82_FR_32878 82 FR 32743 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange, LLC To Amend MIAX Options Rule 524, Reporting of Matched Trades to Clearing Corporation

82 FR 32743 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange, LLC To Amend MIAX Options Rule 524, Reporting of Matched Trades to Clearing Corporation

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 135 (July 17, 2017)

Page Range32743-32745
FR Document2017-14892

Federal Register, Volume 82 Issue 135 (Monday, July 17, 2017)
[Federal Register Volume 82, Number 135 (Monday, July 17, 2017)]
[Notices]
[Pages 32743-32745]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14892]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81122; File No. SR-MIAX-2017-32]


Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change by Miami International Securities Exchange, LLC To 
Amend MIAX Options Rule 524, Reporting of Matched Trades to Clearing 
Corporation

July 11, 2017.
    Pursuant to the provisions of Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that, on June 28, 2017, Miami International Securities 
Exchange, LLC (``MIAX Options'' or the ``Exchange'') filed with the 
Securities and Exchange Commission (``Commission'') a proposed rule 
change as described in Items I, II, and III below, which Items have 
been prepared by the Exchange. 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\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend Exchange Rule 524, 
Reporting of Matched Trades to Clearing Corporation.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.miaxoptions.com/rule-filings, at MIAX's 
principal office, 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 Exchange 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 these 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 aspects 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 proposes to amend Exchange Rule 524, Reporting of 
Matched Trades to Clearing Corporation, to adopt Interpretations and 
Policies .01, to state that post-trade adjustments that do not affect 
the contractual terms of a trade are to be performed by the Exchange 
Member \3\ via an Exchange approved electronic interface. The Exchange 
will notify Members of the approved electronic interface via Regulatory 
Circular.
---------------------------------------------------------------------------

    \3\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associate with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
---------------------------------------------------------------------------

    The Exchange staffs a Help Desk \4\ to provide customer service and 
support to its Members. One of the support functions the Help Desk 
currently provides is to make certain post-trade adjustments to a 
Member's matched trades at the Member's request and on its behalf. The 
Exchange has also developed functionality that it makes available to 
all Members that enables Members to electronically and independently 
perform post-trade adjustments that do not affect the contractual terms 
of the transaction to their side of the matched trade.

[[Page 32744]]

Examples of post-trade adjustments that do not affect the contractual 
terms of a trade include: changing the position indicator (e.g., from 
Open to Close or Close to Open); adding or removing Clearing Member 
Trade Agreement (``CMTA'') information; changing the clearing account 
type (e.g., Customer or Firm); and modifying the optional data field, 
which may be used by Members for their own internal back-office 
processing.
---------------------------------------------------------------------------

    \4\ The term ``Help Desk'' means the Exchange's control room 
consisting of Exchange staff authorized to make certain trading 
determinations on behalf of the Exchange. The Help Desk shall report 
to and be supervised by a senior executive officer of the Exchange. 
See Exchange Rule 100.
---------------------------------------------------------------------------

    Despite the availability of functionality for Members to perform 
these straightforward post-trade adjustments on their own, the Help 
Desk still receives a significant number of requests on a daily basis 
to manually perform these adjustments. Processing these requests is a 
time consuming exercise for Exchange staff and is an inefficient use of 
Exchange time and resources given that Members have the ability to 
perform these adjustments themselves electronically via an Exchange 
provided interface. Accordingly, the Exchange proposes to mandate that 
Members perform their own post-trade adjustments which do not affect 
the contractual terms of a trade as discussed above, using the 
functionality provided by the Exchange. The Exchange notes that use of 
the functionality provided by the Exchange does not relieve Members of 
their obligations to abide by the rules of the Exchange.\5\ The 
Exchange also represents that it has an adequate surveillance program 
in place to review post-trade adjustments made by its Members. 
Additionally, the Exchange has a Regulatory Services Agreement in place 
with the Financial Industry Regulatory Authority to monitor adjustments 
done directly at the Options Clearing Corporation (``OCC'') to ensure 
compliance with applicable Exchange rules and such Securities and 
Exchange Commission Trading rules related to options trading. Further, 
the Exchange notes that Members may make post-trade adjustments to 
trades executed on the Exchange directly at the OCC, as the OCC 
provides functionality for Members to update certain non-critical trade 
information with respect to the transaction, provided such changes are 
not in contravention of any rule of the Exchange on which a confirmed 
trade was executed.\6\
---------------------------------------------------------------------------

    \5\ Specifically, the Exchange notes that Members have an 
obligation to adhere to Exchange Rule 507, Must Give Up Clearing 
Member.
    \6\ See OCC Rules, Chapter IV, Rule 401, Reporting of Confirmed 
Trades Effected on Exchanges.
---------------------------------------------------------------------------

    The Exchange notes that other exchanges offer similar functionality 
to their members for post-trade adjustments.\7\ However, these 
Exchanges incentivize their members to perform their own post-trade 
adjustments by charging a fee when the member elects to have the 
exchange perform the adjustment on their behalf, as opposed to 
mandating usage of an interface to perform post-trade adjustments such 
as the Exchange is proposing.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release Nos. 73585 (November 13, 
2014), 79 FR 68927 (November 19, 2014) (SR-NYSEArca-2014-116); and 
73542 (November 6, 2014), 79 FR 67496 (November 13, 2014) (SR-
NYSEMKT-2014-87).
---------------------------------------------------------------------------

2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with 
Section 6(b) of the Act \8\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act \9\ 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, to remove impediments to and perfect the mechanisms of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that its proposal would promote just and 
equitable principles of trade and not unfairly discriminate between 
Members because the functionality to make post-trade adjustments is 
available to all Members. Further, the Exchange believes that its 
proposal would promote a fair and orderly market and protect investors 
and the public interest because its proposal would result in a more 
efficient use of Exchange resources, which would benefit all market 
participants.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
rule change is not designed to address any competitive issues but 
rather to make more efficient use of the Exchange's employee time and 
resources, which may ultimately benefit Members.
    The Exchange does not believe that the proposed rule change will 
impose any burden on intra-market competition as the Rules apply 
equally to all Exchange Members.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing 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 after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) \11\ 
thereunder.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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 requirement.
---------------------------------------------------------------------------

    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 Comments

     Use 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-MIAX-2017-32 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-MIAX-2017-32. This file 
number should be included on the

[[Page 32745]]

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-MIAX-2017-32, and should be submitted on or before 
August 7, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017-14892 Filed 7-14-17; 8:45 am]
BILLING CODE 8011-01-P



                                                                                     Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices                                                       32743

                                                    subparagraph (f)(6) of Rule 19b–4                         Reference Room, 100 F Street NE.,                       Matched Trades to Clearing
                                                    thereunder.16                                             Washington, DC 20549, on official                       Corporation.
                                                       At any time within 60 days of the                      business days between the hours of                         The text of the proposed rule change
                                                    filing of the proposed rule change, the                   10:00 a.m. and 3:00 p.m. Copies of the                  is available on the Exchange’s Web site
                                                    Commission summarily may                                  filing also will be available for                       at http://www.miaxoptions.com/rule-
                                                    temporarily suspend such rule change if                   inspection and copying at the principal                 filings, at MIAX’s principal office, and
                                                    it appears to the Commission that such                    office of the Exchange. All comments                    at the Commission’s Public Reference
                                                    action is: (i) Necessary or appropriate in                received will be posted without change;                 Room.
                                                    the public interest; (ii) for the protection              the Commission does not edit personal
                                                                                                                                                                      II. Self-Regulatory Organization’s
                                                    of investors; or (iii) otherwise in                       identifying information from
                                                                                                                                                                      Statement of the Purpose of, and
                                                    furtherance of the purposes of the Act.                   submissions. You should submit only
                                                                                                                                                                      Statutory Basis for, the Proposed Rule
                                                    If the Commission takes such action, the                  information that you wish to make
                                                                                                                                                                      Change
                                                    Commission shall institute proceedings                    available publicly.
                                                    to determine whether the proposed rule                       All submissions should refer to File                   In its filing with the Commission, the
                                                    should be approved or disapproved.                        Number SR–Phlx–2017–48 and should                       Exchange included statements
                                                                                                              be submitted on or before August 7,                     concerning the purpose of and basis for
                                                    IV. Solicitation of Comments                                                                                      the proposed rule change and discussed
                                                                                                              2017.
                                                      Interested persons are invited to                                                                               any comments it received on the
                                                                                                                 For the Commission, by the Division of
                                                    submit written data, views, and                           Trading and Markets, pursuant to delegated              proposed rule change. The text of these
                                                    arguments concerning the foregoing,                       authority.17                                            statements may be examined at the
                                                    including whether the proposed rule                       Jill M. Peterson,                                       places specified in Item IV below. The
                                                    change is consistent with the Act.                                                                                Exchange has prepared summaries, set
                                                                                                              Assistant Secretary.
                                                    Comments may be submitted by any of                                                                               forth in sections A, B, and C below, of
                                                                                                              [FR Doc. 2017–14886 Filed 7–14–17; 8:45 am]
                                                    the following methods:                                                                                            the most significant aspects of such
                                                                                                              BILLING CODE 8011–01–P
                                                                                                                                                                      statements.
                                                    Electronic Comments
                                                      • Use the Commission’s Internet                                                                                 A. Self-Regulatory Organization’s
                                                    comment form (http://www.sec.gov/                         SECURITIES AND EXCHANGE                                 Statement of the Purpose of, and the
                                                    rules/sro.shtml); or                                      COMMISSION                                              Statutory Basis for, the Proposed Rule
                                                      • Send an email to rule-comments@                                                                               Change
                                                                                                              [Release No. 34–81122; File No. SR–MIAX–
                                                    sec.gov. Please include File Number SR–                   2017–32]                                                1. Purpose
                                                    Phlx–2017–48 on the subject line.
                                                                                                                                                                         The Exchange proposes to amend
                                                    Paper Comments                                            Self-Regulatory Organizations; Miami
                                                                                                                                                                      Exchange Rule 524, Reporting of
                                                                                                              International Securities Exchange,
                                                      • Send paper comments in triplicate                                                                             Matched Trades to Clearing
                                                                                                              LLC; Notice of Filing and Immediate
                                                    to Secretary, Securities and Exchange                                                                             Corporation, to adopt Interpretations
                                                                                                              Effectiveness of a Proposed Rule
                                                    Commission, 100 F Street NE.,                                                                                     and Policies .01, to state that post-trade
                                                                                                              Change by Miami International
                                                    Washington, DC 20549–1090.                                                                                        adjustments that do not affect the
                                                                                                              Securities Exchange, LLC To Amend
                                                                                                                                                                      contractual terms of a trade are to be
                                                    All submissions should refer to File                      MIAX Options Rule 524, Reporting of
                                                                                                                                                                      performed by the Exchange Member 3
                                                    Number SR–Phlx–2017–48. This file                         Matched Trades to Clearing
                                                                                                                                                                      via an Exchange approved electronic
                                                    number should be included on the                          Corporation
                                                                                                                                                                      interface. The Exchange will notify
                                                    subject line if email is used. To help the
                                                                                                              July 11, 2017.                                          Members of the approved electronic
                                                    Commission process and review your
                                                                                                                 Pursuant to the provisions of Section                interface via Regulatory Circular.
                                                    comments more efficiently, please use
                                                                                                              19(b)(1) of the Securities Exchange Act                    The Exchange staffs a Help Desk 4 to
                                                    only one method. The Commission will
                                                                                                              of 1934 (‘‘Act’’) 1 and Rule 19b–4                      provide customer service and support to
                                                    post all comments on the Commission’s
                                                                                                              thereunder,2 notice is hereby given that,               its Members. One of the support
                                                    Internet Web site (http://www.sec.gov/
                                                                                                              on June 28, 2017, Miami International                   functions the Help Desk currently
                                                    rules/sro.shtml).
                                                                                                              Securities Exchange, LLC (‘‘MIAX                        provides is to make certain post-trade
                                                      Copies of the submission, all
                                                                                                              Options’’ or the ‘‘Exchange’’) filed with               adjustments to a Member’s matched
                                                    subsequent amendments, all written
                                                                                                              the Securities and Exchange                             trades at the Member’s request and on
                                                    statements with respect to the proposed
                                                                                                              Commission (‘‘Commission’’) a                           its behalf. The Exchange has also
                                                    rule change that are filed with the
                                                                                                              proposed rule change as described in                    developed functionality that it makes
                                                    Commission, and all written
                                                                                                              Items I, II, and III below, which Items                 available to all Members that enables
                                                    communications relating to the
                                                                                                              have been prepared by the Exchange.                     Members to electronically and
                                                    proposed rule change between the
                                                                                                              The Commission is publishing this                       independently perform post-trade
                                                    Commission and any person, other than
                                                                                                              notice to solicit comments on the                       adjustments that do not affect the
                                                    those that may be withheld from the
                                                                                                              proposed rule change from interested                    contractual terms of the transaction to
                                                    public in accordance with the
                                                                                                              persons.                                                their side of the matched trade.
                                                    provisions of 5 U.S.C. 552, will be
                                                    available for Web site viewing and                        I. Self-Regulatory Organization’s
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                                                                                                                                        3 The term ‘‘Member’’ means an individual or
                                                    printing in the Commission’s Public                       Statement of the Terms of Substance of                  organization approved to exercise the trading rights
                                                                                                              the Proposed Rule Change                                associate with a Trading Permit. Members are
                                                      16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–                                                               deemed ‘‘members’’ under the Exchange Act. See
                                                    4(f)(6) requires a self-regulatory organization to give     The Exchange is filing a proposal to                  Exchange Rule 100.
                                                    the Commission written notice of its intent to file       amend Exchange Rule 524, Reporting of                     4 The term ‘‘Help Desk’’ means the Exchange’s

                                                    the proposed rule change at least five business days                                                              control room consisting of Exchange staff
                                                    prior to the date of filing of the proposed rule                                                                  authorized to make certain trading determinations
                                                                                                                   17 17 CFR 200.30–3(a)(12).
                                                    change, or such shorter time as designated by the                                                                 on behalf of the Exchange. The Help Desk shall
                                                                                                                   1 15 U.S.C. 78s (b)(1).
                                                    Commission. The Exchange has satisfied this                                                                       report to and be supervised by a senior executive
                                                    requirement.                                                   2 17 CFR 240.19b–4.                                officer of the Exchange. See Exchange Rule 100.



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                                                    32744                           Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices

                                                    Examples of post-trade adjustments that                  adjustments.7 However, these                            C. Self-Regulatory Organization’s
                                                    do not affect the contractual terms of a                 Exchanges incentivize their members to                  Statement on Comments on the
                                                    trade include: changing the position                     perform their own post-trade                            Proposed Rule Change Received From
                                                    indicator (e.g., from Open to Close or                   adjustments by charging a fee when the                  Members, Participants, or Others
                                                    Close to Open); adding or removing                       member elects to have the exchange                        Written comments were neither
                                                    Clearing Member Trade Agreement                          perform the adjustment on their behalf,                 solicited nor received.
                                                    (‘‘CMTA’’) information; changing the                     as opposed to mandating usage of an
                                                    clearing account type (e.g., Customer or                 interface to perform post-trade                         III. Date of Effectiveness of the
                                                    Firm); and modifying the optional data                   adjustments such as the Exchange is                     Proposed Rule Change and Timing for
                                                    field, which may be used by Members                      proposing.                                              Commission Action
                                                    for their own internal back-office                                                                                  Because the foregoing proposed rule
                                                                                                             2. Statutory Basis
                                                    processing.                                                                                                      change does not: (i) Significantly affect
                                                       Despite the availability of                              MIAX believes that its proposed rule                 the protection of investors or the public
                                                    functionality for Members to perform                     change is consistent with Section 6(b) of               interest; (ii) impose any significant
                                                    these straightforward post-trade                         the Act 8 in general, and furthers the                  burden on competition; and (iii) become
                                                    adjustments on their own, the Help                       objectives of Section 6(b)(5) of the Act 9              operative for 30 days after the date of
                                                    Desk still receives a significant number                 in particular, in that it is designed to                the filing, or such shorter time as the
                                                    of requests on a daily basis to manually                 prevent fraudulent and manipulative                     Commission may designate, it has
                                                    perform these adjustments. Processing                    acts and practices, to promote just and                 become effective pursuant to 19(b)(3)(A)
                                                    these requests is a time consuming                       equitable principles of trade, to foster                of the Act 10 and Rule 19b–4(f)(6) 11
                                                    exercise for Exchange staff and is an                    cooperation and coordination with                       thereunder.
                                                    inefficient use of Exchange time and                     persons engaged in facilitating                            At any time within 60 days of the
                                                    resources given that Members have the                    transactions in securities, to remove                   filing of the proposed rule change, the
                                                    ability to perform these adjustments                     impediments to and perfect the                          Commission summarily may
                                                    themselves electronically via an                         mechanisms of a free and open market                    temporarily suspend such rule change if
                                                    Exchange provided interface.                             and a national market system and, in                    it appears to the Commission that such
                                                    Accordingly, the Exchange proposes to                    general, to protect investors and the                   action is necessary or appropriate in the
                                                    mandate that Members perform their                       public interest.                                        public interest, for the protection of
                                                    own post-trade adjustments which do                         The Exchange believes that its                       investors, or otherwise in furtherance of
                                                    not affect the contractual terms of a                    proposal would promote just and                         the purposes of the Act. If the
                                                    trade as discussed above, using the                      equitable principles of trade and not                   Commission takes such action, the
                                                    functionality provided by the Exchange.                  unfairly discriminate between Members                   Commission shall institute proceedings
                                                    The Exchange notes that use of the                       because the functionality to make post-                 to determine whether the proposed rule
                                                    functionality provided by the Exchange                   trade adjustments is available to all                   should be approved or disapproved.
                                                    does not relieve Members of their                        Members. Further, the Exchange
                                                    obligations to abide by the rules of the                 believes that its proposal would                        IV. Solicitation of Comments
                                                    Exchange.5 The Exchange also                             promote a fair and orderly market and                     Interested persons are invited to
                                                    represents that it has an adequate                       protect investors and the public interest               submit written data, views, and
                                                    surveillance program in place to review                  because its proposal would result in a                  arguments concerning the foregoing,
                                                    post-trade adjustments made by its                       more efficient use of Exchange                          including whether the proposed rule
                                                    Members. Additionally, the Exchange                      resources, which would benefit all                      change is consistent with the Act.
                                                    has a Regulatory Services Agreement in                   market participants.                                    Comments may be submitted by any of
                                                    place with the Financial Industry                                                                                the following methods:
                                                    Regulatory Authority to monitor                          B. Self-Regulatory Organization’s
                                                                                                             Statement on Burden on Competition                      Electronic Comments
                                                    adjustments done directly at the
                                                    Options Clearing Corporation (‘‘OCC’’)                     The Exchange does not believe that                      • Use the Commission’s Internet
                                                    to ensure compliance with applicable                     the proposed rule change will result in                 comment form (http://www.sec.gov/
                                                    Exchange rules and such Securities and                   any burden on competition that is not                   rules/sro.shtml); or
                                                    Exchange Commission Trading rules                        necessary or appropriate in furtherance                   • Send an email to rule-comments@
                                                    related to options trading. Further, the                 of the purposes of the Act. The                         sec.gov. Please include File Number SR–
                                                    Exchange notes that Members may make                     proposed rule change is not designed to                 MIAX–2017–32 on the subject line.
                                                    post-trade adjustments to trades                         address any competitive issues but                      Paper Comments
                                                    executed on the Exchange directly at the                 rather to make more efficient use of the
                                                    OCC, as the OCC provides functionality                   Exchange’s employee time and                              • Send paper comments in triplicate
                                                    for Members to update certain non-                       resources, which may ultimately benefit                 to Secretary, Securities and Exchange
                                                    critical trade information with respect to               Members.                                                Commission, 100 F Street NE.,
                                                    the transaction, provided such changes                                                                           Washington, DC 20549–1090.
                                                                                                               The Exchange does not believe that
                                                    are not in contravention of any rule of                  the proposed rule change will impose                    All submissions should refer to File
                                                    the Exchange on which a confirmed                        any burden on intra-market competition                  Number SR–MIAX–2017–32. This file
                                                    trade was executed.6                                     as the Rules apply equally to all                       number should be included on the
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                       The Exchange notes that other                         Exchange Members.                                         10 15  U.S.C. 78s(b)(3)(A).
                                                    exchanges offer similar functionality to                                                                           11 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                                    their members for post-trade                                  7 See
                                                                                                                     Securities Exchange Act Release Nos. 73585      4(f)(6) requires a self-regulatory organization to give
                                                                                                             (November 13, 2014), 79 FR 68927 (November 19,          the Commission written notice of its intent to file
                                                      5 Specifically, the Exchange notes that Members        2014) (SR–NYSEArca–2014–116); and 73542                 the proposed rule change at least five business days
                                                    have an obligation to adhere to Exchange Rule 507,       (November 6, 2014), 79 FR 67496 (November 13,           prior to the date of filing of the proposed rule
                                                    Must Give Up Clearing Member.                            2014) (SR–NYSEMKT–2014–87).                             change, or such shorter time as designated by the
                                                      6 See OCC Rules, Chapter IV, Rule 401, Reporting         8 15 U.S.C. 78f(b).
                                                                                                                                                                     Commission. The Exchange has satisfied this
                                                    of Confirmed Trades Effected on Exchanges.                 9 15 U.S.C. 78f(b)(5).                                requirement.



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                                                                                      Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices                                                       32745

                                                    subject line if email is used. To help the                 ‘‘Act’’),2 and Rule 19b–4 thereunder,3                      To effect its transition to Pillar, the
                                                    Commission process and review your                         notice is hereby given that on June 29,                  Exchange has adopted the rule
                                                    comments more efficiently, please use                      2017, NYSE MKT LLC (the ‘‘Exchange’’                     numbering framework of the NYSE Arca
                                                    only one method. The Commission will                       or ‘‘NYSE MKT’’) filed with the                          Equities, Inc. (‘‘NYSE Arca Equities’’)
                                                    post all comments on the Commission’s                      Securities and Exchange Commission                       rules for Exchange cash equities trading
                                                    Internet Web site (http://www.sec.gov/                     (the ‘‘Commission’’) the proposed rule                   on the Pillar trading platform.4 As
                                                    rules/sro.shtml). Copies of the                            change as described in Items I and II                    described in the Framework Filing, the
                                                    submission, all subsequent                                 below, which Items have been prepared                    Exchange is denoting the rules
                                                    amendments, all written statements                         by the self-regulatory organization. The                 applicable to cash equities trading on
                                                    with respect to the proposed rule                          Commission is publishing this notice to                  Pillar with the letter ‘‘E’’ to distinguish
                                                    change that are filed with the                             solicit comments on the proposed rule                    such rules from current Exchange rules
                                                    Commission, and all written                                change from interested persons.                          with the same numbering. The
                                                    communications relating to the                                                                                      Exchange’s trading rules for cash equity
                                                    proposed rule change between the                           I. Self-Regulatory Organization’s                        trading on Pillar are also based on the
                                                    Commission and any person, other than                      Statement of the Terms of Substance of                   trading rules of NYSE Arca Equities.5 As
                                                    those that may be withheld from the                        the Proposed Rule Change                                 described in the Trading Rules Filing,
                                                    public in accordance with the                                 The Exchange proposes to amend                        with Pillar, the Exchange will transition
                                                    provisions of 5 U.S.C. 552, will be                        Exchange rules to (1) eliminate ALO and                  its cash equities trading platform from a
                                                    available for Web site viewing and                         Day ISO orders and related                               Floor-based market with a parity
                                                    printing in the Commission’s Public                        functionality; (2) provide that all Pegged               allocation model to a fully automated
                                                    Reference Room, 100 F Street NE.,                          Orders would be non-displayed orders;                    price-time priority allocation model that
                                                    Washington, DC 20549, on official                          (3) change references from ‘‘NYSE                        trades all NMS Stocks. In addition, the
                                                    business days between the hours of                         MKT’’ to ‘‘NYSE American’’; (4) add the                  Exchange will introduce a delay
                                                    10:00 a.m. and 3:00 p.m. Copies of the                     definition of ‘‘NYSE American                            mechanism on Pillar that will add the
                                                    filing also will be available for                          Marketplace’’; and (5) make other                        equivalent of 350 microseconds of
                                                    inspection and copying at the principal                    conforming rule changes. The proposed                    latency to inbound and outbound order
                                                    office of the Exchange. All comments                       rule change is available on the                          messages, as described in greater detail
                                                    received will be posted without change;                    Exchange’s Web site at www.nyse.com,                     in Rules 1.1E(y) and 7.29E(b).6
                                                    the Commission does not edit personal                      at the principal office of the Exchange,                    In the Delay Mechanism Filing, the
                                                    identifying information from                               and at the Commission’s Public                           Exchange represented that in
                                                    submissions. You should submit only                        Reference Room.                                          conjunction with implementing the
                                                    information that you wish to make                                                                                   Delay Mechanism, it would no longer
                                                    available publicly. All submissions                        II. Self-Regulatory Organization’s                       offer ALO or Day ISO functionality and
                                                    should refer to File Number SR–MIAX–                       Statement of the Purpose of, and                         all Pegged Orders would not be
                                                    2017–32, and should be submitted on or                     Statutory Basis for, the Proposed Rule                   displayed.7 Because the Exchange has
                                                    before August 7, 2017.                                     Change
                                                       For the Commission, by the Division of                    In its filing with the Commission, the                    4 See Securities Exchange Act Release No. 79242

                                                    Trading and Markets, pursuant to delegated                 self-regulatory organization included                    (November 4, 2016), 81 FR 79081 (November 10,
                                                                                                                                                                        2016) (SR–NYSEMKT–2016–97) (Notice and Filing
                                                    authority.12                                               statements concerning the purpose of,                    of Immediate Effectiveness of Proposed Rule
                                                    Jill M. Peterson,                                          and basis for, the proposed rule change                  Change) (the ‘‘Framework Filing’’). In addition, the
                                                    Assistant Secretary.                                       and discussed any comments it received                   Exchange has filed a proposed rule change to
                                                                                                               on the proposed rule change. The text                    support Exchange trading of securities listed on
                                                    [FR Doc. 2017–14892 Filed 7–14–17; 8:45 am]                                                                         other national securities exchanges on an unlisted
                                                    BILLING CODE 8011–01–P                                     of those statements may be examined at                   trading privileges basis, including Exchange Traded
                                                                                                               the places specified in Item IV below.                   Products (‘‘ETP’’) listed on other exchanges. See
                                                                                                               The Exchange has prepared summaries,                     Securities Exchange Act Release Nos. 79400
                                                    SECURITIES AND EXCHANGE                                    set forth in sections A, B, and C below,                 (November 25, 2016), 81 FR 86750 (December 1,
                                                                                                                                                                        2016) (SR–NYSEMKT–2016–103) (Notice) and
                                                    COMMISSION                                                 of the most significant parts of these                   81038 (June 28, 2017) (SR–NYSEMKT–2016–103)
                                                                                                               statements.                                              (Approval Order) (the ‘‘ETP Listing Rules Filing’’).
                                                    [Release No. 34–81115; File No. SR–                                                                                    5 See Securities Exchange Act Release Nos. 80590
                                                    NYSEMKT–2017–38]                                           A. Self-Regulatory Organization’s                        (May 4, 2017), 82 FR 21843 (May 10, 2017)
                                                                                                               Statement of the Purpose of, and the                     (Approval Order) and 79993 (February 9, 2017), 82
                                                    Self-Regulatory Organizations; NYSE                        Statutory Basis for, the Proposed Rule                   FR 10814 (February 15, 2017) (SR–NYSEMKT–
                                                    MKT LLC; Notice of Filing and                              Change                                                   2017–01) (Notice) (‘‘Trading Rules Filing’’). The
                                                    Immediate Effectiveness of Proposed                                                                                 Exchange also has established market maker
                                                    Rule Change To Amend Exchange                              1. Purpose                                               obligations when trading on the Pillar trading
                                                                                                                                                                        platform. See Securities Exchange Act Release No.
                                                    Rules To Eliminate ALO and Day ISO                            The Exchange proposes to amend                        80577 (May 2, 2017), 82 FR 21446 (May 8, 2017)
                                                    Orders and Related Functionality,                          Exchange rules to (1) eliminate Add                      (SR–NYSEMKT–2017–04) (Approval Order).
                                                    Provide That All Pegged Orders Would                       Liquidity Only (‘‘ALO’’) Orders and Day
                                                                                                                                                                           6 See Securities Exchange Act Release Nos. 80700

                                                    Be Non-Displayed Orders, Change                                                                                     (May 16, 2017), 82 FR 23381 (May 22, 2017) (SR–
                                                                                                               Intermarket Sweep Orders (‘‘ISO’’) and                   NYSEMKT–2017–05) (Approval Order) and 79998
                                                    References From ‘‘NYSE MKT’’ to                            related functionality; (2) provide that all              (February 9, 2017), 82 FR 10828 (February 15, 2017)
                                                    ‘‘NYSE American,’’ and Add the
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                                                                               Pegged Orders would be non-displayed                     (SR–NYSEMKT–2017–05) (Notice) (‘‘Delay
                                                    Definition of ‘‘NYSE American                              orders; (3) change references from                       Mechanism Filing’’).
                                                    Marketplace’’                                              ‘‘NYSE MKT’’ to ‘‘NYSE American’’; (4)
                                                                                                                                                                           7 Rule 7.31E (Orders and Modifiers) currently

                                                                                                                                                                        describes ALO Orders, Day ISO Orders, and Pegged
                                                    July 11, 2017.                                             add the definition of ‘‘NYSE American                    Orders. These order types are based on NYSE Arca
                                                      Pursuant to Section 19(b)(1) 1 of the                    Marketplace’’; and (5) make other                        Equities ALO, Day ISO, and Pegged Orders,
                                                                                                               conforming rule changes.                                 including that Primary Pegged Orders are required
                                                    Securities Exchange Act of 1934 (the                                                                                to have a minimum display quantity. In the Delay
                                                                                                                                                                        Mechanism Filing, the Exchange represented that,
                                                      12 17   CFR 200.30–3(a)(12).                                  2 15   U.S.C. 78a.                                  before implementing the Delay Mechanism, the
                                                      1 15   U.S.C. 78s(b)(1).                                      3 17   CFR 240.19b–4.                                                                          Continued




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Document Created: 2017-07-15 03:45:46
Document Modified: 2017-07-15 03:45:46
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 32743 

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