82 FR 26823 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS In Connection With the Exchange's Retail Liquidity Program Until December 31, 2017

SECURITIES AND EXCHANGE COMMISSION

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

Page Range		26823-26824
FR Document		2017-11965

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

[Federal Register Volume 82, Number 110 (Friday, June 9, 2017)]
[Notices]
[Pages 26823-26824]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11965]


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SECURITIES AND EXCHANGE COMMISSION

[[Release No. 34-80860; File No. SR-NYSEArca-2013-107]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an 
Extension to Limited Exemption From Rule 612(c) of Regulation NMS In 
Connection With the Exchange's Retail Liquidity Program Until December 
31, 2017

June 5, 2017.
    On December 23, 2013, 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 NYSE 
Arca, Inc. (``Exchange'') a limited exemption from the Sub-Penny Rule 
in connection with the operation of the Exchange's Retail Liquidity 
Program (``Program'').\2\ The limited exemption was granted 
concurrently with the Commission's approval of the Exchange's proposal 
to adopt the Program for a one-year pilot term.\3\ The exemption was 
granted coterminous with the effectiveness of the pilot Program; both 
the pilot Program and exemption are scheduled to expire on June 30, 
2017.\4\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 71176 (December 23, 
2013), 78 FR 79524 (December 30, 2013) (SR-NYSEArca-2013-107) 
(``Order'').
    \3\ See id.
    \4\ The pilot term of the Program was originally scheduled to 
end on April 14, 2015, but the Exchange initially extended the term 
through September 30, 2015, see Securities Exchange Act Release No. 
74572 (March 24, 2015), 80 FR 16705 (March 30, 2015) (NYSEArca-2015-
22), and then subsequently extended the term again through June 30, 
2017, see Securities Exchange Act Release Nos. 75994 (September 28, 
2015), 80 FR 59834 (October 2, 2015) (SR-NYSEArca-2015-84), 77236 
(Feb. 25, 2016), 81 FR 10943 (March 2, 2016) (SR-NYSEArca-2016-30), 
77425 (March 23, 2016), 81 FR 17523 (March 29, 2016) (SR-NYSEArca-
2016-47), 78601 (August 17, 2016), 81 FR 57632 (August 23, 2016) 
(SR-NYSEArca-2016-113), and 79495 (December 7, 2016), 81 FR 90033 
(December 13, 2016) (SR-NYSEArca-2016-157). Each time the pilot term 
of the Program was extended, the Commission granted the Exchange's 
request to also extend the Sub-Penny exemption through September 30, 
2015, see Securities Exchange Act Release No. 74609 (March 30, 
2015), 80 FR 18272 (April 3, 2015), March 31, 2016, see Securities 
Exchange Act Release No. 76021 (September 29, 2015), 80 FR 60207 
(October 5, 2015), August 31, 2016, see Securities Exchange Act 
Release No. 77437 (March 24, 2016), 81 FR 17752 (March 30, 2016), 
December 31, 2016, see Securities Exchange Act Release No. 78677 
(August 25, 2016), 81 FR 60037 (August 31, 2016), and June 30, 2017, 
see Securities Exchange Act Release No. 79586 (December 16, 2016), 
81 FR 93719 (December 21, 2016).
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    The Exchange now seeks to extend the exemption until June 30, 
2017.\5\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the Program 
through the same date.\6\ In its request to extend the exemption, the 
Exchange notes that the participation in the Program has increased more 
recently. Accordingly, the Exchange has asked for additional time to 
allow itself and the Commission to analyze more robust data concerning 
the Program, which the Exchange committed to provide to the 
Commission.\7\ For this reason and the reasons stated in the Order 
originally granting the limited exemption, the Commission finds that 
extending the exemption, 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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    \5\ See Letter from Martha Redding, Assistant Secretary, NYSE, 
to Brent J. Fields, Secretary, Securities and Exchange Commission, 
dated May 23, 2017.
    \6\ See Securities Exchange Act Release No. 80851 (June 2, 2017) 
(SR-NYSEArca-2017-63).
    \7\ See Order, supra note 2, 78 FR at 79529.
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    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the 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,

[[Page 26824]]

in connection with the operation of its Retail Liquidity Program, until 
June 30, 2017.
    The limited and temporary exemption extended by this Order is 
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 
exemption that is the subject of this Order.
    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(83).

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-11965 Filed 6-8-17; 8:45 am]
 BILLING CODE 8011-01-P

26824 Federal Register / Vol. 82, No. 110 / Friday, June 9, 2017 / Notices

in connection with the operation of its disapprove the proposed rule change.5 SECURITIES AND EXCHANGE
Retail Liquidity Program, until June 30, On March 17, 2017, the Commission COMMISSION
2017. instituted proceedings under Section
The limited and temporary exemption [Release No. 34–80858; File No. SR–ICC–
19(b)(2)(B) of the Act,6 to determine 2017–003]
extended by this Order is subject to whether to approve or disapprove the
modification or revocation if at any time proposed rule change.7 The Commission Self-Regulatory Organizations; ICE
the Commission determines that such received seven comments on the Clear Credit LLC; Notice of Filing of
action is necessary or appropriate in proposed rule change, including Amendment No. 1 and Order
furtherance of the purposes of the Approving Proposed Rule Change, as
responses by the Exchange.8
Securities Exchange Act of 1934. Modified by Amendment No. 1 Thereto,
Responsibility for compliance with On June 2, 2017, the Exchange
Relating to ICC’s End-of-Day Price
any applicable provisions of the Federal withdrew the proposed rule change
Discovery Policies and Procedures
securities laws must rest with the (SR–CBOE–2016–082).
persons relying on the exemption that is For the Commission, by the Division of June 5, 2017.
the subject of this Order. Trading and Markets, pursuant to delegated
For the Commission, by the Division I. Introduction
authority.9
of Trading and Markets, pursuant to On February 16, 2017, ICE Clear
delegated authority.8 Robert W. Errett, Credit LLC (‘‘ICC’’ or ‘‘ICE Clear
Deputy Secretary. Credit’’) filed with the Securities and
Robert W. Errett, Exchange Commission (‘‘Commission’’),
[FR Doc. 2017–11964 Filed 6–8–17; 8:45 am]
Deputy Secretary. pursuant to Section 19(b)(1) of the
BILLING CODE 8011–01–P
[FR Doc. 2017–11965 Filed 6–8–17; 8:45 am] Securities Exchange Act of 1934
BILLING CODE 8011–01–P (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change (SR–ICC–2017–
003) to amend ICC’s End-of-Day Price
SECURITIES AND EXCHANGE Discovery Policies and Procedures
COMMISSION 5 See Securities Exchange Act Release No. 79910, (‘‘Pricing Policy’’) to implement a new
[Release No. 34–80859; SR–CBOE–2016– 82 FR 9464 (February 6, 2017). The Commission price submission process for Clearing
082] designated March 19, 2017, as the date by which Participants (‘‘CPs’’). The proposed rule
the Commission shall either approve or disapprove, change was published for comment in
Self-Regulatory Organizations; or institute proceedings to determine whether to
the Federal Register on March 9, 2017.3
disapprove, the proposed rule change.
Chicago Board Options Exchange, 6 15 U.S.C. 78s(b)(2)(B).
The Commission did not receive
Incorporated; Notice of Withdrawal of 7 See Securities Exchange Act Release No. 80270,
comments regarding the proposed
a Proposed Rule Change Related to 82 FR 14926 (March 23, 2017). changes. On April 21, 2017, the
Rules Regarding the Responsibility for 8 See Letters to Brent J. Fields, Secretary, Commission extended the period in
Ensuring Compliance With Priority and Commission, from: (1) Joan C. Conley, Senior Vice which to approve, disapprove, or
Allocation Requirements and Trade- President and Corporate Secretary, Nasdaq, dated institute proceedings to determine
Through Prohibitions in Open Outcry December 22, 2016; (2) Steve Crutchfield, Head of whether to disapprove the proposed
Trading Market Structure, CTC Trading Group, LLC; Kevin rule change to June 7, 2017.4 On May
Coleman, Chief Compliance Officer, Belvedere 25, 2017, ICC filed Amendment No. 1 to
June 5, 2017. Trading LLC; Scott Kloin, Chief Compliance Officer, the proposal.5 For the reasons discussed
On December 1, 2016, the Chicago Citadel Securities LLC; Steven Gaston, Chief
below, the Commission is approving the
Board Options Exchange, Incorporated Compliance Officer, Consolidated Trading LLC; Rob
Armour, Chief Compliance Officer, DRW Securities, proposed rule changes, as modified by
(‘‘CBOE’’ or ‘‘Exchange’’) filed with the Amendment No. 1.
LLC; John Kinahan, Chief Executive Officer, Group
Securities and Exchange Commission
One Trading L.P.; Daniel Overmyer, Chief
(‘‘Commission’’), pursuant to Section II. Description of the Proposed Rule
Compliance Officer, IMC Financial Markets; Steven
19(b)(1) of the Securities Exchange Act Gaston, Chief Compliance Officer, Lamberson
Change
of 1934 (‘‘Exchange Act’’) 1 and Rule Capital LLC; and Patrick Hickey, Head of Market ICC has proposed changes to its
19b–4 thereunder,2 a proposed rule Structure, Optiver US LLC, dated February 16, Pricing Policy that are designed to
change to amend Exchange rules 2017; (3) Joanna Mallers, Secretary, FIA Principal implement a new price submission
regarding responsibility for ensuring Traders Group, dated April 13, 2017; (4) Steve
process. As part of its current price
Crutchfield, Head of Market Structure, CTC Trading
compliance with open outcry priority submission process, ICC requires CPs to
Group, LLC; Kevin Coleman, Chief Compliance
and allocation requirements and trade- Officer, Belvedere Trading LLC; Scott Kloin, Chief submit certain required price
through prohibitions. The proposed rule Compliance Officer, Citadel Securities LLC; Steven information to an intermediary, which
change was published for comment in Gaston, Chief Compliance Officer, Consolidated ICC then obtains and uses as part of its
the Federal Register on December 19, Trading LLC; Rob Armour, Chief Compliance
2016.3 On January 31, 2017, pursuant to Officer, DRW Securities, LLC; John Kinahan, Chief 1 15 U.S.C. 78s(b)(1).
Section 19(b)(2) of the Exchange Act,4 Executive Officer, Group One Trading L.P.; Daniel 2 17 CFR 240.19b–4.
the Commission designated a longer Overmyer, Chief Compliance Officer, IMC Financial 3 Securities Exchange Act Release No. 34–80150
Markets; Steven Gaston, Chief Compliance Officer, (March 3, 2017), 82 FR 13173 (March 9, 2017) (SR–
period within which to approve the Lamberson Capital LLC; and Patrick Hickey, Head ICC–2017–003) (‘‘Notice’’).
proposed rule change, disapprove the of Market Structure, Optiver US LLC, dated April 4 Securities Exchange Act Release No. 34–80506
proposed rule change, or institute 13, 2017; and (5) Mark E. Gannon, Chief (April 21, 2017), 82 FR 19412 (April 27, 2017).
mstockstill on DSK30JT082PROD with NOTICES

proceedings to determine whether to Compliance Officer, Lakeshore Securities, L.P., 5 ICE Clear Credit filed Amendment No. 1 to

dated April 13, 2017. See also Letters to Brent J. clarify that the implementation date for the
8 17 Fields, Secretary, Commission, from Kyle Edwards, proposed rule change will be July 10, 2017, and to
CFR 200.30–3(a)(83).
note that ICE Clear Credit will issue a circular
1 15 U.S.C. 78s(b)(1). Counsel, CBOE, dated March 14, 2017 and April 27,
confirming this timeline in advance of the July 10,
2 17 CFR 240.19b–4. 2017. The comment letters and CBOE’s responses 2017 implementation date. Because Amendment
3 See Securities Exchange Act Release No. 79540 are available at https://www.sec.gov/comments/sr- No. 1 is a clarifying amendment that does not alter
(December 13, 2016), 81 FR 91967 (‘‘Notice’’). cboe-2016-082/cboe2016082.shtml. the substance of the propose rule change the
4 15 U.S.C. 78s(b)(2). 9 17 CFR 200.30–3(a)(12). Commission is not publishing it for comment.

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Document Created: 2017-06-09 01:11:34
Document Modified: 2017-06-09 01:11:34

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 26823