82_FR_21012 82 FR 20927 - Self-Regulatory Organizations; New York Stock Exchange 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 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 20927 - Self-Regulatory Organizations; New York Stock Exchange 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 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 Range20927-20927
FR Document2017-08979

Federal Register, Volume 82 Issue 85 (Thursday, May 4, 2017) 
[Federal Register Volume 82, Number 85 (Thursday, May 4, 2017)]
[Notices]
[Page 20927]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08979]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80552; File No. SR-NYSE-2016-71]


Self-Regulatory Organizations; New York Stock Exchange 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 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, New York Stock Exchange LLC (``NYSE'' 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 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. 79284 (Nov. 10, 
2016), 81 FR 81222 (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 proceedings under Section 19(b)(2)(B) of the Act \5\ to 
determine whether to approve or disapprove the proposed rule change.\6\ 
Following the Order Instituting Proceedings, the Commission received a 
comment letter supporting the proposal.\7\ On March 16, 2017, the 
Exchange filed a response to the Order Instituting Proceedings.\8\
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    \4\ See Securities Exchange Act Release No. 79612 (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. 80044 (Feb. 15, 
2017), 82 FR 11388 (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 
11388.
    \7\ See letter to Eduardo A. Aleman, Assistant Secretary, 
Commission, from Stephen John Berger, Managing Director, Government 
and Regulatory Policy, Citadel Securities, dated May 15, 2017, 
available at https://www.sec.gov/comments/sr-nyse-2016-71/nyse201671-1643039-147158.pdf.
    \8\ 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 \9\ 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.\10\ 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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    \9\ 15 U.S.C. 78s(b)(2).
    \10\ 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,\11\ designates July 15, 2017, as the date by which the Commission 
shall either approve or disapprove the proposed rule change (File No. 
SR-NYSE-2016-71).
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    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
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    \12\ 17 CFR 200.30-3(a)(57).
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[FR Doc. 2017-08979 Filed 5-3-17; 8:45 am]
 BILLING CODE 8011-01-P

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 01:49:11
Document Modified: 2017-05-04 01:49:11
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 20927 
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