82 FR 23361 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Rule 994NY, Broadcast Order Liquidity Delivery Mechanism
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 97 (May 22, 2017)
Federal Register Volume 82, Issue 97 (May 22, 2017)
| Page Range | 23361-23363 | |
| FR Document | 2017-10299 |
[Federal Register Volume 82, Number 97 (Monday, May 22, 2017)] [Notices] [Pages 23361-23363] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-10299] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80695; File No. SR-NYSEMKT-2017-28] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Rule 994NY, Broadcast Order Liquidity Delivery Mechanism May 16, 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 May 10, 2017, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- [[Page 23362]] I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to clarify a change to Rule 994NY, Broadcast Order Liquidity Delivery (``BOLD'') Mechanism. 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 the filing is to make a clarifying change to a recently adopted Exchange rule that governs the operation of the BOLD Mechanism.\4\ The BOLD Mechanism is a feature within the Exchange's trading system that would provide automated order handling for eligible orders in designated classes. Under the current rule, after trading with eligible interest on the Exchange, the BOLD Mechanism will automatically process an eligible incoming order that is marketable against quotations disseminated by other exchanges that are participants in the Options Order Protection and Locked/Crossed Market Plan. With respect to order handling, orders that are received by the BOLD Mechanism pursuant to the rule will be electronically exposed at the National Best Bid or Offer (``NBBO'') upon receipt for a period of time determined by the Exchange. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 80494 (April 20, 2017), 82 FR 19300 (April 26, 2017) (SR-NYSEMKT-2017-21). --------------------------------------------------------------------------- Regarding the allocation of exposed orders, the current rule states that any interest priced at the prevailing NBBO or better will be executed pursuant to Rule 964NY (Display, Priority and Order Allocation).\5\ Rule 964NY provides the allocation procedures for orders that are displayed. The Exchange proposes to amend current Rule 994NY to clarify that orders processed by the BOLD Mechanism will be considered displayed during the exposure period and will be treated as displayed orders pursuant to Rule 964NY. The Exchange does not propose to modify current Rule 964NY or the operation of the BOLD Mechanism. The Exchange simply seeks to clarify current system functionality within the Exchange's rules. The Exchange believes the proposed amendment will provide ATP Holders and the investing public with greater transparency regarding the operation of the BOLD Mechanism. --------------------------------------------------------------------------- \5\ NYSE Amex provides customer priority and size pro-rata allocation. Pursuant to Rule 964NY, customers at a given price are executed first in priority. Non-customers are executed on a pro-rata basis pursuant to the size pro rata algorithm set forth in Rule 964NY(b)(3). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal to amend its rules to provide additional specificity regarding the functionality of the BOLD Mechanism is consistent with the requirements of the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\6\ In particular, the proposal is consistent with Section 6(b)(5) of the Act \7\ because it would promote just and equitable principles of trade, remove impediments to, and perfect the mechanism of, a free and open market and a national market system, and, in general, protect investors and the public interest. The Exchange believes that the clarifying change to the operation of the BOLD Mechanism would promote just and equitable principles of trade and remove impediments to a free and open market by providing greater transparency concerning the operation of Exchange functionality. The Exchange also believes that the proposed amendment will contribute to the protection of investors and the public interest by making the Exchange's rules easier to understand. Moreover, the Exchange believes that the additional clarity and transparency of the proposed rule change would promote the efficient execution of investor transactions, and thus strengthen investor confidence in the market. In addition, the Exchange believes that additional specificity in its rules will lead to a better understanding of the operation of the BOLD Mechanism, thereby facilitating fair competition among market participants. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change to adopt the BOLD Mechanism will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange is not proposing to substantively modify the operation of the BOLD Mechanism; rather, it intends to enhance the clarity of current system functionality. The proposed rule change is not designed to address any competitive issues, but rather provide additional specificity and transparency to ATP Holders and the investing public regarding the operation of the BOLD Mechanism. Since the Exchange does not propose to substantively modify the operation of exchange functionality, the proposed rule change will not impose any burden on competition. 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 Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \10\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the [[Page 23363]] public interest. The Exchange has asked the Commission to waive the 30- day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30- day operative delay is consistent with the protection of investors and the public interest as it will allow the Exchange to provide additional clarity and transparency regarding the operation of the BOLD Mechanism prior to the introduction of the functionality to market participants. Accordingly, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\12\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or 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 CommentsUse 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-NYSEMKT-2017-28 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEMKT-2017-28. 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-NYSEMKT-2017-28, and should be submitted on or before June 12, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-10299 Filed 5-19-17; 8:45 am] BILLING CODE 8011-01-P
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necessary or appropriate in furtherance C. Self-Regulatory Organization’s with respect to the proposed rule
of the purposes of the Act. The Statement on Comments Regarding the change that are filed with the
Exchange notes that the proposed rule Proposed Rule Changes Received From Commission, and all written
change implements provisions of the Members, Participants or Others communications relating to the
CAT NMS Plan approved by the No written comments were either proposed rule change between the
Commission, and is designed to assist solicited or received. Commission and any person, other than
the Exchange in meeting its regulatory those that may be withheld from the
III. Date of Effectiveness of the public in accordance with the
obligations pursuant to the Plan.
Proposed Rule Changes and Timing for provisions of 5 U.S.C. 552, will be
Similarly, all national securities Commission Action
exchanges and FINRA are proposing available for Web site viewing and
this proposed fee schedule to The foregoing rule change is effective printing in the Commission’s Public
upon filing pursuant to Section Reference Room, 100 F Street NE.,
implement the requirements of the CAT
19(b)(3)(A)(ii) of the Act 57 and Washington, DC 20549, on official
NMS Plan. Therefore, this is not a
subparagraph(f)(2) of Rule 19b–4 business days between the hours of
competitive fee filing and, therefore, it
thereunder 58 because it establishes or 10:00 a.m. and 3:00 p.m. Copies of the
does not raise competition issues changes a due, fee or other charge filing also will be available for
between and among the exchanges and imposed by the Exchange. inspection and copying at the principal
FINRA. At any time within 60 days of the office of the Exchange. All comments
Moreover, as previously described, filing of the proposed rule change, the received will be posted without change;
the Exchange believes that the proposed Commission summarily may the Commission does not edit personal
rule change fairly and equitably temporarily suspend such rule change if identifying information from
allocates costs among CAT Reporters. In it appears to the Commission that such submissions. You should submit only
particular, the proposed fee schedule is action is necessary or appropriate in the information that you wish to make
structured to impose comparable fees on public interest, for the protection of available publicly. All submissions
similarly situated CAT Reporters, and investors, or otherwise in furtherance of should refer to File Number SR–CHX–
lessen the impact on smaller CAT the purposes of the Act. If the 2017–08, and should be submitted on or
Reporters. CAT Reporters with similar Commission takes such action, the before June 12, 2017.
levels of CAT activity will pay similar Commission shall institute proceedings For the Commission, by the Division of
to determine whether the proposed rule Trading and Markets, pursuant to delegated
fees. For example, Industry Members
should be approved or disapproved. authority.59
(other than Execution Venue ATSs) with
higher levels of message traffic will pay IV. Solicitation of Comments Eduardo A. Aleman,
higher fees, and those with lower levels Interested persons are invited to Assistant Secretary.
of message traffic will pay lower fees. submit written data, views, and [FR Doc. 2017–10295 Filed 5–19–17; 8:45 am]
Similarly, Execution Venue ATSs and arguments concerning the foregoing, BILLING CODE 8011–01–P
other Execution Venues with larger including whether the proposed rule
market share will pay higher fees, and change is consistent with the Act.
those with lower levels of market share Comments may be submitted by any of SECURITIES AND EXCHANGE
will pay lower fees. Therefore, given the following methods: COMMISSION
that there is generally a relationship Electronic Comments
between message traffic and market [Release No. 34–80695; File No. SR–
share to the CAT Reporter’s size, smaller • Use the Commission’s Internet NYSEMKT–2017–28]
CAT Reporters generally pay less than comment form (http://www.sec.gov/
rules/sro.shtml); or Self-Regulatory Organizations; NYSE
larger CAT Reporters. Accordingly, the
• Send an email to rule- MKT LLC; Notice of Filing and
Exchange does not believe that the CAT Immediate Effectiveness of Proposed
comments@sec.gov. Please include File
Fees would have a disproportionate Number SR–CHX–2017–08 on the Rule Change to Rule 994NY, Broadcast
effect on smaller or larger CAT subject line. Order Liquidity Delivery Mechanism
Reporters. In addition, ATSs and
exchanges will pay the same fees based Paper Comments May 16, 2017.
on market share. Therefore, the • Send paper comments in triplicate Pursuant to Section 19(b)(1) 1 of the
Exchange does not believe that the fees to Secretary, Securities and Exchange Securities Exchange Act of 1934 (the
will impose any burden on the Commission, 100 F Street NE., ‘‘Act’’),2 and Rule 19b–4 thereunder,3
competition between ATSs and Washington, DC 20549–1090. notice is hereby given that on May 10,
exchanges. Accordingly, the Exchange All submissions should refer to File 2017, NYSE MKT LLC (the ‘‘Exchange’’
believes that the proposed fees will Number SR–CHX–2017–08. This file or ‘‘NYSE MKT’’) filed with the
minimize the potential for adverse number should be included on the Securities and Exchange Commission
effects on competition between CAT subject line if email is used. To help the (the ‘‘Commission’’) the proposed rule
Reporters in the market. Commission process and review your change as described in Items I and II
comments more efficiently, please use below, which Items have been prepared
Furthermore, the tiered, fixed fee
only one method. The Commission will by the self-regulatory organization. The
funding model limits the disincentives
post all comments on the Commission’s Commission is publishing this notice to
mstockstill on DSK30JT082PROD with NOTICES
to providing liquidity to the market. Internet Web site (http://www.sec.gov/ solicit comments on the proposed rule
Therefore, the proposed fees are rules/sro.shtml). Copies of the change from interested persons.
structured to limit burdens on submission, all subsequent
competitive quoting and other liquidity amendments, all written statements 59 17 CFR 200.30–3(a)(12).
provision in the market. 1 15 U.S.C. 78s(b)(1).
57 15 U.S.C. 78s(b)(3)(A)(ii). 2 15 U.S.C. 78a.
58 17 CFR 240.19b–4(f)(2). 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 82, No. 97 / Monday, May 22, 2017 / Notices 23363
public interest. The Exchange has asked amendments, all written statements comments on the proposed rule change
the Commission to waive the 30-day with respect to the proposed rule from interested persons.
operative delay so that the proposal may change that are filed with the
I. Self-Regulatory Organization’s
become operative immediately upon Commission, and all written
Statement of the Terms of Substance of
filing. The Commission believes that communications relating to the
waiving the 30-day operative delay is the Proposed Rule Change
proposed rule change between the
consistent with the protection of Commission and any person, other than The Exchange proposes to amend the
investors and the public interest as it those that may be withheld from the NYSE Price List (‘‘Price List’’) to adopt
will allow the Exchange to provide public in accordance with the the fees for Industry Members related to
additional clarity and transparency provisions of 5 U.S.C. 552, will be the National Market System Plan
regarding the operation of the BOLD available for Web site viewing and Governing the Consolidated Audit Trail
Mechanism prior to the introduction of printing in the Commission’s Public (the ‘‘CAT NMS Plan’’ or ‘‘Plan’’).4 The
the functionality to market participants. Reference Room, 100 F Street NE., proposed rule change is available on the
Accordingly, the Commission hereby Washington, DC 20549, on official Exchange’s Web site at www.nyse.com,
waives the operative delay and business days between the hours of at the principal office of the Exchange,
designates the proposal operative upon 10:00 a.m. and 3:00 p.m. Copies of the and at the Commission’s Public
filing.12 filing also will be available for Reference Room.
At any time within 60 days of the inspection and copying at the principal
filing of the proposed rule change, the office of the Exchange. All comments II. Self-Regulatory Organization’s
Commission summarily may received will be posted without change; Statement of the Purpose of, and
temporarily suspend such rule change if the Commission does not edit personal Statutory Basis for, the Proposed Rule
it appears to the Commission that such identifying information from Change
action is necessary or appropriate in the submissions. You should submit only
public interest, for the protection of In its filing with the Commission, the
information that you wish to make
investors, or otherwise in furtherance of self-regulatory organization included
available publicly. All submissions
the purposes of the Act. If the statements concerning the purpose of,
should refer to File Number SR–
Commission takes such action, the and basis for, the proposed rule change
NYSEMKT–2017–28, and should be
Commission shall institute proceedings and discussed any comments it received
submitted on or before June 12, 2017.
to determine whether the proposed rule on the proposed rule change. The text
should be approved or disapproved. For the Commission, by the Division of of those statements may be examined at
Trading and Markets, pursuant to delegated the places specified in Item IV below.
IV. Solicitation of Comments authority.13 The Exchange has prepared summaries,
Interested persons are invited to Eduardo A. Aleman, set forth in sections A, B, and C below,
submit written data, views, and Assistant Secretary. of the most significant parts of such
arguments concerning the foregoing, [FR Doc. 2017–10299 Filed 5–19–17; 8:45 am] statements.
including whether the proposed rule BILLING CODE 8011–01–P
change is consistent with the Act. A. Self-Regulatory Organization’s
Comments may be submitted by any of Statement of the Purpose of, and the
the following methods: SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
COMMISSION Change
Electronic Comments
1. Purpose
• Use the Commission’s Internet [Release No. 34–80693; File No. SR–NYSE–
comment form (http://www.sec.gov/ 2017–22] Bats BYX Exchange, Inc., Bats BZX
rules/sro.shtml); or Exchange, Inc., Bats EDGA Exchange,
• Send an email to rule-comments@ Self-Regulatory Organizations; New
Inc., Bats EDGX Exchange, Inc., BOX
sec.gov. Please include File Number SR– York Stock Exchange LLC; Notice of
Options Exchange LLC, C2 Options
NYSEMKT–2017–28 on the subject line. Filing and Immediate Effectiveness of
Exchange, Incorporated, Chicago Board
Proposed Rule Change Amending the
Paper Comments Options Exchange, Incorporated,
NYSE Price List
Chicago Stock Exchange, Inc., Financial
• Send paper comments in triplicate May 16, 2017. Industry Regulatory Authority, Inc.
to Secretary, Securities and Exchange (‘‘FINRA’’), Investors’ Exchange LLC,
Pursuant NYSE–2017–22 to Section
Commission, 100 F Street NE., Miami International Securities
19(b)(1) 1 of the Securities Exchange Act
Washington, DC 20549–1090. Exchange, LLC, MIAX PEARL, LLC,
of 1934 (the ‘‘Act’’) 2 and Rule 19b–4
All submissions should refer to File thereunder,3 notice is hereby given that, NASDAQ BX, Inc., Nasdaq GEMX, LLC,
Number SR–NYSEMKT–2017–28. This on May 10, 2017, New York Stock Nasdaq ISE, LLC, Nasdaq MRX, LLC,5
file number should be included on the Exchange LLC (‘‘NYSE’’ or the NASDAQ PHLX LLC, The NASDAQ
subject line if email is used. To help the ‘‘Exchange’’) filed with the Securities Stock Market LLC, New York Stock
Commission process and review your and Exchange Commission (the Exchange LLC, NYSE MKT LLC, NYSE
comments more efficiently, please use ‘‘Commission’’) the proposed rule
only one method. The Commission will change as described in Items I, II, and 4 Unless otherwise specified, capitalized terms
post all comments on the Commission’s III below, which Items have been used in this rule filing are defined as set forth
Internet Web site (http://www.sec.gov/ herein, the CAT Compliance Rule or in the CAT
prepared by the self-regulatory
mstockstill on DSK30JT082PROD with NOTICES
NMS Plan.
rules/sro.shtml). Copies of the organization. The Commission is 5 ISE Gemini, LLC, ISE Mercury, LLC and
submission, all subsequent publishing this notice to solicit International Securities Exchange, LLC have been
renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC,
12 For purposes only of waiving the 30-day and Nasdaq ISE, LLC, respectively. See Securities
13 17 CFR 200.30–3(a)(12).
operative delay, the Commission has also Exchange Act Release Nos. 80248 (March 15, 2017),
1 15 U.S.C. 78s(b)(1).
considered the proposed rule’s impact on 82 FR 14547 (March 21, 2017); 80326 (March 29,
2 15 U.S.C. 78a.
efficiency, competition, and capital formation. See 2017), 82 FR 16460 (April 4, 2017); and 80325
15 U.S.C. 78c(f). 3 17 CFR 240.19b–4. (March 29, 2017), 82 FR 16445 (April 4, 2017).
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Document Created: 2018-11-08 08:49:54
Document Modified: 2018-11-08 08:49:54
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 23361 |
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