81_FR_95926 81 FR 95677 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 123D and the Listed Company Manual

81 FR 95677 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 123D and the Listed Company Manual

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 249 (December 28, 2016)

Page Range95677-95679
FR Document2016-31299

Federal Register, Volume 81 Issue 249 (Wednesday, December 28, 2016)
[Federal Register Volume 81, Number 249 (Wednesday, December 28, 2016)]
[Notices]
[Pages 95677-95679]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31299]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79637; File No. SR-NYSE-2016-86]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending Rule 123D and the Listed Company Manual

December 21, 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 December 13, 2016, New York Stock Exchange LLC (``NYSE'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. The

[[Page 95678]]

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 123D and the Listed Company 
Manual to eliminate the requirement for Floor Official approval for 
halts in trading. The proposed rule change is available on the 
Exchange's Web site at www.nyse.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to amend Rule 123D and the Listed Company 
Manual to eliminate the requirement for Floor Official \4\ approval 
before halting trading in a security. The Exchange believes that in 
today's trading environment, the requirement for Floor Official 
approval before halting trading in a security is unnecessary and 
duplicative of Exchange obligations to assess whether to halt trading 
in a security under Section 202.06 of the Listed Company Manual.
---------------------------------------------------------------------------

    \4\ ``Floor Official'' encompasses Floor Governor, Floor 
Official, Executive Floor Governor and Senior Floor Governor, as 
their responsibilities are currently assigned in connection with 
trading halts. See also Rules 46 and 46A defining Floor Governor, 
Floor Official, and Executive Floor Governor.
---------------------------------------------------------------------------

    Current Rule 123D(d) provides that once trading has commenced, 
trading may only be halted with the approval of a Floor Governor or two 
Floor Officials and that an Executive Floor Governor, or in their 
absence a Senior Floor Governor, should be consulted if it is felt that 
trading should be halted in a bank or brokerage stock due to a 
potential misperception regarding the company's financial viability.\5\ 
The rule further provides that if a listed company notifies the 
Exchange in advance of publication concerning news which might have a 
substantial market impact, the Exchange should advise an Executive 
Floor Governor or Floor Governor, or in their absence, a Floor 
Official, and specifies procedures for Floor Governors to overrule the 
Exchange's determination that a security should be halted.
---------------------------------------------------------------------------

    \5\ See Rules 46 and 46A (defining the terms Floor Official, 
Senior Floor Official, Executive Floor Official, Floor Governor, and 
Executive Floor Governor).
---------------------------------------------------------------------------

    Commensurate with the evolution of the equities markets and trading 
on the Exchange towards more automated processes, the procedures and 
situations requiring approvals by Floor Officials have also evolved. 
For example, the Exchange previously eliminated the ability of a Floor 
broker to seek an exception to Rule 122 requirements if Floor Official 
permission is obtained.\6\ In connection with trading halts, the 
Exchange is responsible for determining whether to halt trading in a 
security under Section 202.06(B) of the Listed Company Manual. Thus, 
requiring Floor Official approval before a trading halt can be invoked 
is an unnecessary pro forma step rather than a substantive requirement. 
Moreover, obtaining Floor Governor approval adds an extra manual step 
to the process, which could impede the timely dissemination of a 
trading halt. Finally, given market fragmentation and highly automated 
equities trading environment, the Exchange does not believe that Floor 
Governors, who do not have contact with the listed company, should be 
in a position to override an Exchange determination to halt trading in 
a security. Consequently, the Exchange proposes to delete Rule 123D(d) 
in its entirety as unnecessary and duplicative of existing Exchange 
obligations specified in the Listed Company Manual.
---------------------------------------------------------------------------

    \6\ See also Securities Exchange Act Release No. 67345 (July 3, 
2012), 77 FR 40683 (July 10, 2012) (SR-NYSE-2012-20) (notice of 
filing and immediate effectiveness of proposed rule change amending 
certain Exchange rules related to floor official duties and 
responsibilities).
---------------------------------------------------------------------------

    The Exchange also proposes to make a related change to Section 
202.06(B) of the Listed Company Manual to delete two references to Rule 
123D that would be rendered obsolete by the proposed deletion of Rule 
123D(d). In addition, the Exchange proposes to re-letter the remaining 
subsections of Rule 123D to account for the deletion of Rule 123D(d).
    The Exchange proposes to make a related change to eliminate the 
requirement in Rule 123D(e) that an ``Equipment Changeover'' halt in 
trading requires the approval of a Floor Governor or two Floor 
Officials as such approval is no longer necessary. An Equipment 
Changeover halt is a non-regulatory halt condition that only halts 
trading on the Exchange. The Exchange believes that if circumstances 
arise warranting an Equipment Changeover halt, obtaining Floor Official 
approval before halting trading adds an unnecessary step that is no 
longer needed in today's automated markets.
    Because of the procedural changes associated with the proposed rule 
changes, the Exchange proposes to announce the eliminations via Trader 
Update and anticipates implementing the changes in the first quarter of 
2017.
2. Statutory Basis
    The proposed rule changes are consistent with Section 6(b) \7\ of 
the Act, in general, and furthers the objectives of Section 6(b)(5),\8\ 
in particular, in that they are designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule changes support the 
objectives of the Act by amending duties and responsibilities once 
assigned to Floor Officials to better comport with the Exchange's 
current regulatory structure and to reflect the changing technology and 
development of its automated systems. Specifically, eliminating the 
unnecessary step of obtaining Floor Official approval in connection 
with trading halts would remove impediments to and perfect a national 
market system by streamlining and simplifying functionality and 
complexity in connection with trading halts. The Exchange believes that 
streamlining the procedures and eliminating unnecessary Floor Official 
approval requirements would be consistent with the public interest and 
the protection of investors because investors will not be harmed and in 
fact would benefit from the removal of unnecessary functionality. The 
Exchange also believes that eliminating Floor Official approval would 
benefit investors by adding transparency and clarity to the Exchange's 
rules.

[[Page 95679]]

    The Exchange believes that the proposed deletion of two references 
to Rule 123D in Section 202.06B of the Listed Company Manual is 
reasonable, equitable and not unfairly discriminatory because the 
references are obsolete. The proposed changes would result in the 
removal of obsolete text from the Listed Company Manual and therefore 
add greater clarity to the Listed Company Manual regarding halts in 
trading.
    The Exchange believes that the proposed re-lettering of the 
remaining subsections of Rule 123D is reasonable, equitable and not 
unfairly discriminatory because the proposed change would add greater 
clarity to the Exchange's rule book.

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 change is not 
designed to address any competitive issue but rather would streamline 
functionality, eliminate an unnecessary step, and streamline forms, 
thereby reducing confusion and making the Exchange's rules easier to 
understand and navigate.

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 \9\ and Rule 19b-4(f)(6) thereunder.\10\ 
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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\12\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSE-2016-86 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-2016-86. 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-2016-86 and should be 
submitted on or before January 18, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-31299 Filed 12-27-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                         Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices                                                   95677

                                                because access to the Exchange’s market                 execution venues to maintain their                       Internet Web site (http://www.sec.gov/
                                                would continue to be offered on fair and                competitive standing in the financial                    rules/sro.shtml). Copies of the
                                                non-discriminatory terms. The                           markets.                                                 submission, all subsequent
                                                Exchange also believes that the proposal                                                                         amendments, all written statements
                                                                                                        C. Self-Regulatory Organization’s
                                                to maintain the current fee schedule is                                                                          with respect to the proposed rule
                                                                                                        Statement on Comments on the
                                                equitable and not unfairly                                                                                       change that are filed with the
                                                discriminatory because all member                       Proposed Rule Change Received From                       Commission, and all written
                                                organizations would continue to have                    Members, Participants, or Others                         communications relating to the
                                                the opportunity to enjoy the benefits of                  No written comments were solicited                     proposed rule change between the
                                                the fee relief with respect to additional               or received with respect to the proposed                 Commission and any person, other than
                                                trading licenses.                                       rule change.                                             those that may be withheld from the
                                                   The Exchange believes that it is                                                                              public in accordance with the
                                                                                                        III. Date of Effectiveness of the
                                                subject to significant competitive forces,                                                                       provisions of 5 U.S.C. 552, will be
                                                                                                        Proposed Rule Change and Timing for
                                                as described below in the Exchange’s                                                                             available for Web site viewing and
                                                statement regarding the burden on                       Commission Action
                                                                                                                                                                 printing in the Commission’s Public
                                                competition.                                               The foregoing rule change is effective                Reference Room, 100 F Street NE.,
                                                   For the foregoing reasons, the                       upon filing pursuant to Section                          Washington, DC 20549, on official
                                                Exchange believes that the proposal is                  19(b)(3)(A) 6 of the Act and                             business days between the hours of
                                                consistent with the Exchange Act.                       subparagraph (f)(2) of Rule 19b–4 7                      10:00 a.m. and 3:00 p.m. Copies of the
                                                                                                        thereunder, because it establishes a due,                filing also will be available for
                                                B. Self-Regulatory Organization’s
                                                                                                        fee, or other charge imposed by the                      inspection and copying at the principal
                                                Statement on Burden on Competition
                                                                                                        Exchange.                                                office of the Exchange. All comments
                                                   The Exchange does not believe that                      At any time within 60 days of the                     received will be posted without change;
                                                the proposed rule change will impose                    filing of the proposed rule change, the                  the Commission does not edit personal
                                                any burden on competition that is not                   Commission summarily may                                 identifying information from
                                                necessary or appropriate in furtherance                 temporarily suspend such rule change if                  submissions. You should submit only
                                                of the purposes of the Act. The                         it appears to the Commission that such                   information that you wish to make
                                                proposed rule change will keep trading                  action is: (i) Necessary or appropriate in               available publicly. All submissions
                                                license fees the same as they have been                 the public interest; (ii) for the protection             should refer to File Number SR–NYSE–
                                                since July 1, 2016. As a result, the                    of investors; or (iii) otherwise in                      2016–88 and should be submitted on or
                                                Exchange does not believe that the                      furtherance of the purposes of the Act.                  before January 18, 2017.
                                                proposed rule change will place an                      If the Commission takes such action, the
                                                unreasonable burden on current                                                                                     For the Commission, by the Division of
                                                                                                        Commission shall institute proceedings                   Trading and Markets, pursuant to delegated
                                                members because their trading license                   to determine whether the proposed rule                   authority.8
                                                fees will remain the same. In addition,                 should be approved or disapproved.                       Eduardo A. Aleman,
                                                the Exchange does not believe that the
                                                                                                        IV. Solicitation of Comments                             Assistant Secretary.
                                                proposed rule change will place an
                                                unreasonable burden on potential                                                                                 [FR Doc. 2016–31301 Filed 12–27–16; 8:45 am]
                                                                                                          Interested persons are invited to
                                                members because a potential member’s                    submit written data, views, and                          BILLING CODE 8011–01–P

                                                fees will be the same as for a current                  arguments concerning the foregoing,
                                                member and pro-rated for licenses held                  including whether the proposed rule
                                                for less than a year.                                                                                            SECURITIES AND EXCHANGE
                                                                                                        change is consistent with the Act.                       COMMISSION
                                                   Finally, the Exchange notes that it                  Comments may be submitted by any of
                                                operates in a highly competitive market                 the following methods:                                   [Release No. 34–79637; File No. SR–NYSE–
                                                in which market participants can                                                                                 2016–86]
                                                readily favor competing venues if they                  Electronic Comments
                                                deem fee levels at a particular venue to                  • Use the Commission’s Internet                        Self-Regulatory Organizations; New
                                                be excessive or rebate opportunities                    comment form (http://www.sec.gov/                        York Stock Exchange LLC; Notice of
                                                available at other venues to be more                    rules/sro.shtml); or                                     Filing and Immediate Effectiveness of
                                                favorable. In such an environment, the                    • Send an email to rule-comments@                      Proposed Rule Change Amending Rule
                                                Exchange must continually adjust its                    sec.gov. Please include File Number SR–                  123D and the Listed Company Manual
                                                fees and rebates to remain competitive                  NYSE–2016–88 on the subject line.                        December 21, 2016.
                                                with other exchanges and with                                                                                       Pursuant to Section 19(b)(1) 1 of the
                                                alternative trading systems that have                   Paper Comments
                                                                                                                                                                 Securities Exchange Act of 1934 (the
                                                been exempted from compliance with                        • Send paper comments in triplicate                    ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                the statutory standards applicable to                   to Secretary, Securities and Exchange                    notice is hereby given that on December
                                                exchanges. Because competitors are free                 Commission, 100 F Street NE.,                            13, 2016, New York Stock Exchange
                                                to modify their own fees and credits in                 Washington, DC 20549–1090.                               LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
                                                response, and because market                            All submissions should refer to File                     with the Securities and Exchange
                                                participants may readily adjust their                   Number SR–NYSE–2016–88. This file                        Commission (‘‘Commission’’) the
                                                order routing practices, the Exchange                   number should be included on the                         proposed rule change as described in
                                                believes that the degree to which fee
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                        subject line if email is used. To help the               Items I, II, and III below, which Items
                                                changes in this market may impose any                   Commission process and review your                       have been prepared by the self-
                                                burden on competition is extremely                      comments more efficiently, please use                    regulatory organization. The
                                                limited. As a result of all of these                    only one method. The Commission will
                                                considerations, the Exchange does not                   post all comments on the Commission’s                      8 17 CFR 200.30–3(a)(12).
                                                believe that the proposed changes will                                                                             1 15 U.S.C. 78s(b)(1).
                                                impair the ability of member                              6 15   U.S.C. 78s(b)(3)(A).                              2 15 U.S.C. 78a.

                                                organizations or competing order                          7 17   CFR 240.19b–4(f)(2).                              3 17 CFR 240.19b–4.




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                                                95678                    Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices

                                                Commission is publishing this notice to                 company’s financial viability.5 The rule              requirement in Rule 123D(e) that an
                                                solicit comments on the proposed rule                   further provides that if a listed company             ‘‘Equipment Changeover’’ halt in trading
                                                change from interested persons.                         notifies the Exchange in advance of                   requires the approval of a Floor
                                                                                                        publication concerning news which                     Governor or two Floor Officials as such
                                                I. Self-Regulatory Organization’s
                                                                                                        might have a substantial market impact,               approval is no longer necessary. An
                                                Statement of the Terms of Substance of                  the Exchange should advise an                         Equipment Changeover halt is a non-
                                                the Proposed Rule Change                                Executive Floor Governor or Floor                     regulatory halt condition that only halts
                                                   The Exchange proposes to amend                       Governor, or in their absence, a Floor                trading on the Exchange. The Exchange
                                                Rule 123D and the Listed Company                        Official, and specifies procedures for                believes that if circumstances arise
                                                Manual to eliminate the requirement for                 Floor Governors to overrule the                       warranting an Equipment Changeover
                                                Floor Official approval for halts in                    Exchange’s determination that a security              halt, obtaining Floor Official approval
                                                trading. The proposed rule change is                    should be halted.                                     before halting trading adds an
                                                available on the Exchange’s Web site at                    Commensurate with the evolution of                 unnecessary step that is no longer
                                                www.nyse.com, at the principal office of                the equities markets and trading on the               needed in today’s automated markets.
                                                the Exchange, and at the Commission’s                   Exchange towards more automated                          Because of the procedural changes
                                                Public Reference Room.                                  processes, the procedures and situations              associated with the proposed rule
                                                                                                        requiring approvals by Floor Officials                changes, the Exchange proposes to
                                                II. Self-Regulatory Organization’s                      have also evolved. For example, the
                                                Statement of the Purpose of, and                                                                              announce the eliminations via Trader
                                                                                                        Exchange previously eliminated the                    Update and anticipates implementing
                                                Statutory Basis for, the Proposed Rule                  ability of a Floor broker to seek an
                                                Change                                                                                                        the changes in the first quarter of 2017.
                                                                                                        exception to Rule 122 requirements if
                                                  In its filing with the Commission, the                Floor Official permission is obtained.6               2. Statutory Basis
                                                self-regulatory organization included                   In connection with trading halts, the                    The proposed rule changes are
                                                statements concerning the purpose of,                   Exchange is responsible for determining               consistent with Section 6(b) 7 of the Act,
                                                and basis for, the proposed rule change                 whether to halt trading in a security                 in general, and furthers the objectives of
                                                and discussed any comments it received                  under Section 202.06(B) of the Listed                 Section 6(b)(5),8 in particular, in that
                                                on the proposed rule change. The text                   Company Manual. Thus, requiring Floor                 they are designed to prevent fraudulent
                                                of those statements may be examined at                  Official approval before a trading halt               and manipulative acts and practices, to
                                                the places specified in Item IV below.                  can be invoked is an unnecessary pro                  promote just and equitable principles of
                                                The Exchange has prepared summaries,                    forma step rather than a substantive
                                                                                                                                                              trade, to foster cooperation and
                                                set forth in sections A, B, and C below,                requirement. Moreover, obtaining Floor
                                                                                                                                                              coordination with persons engaged in
                                                of the most significant parts of such                   Governor approval adds an extra
                                                                                                                                                              facilitating transactions in securities,
                                                statements.                                             manual step to the process, which could
                                                                                                                                                              and to remove impediments to and
                                                                                                        impede the timely dissemination of a
                                                A. Self-Regulatory Organization’s                                                                             perfect the mechanism of a free and
                                                                                                        trading halt. Finally, given market
                                                Statement of the Purpose of, and the                                                                          open market and a national market
                                                                                                        fragmentation and highly automated
                                                Statutory Basis for, the Proposed Rule                                                                        system.
                                                                                                        equities trading environment, the
                                                Change                                                  Exchange does not believe that Floor                     The Exchange believes that the
                                                                                                        Governors, who do not have contact                    proposed rule changes support the
                                                1. Purpose                                                                                                    objectives of the Act by amending duties
                                                                                                        with the listed company, should be in
                                                   The Exchange proposes to amend                       a position to override an Exchange                    and responsibilities once assigned to
                                                Rule 123D and the Listed Company                        determination to halt trading in a                    Floor Officials to better comport with
                                                Manual to eliminate the requirement for                 security. Consequently, the Exchange                  the Exchange’s current regulatory
                                                Floor Official 4 approval before halting                proposes to delete Rule 123D(d) in its                structure and to reflect the changing
                                                trading in a security. The Exchange                     entirety as unnecessary and duplicative               technology and development of its
                                                believes that in today’s trading                        of existing Exchange obligations                      automated systems. Specifically,
                                                environment, the requirement for Floor                  specified in the Listed Company                       eliminating the unnecessary step of
                                                Official approval before halting trading                Manual.                                               obtaining Floor Official approval in
                                                in a security is unnecessary and                           The Exchange also proposes to make                 connection with trading halts would
                                                duplicative of Exchange obligations to                  a related change to Section 202.06(B) of              remove impediments to and perfect a
                                                assess whether to halt trading in a                     the Listed Company Manual to delete                   national market system by streamlining
                                                security under Section 202.06 of the                    two references to Rule 123D that would                and simplifying functionality and
                                                Listed Company Manual.                                  be rendered obsolete by the proposed                  complexity in connection with trading
                                                   Current Rule 123D(d) provides that                   deletion of Rule 123D(d). In addition,                halts. The Exchange believes that
                                                once trading has commenced, trading                     the Exchange proposes to re-letter the                streamlining the procedures and
                                                may only be halted with the approval of                 remaining subsections of Rule 123D to                 eliminating unnecessary Floor Official
                                                a Floor Governor or two Floor Officials                 account for the deletion of Rule                      approval requirements would be
                                                and that an Executive Floor Governor,                   123D(d).                                              consistent with the public interest and
                                                or in their absence a Senior Floor                         The Exchange proposes to make a                    the protection of investors because
                                                Governor, should be consulted if it is                  related change to eliminate the                       investors will not be harmed and in fact
                                                felt that trading should be halted in a                                                                       would benefit from the removal of
                                                bank or brokerage stock due to a                          5 See Rules 46 and 46A (defining the terms Floor
                                                                                                                                                              unnecessary functionality. The
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                                                potential misperception regarding the                   Official, Senior Floor Official, Executive Floor      Exchange also believes that eliminating
                                                                                                        Official, Floor Governor, and Executive Floor
                                                                                                        Governor).                                            Floor Official approval would benefit
                                                  4 ‘‘Floor Official’’ encompasses Floor Governor,        6 See also Securities Exchange Act Release No.      investors by adding transparency and
                                                Floor Official, Executive Floor Governor and Senior     67345 (July 3, 2012), 77 FR 40683 (July 10, 2012)     clarity to the Exchange’s rules.
                                                Floor Governor, as their responsibilities are           (SR–NYSE–2012–20) (notice of filing and
                                                currently assigned in connection with trading halts.    immediate effectiveness of proposed rule change
                                                                                                                                                                7 15   U.S.C. 78f(b).
                                                See also Rules 46 and 46A defining Floor Governor,      amending certain Exchange rules related to floor
                                                Floor Official, and Executive Floor Governor.           official duties and responsibilities).                  8 15   U.S.C. 78f(b)(5).



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                                                                             Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices                                               95679

                                                  The Exchange believes that the                              A proposed rule change filed under                 public in accordance with the
                                                proposed deletion of two references to                     Rule 19b–4(f)(6) 11 normally does not                 provisions of 5 U.S.C. 552, will be
                                                Rule 123D in Section 202.06B of the                        become operative prior to 30 days after               available for Web site viewing and
                                                Listed Company Manual is reasonable,                       the date of the filing. However, pursuant             printing in the Commission’s Public
                                                equitable and not unfairly                                 to Rule 19b4(f)(6)(iii),12 the Commission             Reference Room, 100 F Street NE.,
                                                discriminatory because the references                      may designate a shorter time if such                  Washington, DC 20549 on official
                                                are obsolete. The proposed changes                         action is consistent with the protection              business days between the hours of
                                                would result in the removal of obsolete                    of investors and the public interest.                 10:00 a.m. and 3:00 p.m. Copies of the
                                                text from the Listed Company Manual                           At any time within 60 days of the                  filing also will be available for
                                                and therefore add greater clarity to the                   filing of such proposed rule change, the              inspection and copying at the principal
                                                Listed Company Manual regarding halts                      Commission summarily may                              office of the Exchange. All comments
                                                in trading.                                                temporarily suspend such rule change if               received will be posted without change;
                                                  The Exchange believes that the                           it appears to the Commission that such                the Commission does not edit personal
                                                proposed re-lettering of the remaining                     action is necessary or appropriate in the             identifying information from
                                                subsections of Rule 123D is reasonable,                    public interest, for the protection of                submissions. You should submit only
                                                equitable and not unfairly                                 investors, or otherwise in furtherance of             information that you wish to make
                                                discriminatory because the proposed                        the purposes of the Act. If the                       available publicly. All submissions
                                                change would add greater clarity to the                    Commission takes such action, the                     should refer to File Number SR–NYSE–
                                                Exchange’s rule book.                                      Commission shall institute proceedings                2016–86 and should be submitted on or
                                                                                                           under Section 19(b)(2)(B) 13 of the Act to            before January 18, 2017.
                                                B. Self-Regulatory Organization’s                          determine whether the proposed rule                     For the Commission, by the Division of
                                                Statement on Burden on Competition                         change should be approved or                          Trading and Markets, pursuant to delegated
                                                                                                           disapproved.                                          authority.14
                                                   The Exchange does not believe that
                                                the proposed rule change will impose                       IV. Solicitation of Comments
                                                                                                                                                                 Eduardo A. Aleman,
                                                any burden on competition that is not                        Interested persons are invited to                   Assistant Secretary.
                                                necessary or appropriate in furtherance                    submit written data, views, and                       [FR Doc. 2016–31299 Filed 12–27–16; 8:45 am]
                                                of the purposes of the Act. The                            arguments concerning the foregoing,                   BILLING CODE 8011–01–P
                                                proposed change is not designed to                         including whether the proposed rule
                                                address any competitive issue but rather                   change is consistent with the Act.
                                                would streamline functionality,                            Comments may be submitted by any of                   SECURITIES AND EXCHANGE
                                                eliminate an unnecessary step, and                         the following methods:                                COMMISSION
                                                streamline forms, thereby reducing
                                                confusion and making the Exchange’s                        Electronic Comments                                   [Release No. 34–79645; File Nos. SR–
                                                rules easier to understand and navigate.                     • Use the Commission’s Internet                     NYSEMKT–2016–52 and SR–NYSEArca
                                                                                                           comment form (http://www.sec.gov/                     2016–103]
                                                C. Self-Regulatory Organization’s                          rules/sro.shtml); or
                                                Statement on Comments on the                                                                                     Self-Regulatory Organizations; NYSE
                                                                                                             • Send an email to rule-comments@
                                                Proposed Rule Change Received From                                                                               MKT LLC; NYSE Arca, Inc.; Notice of
                                                                                                           sec.gov. Please include File Number SR–
                                                Members, Participants, or Others                                                                                 Designation of a Longer Period for
                                                                                                           NYSE–2016–86 on the subject line.
                                                                                                                                                                 Commission Action on Proceedings To
                                                  No written comments were solicited                       Paper Comments                                        Determine Whether To Approve or
                                                or received with respect to the proposed                     • Send paper comments in triplicate                 Disapprove Proposed Rule Changes
                                                rule change.                                               to Brent J. Fields, Secretary, Securities             To Extend the Time Within Which a
                                                                                                           and Exchange Commission, 100 F Street                 Member, Member Organization, an ATP
                                                III. Date of Effectiveness of the
                                                                                                           NE., Washington, DC 20549–1090.                       Holder, an OTP Holder, or an OTP Firm
                                                Proposed Rule Change and Timing for
                                                                                                                                                                 Must File a Uniform Termination Notice
                                                Commission Action                                          All submissions should refer to File
                                                                                                                                                                 for Securities Industry Registration
                                                                                                           Number SR–NYSE–2016–86. This file
                                                   The Exchange has filed the proposed                                                                           (‘‘Form U5’’) and Any Amendments
                                                                                                           number should be included on the
                                                rule change pursuant to Section                                                                                  Thereto
                                                                                                           subject line if email is used. To help the
                                                19(b)(3)(A)(iii) of the Act 9 and Rule                     Commission process and review your                    December 21, 2016.
                                                19b–4(f)(6) thereunder.10 Because the                      comments more efficiently, please use                    On June 16, 2016, NYSE MKT LLC
                                                proposed rule change does not: (i)                         only one method. The Commission will                  (‘‘NYSE MKT’’) filed with the Securities
                                                significantly affect the protection of                     post all comments on the Commission’s                 and Exchange Commission
                                                investors or the public interest; (ii)                     Internet Web site (http://www.sec.gov/                (‘‘Commission’’), pursuant to Section
                                                impose any significant burden on                           rules/sro.shtml). Copies of the                       19(b)(1) 1 of the Securities Exchange Act
                                                competition; and (iii) become operative                    submission, all subsequent                            of 1934 (‘‘Act’’) 2 and Rule 19b–4
                                                prior to 30 days from the date on which                    amendments, all written statements                    thereunder,3 a proposed rule change to
                                                it was filed, or such shorter time as the                  with respect to the proposed rule                     extend the time within which a member
                                                Commission may designate, if                               change that are filed with the                        or member organization, or an Amex
                                                consistent with the protection of                          Commission, and all written                           Trading Permit Holder (‘‘ATP Holder’’)
                                                investors and the public interest, the
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                           communications relating to the                        must file a Form U5, or any
                                                proposed rule change has become                            proposed rule change between the                      amendments thereto. The proposed rule
                                                effective pursuant to Section 19(b)(3)(A)                  Commission and any person, other than                 change was published for comment in
                                                of the Act and Rule 19b–4(f)(6)(iii)                       those that may be withheld from the
                                                thereunder.                                                                                                        14 17 CFR 200.30–3(a)(12).
                                                                                                             11 17 CFR 240.19b–4(f)(6).                            1 15 U.S.C. 78s(b)(1).
                                                  9 15   U.S.C. 78s(b)(3)(A)(iii).                           12 17 CFR 240.19b–4(f)(6)(iii).                       2 15 U.S.C. 78a.
                                                  10 17   CFR 240.19b–4(f)(6).                               13 15 U.S.C. 78s(b)(2)(B).                            3 17 CFR 240.19b–4.




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Document Created: 2016-12-28 02:16:35
Document Modified: 2016-12-28 02:16:35
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 95677 

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