82 FR 18519 - Joint Industry Plan; Order Approving the Thirteenth Amendment to the National Market System Plan To Address Extraordinary Market Volatility by Bats BZX Exchange, Inc., Bats BYX Exchange, Inc., Bats EDGA Exchange, Inc., Bats EDGX Exchange, Inc., Chicago Stock Exchange, Inc., Financial Industry Regulatory Authority, Inc., Investors Exchange LLC, NASDAQ BX, Inc., NASDAQ PHLX LLC, The Nasdaq Stock Market LLC, NYSE National, Inc., New York Stock Exchange LLC, NYSE MKT LLC, and NYSE Arca, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 74 (April 19, 2017)
Federal Register Volume 82, Issue 74 (April 19, 2017)
| Page Range | 18519-18520 | |
| FR Document | 2017-07878 |
[Federal Register Volume 82, Number 74 (Wednesday, April 19, 2017)] [Notices] [Pages 18519-18520] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-07878] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80455; File No. 4-631] Joint Industry Plan; Order Approving the Thirteenth Amendment to the National Market System Plan To Address Extraordinary Market Volatility by Bats BZX Exchange, Inc., Bats BYX Exchange, Inc., Bats EDGA Exchange, Inc., Bats EDGX Exchange, Inc., Chicago Stock Exchange, Inc., Financial Industry Regulatory Authority, Inc., Investors Exchange LLC, NASDAQ BX, Inc., NASDAQ PHLX LLC, The Nasdaq Stock Market LLC, NYSE National, Inc., New York Stock Exchange LLC, NYSE MKT LLC, and NYSE Arca, Inc. April 13, 2017. I. Introduction On February 13, 2017, NYSE Group, Inc., on behalf of the other parties \1\ to the National Market System Plan to Address Extraordinary Market Volatility (the ``Plan''), filed with the Securities and Exchange Commission (``Commission'') pursuant to Section 11A of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 608 thereunder,\3\ a proposal to amend the Plan.\4\ The proposal represents the thirteenth amendment to the Plan, and reflects proposed changes unanimously approved by the Participants (``Thirteenth Amendment''). The proposed Thirteenth Amendment was published for comment in the Federal Register on March 16, 2017.\5\ The Commission received no comment letters regarding the amendment. This order approves the Thirteenth Amendment to the Plan as proposed. --------------------------------------------------------------------------- \1\ Bats BZX Exchange, Inc., Bats BYX Exchange, Inc., Bats EDGA Exchange, Inc., Bats EDGX Exchange, Inc., Chicago Stock Exchange, Inc., the Financial Industry Regulatory Authority, Inc., Investors Exchange LLC, NASDAQ BX, Inc., NASDAQ PHLX LLC, The NASDAQ Stock Market LLC, New York Stock Exchange LLC (``NYSE''), NYSE Arca, Inc., NYSE MKT LLC, and NYSE National Inc. (collectively, the ``Participants''). \2\ 15 U.S.C. 78k-1. \3\ 17 CFR 242.608. \4\ See Letter from Elizabeth King, General Counsel, NYSE, to Brent J. Fields, Secretary, Commission, dated February 10, 2017 (``Transmittal Letter''). \5\ See Securities Exchange Act Release No. 80203 (March 10, 2017), 82 FR 14068. --------------------------------------------------------------------------- II. Description of the Proposal In the Thirteenth Amendment, the Participants propose to (1) extend the pilot period of the Plan from April 21, 2017 to April 16, 2018; (2) require the Processor to publish, in connection with a reopening after a Trading Pause, the auction reference price, auction collars, [[Page 18520]] and number of extensions to the reopening auction, as provided by the Primary Listing Exchange; and (3) amend the Plan to reflect name changes of certain Participants.\6\ --------------------------------------------------------------------------- \6\ Unless otherwise specified, the terms used herein have the same meaning as set forth in the Plan. --------------------------------------------------------------------------- III. Discussion and Commission Findings The Commission finds that the Thirteenth Amendment is consistent with the requirements of the Act and the rules and regulations thereunder. Specifically, the Commission finds that the Thirteenth Amendment is consistent with Section 11A of the Act \7\ and Rule 608 thereunder \8\ in that it is appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly markets, and that it removes impediments to, and perfects the mechanism of, a national market system. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78k-1. \8\ 17 CFR 242.608. --------------------------------------------------------------------------- The Participants propose to extend the pilot period for an additional year to April 16, 2018. As the Participants note, the planned implementation date for the twelfth amendment to the Plan (``Twelfth Amendment'') \9\ and the related Primary Listing Exchanges' amended reopening procedures is scheduled to be during the third quarter of 2017, which is after the end date of the current pilot period. In addition, the Participants state that an extension of the pilot period would provide additional time for the Participants, the Commission, and the public to consider other potential modifications to the Plan that are currently under consideration, including changes to how NMS Stocks are tiered under the Plan and the applicable percentage parameters associated with such tiers, whether double-wide Price Bands at the open and close of trading should be eliminated, and recommendations made by the Equity Market Structure Advisory Committee with respect to Plan operations.\10\ Finally, the Commission understands that the Participants continue to review and analyze the harmonization of clearly erroneous execution rules with the Plan, such that these rules could not be used to break trades occurring within Price Bands absent a legitimate technical failure at a Self-Regulatory Organization.\11\ --------------------------------------------------------------------------- \9\ See Securities Exchange Act Release No. 79845 (January 19, 2017), 82 FR 8551 (January 26, 2017) (order approving the Twelfth Amendment). \10\ See U.S. Securities and Exchange Commission Equity Market Structure Advisory Committee, Recommendations for Rulemaking on Issues of Market Quality, dated November 29, 2016, available at https://www.sec.gov/spotlight/emsac/emsac-recommendations-rulemaking-market-quality.pdf. \11\ See Securities Exchange Act Release No. 77679 (April 21, 2016), 81 FR 24908, 24909 (April 27, 2016) (order approving the Tenth Amendment). --------------------------------------------------------------------------- The Commission believes that a one-year extension of the Plan will allow the Participants to implement and assess the changes the Plan under the Twelfth Amendment. In addition, the extension of the pilot period will provide Participants with additional time to continue their examination and analysis of the matters described above. Accordingly, the Commission believes that it is appropriate in the public interest, for the protection of investors and the maintenance of a fair and orderly market to approve the amendment to extend the pilot period until April 16, 2018. The Participants also propose to amend Section VII(B)(1) of the Plan to specify that the Processor would publish certain information that the Primary Listing Exchange would provide to the Processor in connection with reopening an NMS Stock after a Trading Pause. Specifically, the Processor will publish the auction reference price; auction collars; and number of extensions to the reopening auction. This information will provide greater transparency regarding whether an NMS Stock will reopen at the end of the scheduled Trading Pause, or if such Trading Pause has been extended beyond the five-minute period contemplated in the Plan. The Commission believes that it is appropriate in the public interest, for the protection of investors and the maintenance of a fair and orderly market to approve this proposed change because it should enhance transparency about the reopening processes during a Trading Pause. Finally, the Participants propose to amend the Plan to reflect name changes of certain Participants. The Commission believes that it is appropriate in the public interest, for the protection of investors and the maintenance of a fair and orderly market to approve this proposed change because it ensures that the Plan remains accurate and up-to- date. For the reasons noted above, the Commission finds that the Thirteenth Amendment to the Plan is consistent with Section 11A of the Act \12\ and Rule 608 thereunder.\13\ The Commission reiterates its expectation that the Participants will continue to monitor the scope and operation of the Plan and study the data produced, and will propose any modifications to the Plan that may be necessary or appropriate.\14\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78k-1. \13\ 17 CFR 242.608. \14\ See Securities Exchange Act Release No. 67091 (May 31, 2012), 77 FR 33498 (June 6, 2012). --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to Section 11A of the Act \15\ and Rule 608 thereunder,\16\ that the Thirteenth Amendment to the Plan (File No. 4-631) be, and it hereby is, approved. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78k-1. \16\ 17 CFR 242.608. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(29). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2017-07878 Filed 4-18-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices 18519
to the RMPT Tier to include the RMPL • Send an email to rule-comments@ SECURITIES AND EXCHANGE
routing strategy as part of the tier’s ADV sec.gov. Please include File No. SR- COMMISSION
calculation should increase competition BatsEDGA–2017–06 on the subject line.
as it is designed to attract additional [Release No. 34–80455; File No. 4–631]
midpoint order flow to the Exchange. Paper Comments
Joint Industry Plan; Order Approving
The changes to the descriptions of fee • Send paper comments in triplicate the Thirteenth Amendment to the
codes MM and MT should have no to Secretary, Securities and Exchange National Market System Plan To
impact on competition as they are
Commission, 100 F Street NE., Address Extraordinary Market
similar designed to align their
Washington, DC 20549–1090. Volatility by Bats BZX Exchange, Inc.,
descriptions with that of similar fee
Bats BYX Exchange, Inc., Bats EDGA
codes offered by the Exchange’s All submissions should refer to File No.
Exchange, Inc., Bats EDGX Exchange,
affiliates. Additionally, Members may SR-BatsEDGA–2017–06. This file Inc., Chicago Stock Exchange, Inc.,
opt to disfavor the Exchange’s pricing if number should be included on the Financial Industry Regulatory
they believe that alternatives offer them subject line if email is used. To help the Authority, Inc., Investors Exchange
better value. Accordingly, the Exchange Commission process and review your LLC, NASDAQ BX, Inc., NASDAQ PHLX
does not believe that the proposed comments more efficiently, please use LLC, The Nasdaq Stock Market LLC,
changes will impair the ability of only one method. The Commission will NYSE National, Inc., New York Stock
Members or competing venues to post all comments on the Commission’s Exchange LLC, NYSE MKT LLC, and
maintain their competitive standing in Internet Web site (http://www.sec.gov/ NYSE Arca, Inc.
the financial markets. The Exchange rules/sro.shtml). Copies of the
believes that its proposal would not submission, all subsequent April 13, 2017.
burden intramarket competition because
amendments, all written statements I. Introduction
the proposed rate would apply
with respect to the proposed rule
uniformly to all Members. On February 13, 2017, NYSE Group,
change that are filed with the
Inc., on behalf of the other parties 1 to
C. Self-Regulatory Organization’s Commission, and all written the National Market System Plan to
Statement on Comments on the communications relating to the Address Extraordinary Market Volatility
Proposed Rule Change Received From proposed rule change between the (the ‘‘Plan’’), filed with the Securities
Members, Participants, or Others Commission and any person, other than and Exchange Commission
The Exchange has not solicited, and those that may be withheld from the (‘‘Commission’’) pursuant to Section
does not intend to solicit, comments on public in accordance with the 11A of the Securities Exchange Act of
this proposed rule change. The provisions of 5 U.S.C. 552, will be 1934 (‘‘Act’’) 2 and Rule 608
Exchange has not received any written available for Web site viewing and thereunder,3 a proposal to amend the
comments from members or other printing in the Commission’s Public Plan.4 The proposal represents the
interested parties. Reference Room, 100 F Street NE., thirteenth amendment to the Plan, and
Washington, DC 20549, on official reflects proposed changes unanimously
III. Date of Effectiveness of the
business days between the hours of approved by the Participants
Proposed Rule Change and Timing for
10:00 a.m. and 3:00 p.m. Copies of the (‘‘Thirteenth Amendment’’). The
Commission Action
filing also will be available for proposed Thirteenth Amendment was
The foregoing rule change has become inspection and copying at the principal published for comment in the Federal
effective pursuant to Section 19(b)(3)(A) office of the Exchange. All comments Register on March 16, 2017.5 The
of the Act 19 and paragraph (f) of Rule received will be posted without change; Commission received no comment
19b–4 thereunder.20 At any time within the Commission does not edit personal letters regarding the amendment. This
60 days of the filing of the proposed rule identifying information from order approves the Thirteenth
change, the Commission summarily may submissions. You should submit only Amendment to the Plan as proposed.
temporarily suspend such rule change if information that you wish to make II. Description of the Proposal
it appears to the Commission that such available publicly. All submissions
action is necessary or appropriate in the In the Thirteenth Amendment, the
should refer to File No. SR–BatsEDGA– Participants propose to (1) extend the
public interest, for the protection of 2017–06, and should be submitted on or
investors, or otherwise in furtherance of pilot period of the Plan from April 21,
before May 10, 2017. 2017 to April 16, 2018; (2) require the
the purposes of the Act.
For the Commission, by the Division of Processor to publish, in connection with
IV. Solicitation of Comments Trading and Markets, pursuant to delegated a reopening after a Trading Pause, the
Interested persons are invited to authority.21 auction reference price, auction collars,
submit written data, views, and Brent J. Fields,
1 Bats BZX Exchange, Inc., Bats BYX Exchange,
arguments concerning the foregoing, Secretary. Inc., Bats EDGA Exchange, Inc., Bats EDGX
including whether the proposed rule [FR Doc. 2017–07869 Filed 4–18–17; 8:45 am] Exchange, Inc., Chicago Stock Exchange, Inc., the
change is consistent with the Act. BILLING CODE 8011–01–P
Financial Industry Regulatory Authority, Inc.,
Comments may be submitted by any of Investors Exchange LLC, NASDAQ BX, Inc.,
NASDAQ PHLX LLC, The NASDAQ Stock Market
the following methods: LLC, New York Stock Exchange LLC (‘‘NYSE’’),
jstallworth on DSK7TPTVN1PROD with NOTICES
Electronic Comments NYSE Arca, Inc., NYSE MKT LLC, and NYSE
National Inc. (collectively, the ‘‘Participants’’).
• Use the Commission’s Internet 2 15 U.S.C. 78k–1.
3 17 CFR 242.608.
comment form (http://www.sec.gov/
4 See Letter from Elizabeth King, General Counsel,
rules/sro.shtml); or
NYSE, to Brent J. Fields, Secretary, Commission,
dated February 10, 2017 (‘‘Transmittal Letter’’).
19 15 U.S.C. 78s(b)(3)(A). 5 See Securities Exchange Act Release No. 80203
20 17 CFR 240.19b–4(f). 21 17 CFR 200.30–3(a)(12). (March 10, 2017), 82 FR 14068.
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![18520 Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices
and number of extensions to the absent a legitimate technical failure at a propose any modifications to the Plan
reopening auction, as provided by the Self-Regulatory Organization.11 that may be necessary or appropriate.14
Primary Listing Exchange; and (3) The Commission believes that a one-
IV. Conclusion
amend the Plan to reflect name changes year extension of the Plan will allow the
of certain Participants.6 Participants to implement and assess It is therefore ordered, pursuant to
the changes the Plan under the Twelfth Section 11A of the Act 15 and Rule 608
III. Discussion and Commission thereunder,16 that the Thirteenth
Amendment. In addition, the extension
Findings Amendment to the Plan (File No. 4–631)
of the pilot period will provide
The Commission finds that the Participants with additional time to be, and it hereby is, approved.
Thirteenth Amendment is consistent continue their examination and analysis For the Commission, by the Division of
with the requirements of the Act and the of the matters described above. Trading and Markets, pursuant to delegated
rules and regulations thereunder. Accordingly, the Commission believes authority.17
Specifically, the Commission finds that that it is appropriate in the public Brent J. Fields,
the Thirteenth Amendment is consistent interest, for the protection of investors Secretary.
with Section 11A of the Act 7 and Rule and the maintenance of a fair and [FR Doc. 2017–07878 Filed 4–18–17; 8:45 am]
608 thereunder 8 in that it is appropriate orderly market to approve the BILLING CODE 8011–01–P
in the public interest, for the protection amendment to extend the pilot period
of investors and the maintenance of fair until April 16, 2018.
and orderly markets, and that it removes The Participants also propose to SMALL BUSINESS ADMINISTRATION
impediments to, and perfects the amend Section VII(B)(1) of the Plan to
mechanism of, a national market specify that the Processor would Data Collection Available for Public
system. publish certain information that the Comments
The Participants propose to extend Primary Listing Exchange would
provide to the Processor in connection 60-day notice and request for
ACTION:
the pilot period for an additional year to
with reopening an NMS Stock after a comments.
April 16, 2018. As the Participants note,
the planned implementation date for the Trading Pause. Specifically, the
SUMMARY: In accordance with the
twelfth amendment to the Plan Processor will publish the auction
Paperwork Reduction Act of 1995, this
(‘‘Twelfth Amendment’’) 9 and the reference price; auction collars; and
notice announces the Small Business
related Primary Listing Exchanges’ number of extensions to the reopening
Administration’s intentions to request
amended reopening procedures is auction. This information will provide
approval on a new and/or currently
scheduled to be during the third quarter greater transparency regarding whether
approved information collection.
of 2017, which is after the end date of an NMS Stock will reopen at the end of
the scheduled Trading Pause, or if such DATES: Submit comments on or before
the current pilot period. In addition, the June 19, 2017.
Participants state that an extension of Trading Pause has been extended
beyond the five-minute period ADDRESSES: Send all comments
the pilot period would provide regarding whether these information
additional time for the Participants, the contemplated in the Plan. The
Commission believes that it is collections are necessary for the proper
Commission, and the public to consider performance of the function of the
other potential modifications to the Plan appropriate in the public interest, for
the protection of investors and the agency, whether the burden estimates
that are currently under consideration, are accurate, and if there are ways to
including changes to how NMS Stocks maintenance of a fair and orderly
market to approve this proposed change minimize the estimated burden and
are tiered under the Plan and the enhance the quality of the collections, to
applicable percentage parameters because it should enhance transparency
about the reopening processes during a Carol Fendler, Director Licensing and
associated with such tiers, whether Program Standards, Office of
double-wide Price Bands at the open Trading Pause.
Finally, the Participants propose to Investment, Small Business
and close of trading should be Administration, 409 3rd Street, 6th
eliminated, and recommendations made amend the Plan to reflect name changes
of certain Participants. The Commission Floor, Washington, DC 20416.
by the Equity Market Structure Advisory
believes that it is appropriate in the FOR FURTHER INFORMATION CONTACT:
Committee with respect to Plan
public interest, for the protection of Carol Fendler, Director Licensing and
operations.10 Finally, the Commission
investors and the maintenance of a fair Program Standards, 202–205–7559
understands that the Participants
and orderly market to approve this carol.fendler@sba.gov; Curtis B. Rich,
continue to review and analyze the
proposed change because it ensures that Management Analyst, 202–205–7030;
harmonization of clearly erroneous
the Plan remains accurate and up-to- curtis.rich@sba.gov.
execution rules with the Plan, such that
these rules could not be used to break date. SUPPLEMENTARY INFORMATION:
For the reasons noted above, the Title: ‘‘SBIC Financial Reports’’
trades occurring within Price Bands
Commission finds that the Thirteenth Abstract: To obtain the information
Amendment to the Plan is consistent needed to carry out its oversight
6 Unless otherwise specified, the terms used
herein have the same meaning as set forth in the with Section 11A of the Act 12 and Rule responsibilities under the Small
Plan. 608 thereunder.13 The Commission Business Investment Act, the Small
7 15 U.S.C. 78k–1. reiterates its expectation that the Business Administration (SBA) requires
8 17 CFR 242.608.
Participants will continue to monitor Small Business Investment Companies
jstallworth on DSK7TPTVN1PROD with NOTICES
9 See Securities Exchange Act Release No. 79845
the scope and operation of the Plan and (SBICs) to submit financial statements
(January 19, 2017), 82 FR 8551 (January 26, 2017) and supplementary information on SBA
(order approving the Twelfth Amendment).
study the data produced, and will
10 See U.S. Securities and Exchange Commission
11 See Securities Exchange Act Release No. 77679 14 See Securities Exchange Act Release No. 67091
Equity Market Structure Advisory Committee,
Recommendations for Rulemaking on Issues of (April 21, 2016), 81 FR 24908, 24909 (April 27, (May 31, 2012), 77 FR 33498 (June 6, 2012).
Market Quality, dated November 29, 2016, available 2016) (order approving the Tenth Amendment). 15 15 U.S.C. 78k–1.
12 15 U.S.C. 78k–1. 16 17 CFR 242.608.
at https://www.sec.gov/spotlight/emsac/emsac-
recommendations-rulemaking-market-quality.pdf. 13 17 CFR 242.608. 17 17 CFR 200.30–3(a)(29).
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Document Created: 2018-11-14 09:43:23
Document Modified: 2018-11-14 09:43:23
| 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 18519 |
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