82 FR 46583 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Implementation Date for Certain Changes to Exchange Rules 14.11 and 14.12
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 192 (October 5, 2017)
Federal Register Volume 82, Issue 192 (October 5, 2017)
| Page Range | 46583-46586 | |
| FR Document | 2017-21412 |
[Federal Register Volume 82, Number 192 (Thursday, October 5, 2017)] [Notices] [Pages 46583-46586] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-21412] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81777; File No. SR-BatsBZX-2017-63] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Implementation Date for Certain Changes to Exchange Rules 14.11 and 14.12 September 29, 2017. Pursuant to 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 September 28, 2017, Bats BZX Exchange, Inc. (``Exchange'' or ``BZX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with the Commission. 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. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- [[Page 46584]] I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to extend the date on which certain changes to Exchange Rules 14.11 and 14.12 would be implemented. The text of the proposed rule change is available at the Exchange's Web site at www.bats.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 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 parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose On November 18, 2016 the Exchange filed a proposed rule change, as subsequently amended by Amendments No. 1 and 2 thereto (as amended, the ``Proposed Rule Change''), to adopt certain changes to Exchange Rules 14.11 and 14.12 to add additional continued listing standards for exchange-traded products (``ETP'') as well as clarify the procedures that the Exchange will undertake when an ETP is noncompliant with applicable rules. Given the scope of the amendments specified in the Proposed Rule Change, the Exchange proposed that such amendments not be implemented until October 1, 2017. On March 7, 2017, the Commission granted approval of the Proposed Rule Change, including the October 1, 2017 implementation date. On September 20, 2017, the Exchange submitted an interpretive filing (the ``Interpretive Filing'') \5\ and on September 21, 2017 published a document that answers a series of frequently asked questions (the ``FAQs'').\6\ The Interpretive Filing and FAQs are intended to provide guidance as it relates to ETP issuers complying with the Proposed Rule Change upon implementation. The Exchange continues to engage with issuers about the Proposed Rule Change and will update the FAQs as needed based on those conversations. The Exchange now proposes to extend the implementation date of the amendments specified in the Proposed Rule Change to January 1, 2018.\7\ --------------------------------------------------------------------------- \5\ See SR-BatsBZX-2017-61, available at: http://cdn.batstrading.com/resources/regulation/rule_filings/approved/2017/SR-BatsBZX-2017-61.pdf. \6\ The FAQs are available at: http://cdn.batstrading.com/resources/listings/FAQs%20-%20New%20Cont%20List%20Standards%20FINAL.pdf. \7\ See Securities Exchange Act Release No. 80169 (March 7, 2017), 82 FR 13536 (March 13, 2017) (SR-BatsBZX-2016-80). --------------------------------------------------------------------------- Since the Proposed Rule Change was approved, the Exchange has engaged in extensive conversations with issuers of listed ETPs, industry advocacy groups and index providers to discuss the new rule requirements and offer guidance on rule interpretation and application, and, as noted above, the Exchange recently submitted the Interpretive Filing and distributed the FAQs. As part of these conversations, the Exchange has learned that many issuers have already engaged in building and testing the necessary compliance systems, but that they have been unable to finalize implementation without this additional guidance. As such, ETP issuers have expressed concern about their ability to have in place well-tested systems and procedures to ensure compliance by the current October 1, 2017 implementation date. ETP issuers, and industry advocacy groups on their behalf, have explained that issuers will require time to design and test new compliance systems as well as engage in discussions with third-party providers to source and track new data elements required for rule compliance.\8\ An additional three months prior to implementation will allow ETP issuers to finish building, more thoroughly test, and enhance the systems and procedures that they've already developed in advance of the current October 1, 2017 implementation date. Further, the additional time prior to implementation will further facilitate the ongoing discussion, which will include progress updates, between the Exchange, ETP issuers, and index providers. --------------------------------------------------------------------------- \8\ See, for example, Letter, dated July 11, 2017, from Dorothy Donohue, Acting General Counsel, Investment Company Institute to Brent J. Fields, Secretary, Securities and Exchange Commission, available at https://www.sec.gov/comments/sr-nasdaq-2016-135/nasdaq2016135-1846208-155175.pdf. --------------------------------------------------------------------------- The Exchange believes it is appropriate to extend the implementation date of the Proposed Rule Change to January 1, 2018 to provide ETP issuers with the time needed to finish developing and test their compliance procedures. In support of its proposal, the Exchange notes that the Proposed Rule Change imposes significant new compliance requirements on issuers that they have not been subject to previously. To meet these new compliance requirements, issuers must develop internal systems as well as coordinate with third-party service providers, such as index providers, to develop procedures by which they can obtain essential data, which includes the form, timing, and means by which such data is conveyed. Listed issuers have informed the Exchange that they are unable to complete and sufficiently test this extensive project by the pending October 1, 2017 implementation date. The Exchange believes that it is critical for ETP issuers to have the appropriate procedures and systems in place to monitor and evidence ETP compliance with the new continued listing rules before such rules are implemented in order to ensure meaningful compliance upon initial implementation, which could help avoid trading disruption in the ETPs. Therefore, the Exchange proposes to extend the implementation date for the Proposed Rule Change until January 1, 2018. 2. Statutory Basis The Exchange believes that the proposal is consistent with Section 6(b) of the Act \9\ in general and Section 6(b)(5) of the Act \10\ 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 mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f. \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed amendment is consistent with the protection of investors because it will provide additional time for issuers to finish building, more thoroughly test, and enhance the systems and procedures prior to the initial implementation of the Proposed Rule Change which will help ensure compliance upon initial implementation which will further promote the policy goals underlying the Proposed Rule Change and would help avoid trading disruption in the ETPs. Since the Proposed Rule Change was approved, the Exchange has engaged in extensive [[Page 46585]] conversations with issuers of listed ETPs, industry advocacy groups and index providers to discuss the new rule requirements and offer guidance on rule interpretation and application, and, as noted above, the Exchange recently submitted the Interpretive Filing and distributed the FAQs. As a result of these conversations and the recent distribution of interpretive guidance, ETP issuers have expressed concern about their ability to have in place well-tested systems and procedures to ensure compliance by the current October 1, 2017 implementation date. ETP issuers, and industry advocacy groups on their behalf, have explained that issuers will require time to design and test new compliance systems as well as engage in discussions with third-party providers to source and track new data elements required for rule compliance.\11\ An additional three months prior to implementation will allow ETP issuers to more thoroughly test and enhance the systems and procedures that they've already developed in advance of the current October 1, 2017 implementation date. Further, the additional time prior to implementation will further facilitate the ongoing dialogue between the Exchange, ETP issuers, and index providers. --------------------------------------------------------------------------- \11\ See, for example, Letter, dated July 11, 2017, from Dorothy Donohue, Acting General Counsel, Investment Company Institute to Brent J. Fields, Secretary, Securities and Exchange Commission, available at https://www.sec.gov/comments/sr-nasdaq-2016-135/nasdaq2016135-1846208-155175.pdf. --------------------------------------------------------------------------- Providing listed issuers with additional time before the implementation of the Proposed Rule Change furthers the protection of investors and the public interest because it will enhance investor confidence that listed issuers are complying with Exchange rules by providing sufficient time to finish building, more thoroughly test, and enhance the systems and procedures prior to the initial implementation, which could help avoid trading disruption in the ETPs. For the above reasons, the Exchange believes that the proposed rule change is consistent with the requirements of Section 6(b)(5) of the Act. 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 purpose of the Act. The Exchange notes that the proposed rule change will facilitate ETP issuers' ability to monitor and evidence compliance with approved continued listing rules by providing issuers with additional time to finish developing and testing their internal systems and procedures prior to the implementation date. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange received a copy of a letter from the Investment Company Institute, on behalf of ETP issuers, to the Securities [sic] Exchange Commission.\12\ As described in Item 3 [sic], above, the Investment Company Institute detailed challenges that ETP issuers are facing in developing compliance systems to address the amendments contained in the Proposed Rule Change and have requested that the implementation date for such amendments be extended. --------------------------------------------------------------------------- \12\ See Footnote 5, infra [sic]. --------------------------------------------------------------------------- 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 and Rule 19b- 4(f)(6) thereunder.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission 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 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 \14\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \15\ 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 so that the proposal may become operative immediately upon filing. The Commission notes that waiver of the operative delay will allow the Exchange to immediately extend the implementation date of the Proposed Rule Change, and avoid the potential confusion and disruption that could result if the extension did not become operative until after October 1, 2017. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing.\16\ --------------------------------------------------------------------------- \14\ 17 CFR 240.19b-4(f)(6). \15\ 17 CFR 240.19b-4(f)(6)(iii). \16\ 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. See 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 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 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 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-BatsBZX-2017-63 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-BatsBZX-2017-63. 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 46586]] 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-BatsBZX-2017-63 and should be submitted on or before October 26, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-21412 Filed 10-4-17; 8:45 am] BILLING CODE 8011-01-P
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issuers with additional time to finish public interest. Therefore, the Reference Room, 100 F Street NE.,
developing and testing their internal Commission hereby waives the 30-day Washington, DC 20549 on official
systems and procedures prior to the operative delay and designates the business days between the hours of
implementation date. proposal operative upon filing.15 10:00 a.m. and 3:00 p.m. Copies of the
At any time within 60 days of the filing also will be available for
C. Self-Regulatory Organization’s
Statement on Comments on the filing of the proposed rule change, the inspection and copying at the principal
Proposed Rule Change Received From Commission summarily may office of the Exchange. All comments
Members, Participants, or Others temporarily suspend such rule change if received will be posted without change;
it appears to the Commission that such the Commission does not edit personal
The Exchange received a copy of a action is necessary or appropriate in the identifying information from
letter from the Investment Company public interest, for the protection of submissions. You should submit only
Institute, on behalf of listed ETP issuers, investors, or otherwise in furtherance of information that you wish to make
to the SEC.11 As described in Item 3 the purposes of the Act. If the available publicly. All submissions
[sic], above, the Investment Company Commission takes such action, the should refer to File Number SR–
Institute detailed challenges that listed Commission shall institute proceedings NASDAQ–2017–101 and should be
ETF issuers are facing in developing to determine whether the proposed rule submitted on or before October 26,
compliance systems to address the change should be approved or 2017.
amendments contained in the Proposed disapproved.
Rule Change and have requested that For the Commission, by the Division of
the implementation date for such IV. Solicitation of Comments Trading and Markets, pursuant to delegated
amendments be extended. Interested persons are invited to authority.16
submit written data, views, and Eduardo A. Aleman,
III. Date of Effectiveness of the
Proposed Rule Change and Timing for arguments concerning the foregoing, Assistant Secretary.
Commission Action including whether the proposed rule [FR Doc. 2017–21408 Filed 10–4–17; 8:45 am]
change is consistent with the Act. BILLING CODE 8011–01–P
Because the foregoing proposed rule
Comments may be submitted by any of
change does not: (i) Significantly affect
the following methods:
the protection of investors or the public
interest; (ii) impose any significant Electronic Comments SECURITIES AND EXCHANGE
burden on competition; and (iii) become COMMISSION
• Use the Commission’s Internet
operative for 30 days from the date on comment form (http://www.sec.gov/
which it was filed, or such shorter time rules/sro.shtml); or
[Release No. 34–81777; File No. SR–
as the Commission may designate, it has BatsBZX–2017–63]
• Send an email to rule-comments@
become effective pursuant to Section
sec.gov. Please include File Number SR– Self-Regulatory Organizations; Bats
19(b)(3)(A) of the Act and Rule 19b–
NASDAQ–2017–101 on the subject line. BZX Exchange, Inc.; Notice of Filing
4(f)(6) thereunder.12
A proposed rule change filed Paper Comments and Immediate Effectiveness of
pursuant to Rule 19b–4(f)(6) under the Proposed Rule Change To Extend the
• Send paper comments in triplicate
Act 13 normally does not become Implementation Date for Certain
to Secretary, Securities and Exchange
operative for 30 days after the date of its Changes to Exchange Rules 14.11 and
Commission, 100 F Street NE.,
filing. However, Rule 19b–4 (f)(6)(iii) 14 14.12
Washington, DC 20549–1090.
permits the Commission to designate a
shorter time if such action is consistent All submissions should refer to File September 29, 2017.
with the protection of investors and the Number SR–NASDAQ–2017–101. This Pursuant to Section 19(b)(1) of the
public interest. The Exchange has asked file number should be included on the Securities Exchange Act of 1934
the Commission to waive the 30-day subject line if email is used. To help the (‘‘Act’’),1 and Rule 19b–4 thereunder,2
operative delay so that the proposal may Commission process and review your
notice is hereby given that on
become operative immediately upon comments more efficiently, please use
September 28, 2017, Bats BZX
filing. The Commission notes that only one method. The Commission will
Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’)
waiver of the operative delay will allow post all comments on the Commission’s
filed with the Securities and Exchange
the Exchange to immediately extend the Internet Web site (http://www.sec.gov/
Commission (‘‘Commission’’) the
implementation date of the Proposed rules/sro.shtml). Copies of the
proposed rule change as described in
Rule Change, and avoid the potential submission, all subsequent
Items I and II below, which Items have
confusion and disruption that could amendments, all written statements
been prepared by the Exchange. The
result if the extension did not become with respect to the proposed rule
Exchange has designated this proposal
operative until after October 1, 2017. change that are filed with the
as a ‘‘non-controversial’’ proposed rule
The Commission believes that waiver of Commission, and all written
communications relating to the change pursuant to Section 19(b)(3)(A)
the 30-day operative delay is consistent of the Act 3 and Rule 19b–4(f)(6)(iii)
with the protection of investors and the proposed rule change between the
Commission and any person, other than thereunder,4 which renders it effective
11 See those that may be withheld from the upon filing with the Commission. The
Footnote 6, supra.
12 17 CFR 240.19b–4(f)(6). As required under Rule public in accordance with the Commission is publishing this notice to
solicit comments on the proposed rule
ethrower on DSK3G9T082PROD with NOTICES
19b-4(f)(6)(iii), the Exchange provided the provisions of 5 U.S.C. 552, will be
Commission with written notice of its intent to file
available for Web site viewing and change from interested persons.
the proposed rule change, along with a brief
description and the text of the proposed rule printing in the Commission’s Public
16 17 CFR 200.30–3(a)(12).
change, at least five business days prior to the date
1 15 U.S.C. 78s(b)(1).
of filing of the proposed rule change, or such 15 Forpurposes only of waiving the 30-day
shorter time as designated by the Commission. 2 17 CFR 240.19b–4.
operative delay, the Commission has considered the
13 17 CFR 240.19b–4(f)(6). 3 15 U.S.C. 78s(b)(3)(A).
proposed rule’s impact on efficiency, competition,
14 17 CFR 240.19b–4(f)(6)(iii). and capital formation. See 15 U.S.C. 78c(f). 4 17 CFR 240.19b–4(f)(6)(iii).
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![Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices 46585
conversations with issuers of listed approved continued listing rules by with the protection of investors and the
ETPs, industry advocacy groups and providing issuers with additional time public interest. Therefore, the
index providers to discuss the new rule to finish developing and testing their Commission hereby waives the 30-day
requirements and offer guidance on rule internal systems and procedures prior to operative delay and designates the
interpretation and application, and, as the implementation date. proposal operative upon filing.16
noted above, the Exchange recently At any time within 60 days of the
C. Self-Regulatory Organization’s
submitted the Interpretive Filing and filing of the proposed rule change, the
Statement on Comments on the
distributed the FAQs. As a result of Commission summarily may
Proposed Rule Change Received From
these conversations and the recent temporarily suspend such rule change if
Members, Participants, or Others
distribution of interpretive guidance, it appears to the Commission that such
ETP issuers have expressed concern The Exchange received a copy of a action is necessary or appropriate in the
about their ability to have in place well- letter from the Investment Company public interest, for the protection of
tested systems and procedures to ensure Institute, on behalf of ETP issuers, to the investors, or otherwise in furtherance of
compliance by the current October 1, Securities [sic] Exchange Commission.12 the purposes of the Act. If the
2017 implementation date. ETP issuers, As described in Item 3 [sic], above, the Commission takes such action, the
and industry advocacy groups on their Investment Company Institute detailed Commission shall institute proceedings
behalf, have explained that issuers will challenges that ETP issuers are facing in to determine whether the proposed rule
require time to design and test new developing compliance systems to change should be approved or
compliance systems as well as engage in address the amendments contained in disapproved.
discussions with third-party providers the Proposed Rule Change and have
to source and track new data elements requested that the implementation date IV. Solicitation of Comments
required for rule compliance.11 An for such amendments be extended. Interested persons are invited to
additional three months prior to III. Date of Effectiveness of the submit written data, views, and
implementation will allow ETP issuers Proposed Rule Change and Timing for arguments concerning the foregoing,
to more thoroughly test and enhance the Commission Action including whether the proposed rule
systems and procedures that they’ve change is consistent with the Act.
already developed in advance of the Because the foregoing proposed rule
Comments may be submitted by any of
current October 1, 2017 implementation change does not: (i) Significantly affect
the following methods:
date. Further, the additional time prior the protection of investors or the public
to implementation will further facilitate interest; (ii) impose any significant Electronic Comments
the ongoing dialogue between the burden on competition; and (iii) become • Use the Commission’s Internet
operative for 30 days from the date on comment form (http://www.sec.gov/
Exchange, ETP issuers, and index
which it was filed, or such shorter time
providers. rules/sro.shtml); or
as the Commission may designate, it has
Providing listed issuers with • Send an email to rule-comments@
additional time before the become effective pursuant to Section
sec.gov. Please include File Number SR–
implementation of the Proposed Rule 19(b)(3)(A) of the Act and Rule 19b–
BatsBZX–2017–63 on the subject line.
Change furthers the protection of 4(f)(6) thereunder.13
A proposed rule change filed Paper Comments
investors and the public interest
pursuant to Rule 19b–4(f)(6) under the
because it will enhance investor • Send paper comments in triplicate
Act 14 normally does not become
confidence that listed issuers are to Secretary, Securities and Exchange
operative for 30 days after the date of its
complying with Exchange rules by Commission, 100 F Street NE.,
filing. However, Rule 19b–4(f)(6)(iii) 15
providing sufficient time to finish Washington, DC 20549–1090.
permits the Commission to designate a
building, more thoroughly test, and shorter time if such action is consistent All submissions should refer to File
enhance the systems and procedures with the protection of investors and the Number SR–BatsBZX–2017–63. This file
prior to the initial implementation, public interest. The Exchange has asked number should be included on the
which could help avoid trading the Commission to waive the 30-day subject line if email is used. To help the
disruption in the ETPs. operative delay so that the proposal may Commission process and review your
For the above reasons, the Exchange comments more efficiently, please use
become operative immediately upon
believes that the proposed rule change only one method. The Commission will
filing. The Commission notes that
is consistent with the requirements of waiver of the operative delay will allow post all comments on the Commission’s
Section 6(b)(5) of the Act. the Exchange to immediately extend the Internet Web site (http://www.sec.gov/
B. Self-Regulatory Organization’s implementation date of the Proposed rules/sro.shtml). Copies of the
Statement on Burden on Competition Rule Change, and avoid the potential submission, all subsequent
confusion and disruption that could amendments, all written statements
The Exchange does not believe that
result if the extension did not become with respect to the proposed rule
the proposed rule change will impose
operative until after October 1, 2017. change that are filed with the
any burden on competition that is not
The Commission believes that waiver of Commission, and all written
necessary or appropriate in furtherance
the 30-day operative delay is consistent communications relating to the
of the purpose of the Act. The Exchange
proposed rule change between the
notes that the proposed rule change will 12 See Footnote 5, infra [sic]. Commission and any person, other than
facilitate ETP issuers’ ability to monitor 13 17 CFR 240.19b–4(f)(6). As required under Rule those that may be withheld from the
and evidence compliance with
ethrower on DSK3G9T082PROD with NOTICES
19b–4(f)(6)(iii), the Exchange provided the public in accordance with the
Commission with written notice of its intent to file
11 See, for example, Letter, dated July 11, 2017, the proposed rule change, along with a brief provisions of 5 U.S.C. 552, will be
from Dorothy Donohue, Acting General Counsel, description and the text of the proposed rule available for Web site viewing and
Investment Company Institute to Brent J. Fields, change, at least five business days prior to the date
Secretary, Securities and Exchange Commission, of filing of the proposed rule change, or such 16 For purposes only of waiving the 30-day
available at https://www.sec.gov/comments/sr- shorter time as designated by the Commission. operative delay, the Commission has considered the
14 17 CFR 240.19b–4(f)(6).
nasdaq-2016-135/nasdaq2016135-1846208- proposed rule’s impact on efficiency, competition,
155175.pdf. 15 17 CFR 240.19b–4(f)(6)(iii). and capital formation. See 15 U.S.C. 78c(f).
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printing in the Commission’s Public trading on the Exchange. The proposed Inc. (‘‘NYSE Arca’’, and together, the
Reference Room, 100 F Street NE., rule change is available on the ‘‘NYSE Exchanges’’).6
Washington, DC 20549 on official Exchange’s Web site at www.nyse.com, In connection with the Acquisition,
business days between the hours of at the principal office of the Exchange, NYSE Group announced its plans to
10:00 a.m. and 3:00 p.m. Copies of the and at the Commission’s Public migrate NYSE National to the NYSE
filing also will be available for Reference Room. Pillar platform, which is an integrated
inspection and copying at the principal trading technology platform designed to
office of the Exchange. All comments II. Self-Regulatory Organization’s
use a single specification for connecting
received will be posted without change; Statement of the Purpose of, and
to the equities and options markets
the Commission does not edit personal Statutory Basis for, the Proposed Rule
operated by the NYSE Exchanges.7 The
identifying information from Change
Exchange now proposes to re-launch
submissions. You should submit only In its filing with the Commission, the trading using the NYSE Pillar platform.
information that you wish to make self-regulatory organization included To that end, in connection with the
available publicly. All submissions statements concerning the purpose of, re-launch of trading operations
should refer to File Number SR– and basis for, the proposed rule change following the migration to Pillar, the
BatsBZX–2017–63 and should be and discussed any comments it received Exchange proposes to adopt the rule
submitted on or before October 26, on the proposed rule change. The text numbering framework of the rules
2017. of those statements may be examined at governing the NYSE Arca equities
For the Commission, by the Division of the places specified in Item IV below. market. The Exchange believes that if it
Trading and Markets, pursuant to delegated The Exchange has prepared summaries, and its affiliates are operating on the
authority.17 set forth in sections A, B, and C below, same trading platform, using the same
Eduardo A. Aleman, of the most significant parts of such rule numbering scheme across all
Assistant Secretary. statements. markets using the NYSE Pillar platform
[FR Doc. 2017–21412 Filed 10–4–17; 8:45 am] will make it easier for members, the
A. Self-Regulatory Organization’s public and the Commission to navigate
BILLING CODE 8011–01–P
Statement of the Purpose of, and the the rules of each market. The Exchange
Statutory Basis for, the Proposed Rule therefore proposes to adopt a framework
SECURITIES AND EXCHANGE Change of rule numbering that is based on the
COMMISSION 1. Purpose current rules governing the NYSE Arca
equities market: NYSE Arca Rules 0
[Release No. 34–81782; File No. SR– NYSE National, in connection with
NYSENat–2017–04] through 3, 4–E through 9–E, and 10
the re-launch of its trading operations, through 14.8
Self-Regulatory Organizations; NYSE proposes to adopt rules to establish a As proposed, this framework would
National, Inc.; Notice of Filing and rule numbering framework. The use the current rule numbering scheme
Immediate Effectiveness of Proposed Exchange proposes to establish this of the rules governing the NYSE Arca
Rule Change To Adopt Rules To framework in order to facilitate the equities market, and would consist of
Establish a Rule Numbering amendment and re-publication of its the following proposed rules:
Framework in Connection With the Re- new rule book in advance of the re- RULE 0 REGULATION OF THE
Launch of Trading on the Exchange launch of trading operations on the EXCHANGE AND ETP HOLDERS
Exchange. RULE 1 DEFINITIONS
September 29, 2017. On January 31, 2017, Intercontinental RULE 2 TRADING PERMITS
Pursuant to Section 19(b)(1) 1 of the Exchange, Inc. (‘‘ICE’’), through its RULE 3 ORGANIZATION AND
Securities Exchange Act of 1934 (the wholly-owned subsidiary NYSE Group, ADMINISTRATION
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 acquired all of the outstanding capital RULE 4 CAPITAL REQUIREMENTS,
notice is hereby given that on stock of the Exchange (the FINANCIAL REPORTS, MARGIN
September 28, 2017, NYSE National, ‘‘Acquisition’’).4 RULE 5 EQUITIES LISTINGS
Inc. (the ‘‘Exchange’’ or ‘‘NYSE RULE 6 ORDER AUDIT TRAIL
National’’) filed with the Securities and Immediately following the closing of
the Acquisition, effective February 1, SYSTEM
Exchange Commission (the RULE 7 EQUITIES TRADING
‘‘Commission’’) the proposed rule 2017, NYSE National ceased trading
operations.5 NYSE National continues RULE 8 TRADING OF CERTAIN
change as described in Items I, II, and EXCHANGE DERIVATIVES
III below, which Items have been to be registered as a national securities
exchange and has rules that are distinct RULE 9 CONDUCTING BUSINESS
prepared by the self-regulatory WITH THE PUBLIC
organization. The Commission is from the rules of the three other
registered national securities exchanges RULE 10 DISCIPLINARY
publishing this notice to solicit PROCEEDINGS, OTHER HEARINGS
comments on the proposed rule change owned by NYSE Group, namely, NYSE,
NYSE American LLC, and NYSE Arca, AND APPEALS
from interested persons. RULE 11 BUSINESS CONDUCT
I. Self-Regulatory Organization’s 4 See Securities Exchange Act Release No. 79902
RULE 12 ARBITRATION
Statement of the Terms of the Substance (January 30, 2017), 82 FR 9258 (February 3, 2017)
6 See 82 FR 9258, supra note 4.
of the Proposed Rule Change (SR–NSX–2016–16). Prior to the Acquisition, the
Exchange was named ‘‘National Stock Exchange, 7 See Trader Update dated January 18, 2017,
The Exchange proposes to adopt rules
ethrower on DSK3G9T082PROD with NOTICES
Inc.’’ NYSE Group is a wholly-owned subsidiary of available here: https://www.nyse.com/publicdocs/
to establish a rule numbering framework NYSE Holdings LLC, which is wholly owned by nyse/markets/nyse/NYSE_Group_NSX_Member_
in connection with the re-launch of Intercontinental Exchange Holdings, Inc., a direct Notice.pdf.
wholly-owned subsidiary of ICE. ICE is a public 8 See Securities Exchange Act Release No. 81419
company listed on the New York Stock Exchange (August 17, 2017), 82 FR 40044 (August 23, 2017)
17 17 CFR 200.30–3(a)(12). LLC (the ‘‘NYSE’’). (SR–NYSEArca–2017–40), at 40046. Because the
1 15 U.S.C. 78s(b)(1). 5 See Securities Exchange Act Release No. 80018 Exchange only has an equities market, the proposed
2 15 U.S.C. 78a.
(February 10, 2017), 82 FR 10947 (February 16, rule framework would not require the ‘‘–E’’
3 17 CFR 240.19b–4. 2017) (SR–NSX–2017–04). designation for Rules 4 through 9.
VerDate Sep<11>2014 19:52 Oct 04, 2017 Jkt 244001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 E:\FR\FM\05OCN1.SGM 05OCN1](https://thefederalregister.org/doc/82_FR_46775/page/4.svg)
Document Created: 2017-10-05 00:53:39
Document Modified: 2017-10-05 00:53:39
| 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 46583 |
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