82 FR 33523 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.38E To Specify the Ranking of an Odd Lot Order That Has a Display Price That Is Better Than Its Working Price
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 138 (July 20, 2017)
Federal Register Volume 82, Issue 138 (July 20, 2017)
| Page Range | 33523-33525 | |
| FR Document | 2017-15191 |
[Federal Register Volume 82, Number 138 (Thursday, July 20, 2017)] [Notices] [Pages 33523-33525] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-15191] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81146; File No. SR-NYSEMKT-2017-44] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.38E To Specify the Ranking of an Odd Lot Order That Has a Display Price That Is Better Than Its Working Price July 14, 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 30, 2017, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') 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 Rule 7.38E (Odd and Mixed Lots) to specify the ranking of an odd lot order that has a display price that is better than its working price. 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 proposes to amend Rule 7.38E (Odd and Mixed Lots) to specify the ranking of an odd lot order that has a display price that is better than its working price. Rule 7.38E provides that the working price of an odd lot order will be adjusted both on arrival and when resting on the Exchange Book based on the limit price of the order as follows:If the limit price of an odd lot order is equal to or worse than the contra-side PBBO, it will have a working price equal to the limit price. If the limit price of an odd lot order is better than the contra-side PBBO, it will have a working price equal to the contra-side PBBO. If the PBBO is crossed, the odd lot order will have a working price equal to the same-side PBB or PBO. By moving the working price, an odd lot order to buy (sell) will not trade at a price above (below) the PBO (PBB), or if the PBBO is crossed, above (below) the PBB (PBO). In either case, if the odd lot order is ranked Priority 2--Display Orders,\4\ its display price would not change when its working price is adjusted. --------------------------------------------------------------------------- \4\ As described in Rule 7.36E(e)(2), Priority 2--Display Orders are non-marketable Limit Orders with a displayed working price. --------------------------------------------------------------------------- Exchange rules are currently silent regarding how a resting odd lot order that has a display price that is better than its working price would be ranked for trading at that working price.\5\ This scenario would only occur if a resting odd lot order is displayed at a price, and then an Away Market PBBO crosses that display price. In that limited scenario, pursuant to Rule 7.38E(b)(1) described above, the working price of the odd-lot order would be adjusted to a price inferior to the display price, but it would remain displayed at the now crossed price. --------------------------------------------------------------------------- \5\ Pursuant to Rule 7.38E(b)(1), on arrival, an odd lot order's working price may be adjusted consistent with the terms of the order. However, an arriving odd-lot order would not be assigned a working price that would be inferior to the price at which the arriving odd lot order would be displayed. --------------------------------------------------------------------------- The Exchange proposes to specify that in such case, the ranking and priority category applicable to such an order at its display [sic], i.e., the price it is displayed and Priority 2--Display Orders, would govern its ranking for purposes of a trade at its different, inferior working price.\6\ This ranking would differ from the Exchange's general rule that an order is ranked based on its working price.\7\ However, the Exchange believes that if the display price of an order is better than its working price, such order has already demonstrated a public willingness to trade at a more aggressive price because it continues to be published in a market data feed at the more aggressive display price.\8\ In such case, the order should receive the benefit of the ranking (both price and priority category) associated with its better display price when determining how that order would be traded at its working price. In other words, an odd-lot order with a better display price than its working price would not be ranked based on its working price, including that it would not be assigned Priority 3--Non-Display Orders at its working price. --------------------------------------------------------------------------- \6\ As described in Rule 7.36E(c), an order is ranked based on price, priority category, and time. Such ranking is only applicable once an order is resting on the Exchange Book. \7\ Rule 7.36E(d) provides that all orders are ranked based on the working price of the order. Rule 7.36E(e)(3) generally provides that non-marketable orders for which the working price is not displayed have third priority behind Market Orders and non- marketable Limit Orders that are displayed at their working price. This proposed rule change would be an exception to these rules. \8\ See Rule 7.36E(b)(1) (odd-lot sized orders are considered displayed for ranking purposes). --------------------------------------------------------------------------- The Exchange further believes that if an odd-lot order is assigned a new working price that is worse than its display price, such order should not be assigned a new working time. In other words, when trading at its working price, its time ranking would be based on the working time associated with its display price.\9\ Maintaining the original working time of such order would ensure that it maintains its original ranking, even if it trades at a different price. --------------------------------------------------------------------------- \9\ Rule 7.36E(f)(2) provides that an order is assigned a new working time any time the working price of the order changes. This proposed rule change would be an exception to this general rule. --------------------------------------------------------------------------- To effect this change, the Exchange proposes to amend Rule 7.38E(b)(1) to provide that an odd-lot order ranked Priority 2--Display Orders would not be assigned a new working time if its working price is adjusted under Rule 7.38E(b)(1). In addition, if the display price of an odd lot order to buy (sell) is above (below) its working price, it would be ranked based on its display price.\10\ --------------------------------------------------------------------------- \10\ For example, assume the PBBO is 10.07 x 10.10 and the Exchange receives orders ranked Priority 2--Display Orders in the following sequence: T1 to buy 25 shares displayed at 10.08, T2 to buy 25 shares displayed at 10.09, T3 to buy 25 shares displayed at 10.08, and T4 to buy 100 shares displayed at 10.07. Assume next that the PBO changes to 10.07. The working price of T1, T2, and T3 will be adjusted to 10.07, but they would keep their original working time. Next, the Exchange receives an incoming order to sell 100 shares at 10.07. The Exchange would trade the incoming order with the resting orders in the following sequence: T2, T1, T3, and then T4 would be allocated the remaining 25 shares. T2 would trade before T1 because it has a better price ranking based on its display price. If the incoming order to sell were for 50 shares, only T2 and T1 would trade. --------------------------------------------------------------------------- [[Page 33524]] Because once on Pillar, the Exchange would trade an odd lot order with a display price better than its working price trades in this manner [sic], these changes will be in effect when the Exchange implements Pillar. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\11\ in general, and furthers the objectives of Section 6(b)(5),\12\ in particular, because 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 mechanism of, a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b). \12\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Specifically, the Exchange believes that the proposed rule change would remove impediments to and perfect the mechanism of a free and open market and a national market system because the Exchange believes that an order that has been displayed should receive the benefit of the ranking of that displayed price if it trades at a less aggressive working price. This scenario would only occur if a resting odd-lot order has been displayed at a price, and then an Away Market PBBO crosses that price and then the working price of that order is adjusted to a price inferior to its display price. In such case, while the odd lot order would be executed at its working price, because it was both willing to trade at a better price and is still displayed at that better price, the Exchange proposes that it would be ranked based on its display price for purposes of its execution at the working price. If the PBBO had not crossed the odd-lot order, such order would have had the benefit of the ranking based on its display price and the Exchange believes it would be consistent with the protection of investors and the public for the odd-lot order to retain such ranking when its working price is moved to an inferior price. The Exchange further believes that the proposed rule change would promote fair and orderly markets that would protect investors and the public interest because it would to [sic] promote the display of liquidity by ensuring that a displayed odd lot order maintains its ranking even if it trades at a less aggressive price. The Exchange further believes that the proposed rule change would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would promote transparency in Exchange rules and reduce potential confusion regarding how an odd-lot order would be ranked and execute in the limited scenario when the display price of a resting odd lot has been crossed, and it has been assigned a working price inferior to its display price. 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. The Exchange believes that the proposed rule change is not designed to address any competitive issues but rather to provide an incentive for market participants to enter aggressively-priced displayed liquidity. 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 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 from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b- 4(f)(6) thereunder.\14\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f)(6). The Commission has waived the requirement under Rule 19b-4(f)(6)(iii) that the Exchange provide it with written notice of its 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 the filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \15\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay. The Exchange represents that it anticipates beginning the migration of symbols to Pillar on July 24, 2017. Waiver of the 30-day operative delay would allow the Exchange to implement the proposed rule change concurrently with the commencement of its migration of symbols to Pillar, and thus reduce any potential for confusion of how odd-lot orders would be processed on the new trading platform. Accordingly, the Commission finds that waiving the 30-day operative delay is consistent with the protection of investors and the public interest and designates the proposal operative upon filing.\17\ --------------------------------------------------------------------------- \15\ 17 CFR 240.19b-4(f)(6). \16\ 17 CFR 240.19b-4(f)(6)(iii). \17\ For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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 change 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-NYSEMKT-2017-44 on the subject line. [[Page 33525]] Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEMKT-2017-44. 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 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-NYSEMKT-2017-44 and should be submitted on or before August 10, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ Jill M. Peterson, Assistant Secretary. --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2017-15191 Filed 7-19-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 138 / Thursday, July 20, 2017 / Notices 33523
Dated at Rockville, Maryland, this 13th day the places specified in Item IV below. displayed and Priority 2—Display
of July 2017. The Exchange has prepared summaries, Orders, would govern its ranking for
For the Nuclear Regulatory Commission. set forth in sections A, B, and C below, purposes of a trade at its different,
John McKirgan, of the most significant parts of such inferior working price.6 This ranking
Chief, Spent Fuel Licensing Branch, Division statements. would differ from the Exchange’s
of Spent Fuel Management, Office of Nuclear general rule that an order is ranked
Material Safety and Safeguards. A. Self-Regulatory Organization’s
based on its working price.7 However,
Statement of the Purpose of, and the
[FR Doc. 2017–15239 Filed 7–19–17; 8:45 am] the Exchange believes that if the display
Statutory Basis for, the Proposed Rule
BILLING CODE 7590–01–P price of an order is better than its
Change
working price, such order has already
1. Purpose demonstrated a public willingness to
SECURITIES AND EXCHANGE The Exchange proposes to amend trade at a more aggressive price because
COMMISSION Rule 7.38E (Odd and Mixed Lots) to it continues to be published in a market
specify the ranking of an odd lot order data feed at the more aggressive display
[Release No. 34–81146; File No. SR–
NYSEMKT–2017–44] that has a display price that is better price.8 In such case, the order should
than its working price. receive the benefit of the ranking (both
Self-Regulatory Organizations; NYSE Rule 7.38E provides that the working price and priority category) associated
MKT LLC; Notice of Filing and price of an odd lot order will be with its better display price when
Immediate Effectiveness of Proposed adjusted both on arrival and when determining how that order would be
Rule Change To Amend Rule 7.38E To resting on the Exchange Book based on traded at its working price. In other
Specify the Ranking of an Odd Lot the limit price of the order as follows: words, an odd-lot order with a better
Order That Has a Display Price That Is • If the limit price of an odd lot order display price than its working price
Better Than Its Working Price is equal to or worse than the contra-side would not be ranked based on its
PBBO, it will have a working price working price, including that it would
July 14, 2017. equal to the limit price. not be assigned Priority 3—Non-Display
Pursuant to Section 19(b)(1) 1 of the • If the limit price of an odd lot order Orders at its working price.
Securities Exchange Act of 1934 (the is better than the contra-side PBBO, it The Exchange further believes that if
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 will have a working price equal to the an odd-lot order is assigned a new
notice is hereby given that on June 30, contra-side PBBO. working price that is worse than its
2017, NYSE MKT LLC (the ‘‘Exchange’’ • If the PBBO is crossed, the odd lot display price, such order should not be
or ‘‘NYSE MKT’’) filed with the order will have a working price equal to assigned a new working time. In other
Securities and Exchange Commission the same-side PBB or PBO. words, when trading at its working
(the ‘‘Commission’’) the proposed rule By moving the working price, an odd price, its time ranking would be based
change as described in Items I and II lot order to buy (sell) will not trade at on the working time associated with its
below, which Items have been prepared a price above (below) the PBO (PBB), or display price.9 Maintaining the original
by the self-regulatory organization. The if the PBBO is crossed, above (below) working time of such order would
Commission is publishing this notice to the PBB (PBO). In either case, if the odd ensure that it maintains its original
solicit comments on the proposed rule lot order is ranked Priority 2—Display ranking, even if it trades at a different
change from interested persons. Orders,4 its display price would not price.
I. Self-Regulatory Organization’s change when its working price is To effect this change, the Exchange
Statement of the Terms of Substance of adjusted. proposes to amend Rule 7.38E(b)(1) to
Exchange rules are currently silent provide that an odd-lot order ranked
the Proposed Rule Change
regarding how a resting odd lot order Priority 2—Display Orders would not be
The Exchange proposes to amend that has a display price that is better assigned a new working time if its
Rule 7.38E (Odd and Mixed Lots) to than its working price would be ranked working price is adjusted under Rule
specify the ranking of an odd lot order for trading at that working price.5 This 7.38E(b)(1). In addition, if the display
that has a display price that is better scenario would only occur if a resting price of an odd lot order to buy (sell) is
than its working price. The proposed odd lot order is displayed at a price, and above (below) its working price, it
rule change is available on the then an Away Market PBBO crosses that would be ranked based on its display
Exchange’s Web site at www.nyse.com, display price. In that limited scenario, price.10
at the principal office of the Exchange, pursuant to Rule 7.38E(b)(1) described
and at the Commission’s Public above, the working price of the odd-lot 6 As described in Rule 7.36E(c), an order is ranked
Reference Room. order would be adjusted to a price based on price, priority category, and time. Such
ranking is only applicable once an order is resting
II. Self-Regulatory Organization’s inferior to the display price, but it on the Exchange Book.
Statement of the Purpose of, and would remain displayed at the now 7 Rule 7.36E(d) provides that all orders are ranked
Statutory Basis for, the Proposed Rule crossed price. based on the working price of the order. Rule
Change The Exchange proposes to specify that 7.36E(e)(3) generally provides that non-marketable
in such case, the ranking and priority orders for which the working price is not displayed
In its filing with the Commission, the have third priority behind Market Orders and non-
category applicable to such an order at marketable Limit Orders that are displayed at their
self-regulatory organization included its display [sic], i.e., the price it is working price. This proposed rule change would be
asabaliauskas on DSKBBXCHB2PROD with NOTICES
statements concerning the purpose of, an exception to these rules.
and basis for, the proposed rule change 4 As described in Rule 7.36E(e)(2), Priority 2— 8 See Rule 7.36E(b)(1) (odd-lot sized orders are
and discussed any comments it received Display Orders are non-marketable Limit Orders considered displayed for ranking purposes).
on the proposed rule change. The text with a displayed working price. 9 Rule 7.36E(f)(2) provides that an order is
5 Pursuant to Rule 7.38E(b)(1), on arrival, an odd assigned a new working time any time the working
of those statements may be examined at price of the order changes. This proposed rule
lot order’s working price may be adjusted consistent
with the terms of the order. However, an arriving change would be an exception to this general rule.
1 15 U.S.C.78s(b)(1). 10 For example, assume the PBBO is 10.07 × 10.10
odd-lot order would not be assigned a working
2 15 U.S.C. 78a. price that would be inferior to the price at which and the Exchange receives orders ranked Priority
3 17 CFR 240.19b–4. the arriving odd lot order would be displayed. Continued
VerDate Sep<11>2014 18:50 Jul 19, 2017 Jkt 241001 PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 E:\FR\FM\20JYN1.SGM 20JYN1](https://thefederalregister.org/doc/82_FR_33661/page/1.svg)
![33524 Federal Register / Vol. 82, No. 138 / Thursday, July 20, 2017 / Notices
Because once on Pillar, the Exchange protection of investors and the public A proposed rule change filed
would trade an odd lot order with a for the odd-lot order to retain such pursuant to Rule 19b–4(f)(6) under the
display price better than its working ranking when its working price is Act 15 normally does not become
price trades in this manner [sic], these moved to an inferior price. The operative for 30 days after the date of its
changes will be in effect when the Exchange further believes that the filing. However, Rule 19b–4(f)(6)(iii) 16
Exchange implements Pillar. proposed rule change would promote permits the Commission to designate a
fair and orderly markets that would shorter time if such action is consistent
2. Statutory Basis
protect investors and the public interest with the protection of investors and the
The proposed rule change is because it would to [sic] promote the public interest. The Exchange has asked
consistent with Section 6(b) of the display of liquidity by ensuring that a the Commission to waive the 30-day
Securities Exchange Act of 1934 (the displayed odd lot order maintains its operative delay. The Exchange
‘‘Act’’),11 in general, and furthers the ranking even if it trades at a less represents that it anticipates beginning
objectives of Section 6(b)(5),12 in aggressive price. the migration of symbols to Pillar on
particular, because it is designed to The Exchange further believes that the July 24, 2017. Waiver of the 30-day
prevent fraudulent and manipulative proposed rule change would remove operative delay would allow the
acts and practices, to promote just and impediments to and perfect the Exchange to implement the proposed
equitable principles of trade, to foster mechanism of a free and open market rule change concurrently with the
cooperation and coordination with and a national market system because it commencement of its migration of
persons engaged in facilitating would promote transparency in symbols to Pillar, and thus reduce any
transactions in securities, to remove Exchange rules and reduce potential potential for confusion of how odd-lot
impediments to, and perfect the confusion regarding how an odd-lot orders would be processed on the new
mechanism of, a free and open market order would be ranked and execute in trading platform. Accordingly, the
and a national market system and, in the limited scenario when the display Commission finds that waiving the 30-
general, to protect investors and the price of a resting odd lot has been day operative delay is consistent with
public interest. crossed, and it has been assigned a the protection of investors and the
Specifically, the Exchange believes working price inferior to its display public interest and designates the
that the proposed rule change would price. proposal operative upon filing.17
remove impediments to and perfect the
mechanism of a free and open market B. Self-Regulatory Organization’s At any time within 60 days of the
and a national market system because Statement on Burden on Competition filing of the proposed rule change, the
the Exchange believes that an order that The Exchange does not believe that Commission summarily may
has been displayed should receive the the proposed rule change will impose temporarily suspend such rule change if
benefit of the ranking of that displayed any burden on competition that is not it appears to the Commission that such
price if it trades at a less aggressive necessary or appropriate in furtherance action is: (i) Necessary or appropriate in
working price. This scenario would only of the purposes of the Act. The the public interest; (ii) for the protection
occur if a resting odd-lot order has been Exchange believes that the proposed of investors; or (iii) otherwise in
displayed at a price, and then an Away rule change is not designed to address furtherance of the purposes of the Act.
Market PBBO crosses that price and any competitive issues but rather to If the Commission takes such action, the
then the working price of that order is provide an incentive for market Commission shall institute proceedings
adjusted to a price inferior to its display participants to enter aggressively-priced to determine whether the proposed rule
price. In such case, while the odd lot displayed liquidity. change should be approved or
order would be executed at its working disapproved.
C. Self-Regulatory Organization’s
price, because it was both willing to Statement on Comments on the IV. Solicitation of Comments
trade at a better price and is still Proposed Rule Change Received From
displayed at that better price, the Interested persons are invited to
Members, Participants, or Others submit written data, views, and
Exchange proposes that it would be
ranked based on its display price for No written comments were solicited arguments concerning the foregoing,
purposes of its execution at the working or received with respect to the proposed including whether the proposed rule
price. If the PBBO had not crossed the rule change. change is consistent with the Act.
odd-lot order, such order would have III. Date of Effectiveness of the Comments may be submitted by any of
had the benefit of the ranking based on Proposed Rule Change and Timing for the following methods:
its display price and the Exchange Commission Action Electronic Comments
believes it would be consistent with the
Because the foregoing proposed rule • Use the Commission’s Internet
2—Display Orders in the following sequence: T1 to
change does not: (i) Significantly affect comment form (http://www.sec.gov/
buy 25 shares displayed at 10.08, T2 to buy 25 the protection of investors or the public rules/sro.shtml); or
shares displayed at 10.09, T3 to buy 25 shares interest; (ii) impose any significant
displayed at 10.08, and T4 to buy 100 shares burden on competition; and (iii) become • Send an email to rule-comments@
displayed at 10.07. Assume next that the PBO
operative for 30 days from the date on sec.gov. Please include File Number SR–
changes to 10.07. The working price of T1, T2, and NYSEMKT–2017–44 on the subject line.
T3 will be adjusted to 10.07, but they would keep which it was filed, or such shorter time
their original working time. Next, the Exchange as the Commission may designate, it has
asabaliauskas on DSKBBXCHB2PROD with NOTICES
receives an incoming order to sell 100 shares at become effective pursuant to Section with a brief description and the text of the proposed
10.07. The Exchange would trade the incoming rule change, at least five business days prior to the
order with the resting orders in the following
19(b)(3)(A) of the Act 13 and Rule 19b– date of the filing of the proposed rule change, or
sequence: T2, T1, T3, and then T4 would be 4(f)(6) thereunder.14 such shorter time as designated by the Commission.
allocated the remaining 25 shares. T2 would trade 15 17 CFR 240.19b–4(f)(6).
before T1 because it has a better price ranking based 13 15
U.S.C. 78s(b)(3)(A). 16 17 CFR 240.19b–4(f)(6)(iii).
on its display price. If the incoming order to sell 14 17
CFR 240.19b–4(f)(6). The Commission has 17 For purposes only of waiving the 30-day
were for 50 shares, only T2 and T1 would trade. waived the requirement under Rule 19b–4(f)(6)(iii) operative delay, the Commission has considered the
11 15 U.S.C. 78f(b).
that the Exchange provide it with written notice of proposed rule’s impact on efficiency, competition,
12 15 U.S.C. 78f(b)(5). its intent to file the proposed rule change, along and capital formation. 15 U.S.C. 78c(f).
VerDate Sep<11>2014 18:50 Jul 19, 2017 Jkt 241001 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 E:\FR\FM\20JYN1.SGM 20JYN1](https://thefederalregister.org/doc/82_FR_33661/page/2.svg)
![Federal Register / Vol. 82, No. 138 / Thursday, July 20, 2017 / Notices 33525
Paper Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and
• Send paper comments in triplicate Statutory Basis for, the Proposed Rule
to Brent J. Fields, Secretary, Securities Change
[Release No. 34–81152; File No. SR–
and Exchange Commission, 100 F Street
BatsBZX–2017–45] 1. Purpose
NE., Washington, DC 20549–1090.
On August 30, 2011, the Exchange
All submissions should refer to File Self-Regulatory Organizations; Bats
received approval of rules applicable to
Number SR–NYSEMKT–2017–44. This BZX Exchange, Inc.; Notice of Filing
the qualification, listing, and delisting
file number should be included on the and Immediate Effectiveness of a of companies on the Exchange,3 which
subject line if email is used. To help the Proposed Rule Change to BZX Rule it modified on February 8, 2012 in order
Commission process and review your 14.13, Company Listing Fees, To to adopt pricing for the listing of
comments more efficiently, please use Amend the Fees Applicable to exchange traded products (‘‘ETPs’’) 4 on
only one method. The Commission will Securities Listed on the Exchange the Exchange,5 which it subsequently
post all comments on the Commission’s modified again on June 4, 2014.6 On
July 14, 2017.
Internet Web site (http://www.sec.gov/ October 16, 2014, the Exchange
rules/sro.shtml). Copies of the Pursuant to Section 19(b)(1) of the modified Rule 14.13, ‘‘Company Listing
submission, all subsequent Securities Exchange Act of 1934 (the Fees,’’ to eliminate the annual fees for
amendments, all written statements ‘‘Act’’),1 and Rule 19b–4 thereunder,2 ETPs not participating in the Exchange’s
with respect to the proposed rule notice is hereby given that on July 3, Competitive Liquidity Provider Program
change that are filed with the 2017, Bats BZX Exchange, Inc. (the pursuant to Rule 11.8, Interpretations
Commission, and all written ‘‘Exchange’’ or ‘‘BZX’’) filed with the and Policies .02 (the ‘‘CLP Program’’).7
communications relating to the Securities and Exchange Commission On May 22, 2015, the Exchange further
proposed rule change between the (‘‘Commission’’) the proposed rule modified Rule 14.13 to eliminate the
change as described in Items I, II and III application fee for ETPs, effectively
Commission and any person, other than
below, which Items have been prepared eliminating any compulsory fees for
those that may be withheld from the
by the Exchange. The Commission is both new ETP issues and transfer
public in accordance with the listings onto the Exchange.8 On
provisions of 5 U.S.C. 552, will be publishing this notice to solicit
September 30, 2015, the Exchange began
available for Web site viewing and comments on the proposed rule change
offering an incentive payment to ETPs
printing in the Commission’s Public from interested persons. that are listed on the Exchange based on
Reference Room, 100 F Street NE., I. Self-Regulatory Organization’s the consolidated average daily volume
Washington, DC 20549 on official Statement of the Terms of Substance of (the ‘‘CADV’’) of the ETP (the ‘‘Issuer
business days between the hours of the Proposed Rule Change Incentive Program’’).9 The Exchange
10:00 a.m. and 3:00 p.m. Copies of the subsequently made an administrative
filing also will be available for The Exchange filed a proposed rule change to the Issuer Incentive Program
inspection and copying at the principal change to amend the fees applicable to that required an issuer to enroll in order
office of the Exchange. All comments securities listed on the Exchange, which to receive payment.10
received will be posted without change; are set forth in Exchange Rule 14.13. The Exchange submits this proposal
the Commission does not edit personal Changes to the Exchange’s fees pursuant to decommission the Issuer Incentive
identifying information from to this proposal are effective upon filing. Program. Currently, under Exchange
submissions. You should submit only Rule 14.13(b)(2)(C), the issuer of each
The text of the proposed rule change class of securities that is a domestic or
information that you wish to make is available at the Exchange’s Web site
available publicly. All submissions foreign issue listed on the Exchange as
at www.bats.com, at the principal office an ETP is eligible to receive payments
should refer to File Number SR– of the Exchange, and at the from the Exchange on a quarterly basis
NYSEMKT–2017–44 and should be Commission’s Public Reference Room. based on the CADV of the ETP for each
submitted on or before August 10, 2017. trading day of the preceding calendar
II. Self-Regulatory Organization’s
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Statement of the Purpose of, and 3 See Securities Exchange Act Release No. 65225
authority.18 Statutory Basis for, the Proposed Rule (August 30, 2011), 76 FR 55148 (September 6, 2011)
Change (SR–BATS–2011–018).
Jill M. Peterson, 4 As defined in Exchange Rule 11.8(e)(1)(A), the
Assistant Secretary. In its filing with the Commission, the term ‘‘ETP’’ means any security listed pursuant to
Exchange Rule 14.11.
[FR Doc. 2017–15191 Filed 7–19–17; 8:45 am] Exchange included statements 5 See Securities Exchange Act Release No. 66422
BILLING CODE 8011–01–P concerning the purpose of and basis for (February 17, 2012), 77 FR 11179 (February 24,
the proposed rule change and discussed 2012) (SR–BATS–2012–010).
any comments it received on the 6 See Securities Exchange Act Release No. 72377
(June 12, 2014), 79 FR 34822 (June 18, 2014) (SR–
proposed rule change. The text of these BATS–2014–024).
statements may be examined at the 7 See Securities Exchange Act Release No. 73414
places specified in Item IV below. The (October 23, 2014), 79 FR 64434 (October 29, 2014)
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Exchange has prepared summaries, set (SR–BATS–2014–050).
8 See Securities Exchange Act Release No. 75085
forth in Sections A, B, and C below, of (June 1, 2015), 80 FR 32190 (June 5, 2015) (SR–
the most significant parts of such BATS–2015–39).
statements. 9 See Securities Exchange Act Release No. 76113
(October 8, 2015), 80 FR 62142 (October 15, 2015)
(SR–BATS–2015–80).
10 See Securities Exchange Act Release No. 77960
1 15 U.S.C. 78s(b)(1). (June 1, 2016), 81 FR 36632 (June 7, 2016) (SR–
18 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. BatsBZX–2016–20).
VerDate Sep<11>2014 18:50 Jul 19, 2017 Jkt 241001 PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 E:\FR\FM\20JYN1.SGM 20JYN1](https://thefederalregister.org/doc/82_FR_33661/page/3.svg)
Document Created: 2017-07-20 06:57:47
Document Modified: 2017-07-20 06:57:47
| 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 33523 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR