81 FR 93975 - Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE MKT LLC; Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS In Connection With the Exchanges' Retail Liquidity Programs Until June 30, 2017
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 246 (December 22, 2016)
Federal Register Volume 81, Issue 246 (December 22, 2016)
| Page Range | 93975-93976 | |
| FR Document | 2016-30815 |
[Federal Register Volume 81, Number 246 (Thursday, December 22, 2016)] [Notices] [Pages 93975-93976] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-30815] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79587; File Nos. SR-NYSE-2011-55; SR-NYSEAmex-2011-84] Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE MKT LLC; Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS In Connection With the Exchanges' Retail Liquidity Programs Until June 30, 2017 December 16, 2016 On July 3, 2012, the Securities and Exchange Commission (``Commission'') issued an order pursuant to its authority under Rule 612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted the New York Stock Exchange LLC (``NYSE'') and NYSE MKT LLC \2\ (``NYSE MKT'' and, together with NYSE, the ``Exchanges'') limited exemptions from the Sub-Penny Rule in connection with the operation of the Exchanges' respective Retail Liquidity Programs (``Programs'').\3\ The limited exemptions were granted concurrently with the Commission's approval of the Exchanges' proposals to adopt their respective Programs for one- year pilot terms.\4\ The exemptions were granted coterminous with the effectiveness of the pilot Programs; both the pilot Programs and exemptions are scheduled to expire on December 31, 2016.\5\ --------------------------------------------------------------------------- \1\ 17 CFR 242.612(c). \2\ At the time it filed the original proposal to adopt the Retail Liquidity Program, NYSE MKT went by the name NYSE Amex LLC. On May 14, 2012, the Exchange filed a proposed rule change, immediately effective upon filing, to change its name from NYSE Amex LLC to NYSE MKT LLC. See Securities Exchange Act Release No. 67037 (May 21, 2012), 77 FR 31415 (May 25, 2012) (SR-NYSEAmex-2012-32). \3\ See Securities Exchange Act Release No. 67347 (July 3, 2012), 77 FR 40673 (July 10, 2012) (SR-NYSE-2011-55; SR-NYSEAmex- 2011-84) (``Order''). \4\ See id. \5\ The pilot terms of the Programs were originally scheduled to end on July 31, 2013, but the Exchanges initially extended the terms for an additional year, through July 31, 2014, see Securities Exchange Act Release Nos. 70096 (August 2, 2013), 78 FR 48520 (Aug. 8, 2013) (SR-NYSE-2013-48), and 70100 (Aug. 2, 2013), 78 FR 48535 (Aug. 8, 2013) (SR-NYSEMKT-2013-60), and then, through various extensions, through December 31, 2016. See Securities Exchange Act Release Nos. 72629 (July 16, 2014), 79 FR 42564 (July 22, 2014) (SR- NYSE-2014-35); 72625 (July 16, 2014), 79 FR 42566 (July 22, 2014) (SR-NYSEMKT-2014-60); 74454 (Mar. 6, 2015), 80 FR 13054 (Mar. 12, 2015) (SR-NYSE-2015-10); 74455 (Mar. 6, 2015), 80 FR 13047 (Mar. 12, 2015) (SR-NYSEMKT-2015-14); 75993 (Sept. 28, 2015), 80 FR 59844 (Oct. 2, 2015) (SR-NYSE-2015-41); 75995 (Sept. 28, 2015), 80 FR 59836 (Oct. 2, 2015) (SR-NYSEMKT-2015-69); 77426 (Mar. 23, 2016), 81 FR 17533 (Mar. 29, 2016) (SR-NYSE-2016-25); 77424 (Mar. 23, 2016), 81 FR 17522 (Mar. 29, 2016) (SR-NYSEMKT-2016-39); 78600 (Aug. 17, 2016), 81 FR 57642 (Aug. 23, 2016) (SR-NYSE-2016-54); and 78602 (Aug. 17, 2016), 81 FR 57639 (Aug. 23, 2016) (SR-NYSEMKT-2016-76). Each time the pilot terms of the Programs were extended, the Commission also granted the Exchanges' requests to extend the Sub- Penny exemptions. See Securities Exchange Act Release Nos. 70085 (July 31, 2013), 78 FR 47807 (Aug. 6, 2013); 72732 (July 31, 2014), 79 FR 45851 (Aug. 6, 2014); 74507 (Mar. 13, 2015), 80 FR 14421 (Mar. 19, 2015); 76020 (Sept. 29, 2015), 80 FR 60201 (Oct. 5, 2015); 77438 (Mar. 24, 2016), 81 FR 17752 (Mar. 30, 2016); and 78678 (Aug. 25, 2016), 81 FR 60031 (Aug. 31, 2016). The current exemptions expire December 31, 2016. --------------------------------------------------------------------------- [[Page 93976]] The Exchanges now seek to extend the exemptions until June 30, 2017.\6\ The Exchanges' request was made in conjunction with immediately effective filings that extend the operation of the Programs through the same date.\7\ In their request to extend the exemptions, the Exchanges note that the participation in the Programs has increased more recently. Accordingly, the Exchanges have asked for additional time to allow themselves and the Commission to analyze more robust data concerning the Programs, which the Exchanges committed to provide to the Commission.\8\ For this reason and the reasons stated in the Order originally granting the limited exemptions, the Commission finds that extending the exemptions, pursuant to its authority under Rule 612(c) of Regulation NMS, is appropriate in the public interest and consistent with the protection of investors. --------------------------------------------------------------------------- \6\ See Letter from Martha Redding, Assistant Secretary, NYSE, to Brent J. Fields, Secretary, Securities and Exchange Commission, dated November 28, 2016. \7\ See Securities Exchange Act Release Nos. 79493 (Dec. 7, 2016), 81 FR 90019 (Dec. 13, 2016) (SR-NYSE-2016-82), and 79509 (Dec. 8, 2016), 81 FR 90389 (Dec. 14, 2016) (SR-NYSEMKT-2016-112). \8\ See Order, supra note 3, 77 FR at 40681. --------------------------------------------------------------------------- Therefore, it is hereby ordered that, pursuant to Rule 612(c) of Regulation NMS, each Exchange is granted a limited exemption from Rule 612 of Regulation NMS that allows it to accept and rank orders priced equal to or greater than $1.00 per share in increments of $0.001, in connection with the operation of its Retail Liquidity Program, until June 30, 2017. The limited and temporary exemptions extended by this Order are subject to modification or revocation if at any time the Commission determines that such action is necessary or appropriate in furtherance of the purposes of the Securities Exchange Act of 1934. Responsibility for compliance with any applicable provisions of the Federal securities laws must rest with the persons relying on the exemptions that are the subject of this Order. --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(83). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ Brent J. Fields, Secretary. [FR Doc. 2016-30815 Filed 12-21-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Notices 93975
POSTAL SERVICE www.prc.gov, Docket Nos. MC2017–54, 3642 and 3632(b)(3), on December 15,
CP2017–80. 2016, it filed with the Postal Regulatory
Product Change—Priority Mail Commission a Request of the United
Negotiated Service Agreement Stanley F. Mires,
States Postal Service to Add Priority
Attorney, Federal Compliance. Mail & First-Class Package Service
AGENCY: Postal ServiceTM. [FR Doc. 2016–30799 Filed 12–21–16; 8:45 am] Contract 42 to Competitive Product List.
ACTION: Notice. BILLING CODE 7710–12–P Documents are available at
www.prc.gov, Docket Nos. MC2017–56,
SUMMARY: The Postal Service gives CP2017–82.
POSTAL SERVICE
notice of filing a request with the Postal Stanley F. Mires,
Regulatory Commission to add a Product Change—First-Class Package Attorney, Federal Compliance.
domestic shipping services contract to Service Negotiated Service Agreement [FR Doc. 2016–30790 Filed 12–21–16; 8:45 am]
the list of Negotiated Service
AGENCY: Postal ServiceTM. BILLING CODE 7710–12–P
Agreements in the Mail Classification
Schedule’s Competitive Products List. ACTION: Notice.
DATES: Effective date: December 22, SUMMARY: The Postal Service gives SECURITIES AND EXCHANGE
2016. notice of filing a request with the Postal COMMISSION
Regulatory Commission to add a [Release No. 34–79587; File Nos. SR–NYSE–
FOR FURTHER INFORMATION CONTACT:
domestic shipping services contract to 2011–55; SR–NYSEAmex–2011–84]
Elizabeth A. Reed, 202–268–3179.
the list of Negotiated Service
SUPPLEMENTARY INFORMATION: The Agreements in the Mail Classification Self-Regulatory Organizations; New
United States Postal Service® hereby Schedule’s Competitive Products List. York Stock Exchange LLC; NYSE MKT
gives notice that, pursuant to 39 U.S.C. DATES: Effective date: December 22, LLC; Order Granting an Extension to
3642 and 3632(b)(3), on December 15, 2016. Limited Exemptions From Rule 612(c)
2016, it filed with the Postal Regulatory of Regulation NMS In Connection With
FOR FURTHER INFORMATION CONTACT:
Commission a Request of the United the Exchanges’ Retail Liquidity
States Postal Service to Add Priority Elizabeth A. Reed, 202–268–3179.
Programs Until June 30, 2017
Mail Contract 278 to Competitive SUPPLEMENTARY INFORMATION: The
Product List. Documents are available at United States Postal Service® hereby December 16, 2016
www.prc.gov, Docket Nos. MC2017–57, gives notice that, pursuant to 39 U.S.C. On July 3, 2012, the Securities and
CP2017–83. 3642 and 3632(b)(3), on December 15, Exchange Commission (‘‘Commission’’)
2016, it filed with the Postal Regulatory issued an order pursuant to its authority
Stanley F. Mires, Commission a Request of the United under Rule 612(c) of Regulation NMS
Attorney, Federal Compliance. States Postal Service to Add First-Class (‘‘Sub-Penny Rule’’) 1 that granted the
[FR Doc. 2016–30798 Filed 12–21–16; 8:45 am] Package Service Contract 70 to New York Stock Exchange LLC
BILLING CODE 7710–12–P Competitive Product List. Documents (‘‘NYSE’’) and NYSE MKT LLC 2
are available at www.prc.gov, Docket (‘‘NYSE MKT’’ and, together with
Nos. MC2017–55, CP2017–81. NYSE, the ‘‘Exchanges’’) limited
POSTAL SERVICE exemptions from the Sub-Penny Rule in
Stanley F. Mires,
connection with the operation of the
Product Change—Priority Mail Attorney, Federal Compliance. Exchanges’ respective Retail Liquidity
Negotiated Service Agreement [FR Doc. 2016–30789 Filed 12–21–16; 8:45 am] Programs (‘‘Programs’’).3 The limited
BILLING CODE 7710–12–P exemptions were granted concurrently
AGENCY: Postal ServiceTM. with the Commission’s approval of the
ACTION: Notice. Exchanges’ proposals to adopt their
POSTAL SERVICE respective Programs for one-year pilot
SUMMARY: The Postal Service gives terms.4 The exemptions were granted
Product Change—Priority Mail and
notice of filing a request with the Postal coterminous with the effectiveness of
First-Class Package Service
Regulatory Commission to add a the pilot Programs; both the pilot
Negotiated Service Agreement
domestic shipping services contract to Programs and exemptions are scheduled
the list of Negotiated Service AGENCY: Postal ServiceTM. to expire on December 31, 2016.5
Agreements in the Mail Classification ACTION: Notice.
1 17 CFR 242.612(c).
Schedule’s Competitive Products List.
2 At the time it filed the original proposal to adopt
SUMMARY: The Postal Service gives
DATES: Effective date: December 22, notice of filing a request with the Postal the Retail Liquidity Program, NYSE MKT went by
2016. the name NYSE Amex LLC. On May 14, 2012, the
Regulatory Commission to add a Exchange filed a proposed rule change,
FOR FURTHER INFORMATION CONTACT: domestic shipping services contract to immediately effective upon filing, to change its
the list of Negotiated Service name from NYSE Amex LLC to NYSE MKT LLC.
Elizabeth A. Reed, 202–268–3179. See Securities Exchange Act Release No. 67037
Agreements in the Mail Classification (May 21, 2012), 77 FR 31415 (May 25, 2012) (SR–
SUPPLEMENTARY INFORMATION: The Schedule’s Competitive Products List. NYSEAmex–2012–32).
United States Postal Service® hereby
sradovich on DSK3GMQ082PROD with NOTICES
DATES: Effective date: December 22, 3 See Securities Exchange Act Release No. 67347
gives notice that, pursuant to 39 U.S.C. 2016. (July 3, 2012), 77 FR 40673 (July 10, 2012) (SR–
3642 and 3632(b)(3), on December 15, NYSE–2011–55; SR–NYSEAmex–2011–84)
2016, it filed with the Postal Regulatory FOR FURTHER INFORMATION CONTACT: (‘‘Order’’).
Commission a Request of the United Elizabeth A. Reed, 202–268–3179. 4 See id.
5 The pilot terms of the Programs were originally
States Postal Service to Add Priority SUPPLEMENTARY INFORMATION: The scheduled to end on July 31, 2013, but the
Mail Contract 277 to Competitive United States Postal Service® hereby Exchanges initially extended the terms for an
Product List. Documents are available at gives notice that, pursuant to 39 U.S.C. Continued
VerDate Sep<11>2014 17:40 Dec 21, 2016 Jkt 241001 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 E:\FR\FM\22DEN1.SGM 22DEN1](https://thefederalregister.org/doc/81_FR_94221/page/1.svg)
![93976 Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Notices
The Exchanges now seek to extend with the operation of its Retail Liquidity change is available on the Exchange’s
the exemptions until June 30, 2017.6 Program, until June 30, 2017. Web site at www.nyse.com, at the
The Exchanges’ request was made in The limited and temporary principal office of the Exchange, and at
conjunction with immediately effective exemptions extended by this Order are the Commission’s Public Reference
filings that extend the operation of the subject to modification or revocation if Room.
Programs through the same date.7 In at any time the Commission determines
that such action is necessary or II. Self-Regulatory Organization’s
their request to extend the exemptions,
appropriate in furtherance of the Statement of the Purpose of, and
the Exchanges note that the
purposes of the Securities Exchange Act Statutory Basis for, the Proposed Rule
participation in the Programs has
of 1934. Responsibility for compliance Change
increased more recently. Accordingly,
the Exchanges have asked for additional with any applicable provisions of the In its filing with the Commission, the
time to allow themselves and the Federal securities laws must rest with self-regulatory organization included
Commission to analyze more robust data the persons relying on the exemptions statements concerning the purpose of,
concerning the Programs, which the that are the subject of this Order. and basis for, the proposed rule change
Exchanges committed to provide to the For the Commission, by the Division of and discussed any comments it received
Commission.8 For this reason and the Trading and Markets, pursuant to delegated on the proposed rule change. The text
reasons stated in the Order originally authority.9 of those statements may be examined at
granting the limited exemptions, the Brent J. Fields, the places specified in Item IV below.
Commission finds that extending the Secretary. The Exchange has prepared summaries,
exemptions, pursuant to its authority [FR Doc. 2016–30815 Filed 12–21–16; 8:45 am] set forth in sections A, B, and C below,
under Rule 612(c) of Regulation NMS, is BILLING CODE 8011–01–P
of the most significant parts of such
appropriate in the public interest and statements.
consistent with the protection of A. Self-Regulatory Organization’s
investors. SECURITIES AND EXCHANGE Statement of the Purpose of, and
Therefore, it is hereby ordered that, COMMISSION Statutory Basis for, the Proposed Rule
pursuant to Rule 612(c) of Regulation [Release No. 34–79582; File No. SR–NYSE– Change
NMS, each Exchange is granted a 2016–70]
limited exemption from Rule 612 of 1. Purpose
Regulation NMS that allows it to accept Self-Regulatory Organizations; New The Exchange proposes to amend
and rank orders priced equal to or York Stock Exchange LLC; Notice of Section 902.02 of the Manual to adopt
greater than $1.00 per share in Filing and Immediate Effectiveness of a fee cap specific to Investment
increments of $0.001, in connection Proposed Rule Change Amending Management Entities and their eligible
Section 902.02 of the NYSE Listed portfolio companies.
additional year, through July 31, 2014, see Company Manual To Adopt a Fee Cap An Investment Management Entity for
Securities Exchange Act Release Nos. 70096 Specific to Investment Management purposes of this provision would be
(August 2, 2013), 78 FR 48520 (Aug. 8, 2013) (SR– Entities and Their Eligible Portfolio defined as a listed company which
NYSE–2013–48), and 70100 (Aug. 2, 2013), 78 FR
48535 (Aug. 8, 2013) (SR–NYSEMKT–2013–60), Companies manages private investment vehicles
and then, through various extensions, through that are not registered under the
December 16, 2016.
December 31, 2016. See Securities Exchange Act Investment Company Act. There are a
Release Nos. 72629 (July 16, 2014), 79 FR 42564 Pursuant to Section 19(b)(1) 1 of the small number of such companies listed
(July 22, 2014) (SR–NYSE–2014–35); 72625 (July Securities Exchange Act of 1934 (the on the NYSE that engage in the business
16, 2014), 79 FR 42566 (July 22, 2014) (SR– ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
NYSEMKT–2014–60); 74454 (Mar. 6, 2015), 80 FR of managing such private equity funds.
13054 (Mar. 12, 2015) (SR–NYSE–2015–10); 74455 notice is hereby given that, on December Through these private equity funds,
(Mar. 6, 2015), 80 FR 13047 (Mar. 12, 2015) (SR– 5, 2016, New York Stock Exchange LLC Investment Management Entities invest
NYSEMKT–2015–14); 75993 (Sept. 28, 2015), 80 FR (‘‘NYSE’’ or the ‘‘Exchange’’) filed with in private companies. Investment
59844 (Oct. 2, 2015) (SR–NYSE–2015–41); 75995 the Securities and Exchange
(Sept. 28, 2015), 80 FR 59836 (Oct. 2, 2015) (SR– Management Entities typically provide
NYSEMKT–2015–69); 77426 (Mar. 23, 2016), 81 FR Commission (the ‘‘Commission’’) the significant managerial and advisory
17533 (Mar. 29, 2016) (SR–NYSE–2016–25); 77424 proposed rule change as described in assistance to their portfolio companies.
(Mar. 23, 2016), 81 FR 17522 (Mar. 29, 2016) (SR– Items I, II, and III below, which Items An Investment Management Entity will
NYSEMKT–2016–39); 78600 (Aug. 17, 2016), 81 FR have been prepared by the self-
57642 (Aug. 23, 2016) (SR–NYSE–2016–54); and frequently seek to exit its funds’
78602 (Aug. 17, 2016), 81 FR 57639 (Aug. 23, 2016) regulatory organization. The investment in a privately-held portfolio
(SR–NYSEMKT–2016–76). Each time the pilot Commission is publishing this notice to company by conducting an initial
terms of the Programs were extended, the solicit comments on the proposed rule public offering on behalf of that
Commission also granted the Exchanges’ requests to change from interested persons.
extend the Sub-Penny exemptions. See Securities portfolio company. The Investment
Exchange Act Release Nos. 70085 (July 31, 2013), I. Self-Regulatory Organization’s Management Entity does not typically
78 FR 47807 (Aug. 6, 2013); 72732 (July 31, 2014), Statement of the Terms of the Substance sell shares in the IPO but, rather, shares
79 FR 45851 (Aug. 6, 2014); 74507 (Mar. 13, 2015),
80 FR 14421 (Mar. 19, 2015); 76020 (Sept. 29, 2015), of the Proposed Rule Change not sold in the IPO are gradually sold off
80 FR 60201 (Oct. 5, 2015); 77438 (Mar. 24, 2016), The Exchange proposes to amend over a period of years in the public
81 FR 17752 (Mar. 30, 2016); and 78678 (Aug. 25,
Section 902.02 of the NYSE Listed market. While these Investment
2016), 81 FR 60031 (Aug. 31, 2016). The current Management Entities have control or
exemptions expire December 31, 2016. Company Manual (the ‘‘Manual’’) to
influence over the decision making of
sradovich on DSK3GMQ082PROD with NOTICES
6 See Letter from Martha Redding, Assistant adopt a fee cap specific to Investment
Secretary, NYSE, to Brent J. Fields, Secretary, Management Entities and their eligible their portfolio companies in both their
Securities and Exchange Commission, dated
portfolio companies. The proposed rule pre- and post-public phases, the
November 28, 2016. decision as to where to list is typically
7 See Securities Exchange Act Release Nos. 79493
9 17 CFR 200.30–3(a)(83). made jointly by the portfolio company’s
(Dec. 7, 2016), 81 FR 90019 (Dec. 13, 2016) (SR–
NYSE–2016–82), and 79509 (Dec. 8, 2016), 81 FR 1 15 U.S.C. 78s(b)(1). senior management team and the
90389 (Dec. 14, 2016) (SR–NYSEMKT–2016–112). 2 15 U.S.C. 78a. Investment Management Entity. The
8 See Order, supra note 3, 77 FR at 40681. 3 17 CFR 240.19b–4. Exchange benefits from its ongoing
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Document Created: 2016-12-21 23:52:06
Document Modified: 2016-12-21 23:52:06
| 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 93975 |
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