-NYSEMKT-2016-112 and should be submitted on or before January 4, 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. 2016-29939 Filed 12-13-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 240 / Wednesday, December 14, 2016 / Notices 90389
notice is hereby given that an Atomic ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with equal to or greater than $1.00 per share.
Safety and Licensing Board (Board) is the Securities and Exchange Under the Program, Retail Liquidity
being established to preside over the Commission (the ‘‘Commission’’) the Providers (‘‘RLPs’’) are able to provide
following proceeding: proposed rule change as described in potential price improvement in the form
Items I and II below, which Items have of a non-displayed order that is priced
DTE Electric Company (Fermi Nuclear been prepared by the self-regulatory better than the Exchange’s best
Power Plant, Unit 2) organization. The Commission is protected bid or offer (‘‘PBBO’’), called
This proceeding—which was publishing this notice to solicit a Retail Price Improvement Order
previously terminated by a Board on comments on the proposed rule change (‘‘RPI’’). When there is an RPI in a
September 11, 2015, see LBP–15–25, 82 from interested persons. particular security, the Exchange
NRC 161 (2015)—involves an disseminates an indicator, known as the
application by DTE Electric Company to I. Self-Regulatory Organization’s
Statement of the Terms of Substance of Retail Liquidity Identifier, indicating
renew for twenty years its operating that such interest exists. Retail Member
the Proposed Rule Change
license for Fermi Nuclear Power Plant, Organizations (‘‘RMOs’’) can submit a
Unit 2, located near Frenchtown The Exchange proposes to extend the Retail Order to the Exchange, which
Township, Michigan. On November 21, pilot period for the Exchange’s Retail would interact, to the extent possible,
2016, Citizen’s Resistance at Fermi 2 Liquidity Program (the ‘‘Retail Liquidity with available contra-side RPIs.
filed a motion to reopen the record and Program’’ or the ‘‘Program’’), which is The Retail Liquidity Program was
admit a new contention. currently scheduled to expire on approved by the Commission on a pilot
The Board is comprised of the December 31, 2016, until June 30, 2017. basis. Pursuant to NYSE MKT Rule
following Administrative Judges: The proposed rule change is available 107C(m)—Equities, the pilot period for
Ronald M. Spritzer, Chairman, Atomic on the Exchange’s Web site at the Program is scheduled to end on
Safety and Licensing Board Panel, www.nyse.com, at the principal office of December 31, 2016.
U.S. Nuclear Regulatory Commission, the Exchange, and at the Commission’s
Washington, DC 20555–0001 Public Reference Room. Proposal to Extend the Operation of the
Dr. Gary S. Arnold, Atomic Safety and Program
II. Self-Regulatory Organization’s
Licensing Board Panel, U.S. Nuclear Statement of the Purpose of, and The Exchange established the Retail
Regulatory Commission, Washington, Statutory Basis for, the Proposed Rule Liquidity Program in an attempt to
DC 20555–0001 Change attract retail order flow to the Exchange
Dr. Sue H. Abreu, Atomic Safety and by potentially providing price
Licensing Board Panel, U.S. Nuclear In its filing with the Commission, the
self-regulatory organization included improvement to such order flow. The
Regulatory Commission, Washington, Exchange believes that the Program
DC 20555–0001 statements concerning the purpose of,
and basis for, the proposed rule change promotes competition for retail order
All correspondence, documents, and and discussed any comments it received flow by allowing Exchange members to
other material shall be filed in on the proposed rule change. The text submit RPIs to interact with Retail
accordance with the NRC E-Filing rule. of those statements may be examined at Orders. Such competition has the ability
See 10 CFR 2.302. the places specified in Item IV below. to promote efficiency by facilitating the
Rockville, Maryland. The Exchange has prepared summaries, price discovery process and generating
Dated: December 7, 2016. set forth in sections A, B, and C below, additional investor interest in trading
E. Roy Hawkens, of the most significant parts of such securities, thereby promoting capital
statements. formation. The Exchange believes that
Chief Administrative Judge, Atomic Safety
and Licensing Board Panel.
extending the pilot is appropriate
A. Self-Regulatory Organization’s because it will allow the Exchange and
[FR Doc. 2016–29881 Filed 12–13–16; 8:45 am] Statement of the Purpose of, and the the Commission additional time to
BILLING CODE 7590–01–P Statutory Basis for, the Proposed Rule analyze data regarding the Program that
Change the Exchange has committed to
1. Purpose provide.6 As such, the Exchange
SECURITIES AND EXCHANGE believes that it is appropriate to extend
COMMISSION The purpose of this filing is to extend
the current operation of the Program.7
the pilot period of the Retail Liquidity
[Release No. 34–79509; File No. SR– Through this filing, the Exchange seeks
Program, currently scheduled to expire
NYSEMKT–2016–112] to amend NYSE MKT Rule 107C(m)—
on December 31, 2016,4 until June 30,
Equities and extend the current pilot
Self-Regulatory Organizations; NYSE 2017.
period of the Program until June 30,
MKT LLC; Notice of Filing and Background 2017.
Immediate Effectiveness of Proposed
In July 2012, the Commission 2. Statutory Basis
Rule Change To Extend the Pilot approved the Retail Liquidity Program
Period for the Exchange’s Retail on a pilot basis.5 The Program is The proposed rule change is
Liquidity Program designed to attract retail order flow to consistent with Section 6(b) of the Act,8
December 8, 2016. the Exchange, and allows such order
6 See id. at 40681.
Pursuant to Section 19(b)(1) 1 of the flow to receive potential price
7 Concurrently with this filing, the Exchange has
improvement. The Program is currently
sradovich on DSK3GMQ082PROD with NOTICES
Securities Exchange Act of 1934 (the submitted a request for an extension of the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 limited to trades occurring at prices exemption under Regulation NMS Rule 612
notice is hereby given that on November previously granted by the Commission that permits
4 See Securities Exchange Act Release No. 78602 it to accept and rank the undisplayed RPIs. See
28, 2016, NYSE MKT LLC (the Letter from Martha Redding, Asst. Corporate
(August 17, 2016), 81 FR 57639 (August 23, 2016)
(SR–NYSEMKT–2016–76). Secretary, NYSE Group, Inc. to Brent J. Fields,
1 15 U.S.C. 78s(b)(1). 5 See Securities Exchange Act Release No. 67347 Secretary, Securities and Exchange Commission,
2 15 U.S.C. 78a. dated November 28, 2016.
(July 3, 2012), 77 FR 40673 (July 10, 2012) (‘‘RLP
3 17 CFR 240.19b–4. Approval Order’’) (SR–NYSEAmex–2011–84). 8 15 U.S.C. 78f(b).
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![90390 Federal Register / Vol. 81, No. 240 / Wednesday, December 14, 2016 / Notices
in general, and furthers the objectives of proposed rule change does not: (i) with respect to the proposed rule
Section 6(b)(5),9 in particular, in that it Significantly affect the protection of change that are filed with the
is designed to promote just and investors or the public interest; (ii) Commission, and all written
equitable principles of trade, to remove impose any significant burden on communications relating to the
impediments to and perfect the competition; and (iii) become operative proposed rule change between the
mechanism of a free and open market prior to 30 days from the date on which Commission and any person, other than
and a national market system, and, in it was filed, or such shorter time as the those that may be withheld from the
general, to protect investors and the Commission may designate, if public in accordance with the
public interest. The Exchange believes consistent with the protection of provisions of 5 U.S.C. 552, will be
that extending the pilot period for the investors and the public interest, the available for Web site viewing and
Retail Liquidity Program is consistent proposed rule change has become printing in the Commission’s Public
with these principles because the effective pursuant to Section 19(b)(3)(A) Reference Room, 100 F Street NE.,
Program is reasonably designed to of the Act and Rule 19b–4(f)(6)(iii) Washington, DC 20549 on official
attract retail order flow to the exchange thereunder. business days between the hours of
environment, while helping to ensure At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the
that retail investors benefit from the filing of such proposed rule change, the filing also will be available for
better price that liquidity providers are Commission summarily may inspection and copying at the principal
willing to give their orders. temporarily suspend such rule change if office of the Exchange. All comments
Additionally, as previously stated, the it appears to the Commission that such received will be posted without change;
competition promoted by the Program action is necessary or appropriate in the the Commission does not edit personal
may facilitate the price discovery public interest, for the protection of identifying information from
process and potentially generate investors, or otherwise in furtherance of submissions. You should submit only
additional investor interest in trading the purposes of the Act. If the information that you wish to make
securities. The extension of the pilot Commission takes such action, the available publicly. All submissions
period will allow the Commission and Commission shall institute proceedings should refer to File Number SR–
the Exchange to continue to monitor the under Section 19(b)(2)(B) 12 of the Act to NYSEMKT–2016–112 and should be
Program for its potential effects on determine whether the proposed rule submitted on or before January 4, 2017.
public price discovery, and on the change should be approved or For the Commission, by the Division of
broader market structure. disapproved. Trading and Markets, pursuant to delegated
B. Self-Regulatory Organization’s IV. Solicitation of Comments authority.13
Statement on Burden on Competition Eduardo A. Aleman,
Interested persons are invited to
Assistant Secretary.
The Exchange does not believe that submit written data, views, and
[FR Doc. 2016–29939 Filed 12–13–16; 8:45 am]
the proposed rule change will impose arguments concerning the foregoing,
including whether the proposed rule BILLING CODE 8011–01–P
any burden on competition that is not
necessary or appropriate in furtherance change is consistent with the Act.
of the purposes of the Act. The Comments may be submitted by any of
the following methods: SECURITIES AND EXCHANGE
proposed rule change simply extends an COMMISSION
established pilot program for an Electronic Comments
additional six months, thus allowing the
Retail Liquidity Program to enhance • Use the Commission’s Internet [Investment Company Act Release No.
comment form (http://www.sec.gov/ 32384; File No. 812–14543]
competition for retail order flow and
contribute to the public price discovery rules/sro.shtml); or
• Send an email to rule-comments@ ALAIA Market Linked Trust and Beech
process. Hill Securities, Inc.; Notice of
sec.gov. Please include File Number SR–
C. Self-Regulatory Organization’s NYSEMKT–2016–112 on the subject Application
Statement on Comments on the line. December 8, 2016.
Proposed Rule Change Received From
Paper Comments AGENCY: Securities and Exchange
Members, Participants, or Others
Commission (‘‘Commission’’).
No written comments were solicited • Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities ACTION: Notice of an application for an
or received with respect to the proposed order under section 12(d)(1)(J) of the
rule change. and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090. Investment Company Act of 1940 (the
III. Date of Effectiveness of the All submissions should refer to File ‘‘Act’’) for an exemption from sections
Proposed Rule Change and Timing for Number SR–NYSEMKT–2016–112. This 12(d)(1)(A), (B), and (C) of the Act and
Commission Action file number should be included on the under sections 6(c) and 17(b) of the Act
subject line if email is used. To help the for an exemption from sections 17(a)(1)
The Exchange has filed the proposed and (2) of the Act. The requested order
rule change pursuant to Section Commission process and review your
comments more efficiently, please use would permit certain registered unit
19(b)(3)(A)(iii) of the Act 10 and Rule investment trusts (‘‘UITs’’) to acquire
19b–4(f)(6) thereunder.11 Because the only one method. The Commission will
post all comments on the Commission’s shares of certain registered open-end
investment companies, registered
sradovich on DSK3GMQ082PROD with NOTICES
9 15 U.S.C. 78f(b)(5). Internet Web site (http://www.sec.gov/
10 15 U.S.C. 78s(b)(3)(A)(iii). rules/sro.shtml). Copies of the closed-end investment companies and
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
submission, all subsequent registered UITs (collectively, the
4(f)(6)(iii) requires the Exchange to give the
amendments, all written statements ‘‘Underlying Funds’’) that are within
Commission written notice of the Exchange’s intent and outside the same group of
to file the proposed rule change, along with a brief investment companies as the acquiring
description and text of the proposed rule change, as designated by the Commission. The Exchange
at least five business days prior to the date of filing has satisfied this requirement.
of the proposed rule change, or such shorter time 12 15 U.S.C. 78s(b)(2)(B). 13 17 CFR 200.30–3(a)(12).
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Document Created: 2016-12-14 00:48:49
Document Modified: 2016-12-14 00:48:49
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 90389 |
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