82 FR 3067 - 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, as Modified by Amendments No. 1 and 2, Allowing the Exchange To Trade Pursuant to Unlisted Trading Privileges any NMS Stock Listed on Another National Securities Exchange; Establishing Listing and Trading Requirements for Exchange Traded Products; and Adopting New Equity Trading Rules Relating To Trading Halts of Securities Traded Pursuant to UTP on the Pillar Platform
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 6 (January 10, 2017)
Federal Register Volume 82, Issue 6 (January 10, 2017)
| Page Range | 3067-3068 | |
| FR Document | 2017-00220 |
[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)] [Notices] [Pages 3067-3068] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00220] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79736; File No. SR-NYSE-2016-44] 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, as Modified by Amendments No. 1 and 2, Allowing the Exchange To Trade Pursuant to Unlisted Trading Privileges any NMS Stock Listed on Another National Securities Exchange; Establishing Listing and Trading Requirements for Exchange Traded Products; and Adopting New Equity Trading Rules Relating To Trading Halts of Securities Traded Pursuant to UTP on the Pillar Platform January 4, 2017. On June 30, 2016, New York Stock Exchange LLC (``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 to (1) allow the Exchange to trade pursuant to unlisted trading privileges (``UTP'') any NMS Stock listed on another national securities exchange; (2) establish listing and trading requirements for exchange-traded products (``ETPs''); and (3) adopt new equity trading rules relating to trading halts of securities traded pursuant to UTP on the Pillar platform. The proposed rule change was published for comment in the Federal Register on July 14, 2016.\3\ On July 26, 2016, the Exchange filed Amendment [[Page 3068]] No. 1 to the proposed rule change.\4\ On August 23, 2016, pursuant to Section 19(b)(2) of the Act,\5\ the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.\6\ On August 26, 2016, the Exchange filed Amendment No. 2 to the proposed rule change.\7\ On October 12, 2016, the Commission instituted proceedings under Section 19(b)(2)(B) of the Act \8\ to determine whether to approve or disapprove the proposed rule change.\9\ The Commission has received no comments on the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 78263 (July 8, 2016), 81 FR 45580 (July 14, 2016). \4\ In Amendment No. 1, the Exchange: (1) Added a bullet point stating that ``[b]ecause the Exchange's rules regarding the production of books and records are described in Rule 440, the Exchange is proposing to refer to Rule 440 in its proposed rules wherever NYSE Arca Equities Rule 4.4 is referenced in the rules of NYSE Arca Equities proposed in this filing;'' (2) deleted the sentence stating, ``If an exchange has approved trading rules, procedures and listing standards in place that have been approved by the Commission for the product class that would include a new derivative securities product, the listing and trading of such `new derivative securities product,' does not require a proposed rule change under Section 19b-4 of the Act'' and made conforming changes to the rest of that paragraph; (3) deleted the bullet point that stated, ``Correction of a typographical error in NYSE Arca Equities Rule 8.400(a) so that proposed Rule 8.400(a) reads `as such terms are used in Rule 5.1(b)' in the last sentence, rather than `as such terms are used in the Rule 5.1(b)' as is currently drafted in NYSE Arca Equities Rule 8.400(a)''; and (4) noted that ``for new ETPs to be traded pursuant to UTP, which are listed and traded on another exchange pursuant to Rule 19b-4(e), the Exchange would be required to file Form 19b-4(e) with the Commission in accordance with the requirements therein.'' Amendment No. 1 is available at: https://www.sec.gov/comments/sr-nyse-2016-44/nyse201644-1.pdf. Because Amendment No. 1 to the proposed rule change does not materially alter the substance of the proposed rule change or raise unique or novel regulatory issues, Amendment No. 1 is not subject to notice and comment. \5\ 15 U.S.C. 78s(b)(2). \6\ See Securities Exchange Act Release No. 78641, 81 FR 59259 (Aug. 29, 2016). \7\ In Amendment No. 2, the Exchange: (1) Added the clause ``pursuant to UTP'' at the end of the sentence that states, ``The Exchange would have to file a Form 19b-4(e) with the Commission to trade these ETPs;'' (2) in the first footnote that follows that sentence, deleted the clause ``pursuant to Rule 19b-4(e);'' and (3) at the end of that same footnote, added the reference, ``See proposed Rule 5.1(a)(2); supra note 19 and accompanying text.'' Amendment No. 2 is available at: https://www.sec.gov/comments/sr-nyse-2016-44/nyse201644-2.pdf. Because Amendment No. 2 to the proposed rule change does not materially alter the substance of the proposed rule change or raise unique or novel regulatory issues, Amendment No. 2 is not subject to notice and comment. \8\ 15 U.S.C. 78s(b)(2)(B). \9\ See Securities Exchange Act Release No. 79085, 81 FR 71771 (Oct. 18, 2016). 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. at 71772. --------------------------------------------------------------------------- Section 19(b)(2) of the Act \10\ 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 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 July 14, 2016. January 10, 2017 is 180 days from that date, and March 11, 2017 is 240 days from that date. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- The Commission finds it 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 this proposed rule change. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,\11\ designates March 11, 2017 as the date by which the Commission shall either approve or disapprove the proposed rule change (File No. SR-NYSE-2016-44). --------------------------------------------------------------------------- \11\ Id. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(57). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-00220 Filed 1-9-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Notices 3067
maintenance of the Network Access it appears to the Commission that such identifying information from
Services, including by responding to action is necessary or appropriate in the submissions. You should submit only
any production issues. The Exchange public interest, for the protection of information that you wish to make
accordingly believes that the proposed investors, or otherwise in furtherance of available publicly. All submissions
changes to the Network Access Service the purposes of the Act. If the should refer to File No. SR–NYSEArca–
MRCs will allow them to more Commission takes such action, the 2016–172, and should be submitted on
accurately reflect the value of the Commission shall institute proceedings or before January 31, 2017.
services provided. under Section 19(b)(2)(B) 37 of the Act to For the Commission, by the Division of
The Exchange operates in a highly determine whether the proposed rule Trading and Markets, pursuant to delegated
competitive market in which exchanges change should be approved or authority.38
offer co-location services as a means to disapproved. Eduardo A. Aleman,
facilitate the trading and other market
IV. Solicitation of Comments Assistant Secretary.
activities of those market participants
who believe that co-location enhances Interested persons are invited to [FR Doc. 2017–00213 Filed 1–9–17; 8:45 am]
the efficiency of their operations. submit written data, views, and BILLING CODE 8011–01–P
Accordingly, fees charged for co- arguments concerning the foregoing,
location services are constrained by the including whether the proposed rule
active competition for the order flow of, change is consistent with the Act. SECURITIES AND EXCHANGE
and other business from, such market Comments may be submitted by any of COMMISSION
participants. If a particular exchange the following methods:
charges excessive fees for co-location Electronic Comments [Release No. 34–79736; File No. SR–NYSE–
services, affected market participants 2016–44]
will opt to terminate their co-location • Use the Commission’s Internet
arrangements with that exchange, and comment form (http://www.sec.gov/ Self-Regulatory Organizations; New
adopt a possible range of alternative rules/sro.shtml); or York Stock Exchange LLC; Notice of
• Send an email to rule-comments@ Designation of a Longer Period for
strategies, including placing their
sec.gov. Please include File No. SR– Commission Action on Proceedings To
servers in a physically proximate
NYSEArca–2016–172 on the subject Determine Whether To Approve or
location outside the exchange’s data
line. Disapprove a Proposed Rule Change,
center (which could be a competing
exchange), or pursuing strategies less Paper Comments as Modified by Amendments No. 1 and
dependent upon the lower exchange-to- 2, Allowing the Exchange To Trade
• Send paper comments in triplicate Pursuant to Unlisted Trading
participant latency associated with co- to Secretary, Securities and Exchange
location. Accordingly, the exchange Privileges any NMS Stock Listed on
Commission, 100 F Street NE., Another National Securities Exchange;
charging excessive fees would stand to Washington, DC 20549–1090.
lose not only co-location revenues but Establishing Listing and Trading
All submissions should refer to File No. Requirements for Exchange Traded
also the liquidity of the formerly co- SR–NYSEArca–2016–172. This file
located trading firms, which could have Products; and Adopting New Equity
number should be included on the Trading Rules Relating To Trading
additional follow-on effects on the subject line if email is used. To help the
market share and revenue of the affected Halts of Securities Traded Pursuant to
Commission process and review your UTP on the Pillar Platform
exchange. For the reasons described comments more efficiently, please use
above, the Exchange believes that the only one method. The Commission will January 4, 2017.
proposed rule change reflects this post all comments on the Commission’s
competitive environment. On June 30, 2016, New York Stock
Internet Web site (http://www.sec.gov/ Exchange LLC (‘‘Exchange’’) filed with
C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the the Securities and Exchange
Statement on Comments on the submission, all subsequent Commission (‘‘Commission’’), pursuant
Proposed Rule Change Received From amendments, all written statements to Section 19(b)(1) of the Securities
Members, Participants, or Others with respect to the proposed rule Exchange Act of 1934 (‘‘Act’’) 1 and Rule
No written comments were solicited change that are filed with the 19b–4 thereunder,2 a proposed rule
or received with respect to the proposed Commission, and all written change to (1) allow the Exchange to
rule change. communications relating to the trade pursuant to unlisted trading
proposed rule change between the privileges (‘‘UTP’’) any NMS Stock
III. Date of Effectiveness of the Commission and any person, other than listed on another national securities
Proposed Rule Change and Timing for those that may be withheld from the exchange; (2) establish listing and
Commission Action public in accordance with the trading requirements for exchange-
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be traded products (‘‘ETPs’’); and (3) adopt
upon filing pursuant to Section available for Web site viewing and new equity trading rules relating to
19(b)(3)(A) 35 of the Act and printing in the Commission’s Public trading halts of securities traded
subparagraph (f)(2) of Rule 19b–4 36 Reference Room, 100 F Street NE., pursuant to UTP on the Pillar platform.
thereunder, because it establishes a due, Washington, DC 20549 on official The proposed rule change was
fee, or other charge imposed by the business days between the hours of published for comment in the Federal
pmangrum on DSK3GDR082PROD with NOTICES
Exchange. 10:00 a.m. and 3:00 p.m. Copies of such Register on July 14, 2016.3 On July 26,
At any time within 60 days of the filing also will be available for 2016, the Exchange filed Amendment
filing of such proposed rule change, the inspection and copying at the principal
Commission summarily may office of the Exchange. All comments 38 17 CFR 200.30–3(a)(12).
temporarily suspend such rule change if received will be posted without change; 1 15 U.S.C. 78s(b)(1).
the Commission does not edit personal 2 17 CFR 240.19b–4.
35 15 U.S.C. 78s(b)(3)(A). 3 See Securities Exchange Act Release No. 78263
36 17 CFR 240.19b–4(f)(2). 37 15 U.S.C. 78s(b)(2)(B). (July 8, 2016), 81 FR 45580 (July 14, 2016).
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![3068 Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Notices
No. 1 to the proposed rule change.4 On received no comments on the proposed SECURITIES AND EXCHANGE
August 23, 2016, pursuant to Section rule change. COMMISSION
19(b)(2) of the Act,5 the Commission Section 19(b)(2) of the Act 10 provides [Release No. 34–79738; File No. SR–
designated a longer period within which that, after initiating disapproval NYSEMKT–2016–103]
to approve the proposed rule change,
proceedings, the Commission shall issue
disapprove the proposed rule change, or Self-Regulatory Organizations; NYSE
an order approving or disapproving the
institute proceedings to determine MKT LLC; Notice of Designation of a
whether to disapprove the proposed proposed rule change not later than 180
days after the date of publication of Longer Period for Commission Action
rule change.6 On August 26, 2016, the on a Proposed Rule Change Allowing
Exchange filed Amendment No. 2 to the notice of filing of the proposed rule
change. The Commission may extend the Exchange To Trade Pursuant to
proposed rule change.7 On October 12, Unlisted Trading Privileges for Any
2016, the Commission instituted the period for issuing an order
NMS Stock Listed on Another National
proceedings under Section 19(b)(2)(B) of approving or disapproving the proposed
Securities Exchange; Establishing
the Act 8 to determine whether to rule change, however, by not more than
Rules for the Trading Pursuant to UTP
approve or disapprove the proposed 60 days if the Commission determines of Exchange-Traded Products; and
rule change.9 The Commission has that a longer period is appropriate and Adopting New Equity Trading Rules
publishes the reasons for such Relating to Trading Halts of Securities
4 In Amendment No. 1, the Exchange: (1) Added
determination. The proposed rule Traded Pursuant to UTP on the Pillar
a bullet point stating that ‘‘[b]ecause the Exchange’s
rules regarding the production of books and records
change was published for notice and Platform
are described in Rule 440, the Exchange is comment in the Federal Register on July
proposing to refer to Rule 440 in its proposed rules 14, 2016. January 10, 2017 is 180 days January 4, 2017.
wherever NYSE Arca Equities Rule 4.4 is referenced from that date, and March 11, 2017 is On November 17, 2016, NYSE MKT
in the rules of NYSE Arca Equities proposed in this LLC (‘‘Exchange’’) filed with the
filing;’’ (2) deleted the sentence stating, ‘‘If an 240 days from that date.
exchange has approved trading rules, procedures Securities and Exchange Commission
The Commission finds it appropriate (‘‘Commission’’), pursuant to Section
and listing standards in place that have been
approved by the Commission for the product class to designate a longer period within 19(b)(1) of the Securities Exchange Act
that would include a new derivative securities which to issue an order approving or of 1934 (‘‘Act’’) 1 and Rule 19b–4
product, the listing and trading of such ‘new disapproving the proposed rule change
derivative securities product,’ does not require a thereunder,2 a proposed rule change to
proposed rule change under Section 19b–4 of the so that it has sufficient time to consider (1) allow the Exchange to trade pursuant
Act’’ and made conforming changes to the rest of this proposed rule change. Accordingly, to unlisted trading privileges (‘‘UTP’’)
that paragraph; (3) deleted the bullet point that the Commission, pursuant to Section
stated, ‘‘Correction of a typographical error in NYSE
for any NMS Stock listed on another
Arca Equities Rule 8.400(a) so that proposed Rule 19(b)(2) of the Act,11 designates March national securities exchange; (2)
8.400(a) reads ‘as such terms are used in Rule 11, 2017 as the date by which the establish rules for the trading pursuant
5.1(b)’ in the last sentence, rather than ‘as such Commission shall either approve or to UTP of exchange-traded products;
terms are used in the Rule 5.1(b)’ as is currently
drafted in NYSE Arca Equities Rule 8.400(a)’’; and disapprove the proposed rule change and (3) adopt new equity trading rules
(4) noted that ‘‘for new ETPs to be traded pursuant (File No. SR–NYSE–2016–44). relating to trading halts of securities
to UTP, which are listed and traded on another
For the Commission, by the Division of traded pursuant to UTP on the Pillar
exchange pursuant to Rule 19b–4(e), the Exchange platform. The proposed rule change was
would be required to file Form 19b–4(e) with the Trading and Markets, pursuant to delegated
Commission in accordance with the requirements authority.12 published for comment in the Federal
therein.’’ Amendment No. 1 is available at: https:// Register on December 1, 2016.3 The
www.sec.gov/comments/sr-nyse-2016-44/ Eduardo A. Aleman,
Commission has received no comments
nyse201644-1.pdf. Because Amendment No. 1 to the Assistant Secretary.
proposed rule change does not materially alter the
on the proposed rule change.
substance of the proposed rule change or raise
[FR Doc. 2017–00220 Filed 1–9–17; 8:45 am] Section 19(b)(2) of the Act 4 provides
unique or novel regulatory issues, Amendment No. BILLING CODE 8011–01–P that, within 45 days of the publication
1 is not subject to notice and comment. of notice of the filing of a proposed rule
5 15 U.S.C. 78s(b)(2).
6 See Securities Exchange Act Release No. 78641,
change, or within such longer period up
81 FR 59259 (Aug. 29, 2016).
to 90 days as the Commission may
7 In Amendment No. 2, the Exchange: (1) Added designate if it finds such longer period
the clause ‘‘pursuant to UTP’’ at the end of the to be appropriate and publishes its
sentence that states, ‘‘The Exchange would have to reasons for so finding or as to which the
file a Form 19b–4(e) with the Commission to trade self-regulatory organization consents,
these ETPs;’’ (2) in the first footnote that follows
that sentence, deleted the clause ‘‘pursuant to Rule the Commission shall either approve the
19b–4(e);’’ and (3) at the end of that same footnote, proposed rule change, disapprove the
added the reference, ‘‘See proposed Rule 5.1(a)(2); proposed rule change, or institute
supra note 19 and accompanying text.’’ Amendment
No. 2 is available at: https://www.sec.gov/
proceedings to determine whether the
comments/sr-nyse-2016-44/nyse201644-2.pdf. proposed rule change should be
Because Amendment No. 2 to the proposed rule disapproved. The 45th day after
change does not materially alter the substance of publication of the notice for this
the proposed rule change or raise unique or novel
regulatory issues, Amendment No. 2 is not subject
proposed rule change is January 15,
to notice and comment. 2017. The Commission is extending this
8 15 U.S.C. 78s(b)(2)(B). 45-day time period.
pmangrum on DSK3GDR082PROD with NOTICES
9 See Securities Exchange Act Release No. 79085, The Commission finds that it is
81 FR 71771 (Oct. 18, 2016). Specifically, the appropriate to designate a longer period
Commission instituted proceedings to allow for
additional analysis of the proposed rule change’s of trade,’’ and ‘‘to protect investors and the public 1 15
consistency with Section 6(b)(5) of the Act, which U.S.C. 78s(b)(1).
interest.’’ See id. at 71772. 2 17 CFR 240.19b–4.
requires, among other things, that the rules of a 10 15 U.S.C. 78s(b)(2).
3 See Securities Exchange Act Release No. 79400
national securities exchange be ‘‘designed to
11 Id.
prevent fraudulent and manipulative acts and (Nov. 25, 2016), 81 FR 86750.
practices, to promote just and equitable principles 12 17 CFR 200.30–3(a)(57). 4 15 U.S.C. 78s(b)(2).
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Document Created: 2018-02-01 14:54:07
Document Modified: 2018-02-01 14:54:07
| 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 3067 |
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