82 FR 29128 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 To Rule 6.72 in Order To Extend the Penny Pilot in Options Classes in Certain Issues Through December 31, 2017
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 122 (June 27, 2017)
Federal Register Volume 82, Issue 122 (June 27, 2017)
| Page Range | 29128-29130 | |
| FR Document | 2017-13343 |
[Federal Register Volume 82, Number 122 (Tuesday, June 27, 2017)] [Notices] [Pages 29128-29130] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-13343] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80988; File No. SR-NYSEArca-2017-68] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 To Rule 6.72 in Order To Extend the Penny Pilot in Options Classes in Certain Issues Through December 31, 2017 June 21, 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 June 9, 2017, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') 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. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Commentary .02 to Exchange Rule 6.72 in order to extend the Penny Pilot in options classes in certain issues (``Pilot Program'') previously approved by the Securities and Exchange Commission (``Commission'') through December 31, [[Page 29129]] 2017. The Pilot Program is currently scheduled to expire on June 30, 2017. 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 Exchange hereby proposes to amend Commentary .02 to Exchange 6.72 to extend the time period of the Pilot Program, \4\ which is currently scheduled to expire on June 30, 2017, through December 31, 2017. The Exchange also proposes that the dates to replace issues in the Pilot Program that have been delisted be revised to the second trading day following July 1, 2017.\5\ The Exchange believes that extending the Pilot would allow for further analysis of the Pilot Program and a determination of how the Pilot Program should be structured in the future. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 79524 (December 12, 2016), 81 FR 91220 (December 16, 2016) (SR-NYSEArca-2016-156). \5\ The month immediately preceding a replacement class's addition to the Pilot Program (i.e., June) would not be used for purposes of the analysis for determining the replacement class. Thus, a replacement class to be added on the second trading day following July 1, 2017 would be identified based on The Option Clearing Corporation's trading volume data from December 1, 2016 through May 31, 2017. The Exchange will announce the replacement issues to the Exchange's membership through a Trader Update. --------------------------------------------------------------------------- This filing does not propose any substantive changes to the Pilot Program: All classes currently participating will remain the same and all minimum increments will remain unchanged. The Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been demonstrated to outweigh the increase in quote traffic. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) \6\ of the Securities Exchange Act of 1934 (the ``Act''), in general, and furthers the objectives of Section 6(b)(5),\7\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanisms of a free and open market and a national market system. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the proposed rule change, which extends the Penny Pilot Program for six months, allows the Exchange to continue to participate in a program that has been viewed as beneficial to traders, investors and public customers and viewed as successful by the other options exchanges participating in it. Accordingly, the Exchange believes that the proposal is consistent with the Act because it will allow the Exchange to extend the Pilot Program prior to its expiration on June 30, 2017. The Exchange notes that this proposal does not propose any new policies or provisions that are unique or unproven, but instead relates to the continuation of an existing program that operates on a pilot basis. The Exchange believes that the Pilot Program promotes just and equitable principles of trade by enabling public customers and other market participants to express their true prices to buy and sell options to the benefit of all market participants. The proposal to extend the Pilot Program is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanisms of a free and open market and a national market system, by allowing the Exchange and the Commission additional time to analyze the impact of the Pilot Program while also allowing the Exchange to continue to compete for order flow with other exchanges in option issues trading as part of the Pilot Program. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Specifically, the Exchange believes that, by extending the expiration of the Pilot Program, the proposed rule change will allow for further analysis of the Pilot Program and a determination of how the Program should be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. The Pilot Program is an industry-wide initiative supported by all other option exchanges. The Exchange believes that extending the Pilot Program will allow for continued competition between Exchange market participants trading similar products as their counterparts on other exchanges, while at the same time allowing the Exchange to continue to compete for order flow with other exchanges in option issues trading as part of the Pilot Program. 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\ 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b- 4(f)(6)(iii) thereunder.\11\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(iii). \9\ 17 CFR 240.19b-4(f)(6). \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's 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. The Exchange has satisfied this pre-filing requirement. --------------------------------------------------------------------------- [[Page 29130]] A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally does not become operative prior to 30 days after the date of the filing.\13\ However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. Without a waiver of 30-day operative delay, the Exchange's Pilot Program will expire before the extension of the Pilot Program is operative. The Commission believes that waiving the 30-day operative delay for the instant filing is consistent with the protection of investors and the public interest because doing so will allow the Pilot Program to continue without interruption in a manner that is consistent with the Commission's prior approval of the extension and expansion of the Pilot Program and will allow the Exchange and the Commission additional time to analyze the impact of the Pilot Program. Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.\15\ --------------------------------------------------------------------------- \12\ 17 CFR 240.19b-4(f)(6). \13\ 17 CFR 240.19b-4(f)(6). \14\ 17 CFR 240.19b-4(f)(6)(iii). \15\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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-NYSEArca-2017-68 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-NYSEArca-2017-68. 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 20549-1090 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-NYSEArca-2017-68 and should be submitted on or before July 18, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-13343 Filed 6-26-17; 8:45 am] BILLING CODE 8011-01-P
![29128 Federal Register / Vol. 82, No. 122 / Tuesday, June 27, 2017 / Notices
the Fee Schedule are reasonable, subparagraph (f)(2) of Rule 19b–4 10 Washington, DC 20549, on official
equitable, and not unfairly thereunder, because it establishes a due, business days between the hours of
discriminatory because it would add fee, or other charge imposed by the 10:00 a.m. and 3:00 p.m. Copies of the
clarity, transparency and internal Exchange. filing also will be available for
consistency to the Fee Schedule. At any time within 60 days of the inspection and copying at the principal
For these reasons, the Exchange filing of such proposed rule change, the office of the Exchange. All comments
believes that the proposal is consistent Commission summarily may received will be posted without change;
with the Act. temporarily suspend such rule change if the Commission does not edit personal
it appears to the Commission that such identifying information from
B. Self-Regulatory Organization’s action is necessary or appropriate in the submissions. You should submit only
Statement on Burden on Competition public interest, for the protection of information that you wish to make
In accordance with Section 6(b)(8) of investors, or otherwise in furtherance of available publicly. All submissions
the Act,8 the Exchange does not believe the purposes of the Act. If the should refer to File Number SR–
that the proposed rule change will Commission takes such action, the NYSEArca–2017–67, and should be
impose any burden on competition that Commission shall institute proceedings submitted on or before July 18, 2017.
is not necessary or appropriate in under Section 19(b)(2)(B) 11 of the Act to For the Commission, by the Division of
furtherance of the purposes of the Act. determine whether the proposed rule Trading and Markets, pursuant to delegated
Instead, the Exchange believes that the change should be approved or authority.12
proposed changes would encourage disapproved. Eduardo A. Aleman,
competition, including by attracting IV. Solicitation of Comments Assistant Secretary.
additional liquidity to the Exchange, [FR Doc. 2017–13345 Filed 6–26–17; 8:45 am]
which would continue to make the Interested persons are invited to
BILLING CODE 8011–01–P
Exchange a more competitive venue for, submit written data, views, and
among other things, order execution and arguments concerning the foregoing,
price discovery. The Exchange does not including whether the proposed rule SECURITIES AND EXCHANGE
believe that the proposed change would change is consistent with the Act. COMMISSION
impair the ability of any market Comments may be submitted by any of
the following methods: [Release No. 34–80988; File No. SR–
participants or competing order NYSEArca–2017–68]
execution venues to maintain their Electronic Comments
competitive standing in the financial • Use the Commission’s Internet Self-Regulatory Organizations; NYSE
markets. Further, the incentive would comment form (http://www.sec.gov/ Arca, Inc.; Notice of Filing and
be available to all similarly-situated rules/sro.shtml); or Immediate Effectiveness of Proposed
participants, and, as such, the proposed • Send an email to rule-comments@ Rule Change To Amend Commentary
change would not impose a disparate sec.gov. Please include File Number SR– .02 To Rule 6.72 in Order To Extend the
burden on competition either among or NYSEArca–2017–67 on the subject line. Penny Pilot in Options Classes in
between classes of market participants Certain Issues Through December 31,
and may, in fact, encourage Paper Comments 2017
competition. • Send paper comments in triplicate
June 21, 2017.
The Exchange notes that it operates in to Secretary, Securities and Exchange
a highly competitive market in which Pursuant to Section 19(b)(1) 1 of the
Commission, 100 F Street NE.,
market participants can readily favor Securities Exchange Act of 1934 (the
Washington, DC 20549–1090.
competing venues. In such an ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
All submissions should refer to File notice is hereby given that on June 9,
environment, the Exchange must Number SR–NYSEArca–2017–67. This
continually review, and consider 2017, NYSE Arca, Inc. (the ‘‘Exchange’’
file number should be included on the or ‘‘NYSE Arca’’) filed with the
adjusting, its fees and credits to remain subject line if email is used. To help the
competitive with other exchanges. For Securities and Exchange Commission
Commission process and review your (the ‘‘Commission’’) the proposed rule
the reasons described above, the comments more efficiently, please use
Exchange believes that the proposed change as described in Items I and II
only one method. The Commission will below, which Items have been prepared
rule change reflects this competitive post all comments on the Commission’s
environment. by the self-regulatory organization. The
Internet Web site (http://www.sec.gov/ Commission is publishing this notice to
C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the solicit comments on the proposed rule
Statement on Comments on the submission, all subsequent change from interested persons.
Proposed Rule Change Received From amendments, all written statements
with respect to the proposed rule I. Self-Regulatory Organization’s
Members, Participants, or Others
change that are filed with the Statement of the Terms of Substance of
No written comments were solicited Commission, and all written the Proposed Rule Change
or received with respect to the proposed communications relating to the The Exchange proposes to amend
rule change. proposed rule change between the Commentary .02 to Exchange Rule 6.72
III. Date of Effectiveness of the Commission and any person, other than in order to extend the Penny Pilot in
Proposed Rule Change and Timing for those that may be withheld from the options classes in certain issues (‘‘Pilot
public in accordance with the
mstockstill on DSK30JT082PROD with NOTICES
Commission Action Program’’) previously approved by the
provisions of 5 U.S.C. 552, will be Securities and Exchange Commission
The foregoing rule change is effective available for Web site viewing and (‘‘Commission’’) through December 31,
upon filing pursuant to Section printing in the Commission’s Public
19(b)(3)(A) 9 of the Act and Reference Room, 100 F Street NE., 12 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
8 15 U.S.C. 78f(b)(8). 10 17 CFR 240.19b–4(f)(2). 2 15 U.S.C. 78a.
9 15 U.S.C. 78s(b)(3)(A). 11 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4.
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![29130 Federal Register / Vol. 82, No. 122 / Tuesday, June 27, 2017 / Notices
A proposed rule change filed under only one method. The Commission will consideration of the scheduled matters
Rule 19b–4(f)(6) 12 normally does not post all comments on the Commission’s at the closed meeting.
become operative prior to 30 days after Internet Web site (http://www.sec.gov/ Commissioner Stein, as duty officer,
the date of the filing.13 However, rules/sro.shtml). Copies of the voted to consider the items listed for the
pursuant to Rule 19b–4(f)(6)(iii),14 the submission, all subsequent closed meeting in closed session.
Commission may designate a shorter amendments, all written statements The subject matters of the closed
time if such action is consistent with the with respect to the proposed rule meeting will be:
protection of investors and the public change that are filed with the Institution and settlement of
interest. Without a waiver of 30-day Commission, and all written injunctive actions;
operative delay, the Exchange’s Pilot communications relating to the Institution and settlement of
Program will expire before the extension proposed rule change between the administrative proceedings;
of the Pilot Program is operative. The Commission and any person, other than Adjudicatory matters; and
Other matters relating to enforcement
Commission believes that waiving the those that may be withheld from the
proceedings.
30-day operative delay for the instant public in accordance with the At times, changes in Commission
filing is consistent with the protection provisions of 5 U.S.C. 552, will be priorities require alterations in the
of investors and the public interest available for Web site viewing and scheduling of meeting items.
because doing so will allow the Pilot printing in the Commission’s Public For further information and to
Program to continue without Reference Room, 100 F Street NE., ascertain what, if any, matters have been
interruption in a manner that is Washington, DC 20549–1090 on official added, deleted or postponed; please
consistent with the Commission’s prior business days between the hours of contact Brent J. Fields from the Office of
approval of the extension and expansion 10:00 a.m. and 3:00 p.m. Copies of the the Secretary at (202) 551–5400.
of the Pilot Program and will allow the filing also will be available for
Exchange and the Commission inspection and copying at the principal Dated: June 22, 2017.
additional time to analyze the impact of office of the Exchange. All comments Brent J. Fields,
the Pilot Program. Accordingly, the received will be posted without change; Secretary.
Commission designates the proposed the Commission does not edit personal [FR Doc. 2017–13492 Filed 6–23–17; 11:15 am]
rule change as operative upon filing identifying information from BILLING CODE 8011–01–P
with the Commission.15 submissions. You should submit only
information that you wish to make
IV. Solicitation of Comments SECURITIES AND EXCHANGE
available publicly. All submissions
Interested persons are invited to should refer to File Number SR– COMMISSION
submit written data, views, and NYSEArca–2017–68 and should be [Release No. 34–80989; File No. SR–
arguments concerning the foregoing, submitted on or before July 18, 2017. NYSEMKT–2017–36]
including whether the proposed rule For the Commission, by the Division of
change is consistent with the Act. Trading and Markets, pursuant to delegated Self-Regulatory Organizations; NYSE
Comments may be submitted by any of authority.16 MKT LLC; Notice of Filing and
the following methods: Eduardo A. Aleman, Immediate Effectiveness of Proposed
Electronic Comments Assistant Secretary. Rule Change To Amend Commentary
[FR Doc. 2017–13343 Filed 6–26–17; 8:45 am]
.02 to Rule 960NY in Order To Extend
• Use the Commission’s Internet the Penny Pilot in Options Classes in
BILLING CODE 8011–01–P
comment form (http://www.sec.gov/ Certain Issues
rules/sro.shtml); or
• Send an email to rule- June 21, 2017.
SECURITIES AND EXCHANGE Pursuant to Section 19(b)(1) 1 of the
comments@sec.gov. Please include File
COMMISSION Securities Exchange Act of 1934 (the
Number SR–NYSEArca–2017–68 on the
subject line. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Sunshine Act Meeting
notice is hereby given that on June 9,
Paper Comments 2017, NYSE MKT LLC (the ‘‘Exchange’’
Notice is hereby given, pursuant to
• Send paper comments in triplicate the provisions of the Government in the or ‘‘NYSE MKT’’) filed with the
to Secretary, Securities and Exchange Sunshine Act, Public Law 94–409, that Securities and Exchange Commission
Commission, 100 F Street NE., the Securities and Exchange (the ‘‘Commission’’) the proposed rule
Washington, DC 20549–1090. Commission will hold a closed meeting change as described in Items I and II
All submissions should refer to File on Thursday, June 29, 2017 at 2 p.m. below, which Items have been prepared
Number SR–NYSEArca–2017–68. This Commissioners, Counsel to the by the self-regulatory organization. The
file number should be included on the Commissioners, the Secretary to the Commission is publishing this notice to
subject line if email is used. To help the Commission, and recording secretaries solicit comments on the proposed rule
Commission process and review your will attend the closed meeting. Certain change from interested persons.
comments more efficiently, please use staff members who have an interest in I. Self-Regulatory Organization’s
the matters also may be present. Statement of the Terms of Substance of
of filing of the proposed rule change, or such The General Counsel of the the Proposed Rule Change
shorter time as designated by the Commission. The
Commission, or his designee, has
mstockstill on DSK30JT082PROD with NOTICES
Exchange has satisfied this pre-filing requirement. The Exchange proposes to amend
12 17 CFR 240.19b–4(f)(6). certified that, in his opinion, one or Commentary .02 to NYSE Amex Options
13 17 CFR 240.19b–4(f)(6). more of the exemptions set forth in 5 Rule 960NY in order to extend the
14 17 CFR 240.19b–4(f)(6)(iii). U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) Penny Pilot in options classes in certain
15 For purposes only of waiving the operative
and 17 CFR 200.402(a)(3), (a)(5), (a)(7),
delay for this proposal, the Commission has (a)(9)(ii) and (a)(10), permit 1 15 U.S.C. 78s(b)(1).
considered the proposed rule’s impact on
2 15 U.S.C. 78a.
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
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Document Created: 2018-11-14 10:14:40
Document Modified: 2018-11-14 10:14:40
| 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 29128 |
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