82_FR_26929 82 FR 26819 - Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE MKT LLC; Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS in Connection With the Exchanges' Retail Liquidity Programs Until December 31, 2017

82 FR 26819 - Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE MKT LLC; Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS in Connection With the Exchanges' Retail Liquidity Programs Until December 31, 2017

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 110 (June 9, 2017)

Page Range26819-26820
FR Document2017-11966

Federal Register, Volume 82 Issue 110 (Friday, June 9, 2017) 
[Federal Register Volume 82, Number 110 (Friday, June 9, 2017)]
[Notices]
[Pages 26819-26820]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11966]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80861; File Nos. SR-NYSE-2011-55; SR-NYSEAmex-2011-84]


Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE 
MKT LLC; Order Granting an Extension to Limited Exemptions From Rule 
612(c) of Regulation NMS in Connection With the Exchanges' Retail 
Liquidity Programs Until December 31, 2017

June 5, 2017.
    On July 3, 2012, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted the New 
York Stock Exchange LLC (``NYSE'') and NYSE MKT LLC \2\ (``NYSE MKT'' 
and, together with NYSE, the ``Exchanges'') limited exemptions from the 
Sub-Penny Rule in connection with the operation of the Exchanges' 
respective Retail Liquidity Programs (``Programs'').\3\ The limited 
exemptions were granted concurrently with the Commission's approval of 
the Exchanges' proposals to adopt their respective Programs for one-
year pilot terms.\4\ The exemptions were granted coterminous with the 
effectiveness of the pilot Programs; both the pilot Programs and 
exemptions are scheduled to expire on June 30, 2017.\5\
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    \1\ 17 CFR 242.612(c).
    \2\ At the time it filed the original proposal to adopt the 
Retail Liquidity Program, NYSE MKT went by the name NYSE Amex LLC. 
On May 14, 2012, the Exchange filed a proposed rule change, 
immediately effective upon filing, to change its name from NYSE Amex 
LLC to NYSE MKT LLC. See Securities Exchange Act Release No. 67037 
(May 21, 2012), 77 FR 31415 (May 25, 2012) (SR-NYSEAmex-2012-32).
    \3\ See Securities Exchange Act Release No. 67347 (July 3, 
2012), 77 FR 40673 (July 10, 2012) (SR-NYSE-2011-55; SR-NYSEAmex-
2011-84) (``Order'').
    \4\ See id.
    \5\ The pilot terms of the Programs were originally scheduled to 
end on July 31, 2013, but the Exchanges initially extended the terms 
for an additional year, through July 31, 2014, see Securities 
Exchange Act Release Nos. 70096 (August 2, 2013), 78 FR 48520 
(August 8, 2013) (SR-NYSE-2013-48), and 70100 (August 2, 2013), 78 
FR 48535 (August 8, 2013) (SR-NYSEMKT-2013-60), and then 
subsequently extended the terms again through March 31, 2015, see 
Securities Exchange Act Release Nos. 72629 (July 16, 2014), 79 FR 
42564 (July 22, 2014) (SR-NYSE-2014-35), and 72625 (July 16, 2014), 
79 FR 42566 (July 22, 2014) (SR-NYSEMKT-2014-60), September 30, 
2015, see Securities Exchange Act Release Nos. 74454 (March 6, 
2015), 80 FR 13054 (March 12, 2015) (SR-NYSE-2015-10), and 74455 
(March 6, 2015), 80 FR 13047 (March 12, 2015) (SR-NYSEMKT-2015-14), 
March 31, 2016, see Securities Exchange Act Release Nos. 75993 
(September 28, 2015), 80 FR 59844 (October 2, 2015) (SR-NYSE-2015-
41), and 75995 (September 28, 2015), 80 FR 59836 (October 2, 2015) 
(SR-NYSEMKT-2015-69), August 31, 2016, see Securities Exchange Act 
Release Nos. 77426 (March 23, 2016), 81 FR 17533 (March 29, 2016) 
(SR-NYSE-2016-25), and 77424 (March 23, 2016), 81 FR 17522 (March 
29, 2016) (SR-NYSEMKT-2016-39), December 31, 2016, see Securities 
Exchange Act Release Nos. 78600 (August 17, 2016), 81 FR 57642 
(August 23, 2016) (SR-NYSE-2016-54), and 78602 (August 17, 2016), 81 
FR 57639 (August 23, 2016) (SR-NYSEMKT-2016-76), and June 30, 2017, 
see Securities Exchange Act Release Nos. 79493 (December 7, 2016), 
81 FR 90019 (December 13, 2016)(SR-NYSE-2016-82), and 79509 
(December 8, 2016), 81 FR 90389 (Dec. 14, 2016) (SR-NYSEMKT-2016-
112). Each time the pilot terms of the Programs were extended, the 
Commission granted the Exchanges' requests to also extend the Sub-
Penny exemptions through July 31, 2014, see Securities Exchange Act 
Release No. 70085 (July 31, 2013), 78 FR 47807 (August 6, 2013), 
March 31, 2015, see Securities Exchange Act Release No. 72732 (July 
31, 2014), 79 FR 45851 (August 6, 2014), September 30, 2015, see 
Securities Exchange Act Release No. 74507 (March 13, 2015), 80 FR 
14421 (March 19, 2015), March 31, 2016, see Securities Exchange Act 
Release No. 76020 (September 29, 2015), 80 FR 60201 (October 5, 
2015), August 31, 2016, see Securities Exchange Act Release No. 
77438 (March 24, 2016), 81 FR 17752 (March 30, 2016), December 31, 
2016, see Securities Exchange Act Release No. 78678 (August 25, 
2016), 81 FR 60031 (August 31, 2016), and June 30, 2017, see 
Securities Exchange Act Release No. 79587 (Dec. 16, 2016), 81 FR 
93975 (Dec. 22, 2016).
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    The Exchanges now seek to extend the exemptions until June 30, 
2017.\6\ The Exchanges' request was made in conjunction with 
immediately effective filings that extend the operation of the Programs 
through the same date.\7\ In their request to extend the exemptions, 
the Exchanges note that the participation in the Programs has increased 
more recently. Accordingly, the Exchanges have asked for additional 
time to allow themselves and the Commission to analyze more robust data 
concerning the Programs, which the Exchanges committed to provide to 
the Commission.\8\ For this reason and the reasons stated in the Order 
originally granting the limited exemptions, the Commission finds that 
extending the exemptions, pursuant to its authority under Rule 612(c) 
of Regulation NMS, is appropriate in the public interest and consistent 
with the protection of investors.
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    \6\ See Letter from Martha Redding, Assistant Secretary, NYSE, 
to Brent J. Fields, Secretary, Securities and Exchange Commission, 
dated May 23, 2017.
    \7\ See Securities Exchange Act Release Nos. 80844 (June 1, 
2017) (SR-NYSE-2017-26) and 80850 (June 2, 2017) (SR-NYSEMKT-2017-
33).
    \8\ See Order, supra note 3, 77 FR at 40681.
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    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, each Exchange is granted a limited exemption from Rule 
612 of Regulation NMS that allows it to accept and rank orders priced 
equal to or greater than $1.00 per share in increments of $0.001, in 
connection with the operation of its Retail Liquidity Program, until 
December 31, 2017.

[[Page 26820]]

    The limited and temporary exemptions extended by this Order are 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the Federal securities 
laws must rest with the persons relying on the exemptions that are the 
subject of this Order.
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    \9\ 17 CFR 200.30-3(a)(83).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-11966 Filed 6-8-17; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 110 / Friday, June 9, 2017 / Notices 26819 ACTION: Notice. SECURITIES AND EXCHANGE The Exchanges now seek to extend COMMISSION the exemptions until June 30, 2017.6 SUMMARY: The Postal Service gives The Exchanges’ request was made in [Release No. 34–80861; File Nos. SR–NYSE– notice of filing a request with the Postal 2011–55; SR–NYSEAmex–2011–84] conjunction with immediately effective Regulatory Commission to add a filings that extend the operation of the domestic shipping services contract to Self-Regulatory Organizations; New Programs through the same date.7 In the list of Negotiated Service York Stock Exchange LLC; NYSE MKT their request to extend the exemptions, Agreements in the Mail Classification LLC; Order Granting an Extension to the Exchanges note that the Schedule’s Competitive Products List. Limited Exemptions From Rule 612(c) participation in the Programs has of Regulation NMS in Connection With increased more recently. Accordingly, DATES: Effective June 9, 2017. the Exchanges’ Retail Liquidity the Exchanges have asked for additional FOR FURTHER INFORMATION CONTACT: Programs Until December 31, 2017 time to allow themselves and the Elizabeth A. Reed, (202) 268–3179. Commission to analyze more robust data June 5, 2017. concerning the Programs, which the SUPPLEMENTARY INFORMATION: The On July 3, 2012, the Securities and Exchanges committed to provide to the United States Postal Service® hereby Exchange Commission (‘‘Commission’’) Commission.8 For this reason and the gives notice that, pursuant to 39 U.S.C. issued an order pursuant to its authority reasons stated in the Order originally 3642 and 3632(b)(3), on June 2, 2017, it under Rule 612(c) of Regulation NMS granting the limited exemptions, the filed with the Postal Regulatory (‘‘Sub-Penny Rule’’) 1 that granted the Commission finds that extending the Commission a Request of the United New York Stock Exchange LLC exemptions, pursuant to its authority States Postal Service to Add Priority (‘‘NYSE’’) and NYSE MKT LLC 2 under Rule 612(c) of Regulation NMS, is Mail Express Contract 48 to Competitive (‘‘NYSE MKT’’ and, together with appropriate in the public interest and Product List. Documents are available at NYSE, the ‘‘Exchanges’’) limited consistent with the protection of www.prc.gov, Docket Nos. MC2017–142, exemptions from the Sub-Penny Rule in investors. CP2017–201. connection with the operation of the Therefore, it is hereby ordered that, Exchanges’ respective Retail Liquidity pursuant to Rule 612(c) of Regulation Stanley F. Mires, Programs (‘‘Programs’’).3 The limited NMS, each Exchange is granted a Attorney, Federal Compliance. exemptions were granted concurrently limited exemption from Rule 612 of [FR Doc. 2017–11957 Filed 6–8–17; 8:45 am] with the Commission’s approval of the Regulation NMS that allows it to accept Exchanges’ proposals to adopt their and rank orders priced equal to or BILLING CODE 7710–12–P respective Programs for one-year pilot greater than $1.00 per share in terms.4 The exemptions were granted increments of $0.001, in connection POSTAL SERVICE coterminous with the effectiveness of with the operation of its Retail Liquidity the pilot Programs; both the pilot Program, until December 31, 2017. Product Change—Priority Mail Programs and exemptions are scheduled Negotiated Service Agreement to expire on June 30, 2017.5 Securities Exchange Act Release Nos. 77426 (March 23, 2016), 81 FR 17533 (March 29, 2016) (SR– 1 17 CFR 242.612(c). NYSE–2016–25), and 77424 (March 23, 2016), 81 AGENCY: Postal ServiceTM. 2 At the time it filed the original proposal to adopt FR 17522 (March 29, 2016) (SR–NYSEMKT–2016– ACTION: Notice. the Retail Liquidity Program, NYSE MKT went by 39), December 31, 2016, see Securities Exchange the name NYSE Amex LLC. On May 14, 2012, the Act Release Nos. 78600 (August 17, 2016), 81 FR Exchange filed a proposed rule change, 57642 (August 23, 2016) (SR–NYSE–2016–54), and SUMMARY: The Postal Service gives immediately effective upon filing, to change its 78602 (August 17, 2016), 81 FR 57639 (August 23, notice of filing a request with the Postal name from NYSE Amex LLC to NYSE MKT LLC. 2016) (SR–NYSEMKT–2016–76), and June 30, 2017, See Securities Exchange Act Release No. 67037 see Securities Exchange Act Release Nos. 79493 Regulatory Commission to add a (May 21, 2012), 77 FR 31415 (May 25, 2012) (SR– (December 7, 2016), 81 FR 90019 (December 13, domestic shipping services contract to NYSEAmex–2012–32). 2016)(SR–NYSE–2016–82), and 79509 (December 8, the list of Negotiated Service 3 See Securities Exchange Act Release No. 67347 2016), 81 FR 90389 (Dec. 14, 2016) (SR–NYSEMKT– Agreements in the Mail Classification (July 3, 2012), 77 FR 40673 (July 10, 2012) (SR– 2016–112). Each time the pilot terms of the NYSE–2011–55; SR–NYSEAmex–2011–84) Programs were extended, the Commission granted Schedule’s Competitive Products List. the Exchanges’ requests to also extend the Sub- (‘‘Order’’). DATES: Effective June 9, 2017. 4 See id. Penny exemptions through July 31, 2014, see 5 The pilot terms of the Programs were originally Securities Exchange Act Release No. 70085 (July 31, FOR FURTHER INFORMATION CONTACT: scheduled to end on July 31, 2013, but the 2013), 78 FR 47807 (August 6, 2013), March 31, 2015, see Securities Exchange Act Release No. Elizabeth A. Reed, 202–268–3179. Exchanges initially extended the terms for an 72732 (July 31, 2014), 79 FR 45851 (August 6, additional year, through July 31, 2014, see 2014), September 30, 2015, see Securities Exchange SUPPLEMENTARY INFORMATION: The Securities Exchange Act Release Nos. 70096 Act Release No. 74507 (March 13, 2015), 80 FR United States Postal Service® hereby (August 2, 2013), 78 FR 48520 (August 8, 2013) 14421 (March 19, 2015), March 31, 2016, see (SR–NYSE–2013–48), and 70100 (August 2, 2013), gives notice that, pursuant to 39 U.S.C. 78 FR 48535 (August 8, 2013) (SR–NYSEMKT– Securities Exchange Act Release No. 76020 3642 and 3632(b)(3), on June 2, 2017, it 2013–60), and then subsequently extended the (September 29, 2015), 80 FR 60201 (October 5, 2015), August 31, 2016, see Securities Exchange Act filed with the Postal Regulatory terms again through March 31, 2015, see Securities Release No. 77438 (March 24, 2016), 81 FR 17752 Commission a Request of the United Exchange Act Release Nos. 72629 (July 16, 2014), 79 FR 42564 (July 22, 2014) (SR–NYSE–2014–35), (March 30, 2016), December 31, 2016, see Securities States Postal Service to Add Priority and 72625 (July 16, 2014), 79 FR 42566 (July 22, Exchange Act Release No. 78678 (August 25, 2016), Mail Contract 326 to Competitive 2014) (SR–NYSEMKT–2014–60), September 30, 81 FR 60031 (August 31, 2016), and June 30, 2017, see Securities Exchange Act Release No. 79587 Product List. Documents are available at 2015, see Securities Exchange Act Release Nos. mstockstill on DSK30JT082PROD with NOTICES 74454 (March 6, 2015), 80 FR 13054 (March 12, (Dec. 16, 2016), 81 FR 93975 (Dec. 22, 2016). www.prc.gov, Docket Nos. MC2017–141, 2015) (SR–NYSE–2015–10), and 74455 (March 6, 6 See Letter from Martha Redding, Assistant CP2017–200. 2015), 80 FR 13047 (March 12, 2015) (SR– Secretary, NYSE, to Brent J. Fields, Secretary, NYSEMKT–2015–14), March 31, 2016, see Securities and Exchange Commission, dated May Stanley F. Mires, Securities Exchange Act Release Nos. 75993 23, 2017. 7 See Securities Exchange Act Release Nos. 80844 Attorney, Federal Compliance. (September 28, 2015), 80 FR 59844 (October 2, 2015) (SR–NYSE–2015–41), and 75995 (September (June 1, 2017) (SR–NYSE–2017–26) and 80850 (June [FR Doc. 2017–11955 Filed 6–8–17; 8:45 am] 2, 2017) (SR–NYSEMKT–2017–33). 28, 2015), 80 FR 59836 (October 2, 2015) (SR– BILLING CODE 7710–12–P NYSEMKT–2015–69), August 31, 2016, see 8 See Order, supra note 3, 77 FR at 40681. VerDate Sep<11>2014 19:25 Jun 08, 2017 Jkt 241001 PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 E:\FR\FM\09JNN1.SGM 09JNN1

26820 Federal Register / Vol. 82, No. 110 / Friday, June 9, 2017 / Notices The limited and temporary at http://nasdaq.cchwallstreet.com, at time by which an otherwise marketable exemptions extended by this Order are the principal office of the Exchange, and order missed execution. This subject to modification or revocation if at the Commission’s Public Reference component is designed to provide at any time the Commission determines Room. information to market participants that such action is necessary or interested in optimizing their models II. Self-Regulatory Organization’s appropriate in furtherance of the and trading patterns. Statement of the Purpose of, and purposes of the Securities Exchange Act The Peer Benchmarking component Statutory Basis for, the Proposed Rule of 1934. Responsibility for compliance ranks the quality of a market Change with any applicable provisions of the participant’s trading performance Federal securities laws must rest with In its filing with the Commission, the against its peers, allowing market the persons relying on the exemptions Exchange included statements participants to view their relative that are the subject of this Order. concerning the purpose of and basis for trading performance by port,4 with each For the Commission, by the Division of the proposed rule change and discussed port ranked independently by each Trading and Markets, pursuant to delegated any comments it received on the metric against the ports of peer firms authority.9 proposed rule change. The text of these trading on the Exchange. Robert W. Errett, statements may be examined at the Each market participant is eligible to Deputy Secretary. places specified in Item IV below. The receive information regarding only its Exchange has prepared summaries, set own data for each Trading Insights [FR Doc. 2017–11966 Filed 6–8–17; 8:45 am] forth in sections A, B, and C below, of component. That data is provided on a BILLING CODE 8011–01–P the most significant aspects of such T+1 basis. statements. The initial proposal to create Trading SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s Insights, filed in August of 2016,5 COMMISSION Statement of the Purpose of, and included a Liquidity Dynamics Analysis Statutory Basis for, the Proposed Rule component, which was to help market [Release No. 34–80856; File No. SR– participants identify pockets of NASDAQ–2017–051] Change accessible liquidity. In October of 2016, 1. Purpose the Exchange announced that this Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of The purpose of the proposed rule component would be delayed and Filing and Immediate Effectiveness of change is to amend the Exchange’s fees unavailable to subscribers.6 Proposed Rule Change To Amend the at Rule 7046 to: (i) Introduce a new fee A subscription to Nasdaq Trading Exchange’s Fees at Rule 7046 structure that would allow members to Insights is currently available for a sponsor their customers to receive monthly fee based on the number of June 5, 2017. Nasdaq Trading Insights for a $1,000 per ports for which the market participant Pursuant to Section 19(b)(1) of the month sponsorship fee to be paid by the subscribes to such information: $1,500 Securities Exchange Act of 1934 member, and fees based on the number for 1–5 ports; $2,000 for 6–15 ports; (‘‘Act’’),1 and Rule 19b–4 thereunder,2 of ports to be paid by the sponsored $2,500 for 16–25 ports; and $3,500 for notice is hereby given that, on May 23, firm; and (ii) extend a free trial offer 26 ports or more. There is no current fee 2017, The NASDAQ Stock Market LLC period from 14 to 30 days. structure that would allow members to (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the sponsor their customers to receive Securities and Exchange Commission Nasdaq Trading Insights Nasdaq Trading Insights. (‘‘SEC’’ or ‘‘Commission’’) the proposed Nasdaq Trading Insights is an Proposed Changes rule change as described in Items I, II, optional market data service that and III below, which Items have been employs advanced analytics and The Exchange proposes two changes prepared by the Exchange. The machine learning to analyze order to the Trading Insights product: (i) Commission is publishing this notice to activity. It is comprised of three active Introduce a new fee structure that solicit comments on the proposed rule market data components: (a) Missed would allow members to sponsor their change from interested persons. Opportunity—Liquidity; (b) Missed customers to receive Nasdaq Trading Opportunity—Latency; and (c) Peer Insights for a $1,000 per month I. Self-Regulatory Organization’s sponsorship fee to be paid by the Statement of the Terms of Substance of Benchmarking. The initial filing for this product had also proposed a fourth member, and fees based on the number the Proposed Rule Change of ports to be paid by the sponsored component—a Liquidity Dynamics The Exchange proposes to amend the Analysis—which, as reported in a prior firm; and (ii) extend a free trial offer Exchange’s fees at Rule 7046 to: (i) filing,3 has been delayed in period from 14 to 30 days. Introduce a new fee structure that development. would allow members to sponsor their a. Sponsorship Fee The Missed Opportunity—Liquidity customers to receive Nasdaq Trading component identifies when an order The Exchange proposes to introduce a Insights for a $1,000 per month from a market participant could have new fee structure that would allow sponsorship fee to be paid by the been increased in size, resulting in the members to sponsor an unlimited member, and fees based on the number execution of additional shares. This number of their customers to obtain of ports to be paid by the sponsored component is designed to provide access to Trading Insights’ analytics for firm; and (ii) extend a free trial offer information to a market participant a $1,000 per month sponsorship fee to mstockstill on DSK30JT082PROD with NOTICES period from 14 to 30 days. The changes interested in gaining insight into hidden are described in further detail below. pockets of liquidity. 4 A port is a means by which a member firm The text of the proposed rule change connects to Nasdaq’s systems. The Missed Opportunity—Latency 5 See Securities Exchange Act Release No. 78462 is available on the Exchange’s Web site component identifies the amount of (August 2, 2016), 81 FR 52486 (August 8, 2016) (SR–NASDAQ–2016–101). 9 17 CFR 200.30–3(a)(83). 3 See Securities Exchange Release No. 79119 6 See Securities Exchange Release No. 79119 1 15 U.S.C. 78s(b)(1). (October 19, 2016), 81 FR 73157 (October 24, 2016) (October 19, 2016), 81 FR 73157 (October 24, 2016) 2 17 CFR 240.19b–4. (SR–NASDAQ–2016–138). (SR–NASDAQ–2016–138). VerDate Sep<11>2014 19:25 Jun 08, 2017 Jkt 241001 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 E:\FR\FM\09JNN1.SGM 09JNN1


Document Created: 2017-06-09 01:11:59
Document Modified: 2017-06-09 01:11:59
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 26819 
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