82_FR_12001 82 FR 11964 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Amend Rule 6.37B Regarding Market Maker Quotations

82 FR 11964 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Amend Rule 6.37B Regarding Market Maker Quotations

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 37 (February 27, 2017)

Page Range11964-11967
FR Document2017-03727

Federal Register, Volume 82 Issue 37 (Monday, February 27, 2017) 
[Federal Register Volume 82, Number 37 (Monday, February 27, 2017)]
[Notices]
[Pages 11964-11967]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03727]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80072; File No. SR-NYSEArca-2017-17]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Proposed Rule Change To Amend Rule 6.37B Regarding Market Maker 
Quotations

February 21, 2017.
    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 February 10, 2017, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 6.37B regarding Market Maker 
Quotations, including to adopt a Market Maker Light Only Quotation. 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 modify Rule 6.37B regarding Market 
Maker Quotations. Rule 6.37B(a) provides that a Market Maker may enter 
quotes in the option issues included in its appointment. The Exchange 
proposes to amend Rule 6.37B(a) to define Market Maker quotes, add a 
new quote type, and specify how such quotes would be processed when a 
series is open for trading.
Defining Market Maker Quotes and Adopting Market Maker Light Only 
Quotes
    First, the Exchange proposes to define Market Maker quotes to 
provide that ``[t]he term `quote' or `quotation' means a bid or offer 
entered by a Market Maker that updates the Market Maker's previous bid 
or offer, if any.'' \4\ This proposed definition, which would add 
clarity, transparency, and internal consistency to Exchange rules, is 
identical or substantially identical to the way quotes are defined on 
at least two other options exchanges.\5\ Consistent with this change, 
the Exchange also proposes to modify the current definition of ``Quote 
with Size'' to include a cross reference to the proposed definition of 
quotation, which would add clarity and transparency to Exchange 
rules.\6\
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    \4\ See proposed Rule 6.37B(a)(1).
    \5\ See, e.g., International Securities Exchange Rule 100(42). 
See also BOX Options Exchange LLC Rule 100(a)(55) (providing that 
``[t]he term `quote' or `quotation' means a bid or offer entered by 
a Market Maker as a firm order that updates the Market Maker's 
previous bid or offer, if any'').
    \6\ See proposed Rule 6.1(b)(33) (providing that ``the term 
`Quote with Size' means a quotation (as defined in Rule 6.37B(a)(1)) 
to buy or sell a specific number of option contracts at a specific 
price that a Market Maker has submitted to the NYSE Arca OX trading 
system through an electronic interface'').
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    Second, the Exchange proposes to add a Market Maker Light Only 
Quotation (``MMLO'') to provide Market Makers the option to designate 
incoming quotes to trade solely with displayed interest on the 
Consolidated Book.\7\ This proposed change would allow Market Makers to 
designate quotes as MMLO to prevent such quotes from trading with 
undisplayed liquidity upon arrival. Once an MMLO is added to the 
Consolidated Book, the MMLO designation no longer applies and any 
unexecuted portion could trade with displayed and undisplayed interest. 
The Exchange believes that this functionality would give Market Makers 
greater control over the circumstances in which their quotes interact 
with contra-side trading interest on the Exchange. This increase in 
control is desirable from the perspective of Market Makers because it 
is difficult for them to account for undisplayed liquidity in their 
quoting models.\8\ Because the options market is quote driven, Market 
Makers are vital to the price discovery process, the Exchange believes 
that the proposed MMLO would provide Market Makers with a greater level 
of determinism, in terms of managing their exposure, and thus may 
encourage more aggressive liquidity provision, resulting in more 
trading opportunities and tighter spreads. Accordingly, the Exchange 
believes that the proposal would improve overall market quality and 
enhance competition on the Exchange to the benefit to all market 
participants.
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    \7\ See proposed Rule 6.37B(a)(2).
    \8\ The Exchange understands that, while a Market Maker's 
quoting algorithm can take into account displayed liquidity in the 
marketplace, the algorithm may not be able to accurately account for 
the risk of interacting with undisplayed liquidity.
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    The Exchange notes that all market participants, including Market 
Makers, already have the ability to avoid trading with undisplayed 
liquidity by entering Post No Preference Light Order (``PNP-Light 
Orders''), which have existed on the Exchange since 2009.\9\ With the 
adoption of the MMLO, the Exchange is proposing a similar functionality 
for use

[[Page 11965]]

by Market Makers when quoting.\10\ The Exchange also notes that other 
options exchanges have recently adopted quote types designed to 
strengthen market making.\11\
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    \9\ See Securities Exchange Act Release 59603 (March 19, 2009), 
74 FR 13279 (March 26, 2009) (SR-NYSEArca-2009-21) (immediately 
effective filing to adopt PNP-Light Order type). See also Rule 
6.62(v) (defining PNP-Light Orders as non-routable orders that are 
only eligible to execute against displayed liquidity).
    \10\ The Exchange previously offered (and later eliminated) a 
Post No Preference Light Only Quotation (``PNPLO''), which, like the 
MMLO, allowed Market Makers to designate certain quotations to only 
interact with displayed liquidity. The Commission approved the 
PNPLO, in part, on grounds that market participants, including 
Market Makers, could achieve functionality similar to the PNPLO 
through use of the PNP-Light Order and that the PNPLO offer similar 
functionality for use by Market Makers when quoting. See Securities 
Exchange Act Release Nos. 67252 (June 25, 2012), 77 FR 38879 (June 
29, 2012) (SR-NYSEArca-2012-05) (order approving adoption of PNPLO, 
applicable to Penny Pilot issues only); 68339 (December 3, 2012), 77 
FR 73109 (December 7, 2012) (SR-NYSEArca-2012-130) (immediately 
effective filing extending the PNPLO to non-Penny Pilot issues). The 
PNPLO was eliminated approximately one year after it was adopted 
because the functionality was not implemented in the time period 
contemplated. See Securities Exchange Act Release No. 34-69641 (May 
28, 2013), 78 FR 33134 (June 3, 2013) (SR-NYSEArca-2013-51) 
(immediately effective filing deleting reference to the PNPLO from 
Rule 6.62(cc)).
    \11\ The Exchange notes that BOX recently added functionality to 
only accept quotes that add liquidity. See Securities Exchange Act 
Release Nos. 79311 (October 3 [sic], 2016), 81 FR 83322 (November 15 
[sic], 2016) (SR-BOX-2016-45) (order approving change to only accept 
liquidity-adding quotes); 78946 (September 27, 2016), 81 FR 68069 
(October 3, 2016) (notice). See also BOX IM-8050-3 (providing that 
``[i]f an incoming quote is marketable against the BOX Book and will 
execute against a resting order or quote, it will be rejected'').
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* * * * *
Specifying the Treatment of Market Maker Quotes, Including MMLOs
    The Exchange also proposes to modify and add detail regarding how 
Market Maker quotes, including MMLOs, would be processed when a series 
is open for trading. As discussed below, the Exchange's proposal to 
modify the processing of Market Maker quotations aligns with the NMS 
plan for Options Order Protection And Locked/Crossed Market Plan 
(``Plan''), to which the Exchange is a party.\12\
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    \12\ See Plan, dated April 14, 2009, available here, http://www.optionsclearing.com/components/docs/clearing/services/options_order_protection_plan.pdf. See also Securities Exchange Act 
Release No. 60405 (July 30, 2009), 74 FR 39362 (August 6, 2009) 
(File No. 4-546) (order approving the Plan). Consistent with the 
Plan, the rules of the Exchange include prohibitions against trade-
throughs and a pattern or practice of displaying certain quotations 
that lock or cross away markets. See, e.g., Rules 6.94, 6.95. See 
also infra note 20.
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    The Exchange proposes to change the treatment of incoming 
quotations, including the conditions under which quotes would be 
cancelled or rejected. Specifically, as proposed, an incoming quotation 
would only trade against contra-side interest in the Consolidated Book 
at prices that would not trade through interest on another Market 
Center.\13\ Any untraded size of an incoming quote would be added to 
the Consolidated Book, unless it locks or crosses interest on another 
Market Center or if the quote is an MMLO and locks or crosses 
undisplayed interest.\14\ The proposed rule would state that when such 
quantity of an incoming quote is cancelled (as opposed to being 
rejected outright), the Exchange would also cancel the Market Maker's 
current quote on the opposite side of the market. In other words, both 
sides of the Market Maker's quote residing on the Consolidated Book 
would be cancelled, which allows a Market Maker to refresh both its bid 
and offer simultaneously.
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    \13\ See proposed 6.37B(a)(3)(A). See Rule 6.1A(6) (defining 
Market Center as ``a national securities exchange that has qualified 
for participation in the Options Clearing Corporation pursuant to 
the provisions of the rules of the Options Clearing Corporation'').
    \14\ See proposed Rule 6.37B(a)(3)(B)(i).
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    In addition, as proposed, an incoming quotation would be rejected 
if it locks or crosses interest on another Market Center and if it 
cannot trade with interest in the Consolidated Book at prices that do 
not trade through another Market Center.\15\ An incoming quotation 
designated as MMLO would be rejected if it locks or crosses undisplayed 
interest and cannot trade with displayed interest in the Consolidated 
Book at prices that do not trade through another Market Center.\16\ The 
proposed rule would specify that when an incoming quote is rejected 
outright (as opposed to being cancelled after a partial fill), the 
Exchange would also cancel the Market Maker's current quote on the same 
side of the market.\17\ Such treatment recognizes that the Market Maker 
attempted (unsuccessfully) to update its bid or offer price and allows 
the Market Maker to refresh that side of its quote.
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    \15\ See proposed Rule 6.37B(a)(3)(C)(i).
    \16\ See proposed Rule 6.37B(a)(3)(C)(ii).
    \17\ See proposed Rule 6.37B(a)(3)(C).
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    In addition, when a series is open for trading, a quote will trade 
only against interest in the Consolidated Book and will not route. The 
Exchange does not route Market Maker quotations because such quotes are 
designed to meet the Market Maker's obligation to have displayed 
quotations on the Exchange. The Exchange proposes to specify this 
functionality in Exchange rules.\18\
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    \18\ See proposed Rule 6.37B(a)(3), (D).
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    The Exchange believes that processing Market Maker quotations, as 
described in the proposed rules, aligns with the Plan.\19\ The Plan 
obligates the participating exchanges to provide order protection, 
including addressing locked and crossed markets and the potential for 
trade-throughs in certain options classes.\20\ The Plan establishes 
various obligations for participating exchanges, including that Market 
Makers should ``reasonably avoid displaying, and shall not engage in a 
pattern or practice of displaying, any quotations that lock or cross'' 
the best bid or offer on another Market Center.\21\ The Plan further 
obligates participating exchanges to conduct surveillance of their 
respective markets on a regular basis to ascertain the effectiveness of 
the policies and procedures to prevent trade-throughs and to take 
prompt action to remedy deficiencies in such policies and 
procedures.\22\ Because Market Maker quotations do not route, and 
incoming quotes, or portions thereof, would reject or cancel if such 
quotes locked or crossed away markets, the Exchange believes the 
proposal is consistent with the requirements of the Plan. In addition, 
the proposed processing of quotes is consistent with the Plan because 
it avoids trading-through better prices on other exchange and locking 
or crossing markets. In addition, the Exchange believes this proposal 
would assist Market Makers in maintaining a fair and orderly market, as 
it would encourage Market Makers to provide greater liquidity.
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    \19\ See Plan, supra note 12.
    \20\ See e.g., Securities Exchange Act Release No. 60527 (August 
18, 2009), 74 FR 43178 (August 26, 2009) (SR-NYSEArca-2009-45) 
(adopting and updating Exchange rules to implement the Plan).
    \21\ See Plan at Section 6(c), supra note 12.
    \22\ See Plan at Section 5(a), supra note 12.
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    The Exchange notes that this proposal does not relieve a Market 
Maker of its continuous quoting, or firm quote, obligations pursuant to 
Rules 6.37B and 6.86, respectively. Further, the Exchange notes that 
Market Makers would still be able to send orders in (and out of) 
classes to which they are appointed, as orders are not affected by this 
proposal.
Implementation
    The Exchange will announce the implementation of the proposed rule 
change by Trader Update, which implementation will be no later than 30 
days after the approval of this rule change.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\23\ in 
general, and furthers the objectives of Section 6(b)(5) of the Act,\24\ 
in particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and

[[Page 11966]]

equitable principles of trade, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest.
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    \23\ 15 U.S.C. 78f(b).
    \24\ 15 U.S.C. 78f(b)(5).
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    The proposal to add the definition of Market Maker quotes would 
provide clarity and transparency to Exchange rules to the benefit of 
investors as the additional clarity would promote just and equitable 
principles of trade and remove impediments to, and perfect the 
mechanism of, a free and open market and a national market system. The 
proposed rule amendments would also provide internal consistency within 
Exchange rules and operate to protect investors and the investing 
public by making the Exchange rules easier to navigate and comprehend. 
Because the proposed definition of quotes is identical or substantially 
identical to definitions provided on other options exchanges, the 
proposal presents no new or novel issues.\25\
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    \25\ See supra note 5.
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    The proposal to offer to Market Makers the ability to designate 
quotes as MMLO would remove impediments to and perfect the mechanism of 
a free and open market and a national market system because it would 
provide Market Makers with increased control over interactions with 
contra-side liquidity. Specifically, the proposal would improve market 
making on the Exchange because it would prevent incoming Market Maker 
quotes from trading with resting undisplayed interest, which interest 
is difficult to take into account in quoting models. Accordingly, the 
Exchange believes that the proposed MMLO designation would provide 
Market Makers with a greater level of determinism, in terms of managing 
their exposure, and would encourage more aggressive liquidity 
provision, resulting in more trading opportunities for market 
participants and tighter spreads. Accordingly, the Exchange believes 
that the proposal would improve overall market quality and improve 
competition on the Exchange, to the benefit of all market participants. 
Moreover, the Exchange notes that all market participants, including 
Market Makers, already have the ability to avoid trading with 
undisplayed liquidity interest by entering PNP-Light Orders.\26\ The 
proposal to adopt MMLO simply extends existing functionality to Market 
Maker quotes.\27\
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    \26\ See supra note 9.
    \27\ See supra note 11.
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    Because market participants that enter undisplayed interest (e.g., 
PNP-Blind Orders or orders with reserve size) \28\ are opting not to 
have their interest displayed, the Exchange believes it is consistent 
with the Act for Market Makers to choose to designate their quotes not 
to trade with such undisplayed interest.\29\ For the forgoing reasons, 
the Exchange believes that the proposal to offer to Market Makers the 
option to designate their quotes as MMLO is not unfairly 
discriminatory. The Exchange also believes that such offering would 
protect investors and the public interest because it may contribute to 
more aggressive quoting by Market Makers, which should increase the 
quality of the Exchange's market and benefit investors.
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    \28\ See Rule 6.62(u) (providing that a PNP Blind Order is a 
Limit Order to buy or sell that is to be executed in whole or in 
part on the Exchange, and the portion not so executed is to be 
ranked in the Consolidated Book, without routing any portion of the 
order to another Market Center) and (d)(3) (providing that a Reserve 
Order is ``a limit order with a portion of the size displayed and 
with a reserve portion of the size (`reserve size') that is not 
displayed on NYSE Arca'').
    \29\ In this regard, the Exchange notes that undisplayed 
liquidity is not afforded trade-through protection under Section 5 
of the Plan. See Plan, supra note 12.
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    The proposal to add detail and amend the treatment of Market Maker 
quotes is consistent with, and facilitates the Exchange meeting its 
obligations under the Plan and, thus, would remove impediments to, and 
perfect the mechanism of, a free and open market and a national market 
system. The Exchange believes the proposed processing of quotes is 
consistent with the Plan because it avoids trading through better 
prices on other exchanges and is designed to avoid locking and crossing 
markets. By preventing Market Makers from locking or crossing trading 
interest on away Market Centers, the proposal would prevent fraudulent 
and manipulative acts and practices and would promote just and 
equitable principles of trade to the benefit of all market 
participants. The Exchange also believes the proposal regarding how the 
Exchange processes quotes in the event that an incoming quote is 
rejected, or a portion thereof is cancelled, would promote just and 
equitable principles of trade. Specifically, the proposed rules would 
enable Market Makers to simultaneously update both sides of their 
resting quote when one side of the quote received a partial fill but 
was subsequently cancelled and, where one side of a quote is rejected 
and not booked, to leave undisturbed that opposite-side interest 
because it remains valid. The Exchange believes this proposed handling 
of quotes would assist Market Makers in maintaining a fair and orderly 
market as it would encourage Market Makers to provide greater volumes 
of liquidity, which would add value to market making on the Exchange.
    The Exchange believes that the entire proposal is just, equitable 
and not unfairly discriminatory, as it would apply to all Market Makers 
on the Exchange. Further, the proposal would protect investors and the 
public interest by providing a more robust market, including because 
the proposal may contribute to more aggressive quoting by Market 
Makers. The Exchange believes that the proposal would lead to enhanced 
liquidity on the Exchange, which in turn will benefit and protect 
investors and the public interest through the potential for greater 
volume of orders and executions on the Exchange.

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

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange believes the 
proposal adds value to market making on the Exchange. The Exchange does 
not believe the proposal would impose a burden on competition among the 
options exchanges because of vigorous competition for order flow among 
the options exchanges. In this highly competitive market, market 
participants can easily and readily direct order flow to competing 
venues. The proposal does not impose an undue burden on intramarket 
competition because the proposed change would apply to all Market 
Makers on the Exchange. The proposal is structured to offer the same 
enhancement to all Market Makers, regardless of size, and would not 
impose a competitive burden on any participant.
    The proposed MMLO, which provides Market Makers with enhanced 
determinism over their quotes, may contribute to more aggressive 
quoting by Market Makers, resulting in more trading opportunities and 
tighter spreads. To the extent this purpose is achieved, the MMLO would 
enhance the market making function on the Exchange, which would improve 
overall market quality and improve competition on the Exchange to the 
benefit of all market participants.
    The Exchange believes the proposal is pro-competitive because when 
an exchange offers enhanced functionality that distinguishes it from 
other exchanges and participants find it useful, it has been the 
Exchange's

[[Page 11967]]

experience that competing exchanges will move to adopt similar 
functionality. Thus, the Exchange believes that this type of 
competition amongst exchanges is beneficial to the market place as a 
whole as it can result in enhanced processes, functionality, and 
technologies.

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-NYSEArca-2017-17 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-NYSEArca-2017-17. 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-NYSEArca-2017-17 and should 
be submitted on or before March 20, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\30\
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    \30\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03727 Filed 2-24-17; 8:45 am]
 BILLING CODE 8011-01-P

11964 Federal Register / Vol. 82, No. 37 / Monday, February 27, 2017 / Notices Reference Room, 100 F Street NE., Exchange’s Web site at www.nyse.com, would add clarity and transparency to Washington, DC 20549, on official at the principal office of the Exchange, Exchange rules.6 business days between the hours of and at the Commission’s Public Second, the Exchange proposes to add 10:00 a.m. and 3:00 p.m. Copies of such Reference Room. a Market Maker Light Only Quotation filings will also be available for (‘‘MMLO’’) to provide Market Makers inspection and copying at the principal II. Self-Regulatory Organization’s Statement of the Purpose of, and the option to designate incoming quotes office of ICE Clear Europe and on ICE Statutory Basis for, the Proposed Rule to trade solely with displayed interest Clear Europe’s Web site at https:// Change on the Consolidated Book.7 This www.theice.com/clear-europe/ proposed change would allow Market regulation#rule-filings. All comments received will be posted In its filing with the Commission, the Makers to designate quotes as MMLO to without change; the Commission does self-regulatory organization included prevent such quotes from trading with not edit personal identifying statements concerning the purpose of, undisplayed liquidity upon arrival. information from submissions. You and basis for, the proposed rule change Once an MMLO is added to the should submit only information that and discussed any comments it received Consolidated Book, the MMLO you wish to make available publicly. All on the proposed rule change. The text designation no longer applies and any submissions should refer to File of those statements may be examined at unexecuted portion could trade with Number SR–ICEEU–2017–001 and the places specified in Item IV below. displayed and undisplayed interest. The should be submitted on or before March The Exchange has prepared summaries, Exchange believes that this functionality 20, 2017. set forth in sections A, B, and C below, would give Market Makers greater of the most significant parts of such control over the circumstances in which For the Commission, by the Division of Trading and Markets, pursuant to delegated statements. their quotes interact with contra-side authority.9 trading interest on the Exchange. This A. Self-Regulatory Organization’s Eduardo A. Aleman, increase in control is desirable from the Statement of the Purpose of, and the Assistant Secretary. perspective of Market Makers because it Statutory Basis for, the Proposed Rule is difficult for them to account for [FR Doc. 2017–03731 Filed 2–24–17; 8:45 am] Change BILLING CODE 8011–01–P undisplayed liquidity in their quoting 1. Purpose models.8 Because the options market is quote driven, Market Makers are vital to The purpose of this filing is to modify the price discovery process, the SECURITIES AND EXCHANGE Rule 6.37B regarding Market Maker Exchange believes that the proposed COMMISSION Quotations. Rule 6.37B(a) provides that MMLO would provide Market Makers [Release No. 34–80072; File No. SR– a Market Maker may enter quotes in the with a greater level of determinism, in NYSEArca–2017–17] option issues included in its terms of managing their exposure, and appointment. The Exchange proposes to thus may encourage more aggressive Self-Regulatory Organizations; NYSE amend Rule 6.37B(a) to define Market liquidity provision, resulting in more Arca, Inc.; Notice of Filing of Proposed Maker quotes, add a new quote type, trading opportunities and tighter Rule Change To Amend Rule 6.37B and specify how such quotes would be spreads. Accordingly, the Exchange Regarding Market Maker Quotations processed when a series is open for believes that the proposal would February 21, 2017. trading. improve overall market quality and Pursuant to Section 19(b)(1) 1 of the enhance competition on the Exchange to Defining Market Maker Quotes and Securities Exchange Act of 1934 (the the benefit to all market participants. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Adopting Market Maker Light Only notice is hereby given that on February Quotes The Exchange notes that all market 10, 2017, NYSE Arca, Inc. (the participants, including Market Makers, First, the Exchange proposes to define already have the ability to avoid trading ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with Market Maker quotes to provide that the Securities and Exchange with undisplayed liquidity by entering ‘‘[t]he term ‘quote’ or ‘quotation’ means Post No Preference Light Order (‘‘PNP- Commission (the ‘‘Commission’’) the a bid or offer entered by a Market Maker proposed rule change as described in Light Orders’’), which have existed on that updates the Market Maker’s the Exchange since 2009.9 With the Items I and II below, which Items have previous bid or offer, if any.’’ 4 This been prepared by the self-regulatory adoption of the MMLO, the Exchange is proposed definition, which would add proposing a similar functionality for use organization. The Commission is clarity, transparency, and internal publishing this notice to solicit consistency to Exchange rules, is 6 See proposed Rule 6.1(b)(33) (providing that comments on the proposed rule change identical or substantially identical to the ‘‘the term ‘Quote with Size’ means a quotation (as from interested persons. way quotes are defined on at least two defined in Rule 6.37B(a)(1)) to buy or sell a specific I. Self-Regulatory Organization’s other options exchanges.5 Consistent number of option contracts at a specific price that a Market Maker has submitted to the NYSE Arca OX Statement of the Terms of Substance of with this change, the Exchange also trading system through an electronic interface’’). the Proposed Rule Change proposes to modify the current 7 See proposed Rule 6.37B(a)(2). The Exchange proposes to amend definition of ‘‘Quote with Size’’ to 8 The Exchange understands that, while a Market Rule 6.37B regarding Market Maker include a cross reference to the Maker’s quoting algorithm can take into account proposed definition of quotation, which displayed liquidity in the marketplace, the mstockstill on DSK3G9T082PROD with NOTICES Quotations, including to adopt a Market algorithm may not be able to accurately account for Maker Light Only Quotation. The the risk of interacting with undisplayed liquidity. 4 See proposed Rule 6.37B(a)(1). 9 See Securities Exchange Act Release 59603 proposed rule change is available on the 5 See,e.g., International Securities Exchange Rule (March 19, 2009), 74 FR 13279 (March 26, 2009) 9 17 100(42). See also BOX Options Exchange LLC Rule (SR–NYSEArca–2009–21) (immediately effective CFR 200.30–3(a)(12). 100(a)(55) (providing that ‘‘[t]he term ‘quote’ or filing to adopt PNP-Light Order type). See also Rule 1 15 U.S.C. 78s(b)(1). ‘quotation’ means a bid or offer entered by a Market 6.62(v) (defining PNP-Light Orders as non-routable 2 15 U.S.C. 78a. Maker as a firm order that updates the Market orders that are only eligible to execute against 3 17 CFR 240.19b–4. Maker’s previous bid or offer, if any’’). displayed liquidity). VerDate Sep<11>2014 20:23 Feb 24, 2017 Jkt 241001 PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 E:\FR\FM\27FEN1.SGM 27FEN1

Federal Register / Vol. 82, No. 37 / Monday, February 27, 2017 / Notices 11965 by Market Makers when quoting.10 The Center.13 Any untraded size of an for trade-throughs in certain options Exchange also notes that other options incoming quote would be added to the classes.20 The Plan establishes various exchanges have recently adopted quote Consolidated Book, unless it locks or obligations for participating exchanges, types designed to strengthen market crosses interest on another Market including that Market Makers should making.11 Center or if the quote is an MMLO and ‘‘reasonably avoid displaying, and shall * * * * * locks or crosses undisplayed interest.14 not engage in a pattern or practice of The proposed rule would state that displaying, any quotations that lock or Specifying the Treatment of Market when such quantity of an incoming cross’’ the best bid or offer on another Maker Quotes, Including MMLOs quote is cancelled (as opposed to being Market Center.21 The Plan further The Exchange also proposes to modify rejected outright), the Exchange would obligates participating exchanges to and add detail regarding how Market also cancel the Market Maker’s current conduct surveillance of their respective Maker quotes, including MMLOs, would quote on the opposite side of the markets on a regular basis to ascertain be processed when a series is open for market. In other words, both sides of the the effectiveness of the policies and trading. As discussed below, the Market Maker’s quote residing on the procedures to prevent trade-throughs Exchange’s proposal to modify the Consolidated Book would be cancelled, and to take prompt action to remedy processing of Market Maker quotations which allows a Market Maker to refresh deficiencies in such policies and aligns with the NMS plan for Options both its bid and offer simultaneously. procedures.22 Because Market Maker Order Protection And Locked/Crossed In addition, as proposed, an incoming quotations do not route, and incoming Market Plan (‘‘Plan’’), to which the quotation would be rejected if it locks quotes, or portions thereof, would reject Exchange is a party.12 or crosses interest on another Market or cancel if such quotes locked or The Exchange proposes to change the Center and if it cannot trade with crossed away markets, the Exchange treatment of incoming quotations, interest in the Consolidated Book at believes the proposal is consistent with including the conditions under which prices that do not trade through another the requirements of the Plan. In quotes would be cancelled or rejected. Market Center.15 An incoming quotation addition, the proposed processing of Specifically, as proposed, an incoming designated as MMLO would be rejected quotes is consistent with the Plan quotation would only trade against if it locks or crosses undisplayed because it avoids trading-through better contra-side interest in the Consolidated interest and cannot trade with displayed prices on other exchange and locking or Book at prices that would not trade interest in the Consolidated Book at crossing markets. In addition, the through interest on another Market prices that do not trade through another Exchange believes this proposal would Market Center.16 The proposed rule assist Market Makers in maintaining a 10 The Exchange previously offered (and later would specify that when an incoming fair and orderly market, as it would eliminated) a Post No Preference Light Only encourage Market Makers to provide Quotation (‘‘PNPLO’’), which, like the MMLO, quote is rejected outright (as opposed to allowed Market Makers to designate certain being cancelled after a partial fill), the greater liquidity. quotations to only interact with displayed liquidity. Exchange would also cancel the Market The Exchange notes that this proposal The Commission approved the PNPLO, in part, on Maker’s current quote on the same side does not relieve a Market Maker of its grounds that market participants, including Market continuous quoting, or firm quote, Makers, could achieve functionality similar to the of the market.17 Such treatment PNPLO through use of the PNP-Light Order and that recognizes that the Market Maker obligations pursuant to Rules 6.37B and the PNPLO offer similar functionality for use by attempted (unsuccessfully) to update its 6.86, respectively. Further, the Market Makers when quoting. See Securities bid or offer price and allows the Market Exchange notes that Market Makers Exchange Act Release Nos. 67252 (June 25, 2012), would still be able to send orders in 77 FR 38879 (June 29, 2012) (SR–NYSEArca–2012– Maker to refresh that side of its quote. 05) (order approving adoption of PNPLO, applicable In addition, when a series is open for (and out of) classes to which they are to Penny Pilot issues only); 68339 (December 3, trading, a quote will trade only against appointed, as orders are not affected by 2012), 77 FR 73109 (December 7, 2012) (SR– this proposal. NYSEArca–2012–130) (immediately effective filing interest in the Consolidated Book and extending the PNPLO to non-Penny Pilot issues). will not route. The Exchange does not Implementation The PNPLO was eliminated approximately one year route Market Maker quotations because after it was adopted because the functionality was The Exchange will announce the such quotes are designed to meet the not implemented in the time period contemplated. implementation of the proposed rule See Securities Exchange Act Release No. 34–69641 Market Maker’s obligation to have change by Trader Update, which (May 28, 2013), 78 FR 33134 (June 3, 2013) (SR– displayed quotations on the Exchange. implementation will be no later than 30 NYSEArca–2013–51) (immediately effective filing The Exchange proposes to specify this deleting reference to the PNPLO from Rule days after the approval of this rule functionality in Exchange rules.18 6.62(cc)). The Exchange believes that processing change. 11 The Exchange notes that BOX recently added functionality to only accept quotes that add Market Maker quotations, as described 2. Statutory Basis liquidity. See Securities Exchange Act Release Nos. in the proposed rules, aligns with the The Exchange believes that its 79311 (October 3 [sic], 2016), 81 FR 83322 Plan.19 The Plan obligates the (November 15 [sic], 2016) (SR–BOX–2016–45) proposal is consistent with Section 6(b) (order approving change to only accept liquidity- participating exchanges to provide order of the Securities Exchange Act of 1934 adding quotes); 78946 (September 27, 2016), 81 FR protection, including addressing locked (the ‘‘Act’’),23 in general, and furthers 68069 (October 3, 2016) (notice). See also BOX IM– and crossed markets and the potential the objectives of Section 6(b)(5) of the 8050–3 (providing that ‘‘[i]f an incoming quote is marketable against the BOX Book and will execute 13 See proposed 6.37B(a)(3)(A). See Rule 6.1A(6) Act,24 in particular, in that it is designed against a resting order or quote, it will be rejected’’). (defining Market Center as ‘‘a national securities to prevent fraudulent and manipulative 12 See Plan, dated April 14, 2009, available here, exchange that has qualified for participation in the acts and practices, to promote just and http://www.optionsclearing.com/components/docs/ mstockstill on DSK3G9T082PROD with NOTICES Options Clearing Corporation pursuant to the clearing/services/options_order_protection_ provisions of the rules of the Options Clearing 20 See e.g., Securities Exchange Act Release No. plan.pdf. See also Securities Exchange Act Release Corporation’’). 60527 (August 18, 2009), 74 FR 43178 (August 26, No. 60405 (July 30, 2009), 74 FR 39362 (August 6, 14 See proposed Rule 6.37B(a)(3)(B)(i). 2009) (SR–NYSEArca–2009–45) (adopting and 2009) (File No. 4–546) (order approving the Plan). 15 See proposed Rule 6.37B(a)(3)(C)(i). updating Exchange rules to implement the Plan). Consistent with the Plan, the rules of the Exchange 16 See proposed Rule 6.37B(a)(3)(C)(ii). 21 See Plan at Section 6(c), supra note 12. include prohibitions against trade-throughs and a 17 See proposed Rule 6.37B(a)(3)(C). 22 See Plan at Section 5(a), supra note 12. pattern or practice of displaying certain quotations 18 See proposed Rule 6.37B(a)(3), (D). 23 15 U.S.C. 78f(b). that lock or cross away markets. See, e.g., Rules 6.94, 6.95. See also infra note 20. 19 See Plan, supra note 12. 24 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 20:23 Feb 24, 2017 Jkt 241001 PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 E:\FR\FM\27FEN1.SGM 27FEN1

11966 Federal Register / Vol. 82, No. 37 / Monday, February 27, 2017 / Notices equitable principles of trade, to remove Orders or orders with reserve size) 28 are fair and orderly market as it would impediments to and perfect the opting not to have their interest encourage Market Makers to provide mechanism of a free and open market displayed, the Exchange believes it is greater volumes of liquidity, which and a national market system, and, in consistent with the Act for Market would add value to market making on general, to protect investors and the Makers to choose to designate their the Exchange. public interest. quotes not to trade with such The Exchange believes that the entire The proposal to add the definition of undisplayed interest.29 For the forgoing proposal is just, equitable and not Market Maker quotes would provide reasons, the Exchange believes that the unfairly discriminatory, as it would clarity and transparency to Exchange proposal to offer to Market Makers the apply to all Market Makers on the rules to the benefit of investors as the option to designate their quotes as Exchange. Further, the proposal would additional clarity would promote just MMLO is not unfairly discriminatory. protect investors and the public interest and equitable principles of trade and The Exchange also believes that such by providing a more robust market, remove impediments to, and perfect the offering would protect investors and the including because the proposal may mechanism of, a free and open market public interest because it may contribute to more aggressive quoting by and a national market system. The contribute to more aggressive quoting by Market Makers. The Exchange believes proposed rule amendments would also Market Makers, which should increase that the proposal would lead to provide internal consistency within the quality of the Exchange’s market and enhanced liquidity on the Exchange, Exchange rules and operate to protect benefit investors. which in turn will benefit and protect investors and the investing public by The proposal to add detail and amend investors and the public interest making the Exchange rules easier to the treatment of Market Maker quotes is through the potential for greater volume navigate and comprehend. Because the consistent with, and facilitates the of orders and executions on the proposed definition of quotes is Exchange meeting its obligations under Exchange. identical or substantially identical to the Plan and, thus, would remove B. Self-Regulatory Organization’s definitions provided on other options impediments to, and perfect the Statement on Burden on Competition exchanges, the proposal presents no mechanism of, a free and open market new or novel issues.25 and a national market system. The The Exchange does not believe that The proposal to offer to Market Exchange believes the proposed the proposed rule change would impose Makers the ability to designate quotes as processing of quotes is consistent with any burden on competition that is not MMLO would remove impediments to the Plan because it avoids trading necessary or appropriate in furtherance and perfect the mechanism of a free and through better prices on other exchanges of the purposes of the Act. The open market and a national market and is designed to avoid locking and Exchange believes the proposal adds system because it would provide Market crossing markets. By preventing Market value to market making on the Makers with increased control over Makers from locking or crossing trading Exchange. The Exchange does not interactions with contra-side liquidity. interest on away Market Centers, the believe the proposal would impose a Specifically, the proposal would proposal would prevent fraudulent and burden on competition among the improve market making on the manipulative acts and practices and options exchanges because of vigorous Exchange because it would prevent would promote just and equitable competition for order flow among the incoming Market Maker quotes from principles of trade to the benefit of all options exchanges. In this highly trading with resting undisplayed market participants. The Exchange also competitive market, market participants interest, which interest is difficult to believes the proposal regarding how the can easily and readily direct order flow take into account in quoting models. Exchange processes quotes in the event to competing venues. The proposal does Accordingly, the Exchange believes that that an incoming quote is rejected, or a not impose an undue burden on the proposed MMLO designation would portion thereof is cancelled, would intramarket competition because the provide Market Makers with a greater promote just and equitable principles of proposed change would apply to all level of determinism, in terms of trade. Specifically, the proposed rules Market Makers on the Exchange. The managing their exposure, and would would enable Market Makers to proposal is structured to offer the same encourage more aggressive liquidity simultaneously update both sides of enhancement to all Market Makers, provision, resulting in more trading their resting quote when one side of the regardless of size, and would not opportunities for market participants quote received a partial fill but was impose a competitive burden on any and tighter spreads. Accordingly, the subsequently cancelled and, where one participant. Exchange believes that the proposal The proposed MMLO, which provides side of a quote is rejected and not would improve overall market quality Market Makers with enhanced booked, to leave undisturbed that and improve competition on the determinism over their quotes, may opposite-side interest because it remains Exchange, to the benefit of all market contribute to more aggressive quoting by valid. The Exchange believes this participants. Moreover, the Exchange Market Makers, resulting in more proposed handling of quotes would notes that all market participants, trading opportunities and tighter assist Market Makers in maintaining a including Market Makers, already have spreads. To the extent this purpose is the ability to avoid trading with 28 See Rule 6.62(u) (providing that a PNP Blind achieved, the MMLO would enhance undisplayed liquidity interest by Order is a Limit Order to buy or sell that is to be the market making function on the entering PNP-Light Orders.26 The executed in whole or in part on the Exchange, and Exchange, which would improve overall the portion not so executed is to be ranked in the market quality and improve competition proposal to adopt MMLO simply Consolidated Book, without routing any portion of on the Exchange to the benefit of all mstockstill on DSK3G9T082PROD with NOTICES extends existing functionality to Market the order to another Market Center) and (d)(3) Maker quotes.27 (providing that a Reserve Order is ‘‘a limit order market participants. Because market participants that enter with a portion of the size displayed and with a The Exchange believes the proposal is undisplayed interest (e.g., PNP-Blind reserve portion of the size (‘reserve size’) that is not pro-competitive because when an displayed on NYSE Arca’’). exchange offers enhanced functionality 29 In this regard, the Exchange notes that 25 See supra note 5. undisplayed liquidity is not afforded trade-through that distinguishes it from other 26 See supra note 9. protection under Section 5 of the Plan. See Plan, exchanges and participants find it 27 See supra note 11. supra note 12. useful, it has been the Exchange’s VerDate Sep<11>2014 20:23 Feb 24, 2017 Jkt 241001 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 E:\FR\FM\27FEN1.SGM 27FEN1

Federal Register / Vol. 82, No. 37 / Monday, February 27, 2017 / Notices 11967 experience that competing exchanges with respect to the proposed rule 510 (SQT and RSQT Performance will move to adopt similar functionality. change that are filed with the Evaluation), and Rule 511 (Specialist Thus, the Exchange believes that this Commission, and all written Allocation and Performance type of competition amongst exchanges communications relating to the Evaluation).3 The proposed rule change is beneficial to the market place as a proposed rule change between the was published for comment in the whole as it can result in enhanced Commission and any person, other than Federal Register on January 9, 2017.4 processes, functionality, and those that may be withheld from the On February 15, 2017, the Exchange technologies. public in accordance with the filed Amendment No. 1 to the proposed provisions of 5 U.S.C. 552, will be rule change, which superseded the C. Self-Regulatory Organization’s available for Web site viewing and original filing in its entirety.5 The Statement on Comments on the printing in the Commission’s Public Commission received no comments on Proposed Rule Change Received From Reference Room, 100 F Street NE., the proposed rule change. The Members, Participants, or Others Washington, DC 20549, on official Commission is publishing this notice to No written comments were solicited business days between the hours of solicit comment on Amendment No. 1 or received with respect to the proposed 10:00 a.m. and 3:00 p.m. Copies of the to the proposed rule change from rule change. filing also will be available for interested persons, and is approving the inspection and copying at the principal proposed rule change, as modified by III. Date of Effectiveness of the office of the Exchange. All comments Amendment No. 1, on an accelerated Proposed Rule Change and Timing for received will be posted without change; basis. Commission Action the Commission does not edit personal Within 45 days of the date of II. Description of the Proposed Rule identifying information from publication of this notice in the Federal Change, as Modified by Amendment submissions. You should submit only Register or such longer period up to 90 No. 1 information that you wish to make days (i) as the Commission may available publicly. All submissions The Exchange proposes to amend designate if it finds such longer period should refer to File Number SR– certain of its Series 500 Rules to be appropriate and publishes its NYSEArca–2017–17 and should be concerning the treatment of Specialists,6 reasons for so finding or (ii) as to which submitted on or before March 20, 2017. SQTs,7 and RSQTs.8 the self-regulatory organization For the Commission, by the Division of 3 See infra notes 6–8 for definitions of Specialist, consents, the Commission will: Trading and Markets, pursuant to delegated (A) By order approve or disapprove SQT, RSQT, and RSQTO. authority.30 4 See Securities Exchange Act Release No. 79724 the proposed rule change, or Eduardo A. Aleman, (January 3, 2017), 82 FR 2418 (‘‘Notice’’). (B) institute proceedings to determine Assistant Secretary. 5 In Amendment No. 1, the Exchange: (1) whether the proposed rule change Specified that members of the panel that may be [FR Doc. 2017–03727 Filed 2–24–17; 8:45 am] should be disapproved. appointed by the Board of Directors to consider BILLING CODE 8011–01–P certain appeals may not have been involved at all IV. Solicitation of Comments in the decision appealed from (rather than not being materially involved) and must otherwise have no Interested persons are invited to conflict of interest; and (2) clarified that when submit written data, views, and SECURITIES AND EXCHANGE selecting members for such panel, the Board of arguments concerning the foregoing, COMMISSION Directors shall choose individuals whose including whether the proposed rule [Release No. 34–80074; File No. SR–Phlx– background, experience, and training qualify them to consider and make determinations regarding the change is consistent with the Act. 2016–105] subject matter to be presented to the panel (rather Comments may be submitted by any of than considering these factors to the extent the following methods: Self-Regulatory Organizations; practicable). To promote transparency of its NASDAQ PHLX LLC; Notice of Filing of proposed amendment, when Phlx filed Amendment Electronic Comments Amendment No. 1 and Order Granting No. 1 with the Commission, it also submitted Amendment No. 1 as a comment letter to the file, • Use the Commission’s Internet Accelerated Approval of Proposed which the Commission posted on its Web site and comment form (http://www.sec.gov/ Rule Change, as Modified by placed in the public comment file for SR–Phlx– rules/sro.shtml); or Amendment No. 1, To Amend Rules 2016–105 (available at https://www.sec.gov/ • Send an email to rule-comments@ 501, 507, 508, 510, and 511 of the comments/sr-phlx-2016-105/phlx2016105-1589879- 132169.pdf). The Exchange also posted a copy of its sec.gov. Please include File Number SR– Exchange Amendment No. 1 on its Web site (http:// NYSEArca–2017–17 on the subject line. nasdaqphlx.cchwallstreet.com/NASDAQPHLX/pdf/ February 21, 2017. phlx-filings/2016/SR-Phlx-2016-105_Amendment_ Paper Comments I. Introduction 1.pdf) when it filed Amendment No. 1 with the • Send paper comments in triplicate On December 21, 2016, NASDAQ Commission. 6 A ‘‘Specialist’’ is an Exchange member who is to Brent J. Fields, Secretary, Securities PHLX LLC (‘‘Phlx’’ or the ‘‘Exchange’’) registered as an options specialist pursuant to Rule and Exchange Commission, 100 F Street filed with the Securities and Exchange 1020(a). A ‘‘Remote Specialist’’ is an options NE., Washington, DC 20549–1090. Commission (‘‘Commission’’), pursuant specialist that does not have a physical presence on an Exchange floor. See Rule 1020(a)(i) and (ii). All submissions should refer to File to Section 19(b)(1) of the Securities 7 An ‘‘ROT’’ is a regular member of the Exchange Number SR–NYSEArca–2017–17. This Exchange Act of 1934 (‘‘Act’’) 1 and Rule located on the trading floor who has received file number should be included on the 19b–4 thereunder,2 a proposed rule permission from the Exchange to trade in options subject line if email is used. To help the change to amend Rule 501 (Specialist for his own account. See Rule 1014(b)(i). A Commission process and review your ‘‘Streaming Quote Trader’’ or ‘‘SQT’’ is an ROT who mstockstill on DSK3G9T082PROD with NOTICES Appointment), Rule 507 (Application has received permission from the Exchange to comments more efficiently, please use for Approval as an SQT, RSQT, or generate and submit option quotations only one method. The Commission will RSQTO and Assignment in Options), electronically in options to which such SQT is post all comments on the Commission’s Rule 508 (Transfer Application), Rule assigned. See Rule 1014(b)(ii)(A). 8 A ‘‘Remote Streaming Quote Trader’’ or ‘‘RSQT’’ Internet Web site (http://www.sec.gov/ is an ROT that is a member affiliated with a rules/sro.shtml). Copies of the 30 17 CFR 200.30–3(a)(12). ‘‘Remote Streaming Quote Trader Organization’’ or submission, all subsequent 1 15 U.S.C. 78s(b)(1). ‘‘RSQTO’’ with no physical trading floor presence amendments, all written statements 2 17 CFR 240.19b–4. Continued VerDate Sep<11>2014 20:23 Feb 24, 2017 Jkt 241001 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 E:\FR\FM\27FEN1.SGM 27FEN1


Document Created: 2017-02-25 01:05:22
Document Modified: 2017-02-25 01:05:22
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 Citation82 FR 11964 
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