82 FR 46548 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Technical and Conforming Changes to Section 703.02 of the NYSE Listed Company Manual
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 192 (October 5, 2017)
Federal Register Volume 82, Issue 192 (October 5, 2017)
| Page Range | 46548-46550 | |
| FR Document | 2017-21411 |
[Federal Register Volume 82, Number 192 (Thursday, October 5, 2017)] [Notices] [Pages 46548-46550] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-21411] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81776; File No. SR-NYSE-2017-49] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Technical and Conforming Changes to Section 703.02 of the NYSE Listed Company Manual September 29, 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 September 20, 2017, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') 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 make technical and conforming changes to Section 703.02 (part2) (Stock Split/Stock Rights/Stock Dividend Listing Process) (``Section 703.02 (part2)'') of the NYSE Listed Company Manual (``Listed Company Manual''). 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. [[Page 46549]] 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 make certain technical and conforming changes to Section 703.02 (part2) of the Listed Company Manual. Currently, Section 703.02(part 2) provides that ``a distribution of less than 25% is traded ``ex'' (without the distribution) on and after the business day prior to the record date.'' Section 703.02 (part 2) was recently amended to conform to amendments to Securities and Exchange Act Rule 15c6-1(a), which shortened the settlement cycle from three days to two days (``T+2).\4\ The tabulation chart in Section 703.02 (part2) setting forth the relation between record dates and normal ex-dividend dates according to the days of the week, however, was inadvertently not updated to reflect the shortened settlement cycle. The Exchange accordingly proposes to amend the tabulation chart to reflect two day settlements, as follows: --------------------------------------------------------------------------- \4\ See 17 CFR 240.15c6-1(a); Securities Exchange Act Release No. 80021 (February 14, 2017), 82 FR 10931(February 16, 2017) (SR- NYSE-2016-87) and Securities Exchange Act Release No. 81231 (July 27, 2017), 82 FR 36008 (August 2, 2017) (SR-NYSE-2017-38). ------------------------------------------------------------------------ Record date Normal ex-dividend date ------------------------------------------------------------------------ Monday.............................. preceding Friday. Tuesday............................. preceding Monday. Wednesday........................... preceding Tuesday. Thursday............................ preceding Wednesday. Friday.............................. preceding Thursday. Saturday............................ preceding Thursday. Sunday.............................. preceding Thursday. ------------------------------------------------------------------------ 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\5\ in general, and further the objectives of Section 6(b)(5) of the Act,\6\ in particular, because it is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the Exchange believes that the proposed changes removes [sic] impediments to and perfects the mechanism of a free and open market by conforming the tabulation chart in Section 703.02 (part 2) of the Listed Company Manual to reflect a two day settlement, thereby reducing potential confusion, and making the Exchange's rules easier to navigate. The Exchange also believes that updating the illustrative material in the Listed Company Manual also removes impediments to and perfects the mechanism of a free and open market by removing confusion that may result from having outdated or inconsistent material in the Listed Company Manual. The Exchange believes that aligning such material would not be inconsistent with the public interest and the protection of investors because investors will not be harmed and in fact would benefit from increased transparency, thereby reducing potential confusion. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is not designed to address any competitive issue but rather is solely concerned with conforming Section 703.02 (part 2) of the Listed Company Manual to reflect the two day settlement cycle. The Exchange also believes that the proposed rule change will serve to promote clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. 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 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 if consistent with the protection of investors and the public interest, provided that the self-regulatory organization has given 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,\7\ the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b- 4(f)(6) thereunder.\9\ --------------------------------------------------------------------------- \7\ The Exchange has fulfilled this requirement. \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) \10\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSE-2017-49 on the subject line. 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-NYSE-2017-49. 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 [[Page 46550]] 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-NYSE-2017-49 and should be submitted on or before October 26, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-21411 Filed 10-4-17; 8:45 am] BILLING CODE 8011-01-P
![46548 Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices
Fund to redeem Shares of the Fund • The Trust will comply with Rule SECURITIES AND EXCHANGE
during the continuous offering of such 10b–17 except for Rule 10b– COMMISSION
Shares. 17(b)(1)(v)(a) and (b); and
Rule 10b–17 • The Trust will provide the [Release No. 34–81776; File No. SR–NYSE–
information required by Rule 10b– 2017–49]
Rule 10b–17, with certain exceptions, 17(b)(1)(v)(a) and (b) to the Exchange as
requires an issuer of a class of publicly soon as practicable before trading begins Self-Regulatory Organizations; New
traded securities to give notice of certain on the ex-dividend date, but in no event York Stock Exchange LLC; Notice of
specified actions (for example, a later than the time when the Exchange Filing and Immediate Effectiveness of
dividend distribution) relating to such last accepts information relating to Proposed Rule Change To Make
class of securities in accordance with Technical and Conforming Changes to
distributions on the day before the ex-
Rule 10b–17(b). Based on the Section 703.02 of the NYSE Listed
dividend date.
representations and facts in the Letter, Company Manual
and subject to the conditions below, we This exemptive relief is subject to
find that it is appropriate in the public modification or revocation at any time September 29, 2017.
interest, and consistent with the the Commission determines that such Pursuant to Section 19(b)(1) 1 of the
protection of investors to grant the Trust action is necessary or appropriate in Securities Exchange Act of 1934 (the
a conditional exemption from Rule 10b– furtherance of the purposes of the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
17 because market participants will Exchange Act. Persons relying upon this notice is hereby given that on
receive timely notification of the exemptive relief shall discontinue September 20, 2017, New York Stock
existence and timing of a pending transactions involving the Shares of the Exchange LLC (‘‘NYSE’’ or the
distribution, and thus the concerns that Fund, pending presentation of the facts ‘‘Exchange’’) filed with the Securities
the Commission raised in adopting Rule for the Commission’s consideration, in and Exchange Commission (the
10b–17 will not be implicated.7 the event that any material change ‘‘Commission’’) the proposed rule
Conclusion occurs with respect to any of the facts change as described in Items I and II
or representations made by the below, which Items have been prepared
It is hereby ordered, pursuant to Rule Applicants and, consistent with all by the self-regulatory organization. The
101(d) of Regulation M, that the Trust, preceding letters, particularly with Commission is publishing this notice to
based on the representations and facts respect to the close alignment between solicit comments on the proposed rule
presented in the Letter, is exempt from the market price of Shares and the change from interested persons.
the requirements of Rule 101 with Fund’s NAV. In addition, persons
respect to the Fund, thus permitting I. Self-Regulatory Organization’s
relying on this exemption are directed Statement of the Terms of Substance of
persons who may be deemed to be to the anti-fraud and anti-manipulation
participating in a distribution of Shares the Proposed Rule Change
provisions of the Exchange Act,
of the Fund to bid for or purchase such The Exchange proposes to make
particularly Sections 9(a) and 10(b), and
Shares during their participation in technical and conforming changes to
Rule 10b–5 thereunder.
such distribution. Section 703.02 (part2) (Stock Split/
Responsibility for compliance with
It is further ordered, pursuant to Rule Stock Rights/Stock Dividend Listing
102(e) of Regulation M, that the Trust, these and any other applicable
provisions of the federal securities laws Process) (‘‘Section 703.02 (part2)’’) of
based on the representations and the the NYSE Listed Company Manual
facts presented in the Letter, is exempt must rest with the persons relying on
(‘‘Listed Company Manual’’). The
from the requirements of Rule 102 with this exemption. This order should not
proposed rule change is available on the
respect to the Fund, thus permitting the be considered a view with respect to
Exchange’s Web site at www.nyse.com,
Fund to redeem Shares of the Fund any other question that the proposed at the principal office of the Exchange,
during the continuous offering of such transactions may raise, including, but and at the Commission’s Public
Shares. not limited to the adequacy of the Reference Room.
It is further ordered, pursuant to Rule disclosure concerning, and the
applicability of other federal or state II. Self-Regulatory Organization’s
10b–17(b)(2), that the Trust, based on
laws to, the proposed transactions. Statement of the Purpose of, and
the representations and the facts
Statutory Basis for, the Proposed Rule
presented in the Letter and subject to For the Commission, by the Division of
Change
the conditions below, is exempt from Trading and Markets, pursuant to delegated
the requirements of Rule 10b–17 with authority.8 In its filing with the Commission, the
respect to transactions in the shares of Eduardo A. Aleman, self-regulatory organization included
the Fund. Assistant Secretary. statements concerning the purpose of,
This exemptive relief is subject to the [FR Doc. 2017–21400 Filed 10–4–17; 8:45 am] and basis for, the proposed rule change
following conditions: BILLING CODE 8011–01–P
and discussed any comments it received
on the proposed rule change. The text
7 We also note that timely compliance with Rule of those statements may be examined at
10b–17(b)(1)(v)(a) and (b) would be impractical in the places specified in Item IV below.
light of the nature of the Fund. This is because it The Exchange has prepared summaries,
ethrower on DSK3G9T082PROD with NOTICES
is not possible for the Fund to accurately project ten
days in advance what dividend, if any, would be set forth in sections A, B, and C below,
paid on a particular record date. Further, the of the most significant parts of such
Commission finds, based on the Applicants’ statements.
representations in the Letter, that the provision of
notices as described in the Letter would not
1 15 U.S.C.78s(b)(1).
constitute a manipulative or deceptive device or
2 15 U.S.C. 78a.
contrivance comprehended within the purpose of
Rule 10b–17. 8 17 CFR 200.30–3(a)(6) and (9). 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices 46549
A. Self-Regulatory Organization’s Company Manual to reflect a two day Commission,7 the proposed rule change
Statement of the Purpose of, and the settlement, thereby reducing potential has become effective pursuant to
Statutory Basis for, the Proposed Rule confusion, and making the Exchange’s Section 19(b)(3)(A) of the Act 8 and Rule
Change rules easier to navigate. The Exchange 19b–4(f)(6) thereunder.9
also believes that updating the At any time within 60 days of the
1. Purpose
illustrative material in the Listed filing of such proposed rule change, the
The Exchange proposes to make Company Manual also removes Commission summarily may
certain technical and conforming impediments to and perfects the temporarily suspend such rule change if
changes to Section 703.02 (part2) of the mechanism of a free and open market by it appears to the Commission that such
Listed Company Manual. removing confusion that may result action is necessary or appropriate in the
Currently, Section 703.02(part 2) from having outdated or inconsistent public interest, for the protection of
provides that ‘‘a distribution of less than material in the Listed Company Manual. investors, or otherwise in furtherance of
25% is traded ‘‘ex’’ (without the the purposes of the Act. If the
The Exchange believes that aligning
distribution) on and after the business Commission takes such action, the
such material would not be inconsistent
day prior to the record date.’’ Section Commission shall institute proceedings
with the public interest and the
703.02 (part 2) was recently amended to under Section 19(b)(2)(B) 10 of the Act to
protection of investors because investors
conform to amendments to Securities determine whether the proposed rule
will not be harmed and in fact would
and Exchange Act Rule 15c6–1(a), change should be approved or
benefit from increased transparency,
which shortened the settlement cycle disapproved.
thereby reducing potential confusion.
from three days to two days (‘‘T+2).4
The tabulation chart in Section 703.02 B. Self-Regulatory Organization’s IV. Solicitation of Comments
(part2) setting forth the relation between Statement on Burden on Competition Interested persons are invited to
record dates and normal ex-dividend submit written data, views, and
dates according to the days of the week, The Exchange does not believe that arguments concerning the foregoing,
however, was inadvertently not updated the proposed rule change would impose including whether the proposed rule
to reflect the shortened settlement cycle. any burden on competition that is not change is consistent with the Act.
The Exchange accordingly proposes to necessary or appropriate in furtherance Comments may be submitted by any of
amend the tabulation chart to reflect of the purposes of the Act. The the following methods:
two day settlements, as follows: proposed change is not designed to
address any competitive issue but rather Electronic Comments
Record date Normal is solely concerned with conforming • Use the Commission’s Internet
ex-dividend date Section 703.02 (part 2) of the Listed comment form (http://www.sec.gov/
Company Manual to reflect the two day rules/sro.shtml); or
Monday ..................... preceding Friday.
Tuesday .................... preceding Monday.
settlement cycle. The Exchange also • Send an email to rule-comments@
Wednesday ............... preceding Tuesday. believes that the proposed rule change sec.gov. Please include File Number SR–
Thursday ................... preceding Wednes- will serve to promote clarity and NYSE–2017–49 on the subject line.
day. consistency, thereby reducing burdens
Friday ........................ preceding Thursday. on the marketplace and facilitating Paper Comments
Saturday ................... preceding Thursday. investor protection. • Send paper comments in triplicate
Sunday ...................... preceding Thursday. to Brent J. Fields, Secretary, Securities
C. Self-Regulatory Organization’s and Exchange Commission, 100 F Street
2. Statutory Basis Statement on Comments on the NE., Washington, DC 20549–1090.
Proposed Rule Change Received From
The Exchange believes that the All submissions should refer to File
Members, Participants, or Others
proposed rule change is consistent with Number SR–NYSE–2017–49. This file
Section 6(b) of the Act,5 in general, and No written comments were solicited number should be included on the
further the objectives of Section 6(b)(5) or received with respect to the proposed subject line if email is used. To help the
of the Act,6 in particular, because it is rule change. Commission process and review your
designed to prevent fraudulent and comments more efficiently, please use
manipulative acts and practices, III. Date of Effectiveness of the only one method. The Commission will
promote just and equitable principles of Proposed Rule Change and Timing for post all comments on the Commission’s
trade, remove impediments to and Commission Action Internet Web site (http://www.sec.gov/
perfect the mechanism of a free and rules/sro.shtml). Copies of the
Because the foregoing proposed rule
open market and a national market submission, all subsequent
does not (i) significantly affect the
system, and, in general, to protect amendments, all written statements
protection of investors or the public
investors and the public interest. with respect to the proposed rule
In particular, the Exchange believes interest; (ii) impose any significant
burden on competition; and (iii) become change that are filed with the
that the proposed changes removes [sic] Commission, and all written
impediments to and perfects the operative for 30 days from the date on
which it was filed, or such shorter time communications relating to the
mechanism of a free and open market by proposed rule change between the
conforming the tabulation chart in as the Commission may designate if
consistent with the protection of Commission and any person, other than
Section 703.02 (part 2) of the Listed those that may be withheld from the
investors and the public interest,
public in accordance with the
ethrower on DSK3G9T082PROD with NOTICES
4 See 17 CFR 240.15c6–1(a); Securities Exchange provided that the self-regulatory
organization has given the Commission provisions of 5 U.S.C. 552, will be
Act Release No. 80021 (February 14, 2017), 82 FR
10931(February 16, 2017) (SR–NYSE–2016–87) and written notice of its intent to file the available for Web site viewing and
Securities Exchange Act Release No. 81231 (July 27, proposed rule change at least five 7 The Exchange has fulfilled this requirement.
2017), 82 FR 36008 (August 2, 2017) (SR–NYSE–
2017–38).
business days prior to the date of filing 8 15 U.S.C. 78s(b)(3)(A).
5 15 U.S.C. 78f(b). of the proposed rule change or such 9 17 CFR 240.19b–4(f)(6).
6 15 U.S.C. 78f(b)(5). shorter time as designated by the 10 15 U.S.C. 78s(b)(2)(B).
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![46550 Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices
printing in the Commission’s Public of the Exchange, and at the Orders 9 at the block execution price
Reference Room, 100 F Street NE., Commission’s Public Reference Room. will participate in the execution of the
Washington, DC 20549 on official block-size order according to Rule
II. Self-Regulatory Organization’s
business days between the hours of 713(e)—i.e., the Exchange’s regular
Statement of the Purpose of, and
10:00 a.m. and 3:00 p.m. Copies of the allocation rule. As implemented today,
Statutory Basis for, the Proposed Rule
filing also will be available for however, interest that is executed in the
Change
inspection and copying at the principal Block Order Mechanism follows the
office of the Exchange. All comments In its filing with the Commission, the customer priority pro-rata allocation
received will be posted without change; Exchange included statements methodology designed for the
the Commission does not edit personal concerning the purpose of and basis for Exchange’s auction mechanisms,
identifying information from the proposed rule change and discussed including, for example, the Facilitation
submissions. You should submit only any comments it received on the Mechanism,10 Solicited Order
information that you wish to make proposed rule change. The text of these Mechanism,11 and Price Improvement
available publicly. All submissions statements may be examined at the Mechanism,12 with the exception that
should refer to File Number SR–NYSE– places specified in Item IV below. The those two-sided auction mechanisms
2017–49 and should be submitted on or Exchange has prepared summaries, set also allocate contracts against the contra
before October 26, 2017. forth in sections A, B, and C below, of order. This auction allocation
For the Commission, by the Division of the most significant aspects of such methodology is similar to the
Trading and Markets, pursuant to delegated statements. Exchange’s regular allocation
authority.11 A. Self-Regulatory Organization’s methodology but does not provide
Eduardo A. Aleman, Statement of the Purpose of, and enhanced allocations to the Primary
Assistant Secretary. Statutory Basis for, the Proposed Rule Market Maker (‘‘PMM’’) pursuant to
[FR Doc. 2017–21411 Filed 10–4–17; 8:45 am] Change Rule 713(e) and Supplementary Material
BILLING CODE 8011–01–P
.01(b) to Rule 713.13 The Exchange
1. Purpose therefore proposes to amend Rule
The Block Order Mechanism is a 716(c)(2)(ii) to provide that, at the block
SECURITIES AND EXCHANGE process by which a member can obtain execution price, Priority Customer
COMMISSION liquidity for the execution of block- Orders and Priority Customer Responses
sized orders,3 defined as orders for fifty will be executed first in time priority,
[Release No. 34–81765; File No. SR–MRX– and then quotes, Professional Orders,
2017–19] contracts or more.4 When an order is
entered in the Block Order Mechanism, and Professional Responses will
Self-Regulatory Organizations; Nasdaq that order is exposed to members who participate in the execution of the block-
MRX, LLC; Notice of Filing and are given an opportunity to respond size order based upon the percentage of
with the prices and sizes at which they the total number of contracts available
Immediate Effectiveness of Proposed
would be willing to trade with the at the block execution price that is
Rule Change To Amend Rule 716(c) on
block-sized order.5 The exposure period represented by the size of the quote,
the Block Order Mechanism
is designated by the Exchange via Professional Order, or Professional
September 29, 2017. circular, but must be no less than 100 Response. In addition, the Exchange
Pursuant to Section 19(b)(1) of the milliseconds and no more than 1 proposes to specify in Rule 716(c)(2)(i)
Securities Exchange Act of 1934 second.6 At the conclusion of the that interest that is priced better than
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 exposure period, either an execution the block execution price is executed in
notice is hereby given that on August will occur at a single block execution full. In particular, the Exchange
18, 2017, Nasdaq MRX, LLC (‘‘MRX’’ or price,7 or the order will be cancelled.8 proposes to amend this rule to state that
‘‘Exchange’’) filed with the Securities bids (offers) on the Exchange at the time
The purpose of the proposed rule
and Exchange Commission the block order is executed that are
change is to amend Rule 716(c) to more
(‘‘Commission’’) the proposed rule priced higher (lower) than the block
accurately describe the allocation
change as described in Items I and II, execution price, as well as Responses
methodology used in the Block Order
below, which Items have been prepared that are priced higher (lower) than the
Mechanism, and add language regarding
by the Exchange. The Commission is block execution price, will be executed
how the block execution price is
publishing this notice to solicit in full at the block execution price.
determined. The Exchange believes that
comments on the proposed rule change Although Rule 716(c)(2)(ii) described
these changes will increase
from interested persons. above explains how allocations are
transparency around the operation of
handled at the block execution price,
I. Self-Regulatory Organization’s the Block Order Mechanism to the the Exchange believes that additional
Statement of the Terms of Substance of benefit of members and market the additional clarity that interest that is
the Proposed Rule Change participants. priced better than the block execution
Currently, Rule 716(c)(2)(ii) provides
The Exchange proposes to amend that Responses, quotes, and Professional
Rule 716(c) to more accurately describe 9 The term ‘‘Professional Order’’ means an order
the allocation methodology used in the that is for the account of a person or entity that is
3 See Rule 716(c). not a Priority Customer. See Rule 100(a)(37C).
Block Order Mechanism, and add 4 See Rule 716(a). 10 See Rule 716(d).
language regarding how the block 5 A ‘‘Response’’ is an electronic message that is 11 See Rule 716(e).
execution price is determined. sent by members in response to a broadcast
ethrower on DSK3G9T082PROD with NOTICES
12 See Rule 723.
The text of the proposed rule change message. See Rule 716(b). 13 Supplementary Material .01(b) to Rule 713
6 See Supplementary Material .04 to Rule 716.
is available on the Exchange’s Web site provides that, if the PMM is quoting at the best
7 Responses and orders and quotes on the order
at www.ise.com, at the principal office price, it has participation rights equal to the greater
book at the time the block order is executed that of the proportion of the total size at the best price
are priced better than the block execution price are represented by the size of its quote, or a percentage
11 17 CFR 200.30–3(a)(12). executed at the block execution price. See Rule allocation entitlement based on the number of other
1 15 U.S.C. 78s(b)(1). 716(c)(2)(i). Professional Orders and market maker quotations at
2 17 CFR 240.19b–4. 8 See Rule 716(c)(2). the best price.
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Document Created: 2017-10-05 00:53:55
Document Modified: 2017-10-05 00:53:55
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 46548 |
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