82 FR 16459 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Adopt New Equities Trading Rules To Transition Trading on the Exchange From a Floor Based Market With a Parity Allocation Model to Fully Automated Price-Time Priority Model on the Exchange's New Trading Technology Platform, Pillar
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 63 (April 4, 2017)
Federal Register Volume 82, Issue 63 (April 4, 2017)
| Page Range | 16459-16460 | |
| FR Document | 2017-06569 |
[Federal Register Volume 82, Number 63 (Tuesday, April 4, 2017)] [Notices] [Pages 16459-16460] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-06569] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80337; File No. SR-NYSEMKT-2017-01] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Adopt New Equities Trading Rules To Transition Trading on the Exchange From a Floor Based Market With a Parity Allocation Model to Fully Automated Price-Time Priority Model on the Exchange's New Trading Technology Platform, Pillar March 29, 2017. On January 25, 2017, NYSE MKT LLC (``Exchange'' or ``NYSE MKT'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to transition trading on the Exchange to Pillar, the Exchange's new trading technology platform, and to operate as a fully automated cash equities market. The proposed rule change was published for comment in the Federal Register on February 15, 2017.\3\ The Commission received no comments on the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 79993 (Feb. 9, 2017), 82 FR 10814. --------------------------------------------------------------------------- Section 19(b)(2) of the Act \4\ provides that, within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be approved or disapproved. The 45th day after publication of the notice for this proposed rule change is April 1, 2017. The Commission is extending this 45-day time period. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,\5\ designates May 16, 2017, as the date by which the [[Page 16460]] Commission should either approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change (File Number SR-NYSEMKT-2017-01). --------------------------------------------------------------------------- \5\ Id. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\6\ --------------------------------------------------------------------------- \6\ 17 CFR 200.30-3(a)(31). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-06569 Filed 4-3-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Notices 16459
the clause ‘‘except as provided for in Commission finds that the proposed SECURITIES AND EXCHANGE
Rule 36.30.’’ The Exchange also rule change is consistent with Section COMMISSION
proposes to add new Rule 98(c)(3)(B)(ii) 6(b)(5) of the Act,11 which requires,
[Release No. 34–80337; File No. SR–
to provide that while on the Trading among other things, that the rules of a NYSEMKT–2017–01]
Floor of the Exchange, employees of the national securities exchange be
DMM unit may not trade any security designed to prevent fraudulent and Self-Regulatory Organizations; NYSE
that is a related product of its DMM manipulative acts and practices, to MKT LLC; Notice of Designation of a
securities. The Exchange would promote just and equitable principles of Longer Period for Commission Action
renumber current Rules 98(c)(3)(B)(ii) trade, to foster cooperation and on a Proposed Rule Change To Adopt
and (iii) as new Rules 98(c)(3)(B)(iii) coordination with persons engaged in New Equities Trading Rules To
and (iv). Transition Trading on the Exchange
As a result of these proposed changes, facilitating transactions in securities, to
remove impediments to and perfect the From a Floor Based Market With a
DMMs would no longer be restricted Parity Allocation Model to Fully
from trading securities that are mechanism of a free and open market
and a national market system, and, in Automated Price-Time Priority Model
unrelated to DMM securities while on on the Exchange’s New Trading
the Trading Floor. However, the general, to protect investors and the
public interest. Technology Platform, Pillar
proposed amendments would continue
to require that, while on the Trading Under the proposal, DMMs would be March 29, 2017.
Floor, DMMs would not be able to trade permitted to trade securities that are On January 25, 2017, NYSE MKT LLC
any securities that are related products unrelated to DMM securities while on (‘‘Exchange’’ or ‘‘NYSE MKT’’) filed
to DMM securities. The proposed the Trading Floor. The Exchange with the Securities and Exchange
amendment would also add a new represents that DMMs do not have a Commission (‘‘Commission’’), pursuant
requirement that DMMs may only trade unique role or access to any non-public to Section 19(b)(1) of the Securities
their DMM securities at their assigned Exchange Act of 1934 (‘‘Act’’) 1 and Rule
order information with respect to
stock trading post. 19b–4 thereunder,2 a proposed rule
The proposed rule change would securities that are not assigned to them
under Rule 103B. The Commission change to transition trading on the
allow Exchange DMMs that are also Exchange to Pillar, the Exchange’s new
NYSE MKT LLC (‘‘NYSE MKT’’) DMMs notes that, while on the Trading Floor,
DMMs would continue to be prohibited trading technology platform, and to
to continue to operate. Currently, NYSE operate as a fully automated cash
MKT’s cash equities trading operations from trading securities that are related
equities market. The proposed rule
share a Floor with the Exchange. DMMs products to DMM securities. In
change was published for comment in
who are also approved as NYSE MKT addition, the Commission notes that,
the Federal Register on February 15,
DMMs currently trade in both NYSE- while on the Trading Floor, employees 2017.3 The Commission received no
listed DMM securities and NYSE MKT- of the DMM unit would be permitted to comments on the proposed rule change.
listed DMM securities from the same trade DMM securities only on or Section 19(b)(2) of the Act 4 provides
physical location on the exchanges’ through the systems and facilities of the that, within 45 days of the publication
respective Trading Floors.8 NYSE MKT Exchange at the DMM unit’s assigned of notice of the filing of a proposed rule
has proposed to transition from a Floor- stock trading post location and as change, or within such longer period up
based trading model to a fully permitted by Exchange rules. to 90 days as the Commission may
automated trading model.9 After this designate if it finds such longer period
transition, NYSE MKT would continue For the above reasons, the
Commission finds that the proposal is to be appropriate and publishes its
to have electronic-access DMMs that reasons for so finding or as to which the
would be the same member consistent with the requirements of the
Act. self-regulatory organization consents,
organizations that are currently the Commission shall either approve the
operating as Floor-based NYSE MKT IV. Conclusion proposed rule change, disapprove the
DMMs. The proposed amendment to
proposed rule change, or institute
Rule 98 would permit NYSE DMMs to It is therefore ordered, pursuant to proceedings to determine whether the
continue to support their electronic Section 19(b)(2) of the Act,12 that the proposed rule change should be
NYSE MKT DMM functions in the same proposed rule change (NYSEMKT– approved or disapproved. The 45th day
physical location where they are 2017–03) be, and it hereby is, approved. after publication of the notice for this
currently operating.
For the Commission, by the Division of proposed rule change is April 1, 2017.
III. Discussion and Commission Trading and Markets, pursuant to delegated The Commission is extending this 45-
Findings authority.13 day time period.
After careful review, the Commission Eduardo A. Aleman, The Commission finds that it is
finds that the proposed rule change is Assistant Secretary.
appropriate to designate a longer period
consistent with the requirements of the within which to take action on the
[FR Doc. 2017–06567 Filed 4–3–17; 8:45 am]
Act and the rules and regulations proposed rule change so that it has
BILLING CODE 8011–01–P sufficient time to consider the proposed
thereunder applicable to a national
securities exchange.10 In particular, the rule change. Accordingly, the
Commission, pursuant to Section
asabaliauskas on DSK3SPTVN1PROD with NOTICES
8 NYSE MKT DMMs operate under the NYSE 19(b)(2) of the Act,5 designates May 16,
MKT Rule 98—Equities. 2017, as the date by which the
9 See Securities Exchange Act Release No. 79993
(Feb. 9, 2017), 82 FR 10814 (Feb. 15, 2017) (notice 1 15 U.S.C. 78s(b)(1).
of filing of SR–NYSEMKT–2017–1 (‘‘NYSE MKT impact on efficiency, competition, and capital 2 17
Trading Rules Filing’’)). Subject to rule approval, CFR 240.19b–4.
formation. See 15 U.S.C. 78c(f). 3 See Securities Exchange Act Release No. 79993
NYSE MKT anticipates transitioning off of its Floor 11 15 U.S.C. 78f(b)(5).
in the second quarter of 2017. (Feb. 9, 2017), 82 FR 10814.
10 In approving this proposed rule change, the 12 Id. 4 15 U.S.C. 78s(b)(2).
Commission has considered the proposed rule’s 13 17 CFR 200.30–3(a)(12). 5 Id.
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![16460 Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Notices
Commission should either approve or II. Self-Regulatory Organization’s of the Act,6 in general, and furthers the
disapprove or institute proceedings to Statement of the Purpose of, and objectives of Section 6(b)(5) of the Act,7
determine whether to disapprove the Statutory Basis for, the Proposed Rule in particular, in that it is designed to
proposed rule change (File Number SR– Change promote just and equitable principles of
NYSEMKT–2017–01). trade, to remove impediments to and
In its filing with the Commission, the
perfect the mechanism of a free and
For the Commission, by the Division of Exchange included statements
open market and a national market
Trading and Markets, pursuant to delegated concerning the purpose of and basis for system, and, in general to protect
authority.6 the proposed rule change and discussed investors and the public interest by
Eduardo A. Aleman, any comments it received on the renaming the Exchange and updating
Assistant Secretary. proposed rule change. The text of these the names of certain affiliated markets
statements may be examined at the to reflect its current ownership.
[FR Doc. 2017–06569 Filed 4–3–17; 8:45 am]
places specified in Item IV below. The
BILLING CODE 8011–01–P
Exchange has prepared summaries, set B. Self-Regulatory Organization’s
forth in sections A, B, and C below, of Statement on Burden on Competition
the most significant aspects of such The Exchange does not believe that
SECURITIES AND EXCHANGE statements.
COMMISSION the proposed rule change will impose
A. Self-Regulatory Organization’s any burden on competition not
Statement of the Purpose of, and necessary or appropriate in furtherance
[Release No. 34–80326; File No. SR– of the purposes of the Act. The
ISEMercury–2017–05] Statutory Basis for, the Proposed Rule
Change Exchange does not believe that the
proposed rule change will impact the
Self-Regulatory Organizations; ISE 1. Purpose intense competition that exists in the
Mercury, LLC; Notice of Filing and options market. The name change will
Immediate Effectiveness of Proposed The purpose of the proposed rule
change is to rename the Exchange to reflect the current ownership structure
Rule Change To Rename the Exchange and unify the options markets operated
as Nasdaq MRX, LLC reflect its new placement within the
Nasdaq, Inc. corporate structure in by Nasdaq, Inc.
March 29, 2017. connection with the March 9, 2016 C. Self-Regulatory Organization’s
acquisition by Nasdaq of the capital Statement on Comments on the
Pursuant to Section 19(b)(1) of the
stock of U.S. Exchange Holdings, and Proposed Rule Change Received From
Securities Exchange Act of 1934 (the
the thereby indirectly acquiring all of Members, Participants, or Others
‘‘Act’’),1 and Rule 19b–4 thereunder,2 the interests of the International
notice is hereby given that on March 17, No written comments were either
Securities Exchange, LLC, ISE Gemini,
2017, ISE Mercury, LLC (‘‘ISE Mercury’’ solicited or received.
LLC, and ISE Mercury, LLC.4
or ‘‘Exchange’’) filed with the Securities Specifically, all references in the III. Date of Effectiveness of the
and Exchange Commission (‘‘SEC’’ or Exchange’s Constitution, Limited Proposed Rule Change and Timing for
‘‘Commission’’) the proposed rule Liability Company Agreement, Rule Commission Action
change as described in Items I and II Book and Fee Schedule to ‘‘ISE Because the proposed rule change
below, which Items have been prepared Mercury, LLC’’ or references to does not (i) significantly affect the
by the Exchange. The Commission is ‘‘Mercury’’ shall be amended to protection of investors or the public
publishing this notice to solicit ‘‘Nasdaq MRX, LLC’’ or ‘‘Nasdaq MRX.’’ interest; (ii) impose any significant
comments on the proposed rule change Moreover, consistent with changes burden on competition; and (iii) become
from interested persons. already filed for ISE Gemini, LLC, the operative for 30 days from the date on
rule change proposes to amend which it was filed, or such shorter time
I. Self-Regulatory Organization’s
references to ‘‘ISE Gemini’’ to ‘‘Nasdaq as the Commission may designate, it has
Statement of the Terms of Substance of GEMX,’’ and references to the
the Proposed Rule Change become effective pursuant to Section
‘‘International Securities Exchange’’ and 19(b)(3)(A) of the Act 8 and Rule 19b–
The Exchange proposes to amend its ‘‘ISE’’ to ‘‘Nasdaq ISE.’’ 5 The Exchange 4(f)(6) thereunder.9
Constitution, Limited Liability also proposes minor grammatical A proposed rule change filed
Company Agreement, Rule Book and changes which are necessary as a result pursuant to Rule 19b–4(f)(6) under the
Fee Schedule to rename itself Nasdaq of the name change, i.e., amending ‘‘a’’ Act 10 normally does not become
to ‘‘an.’’ The Exchange proposes to operative for 30 days after the date of its
MRX, LLC. In addition this rule change
amend its name for ISE Mercury on filing. However, Rule 19b–4(f)(6)(iii) 11
proposes to amend references to the
April 3, 2017. permits the Commission to designate a
names of certain affiliated markets
2. Statutory Basis shorter time if such action is consistent
within the ISE Mercury Rulebook.3
with the protection of investors and the
The text of the proposed rule change The Exchange believes that its
is available on the Exchange’s Web site proposal is consistent with Section 6(b) 6 15 U.S.C. 78f(b).
at www.ise.com, at the principal office 7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A).
of the Exchange, and at the 4 See Securities Exchange Act Release No. 78119
asabaliauskas on DSK3SPTVN1PROD with NOTICES
9 17 CFR 240.19b–4(f)(6). As required under Rule
Commission’s Public Reference Room. (June 27, 2016), 81 FR 41611 (SR–ISE–2016–11; SR–
ISE Gemini-2016–05; SR–ISE Mercury–2016–10) 19b–4(f)(6)(iii), the Exchange provided the
(Order Granting Accelerated Approval of Proposed Commission with written notice of its intent to file
Rule Changes, Each as Modified by Amendment No. the proposed rule change, along with a brief
6 17 1 Thereto, Relating to a Corporate Transaction in description and the text of the proposed rule
CFR 200.30–3(a)(31).
Which Nasdaq, Inc. Will Become the Indirect Parent change, at least five business days prior to the date
1 15 U.S.C. 78s(b)(1). of ISE, ISE Gemini, and ISE Mercury). of filing of the proposed rule change, or such
2 17 CFR 240.19b–4.
5 See Securities Exchange Act Release No. 80248 shorter time as designated by the Commission.
3 The affiliated markets are the International 10 17 CFR 240.19b–4(f)(6).
(March 15, 2017) (SR–ISEGemini–2017–13). See
Securities Exchange, LLC and ISE Gemini, LLC. also SR–ISE–2017–25. 11 17 CFR 240.19b–4(f)(6)(iii).
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Document Created: 2017-04-03 23:53:18
Document Modified: 2017-04-03 23:53:18
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 16459 |
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