82 FR 46586 - Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Rules To Establish a Rule Numbering Framework in Connection With the Re-Launch of Trading on the Exchange

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 192 (October 5, 2017)

[Federal Register Volume 82, Number 192 (Thursday, October 5, 2017)]
[Notices]
[Pages 46586-46587]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-21414]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81782; File No. SR-NYSENat-2017-04]


Self-Regulatory Organizations; NYSE National, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Adopt 
Rules To Establish a Rule Numbering Framework in Connection With the 
Re-Launch of Trading on the Exchange

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 28, 2017, NYSE National, Inc. (the ``Exchange'' 
or ``NYSE National'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to adopt rules to establish a rule numbering 
framework in connection with the re-launch of trading on the Exchange. 
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
    NYSE National, in connection with the re-launch of its trading 
operations, proposes to adopt rules to establish a rule numbering 
framework. The Exchange proposes to establish this framework in order 
to facilitate the amendment and re-publication of its new rule book in 
advance of the re-launch of trading operations on the Exchange.
    On January 31, 2017, Intercontinental Exchange, Inc. (``ICE''), 
through its wholly-owned subsidiary NYSE Group, acquired all of the 
outstanding capital stock of the Exchange (the ``Acquisition'').\4\
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    \4\ See Securities Exchange Act Release No. 79902 (January 30, 
2017), 82 FR 9258 (February 3, 2017) (SR-NSX-2016-16). Prior to the 
Acquisition, the Exchange was named ``National Stock Exchange, 
Inc.'' NYSE Group is a wholly-owned subsidiary of NYSE Holdings LLC, 
which is wholly owned by Intercontinental Exchange Holdings, Inc., a 
direct wholly-owned subsidiary of ICE. ICE is a public company 
listed on the New York Stock Exchange LLC (the ``NYSE'').
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    Immediately following the closing of the Acquisition, effective 
February 1, 2017, NYSE National ceased trading operations.\5\ NYSE 
National continues to be registered as a national securities exchange 
and has rules that are distinct from the rules of the three other 
registered national securities exchanges owned by NYSE Group, namely, 
NYSE, NYSE American LLC, and NYSE Arca, Inc. (``NYSE Arca'', and 
together, the ``NYSE Exchanges'').\6\
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    \5\ See Securities Exchange Act Release No. 80018 (February 10, 
2017), 82 FR 10947 (February 16, 2017) (SR-NSX-2017-04).
    \6\ See 82 FR 9258, supra note 4.
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    In connection with the Acquisition, NYSE Group announced its plans 
to migrate NYSE National to the NYSE Pillar platform, which is an 
integrated trading technology platform designed to use a single 
specification for connecting to the equities and options markets 
operated by the NYSE Exchanges.\7\ The Exchange now proposes to re-
launch trading using the NYSE Pillar platform.
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    \7\ See Trader Update dated January 18, 2017, available here: 
https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Group_NSX_Member_Notice.pdf.
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    To that end, in connection with the re-launch of trading operations 
following the migration to Pillar, the Exchange proposes to adopt the 
rule numbering framework of the rules governing the NYSE Arca equities 
market. The Exchange believes that if it and its affiliates are 
operating on the same trading platform, using the same rule numbering 
scheme across all markets using the NYSE Pillar platform will make it 
easier for members, the public and the Commission to navigate the rules 
of each market. The Exchange therefore proposes to adopt a framework of 
rule numbering that is based on the current rules governing the NYSE 
Arca equities market: NYSE Arca Rules 0 through 3, 4-E through 9-E, and 
10 through 14.\8\
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    \8\ See Securities Exchange Act Release No. 81419 (August 17, 
2017), 82 FR 40044 (August 23, 2017) (SR-NYSEArca-2017-40), at 
40046. Because the Exchange only has an equities market, the 
proposed rule framework would not require the ``-E'' designation for 
Rules 4 through 9.
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    As proposed, this framework would use the current rule numbering 
scheme of the rules governing the NYSE Arca equities market, and would 
consist of the following proposed rules:

RULE 0 REGULATION OF THE EXCHANGE AND ETP HOLDERS
RULE 1 DEFINITIONS
RULE 2 TRADING PERMITS
RULE 3 ORGANIZATION AND ADMINISTRATION
RULE 4 CAPITAL REQUIREMENTS, FINANCIAL REPORTS, MARGIN
RULE 5 EQUITIES LISTINGS
RULE 6 ORDER AUDIT TRAIL SYSTEM
RULE 7 EQUITIES TRADING
RULE 8 TRADING OF CERTAIN EXCHANGE DERIVATIVES
RULE 9 CONDUCTING BUSINESS WITH THE PUBLIC
RULE 10 DISCIPLINARY PROCEEDINGS, OTHER HEARINGS AND APPEALS
RULE 11 BUSINESS CONDUCT
RULE 12 ARBITRATION

[[Page 46587]]

RULE 13 CANCELLATION, SUSPENSION, AND REINSTATEMENT
RULE 14 LIABILITY OF DIRECTORS AND EXCHANGE

    The Exchange proposes to establish this framework in order to 
facilitate the amendment and re-publication of its new rule book in 
advance of the re-launch of trading operations on the Exchange. The 
Exchange intends to file separate proposed rules changes for the 
substantive areas identified in its new rule book, as well as the 
related price list.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\9\ in general, and 
furthers the objectives of Section 6(b)(5),\10\ 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. The Exchange 
believes that the proposed rules would remove impediments to and 
perfect the mechanism of a free and open market because the proposed 
rule set establishing a rule numbering framework would promote 
transparency in Exchange rules by using consistent rule numbers with 
the equities market of NYSE Arca, which is the first market that 
migrated to the Pillar trading platform. The Exchange believes that 
using a common framework of rule numbers for the equity markets that 
operate on the Pillar trading platform will better allow members, 
regulators, and the public to navigate the Exchange's rulebook and 
better understand how equity trading is conducted on the Exchange.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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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 proposed rule change is 
not designed to address any competitive issue but rather to adopt a new 
rule numbering framework to support the Exchange's amendment and re-
publication of its rule book that in turn will support the re-launch of 
its trading platform. The Exchange believes that the proposed rule 
change would promote consistency and transparency on both the Exchange 
and its affiliate NYSE Arca, thus making the Exchange's rules easier to 
navigate.

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)(iii) of the Act \11\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6).
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    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 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-NYSENat-2017-04 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-NYSENat-2017-04. 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 such filing also will be available 
for inspection and copying at the principal offices 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-NYSENat-2017-
04, and should be submitted on or before October 26, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-21414 Filed 10-4-17; 8:45 am]
 BILLING CODE 8011-01-P