82_FR_21011 82 FR 20926 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change Amending Rule 104-Equities To Delete Subsection (g)(i)(A)(III) Prohibiting Designated Market Makers From Establishing a New High (Low) Price on the Exchange in a Security the DMM Has a Long (Short) Position During the Last Ten Minutes Prior to the Close of Trading

82 FR 20926 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change Amending Rule 104-Equities To Delete Subsection (g)(i)(A)(III) Prohibiting Designated Market Makers From Establishing a New High (Low) Price on the Exchange in a Security the DMM Has a Long (Short) Position During the Last Ten Minutes Prior to the Close of Trading

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 85 (May 4, 2017)

Page Range20926-20927
FR Document2017-08977

Federal Register, Volume 82 Issue 85 (Thursday, May 4, 2017) 
[Federal Register Volume 82, Number 85 (Thursday, May 4, 2017)]
[Notices]
[Pages 20926-20927]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08977]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80550; File No. SR-NYSEMKT-2016-99]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of 
Designation of a Longer Period for Commission Action on Proceedings To 
Determine Whether To Approve or Disapprove a Proposed Rule Change 
Amending Rule 104--Equities To Delete Subsection (g)(i)(A)(III) 
Prohibiting Designated Market Makers From Establishing a New High (Low) 
Price on the Exchange in a Security the DMM Has a Long (Short) Position 
During the Last Ten Minutes Prior to the Close of Trading

April 28, 2017.
    On October 27, 2016, NYSE MKT (``NYSE MKT'' or ``Exchange'') 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 amending Rule 
104--Equities to delete subsection (g)(i)(A)(III), which prohibits 
Designated Market Makers (``DMMs'') from establishing, during the last 
ten minutes of trading before the close, a new high (low) price for the 
day on the Exchange in a security in which the DMM has a long (short) 
position. The proposed rule change was published for comment in the 
Federal Register on November 17, 2016.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 79283 (Nov. 10, 
2016), 81 FR 81210 (Nov. 17, 2016).
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    On December, 20, 2016, the Commission extended to February 15, 
2017, the time period in which to approve the proposal, disapprove the 
proposal, or institute proceedings to determine whether to approve or 
disapprove the proposal.\4\ On February 15, 2017, the Commission 
instituted

[[Page 20927]]

proceedings under Section 19(b)(2)(B) of the Act \5\ to determine 
whether to approve or disapprove the proposed rule change.\6\ On March 
16, 2017, the Exchange filed a response to the Order Instituting 
Proceedings.\7\
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    \4\ See Securities Exchange Act Release No. 79611 (Dec. 20, 
2016), 81 FR 95205 (Dec. 27, 2016).
    \5\ 15 U.S.C. 78s(b)(2)(B).
    \6\ See Securities Exchange Act Release No. 80043 (Feb. 15, 
2017), 82 FR 11379 (Feb. 22, 2017) (``Order Instituting 
Proceedings''). Specifically, the Commission instituted proceedings 
to allow for additional analysis of the proposed rule change's 
consistency with Section 6(b)(5) of the Act, which requires, among 
other things, that the rules of a national securities exchange be 
``designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade,'' and 
``to protect investors and the public interest.'' See id., 81 FR at 
11380.
    \7\ See letter to Brent J. Fields, Secretary, Commission, from 
Elizabeth King, General Counsel and Corporate Secretary, New York 
Stock Exchange LLC, dated March 16, 2017, available at https://www.sec.gov/comments/sr-nyse-2016-71/nyse201671-1645043-148163.pdf.
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    Section 19(b)(2) of the Act \8\ provides that, after initiating 
disapproval proceedings, the Commission shall issue an order approving 
or disapproving the proposed rule change not later than 180 days after 
the date of publication of notice of the filing of the proposed rule 
change. The Commission may extend the period for issuing an order 
approving or disapproving the proposed rule change, however, by not 
more than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for such determination. The 
proposed rule change was published for notice and comment in the 
Federal Register on November 17, 2016.\9\ The 180th day after 
publication of the notice of the filing of the proposed rule change in 
the Federal Register is May 16, 2017.
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    \8\ 15 U.S.C. 78s(b)(2).
    \9\ See supra note 3.
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    The Commission finds that it is appropriate to designate a longer 
period within which to issue an order approving or disapproving 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,\10\ designates July 15, 2017, as the date by which the Commission 
shall either approve or disapprove the proposed rule change (File No. 
SR-NYSEMKT-2016-99).
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    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(57).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-08977 Filed 5-3-17; 8:45 am]
BILLING CODE 8011-01-P

20926 Federal Register / Vol. 82, No. 85 / Thursday, May 4, 2017 / Notices connectivity, which will assist Commission process and review your VI. Conclusion subscribers with risk management.60 comments more efficiently, please use It is therefore ordered, pursuant to Further, Nasdaq removed the only one method. The Commission will Section 19(b)(2) of the Act, that the requirement that subscribers absolve post all comments on the Commission’s proposed rule change (SR–NASDAQ– Nasdaq of liability if they take a 1Gb Internet Web site (http://www.sec.gov/ 2016–120), as amended, be, and hereby Ultra connection.61 rules/sro.shtml). Copies of the is, approved. Nasdaq noted that the UTP Plan does submission, all subsequent not explicitly address connectivity fees. For the Commission, by the Division of amendments, all written statements Trading and Markets, pursuant to delegated As to concerns raised by the with respect to the proposed rule authority.67 commenters that Nasdaq has not change that are filed with the Eduardo A. Aleman, substantiated the need for the third Commission, and all written party connectivity service, Nasdaq Assistant Secretary. communications relating to the [FR Doc. 2017–08983 Filed 5–3–17; 8:45 am] noted that the ‘‘UTP Operating proposed rule change between the Committee has had and continues to BILLING CODE 8011–01–P Commission and any person, other than have input into the bandwidth those that may be withheld from the recommendation’’ 62 and states that public in accordance with the SECURITIES AND EXCHANGE Nasdaq lowered the recommendation in response to the Committee’s provisions of 5 U.S.C. 552, will be COMMISSION recommendation and would be ready to available for Web site viewing and [Release No. 34–80550; File No. SR– lower the recommendation again if the printing in the Commission’s Public NYSEMKT–2016–99] operating committee were to direct it to Reference Room on official business do so.63 In addition, as noted above, days between the hours of 10:00 a.m. Self-Regulatory Organizations; NYSE Nasdaq amended the proposal to and 3:00 p.m. Copies of the filing also MKT LLC; Notice of Designation of a provide two connections for UTP SIP will be available for inspection and Longer Period for Commission Action data free of charge and additional copying at the principal office of the on Proceedings To Determine Whether connections at lower fees that reflect Exchange. All comments received will To Approve or Disapprove a Proposed some of the costs associated with be posted without change; the Rule Change Amending Rule 104— providing the connectivity.64 The Commission does not edit personal Equities To Delete Subsection Commission believes that Nasdaq has identifying information from (g)(i)(A)(III) Prohibiting Designated adequately addressed the concerns submissions. You should submit only Market Makers From Establishing a raised by the comments in its response information that you wish to make New High (Low) Price on the Exchange letters and its amendments to the available publicly. All submissions in a Security the DMM Has a Long proposal.65 should refer to File Number SR– (Short) Position During the Last Ten NASDAQ–2016–120 and should be Minutes Prior to the Close of Trading IV. Solicitation of Comments on the submitted on or before May 25, 2017. Proposal as Amended April 28, 2017. Interested persons are invited to V. Accelerated Approval of Proposed On October 27, 2016, NYSE MKT submit written data, views and Rule Change, as Amended (‘‘NYSE MKT’’ or ‘‘Exchange’’) filed arguments concerning the foregoing, with the Securities and Exchange The Commission finds good cause to Commission (‘‘Commission’’) pursuant including whether the filing, as approve the proposed rule change, as amended, is consistent with the Act. to Section 19(b)(1) of the Securities amended, prior to the 30th day after the Exchange Act of 1934 (‘‘Act’’) 1 and Rule Comments may be submitted by any of date of publication of the notice of the the following methods: 19b–4 thereunder,2 a proposed rule amended proposal in the Federal change amending Rule 104—Equities to Electronic Comments Register. As noted above, Nasdaq delete subsection (g)(i)(A)(III), which • Use the Commission’s Internet amended the proposal to respond to the prohibits Designated Market Makers comment form (http://www.sec.gov/ concerns raised by the commenters. (‘‘DMMs’’) from establishing, during the rules/sro.shtml); or Specifically, the Exchange is proposing last ten minutes of trading before the • Send an email to rule-comments@ to offer two free UTP-only connections close, a new high (low) price for the day sec.gov. Please include File Number SR– via a 1Gb Ultra or 10Gb Ultra port. on the Exchange in a security in which NASDAQ–2016–120 on the subject line. Nasdaq also replaced the Assumption of the DMM has a long (short) position. Liability form with a Capacity The proposed rule change was Paper Comments Acknowledgement form, such that published for comment in the Federal • Send paper comments in triplicate customers are no longer required to hold Register on November 17, 2016.3 to Secretary, Securities and Exchange Nasdaq harmless if they choose to take On December, 20, 2016, the Commission, 100 F Street NE., a 1Gb Ultra connection. The Exchange Commission extended to February 15, Washington, DC 20549–1090. also proposes to provide additional 2017, the time period in which to All submissions should refer to File UTP-only connectivity for an approve the proposal, disapprove the Number SR–NASDAQ–2016–120. This installation fee of $100 per connection proposal, or institute proceedings to file number should be included on the and an ongoing monthly fee of $100 per determine whether to approve or subject line if email is used. To help the connection. Because these changes disapprove the proposal.4 On February address concerns raised by the 15, 2017, the Commission instituted pmangrum on DSK3GDR082PROD with NOTICES 60 See Amendment No. 5. commenters, the Commission finds 61 See Amendment No. 5. good cause for approving the proposed 67 17 CFR 200.30–3(a)(12). 62 See Nasdaq Letter I at 5. 1 15 U.S.C. 78s(b)(1). rule change, as amended, on an 63 See id. 2 17 CFR 240.19b–4. 64 See Nasdaq Letter I and Nasdaq Letter II; accelerated basis, pursuant to Section 3 See Securities Exchange Act Release No. 79283 Amendment No. 5. 19(b)(2) of the Act.66 (Nov. 10, 2016), 81 FR 81210 (Nov. 17, 2016). 65 See Nasdaq Letter I and Nasdaq Letter II and 4 See Securities Exchange Act Release No. 79611 amendments to the proposal. 66 15 U.S.C. 78s(b)(2). (Dec. 20, 2016), 81 FR 95205 (Dec. 27, 2016). VerDate Sep<11>2014 14:39 May 03, 2017 Jkt 241001 PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 E:\FR\FM\04MYN1.SGM 04MYN1

Federal Register / Vol. 82, No. 85 / Thursday, May 4, 2017 / Notices 20927 proceedings under Section 19(b)(2)(B) of SECURITIES AND EXCHANGE Instituting Proceedings, the Commission the Act 5 to determine whether to COMMISSION received a comment letter supporting approve or disapprove the proposed the proposal.7 On March 16, 2017, the rule change.6 On March 16, 2017, the [Release No. 34–80552; File No. SR–NYSE– 2016–71] Exchange filed a response to the Order Exchange filed a response to the Order Instituting Proceedings.8 Instituting Proceedings.7 Self-Regulatory Organizations; New Section 19(b)(2) of the Act 8 provides Section 19(b)(2) of the Act 9 provides York Stock Exchange LLC; Notice of that, after initiating disapproval that, after initiating disapproval Designation of a Longer Period for proceedings, the Commission shall issue proceedings, the Commission shall issue an order approving or disapproving the Commission Action on Proceedings To an order approving or disapproving the proposed rule change not later than 180 Determine Whether To Approve or proposed rule change not later than 180 days after the date of publication of Disapprove a Proposed Rule Change days after the date of publication of notice of the filing of the proposed rule Amending Rule 104 To Delete notice of the filing of the proposed rule change. The Commission may extend Subsection (g)(i)(A)(III) Prohibiting change. The Commission may extend the period for issuing an order Designated Market Makers From the period for issuing an order approving or disapproving the proposed Establishing a New High (Low) Price approving or disapproving the proposed rule change, however, by not more than on the Exchange in a Security the DMM rule change, however, by not more than 60 days if the Commission determines Has a Long (Short) Position During the 60 days if the Commission determines that a longer period is appropriate and Last Ten Minutes Prior to the Close of Trading that a longer period is appropriate and publishes the reasons for such publishes the reasons for such determination. The proposed rule April 28, 2017. determination. The proposed rule change was published for notice and On October 27, 2016, New York Stock change was published for notice and comment in the Federal Register on Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) comment in the Federal Register on November 17, 2016.9 The 180th day filed with the Securities and Exchange November 17, 2016.10 The 180th day after publication of the notice of the Commission (‘‘Commission’’) pursuant after publication of the notice of the filing of the proposed rule change in the to Section 19(b)(1) of the Securities Federal Register is May 16, 2017. filing of the proposed rule change in the Exchange Act of 1934 (‘‘Act’’) 1 and Rule Federal Register is May 16, 2017. The Commission finds that it is 19b–4 thereunder,2 a proposed rule appropriate to designate a longer period The Commission finds that it is change amending Rule 104 to delete within which to issue an order appropriate to designate a longer period subsection (g)(i)(A)(III), which prohibits approving or disapproving the proposed within which to issue an order Designated Market Makers (‘‘DMMs’’) rule change so that it has sufficient time approving or disapproving the proposed to consider the proposed rule change. from establishing, during the last ten minutes of trading before the close, a rule change so that it has sufficient time Accordingly, the Commission, to consider the proposed rule change. pursuant to Section 19(b)(2) of the new high (low) price for the day on the Act,10 designates July 15, 2017, as the Exchange in a security in which the Accordingly, the Commission, date by which the Commission shall DMM has a long (short) position. The pursuant to Section 19(b)(2) of the either approve or disapprove the proposed rule change was published for Act,11 designates July 15, 2017, as the proposed rule change (File No. SR– comment in the Federal Register on date by which the Commission shall NYSEMKT–2016–99). November 17, 2016.3 either approve or disapprove the On December, 20, 2016, the proposed rule change (File No. SR– For the Commission, by the Division of Trading and Markets, pursuant to delegated Commission extended to February 15, NYSE–2016–71). authority.11 2017, the time period in which to approve the proposal, disapprove the For the Commission, by the Division of Eduardo A. Aleman, Trading and Markets, pursuant to delegated proposal, or institute proceedings to Assistant Secretary. authority.12 determine whether to approve or [FR Doc. 2017–08977 Filed 5–3–17; 8:45 am] Eduardo A. Aleman, disapprove the proposal.4 On February BILLING CODE 8011–01–P 15, 2017, the Commission instituted Assistant Secretary. 5 15 proceedings under Section 19(b)(2)(B) of [FR Doc. 2017–08979 Filed 5–3–17; 8:45 am] U.S.C. 78s(b)(2)(B). 6 See Securities Exchange Act Release No. 80043 the Act 5 to determine whether to BILLING CODE 8011–01–P (Feb. 15, 2017), 82 FR 11379 (Feb. 22, 2017) (‘‘Order approve or disapprove the proposed Instituting Proceedings’’). Specifically, the rule change.6 Following the Order Commission instituted proceedings to allow for of trade,’’ and ‘‘to protect investors and the public additional analysis of the proposed rule change’s 1 15 interest.’’ See id., 81 FR at 11388. consistency with Section 6(b)(5) of the Act, which U.S.C. 78s(b)(1). 7 See letter to Eduardo A. Aleman, Assistant 2 17 CFR 240.19b–4. requires, among other things, that the rules of a Secretary, Commission, from Stephen John Berger, 3 See Securities Exchange Act Release No. 79284 national securities exchange be ‘‘designed to Managing Director, Government and Regulatory prevent fraudulent and manipulative acts and (Nov. 10, 2016), 81 FR 81222 (Nov. 17, 2016). Policy, Citadel Securities, dated May 15, 2017, practices, to promote just and equitable principles 4 See Securities Exchange Act Release No. 79612 available at https://www.sec.gov/comments/sr-nyse- of trade,’’ and ‘‘to protect investors and the public (Dec. 20, 2016), 81 FR 95205 (Dec. 27, 2016). 2016-71/nyse201671-1643039-147158.pdf. interest.’’ See id., 81 FR at 11380. 5 15 U.S.C. 78s(b)(2)(B). 8 See letter to Brent J. Fields, Secretary, 7 See letter to Brent J. Fields, Secretary, 6 See Securities Exchange Act Release No. 80044 Commission, from Elizabeth King, General Counsel Commission, from Elizabeth King, General Counsel (Feb. 15, 2017), 82 FR 11388 (Feb. 22, 2017) (‘‘Order and Corporate Secretary, New York Stock Exchange and Corporate Secretary, New York Stock Exchange Instituting Proceedings’’). Specifically, the LLC, dated March 16, 2017, available at https:// LLC, dated March 16, 2017, available at https:// Commission instituted proceedings to allow for www.sec.gov/comments/sr-nyse-2016-71/ pmangrum on DSK3GDR082PROD with NOTICES www.sec.gov/comments/sr-nyse-2016-71/ additional analysis of the proposed rule change’s nyse201671-1645043-148163.pdf. nyse201671-1645043-148163.pdf. consistency with Section 6(b)(5) of the Act, which 9 15 U.S.C. 78s(b)(2). 8 15 U.S.C. 78s(b)(2). requires, among other things, that the rules of a 9 See supra note 3. 10 See supra note 3. national securities exchange be ‘‘designed to 10 15 U.S.C. 78s(b)(2). 11 15 U.S.C. 78s(b)(2). prevent fraudulent and manipulative acts and 11 17 CFR 200.30–3(a)(57). practices, to promote just and equitable principles 12 17 CFR 200.30–3(a)(57). VerDate Sep<11>2014 17:16 May 03, 2017 Jkt 241001 PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 E:\FR\FM\04MYN1.SGM 04MYN1


Document Created: 2017-05-04 01:49:06
Document Modified: 2017-05-04 01:49:06
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 20926 
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