82_FR_47782 82 FR 47586 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend FINRA Rule 6121 To Reflect Recent Amendments to the Regulation NMS Plan To Address Extraordinary Market Volatility

82 FR 47586 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend FINRA Rule 6121 To Reflect Recent Amendments to the Regulation NMS Plan To Address Extraordinary Market Volatility

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 196 (October 12, 2017)

Page Range47586-47588
FR Document2017-21994

Federal Register, Volume 82 Issue 196 (Thursday, October 12, 2017)
[Federal Register Volume 82, Number 196 (Thursday, October 12, 2017)]
[Notices]
[Pages 47586-47588]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-21994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81824; File No. SR-FINRA-2017-031]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend FINRA Rule 6121 To Reflect Recent 
Amendments to the Regulation NMS Plan To Address Extraordinary Market 
Volatility

October 5, 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 29, 2017, Financial Industry Regulatory Authority, Inc. 
(``FINRA'') filed with the Securities and Exchange Commission (``SEC'' 
or ``Commission'') the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared by FINRA. FINRA has 
designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under 
the Act,\3\ which renders the proposal effective upon receipt of this 
filing by the Commission. 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\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    FINRA is proposing to amend FINRA Rule 6121 (Trading Halts Due to 
Extraordinary Market Volatility) to reflect recent amendments to the 
Regulation NMS Plan to Address Extraordinary Volatility (``Plan'') 
regarding the resumption of trading in a security subject to the 
Plan.\4\
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    \4\ Unless otherwise specified, the capitalized terms used 
herein have the same meanings as set forth in the Plan.
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    The text of the proposed rule change is available on FINRA's Web 
site at http://www.finra.org, at the principal office of FINRA 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, FINRA 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. FINRA has prepared summaries, set forth in sections A, 
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    FINRA Rule 6121.01 (Resumption of Trading in Securities Subject to 
the Regulation NMS Plan to Address Extraordinary Market Volatility) 
(``Rule'') addresses the circumstances under which a member may resume 
trading otherwise than on an exchange following a Trading Pause or 
Regulatory Halt in an NMS Stock that is subject to the Plan.
    The Rule currently provides that, following a Trading Pause or 
Regulatory Halt in an NMS Stock that is subject to the Plan, a member 
may resume trading otherwise than on an exchange if trading has 
commenced on the Primary Listing Exchange (or on another national 
securities exchange in the case of the resumption of trading following 
a ten-minute Trading Pause) and either: (1) The member has received the 
Price Bands from the Processor; or (2) if immediately following a 
Trading Pause or Regulatory Halt the member has not yet received the 
Price Bands from the Processor, the member has calculated an upper 
price band and lower price band consistent with the methodology 
provided for in Section V of the Plan and ensures that any transactions 
prior to the receipt of the Price Bands from the Processor are within 
the ranges provided for pursuant to the Plan. In addition, the Rule 
provides that, where the Primary Listing Exchange does not reopen for 
trading at the end of a ten-minute Trading Pause (and has issued notice 
that it cannot resume trading for a reason other than a significant 
imbalance), a member may resume trading otherwise than on an exchange 
if trading has commenced in such NMS Stock on at least one other 
national securities exchange.
    On January 19, 2017, the Commission approved the Twelfth Amendment 
to the Plan, which provides, among other things, that a Trading Pause 
will continue until the Primary Listing Exchange has reopened trading 
using its established reopening procedures, even if such reopening is 
more than 10 minutes after the beginning of a Trading

[[Page 47587]]

Pause.\5\ The Twelfth Amendment generally provides that the only time 
trading may resume in the absence of a Reopening Price from the Primary 
Listing Exchange is if the Primary Listing Exchange notifies the 
Processor that it is unable to reopen due to a systems or technology 
issue.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 79410 (November 28, 
2016), 81 FR 87114 (December 2, 2016) (Notice of Filing of the 
Twelfth Amendment to the National Market System Plan to Address 
Extraordinary Market Volatility) (``Twelfth Amendment''); see also 
Securities Exchange Act Release No. 79845 (January 19, 2017), 82 FR 
8551 (January 26, 2017) (Order Approving the Twelfth Amendment to 
the National Market System Plan to Address Extraordinary Market 
Volatility) (``Approval Order'').
---------------------------------------------------------------------------

    To conform to this change, FINRA is amending Rule 6121.01 to 
provide that a member may not resume trading otherwise than on an 
exchange following a Trading Pause or Regulatory Halt in an NMS Stock 
that is subject to the Plan unless trading has commenced on the Primary 
Listing Exchange and either: (1) The member has received the Price 
Bands from the Processor; or (2) if the Processor hasn't yet 
disseminated Price Bands, but a Reference Price is available, the 
member calculates and applies Price Bands based on the same Reference 
Price that the Processor would use for calculating such Price Bands 
until such member receives Price Bands from the Processor, consistent 
with Section V(A)(1) \6\ of the Plan (i.e., ``Synthetic Price Bands''). 
Thus, consistent with the Twelfth Amendment, the proposed amendments 
provide that a member may only use Synthetic Price Bands in the limited 
circumstance where a Reference Price is available but Price Bands have 
not yet been disseminated by the Processor.\7\
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    \6\ FINRA is correcting a reference to the Plan in the existing 
rule text by replacing ``Section VI(A)(1)'' with ``Section 
V(A)(1).''
    \7\ See supra note 5.
---------------------------------------------------------------------------

    Finally, the proposed amendments provide that a member may, 
nonetheless, resume trading otherwise than on an exchange in an NMS 
Stock that is subject to the Plan if the Primary Listing Exchange 
notifies the Processor that it is unable to reopen the security due to 
a systems or technology issue, or if the Primary Listing Exchange 
reopens trading with a quotation that has a zero bid or zero offer, or 
both, and: (1) The member has received the Price Bands from the 
Processor; and (2) trading has commenced on at least one other national 
securities exchange. In these limited circumstances, trading may resume 
otherwise than on an exchange in the absence of a Reopening Price from 
the Primary Listing Exchange, but only where the member has received 
the Price Bands from the Processor and at least one other national 
security exchange has already resumed trading. FINRA believes that 
requiring trading to first commence on at least one other national 
securities exchange prior to the resumption of trading over the counter 
continues to be appropriate and is consistent with existing FINRA rules 
and guidance regarding the resumption of over-the-counter trading in a 
paused security.\8\
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    \8\ See FAQ #6 (When can trading in a paused security resume?) 
in Regulatory Notice 10-30 (June 2010); see also Regulatory Notice 
13-12 (March 2013).
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    FINRA has filed the proposed rule change for immediate 
effectiveness. The operative date of the proposed rule change will be 
the same as the implementation date of the Twelfth Amendment to the 
Plan.\9\
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 81720 (September 26, 
2017), https://www.sec.gov/rules/sro/nms/2017/34-81720.pdf (Notice 
of Filing and Immediate Effectiveness of the Fifteenth Amendment to 
the National Market System Plan to Address Extraordinary Market 
Volatility) (providing that the implementation date for the changes 
to the Plan set forth in the Twelfth and Thirteenth Amendment would 
be changed to no later than November 30, 2017).
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2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\10\ which requires, among 
other things, that FINRA rules must be designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, and, in general, to protect investors and the 
public interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

    The proposed rule change is designed to conform to the Twelfth 
Amendment to the Plan, which was approved by the Commission as being 
consistent with Section 11A of the Act \11\ and Rule 608 thereunder 
\12\ because it is appropriate in the public interest, for the 
protection of investors and the maintenance of fair and orderly 
markets, and that it removes impediments to, and perfects the mechanism 
of, a national market system.\13\ The proposed rule change seeks to 
help ensure that the goals of the Plan are met; thus, FINRA believes 
that the proposed rule change will further the goals of investor 
protection and fair and orderly markets.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78k-1.
    \12\ 17 CFR 242.608.
    \13\ See Approval Order at 8552.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule change seeks 
to conform the requirements applicable to member trading otherwise than 
on an exchange under the Rule to the Twelfth Amendment to the Plan.

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

    Written comments were neither solicited nor received.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days 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 \14\ and Rule 19b-
4(f)(6) thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-FINRA-2017-031 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.


[[Page 47588]]


All submissions should refer to File Number SR-FINRA-2017-031. 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 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of FINRA. 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-FINRA-2017-031 and should be 
submitted on or before November 2, 2017.
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    \16\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-21994 Filed 10-11-17; 8:45 am]
BILLING CODE 8011-01-P



                                                    47586                       Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices

                                                    crowd, where they cannot control the                    SECURITIES AND EXCHANGE                               comments it received on the proposed
                                                    size or frequency of trading interest.20                COMMISSION                                            rule change. The text of these statements
                                                    The Exchange asserts that the New                                                                             may be examined at the places specified
                                                                                                            [Release No. 34–81824; File No. SR–FINRA–
                                                    Alternative serves as a reasonable                      2017–031]                                             in Item IV below. FINRA has prepared
                                                    standard by which to assess the level of                                                                      summaries, set forth in sections A, B,
                                                    liquidity provided by non-SQT ROTs,                     Self-Regulatory Organizations;                        and C below, of the most significant
                                                    albeit with a focus on an additional                    Financial Industry Regulatory                         aspects of such statements.
                                                    liquidity metric of fewer trades that are               Authority, Inc.; Notice of Filing and
                                                                                                                                                                  A. Self-Regulatory Organization’s
                                                    larger in size.21 The Exchange states                   Immediate Effectiveness of a Proposed
                                                                                                                                                                  Statement of the Purpose of, and
                                                    that, since 100 transactions is only 33%                Rule Change To Amend FINRA Rule
                                                                                                                                                                  Statutory Basis for, the Proposed Rule
                                                    of the current requirement, it proposes                 6121 To Reflect Recent Amendments
                                                                                                                                                                  Change
                                                    to increase the total number of executed                to the Regulation NMS Plan To
                                                    contracts requirement in the New                        Address Extraordinary Market                          1. Purpose
                                                    Alternative by 900 percent to 10,000                    Volatility
                                                                                                                                                                     FINRA Rule 6121.01 (Resumption of
                                                    contracts, so as not to dilute the overall              October 5, 2017.                                      Trading in Securities Subject to the
                                                    trading requirement.22 The Commission                      Pursuant to Section 19(b)(1) of the                Regulation NMS Plan to Address
                                                    therefore believes that the Exchange’s                  Securities Exchange Act of 1934                       Extraordinary Market Volatility)
                                                    proposal should continue to encourage                   (‘‘Act’’) 1 and Rule 19b–4 thereunder,2               (‘‘Rule’’) addresses the circumstances
                                                    active market making and thereby                        notice is hereby given that on                        under which a member may resume
                                                    promote the provision of liquidity to the               September 29, 2017, Financial Industry                trading otherwise than on an exchange
                                                    market. The Commission also notes that                  Regulatory Authority, Inc. (‘‘FINRA’’)                following a Trading Pause or Regulatory
                                                    non-SQT ROTs continue to have the                       filed with the Securities and Exchange                Halt in an NMS Stock that is subject to
                                                    option of complying with the current                    Commission (‘‘SEC’’ or ‘‘Commission’’)                the Plan.
                                                    requirement (i.e., the 1000/300                         the proposed rule change as described
                                                                                                            in Items I, II, and III below, which Items               The Rule currently provides that,
                                                    Alternative) if they so choose.                                                                               following a Trading Pause or Regulatory
                                                    Accordingly, the Commission believes                    have been prepared by FINRA. FINRA
                                                                                                            has designated the proposed rule change               Halt in an NMS Stock that is subject to
                                                    that the Exchange’s proposed                                                                                  the Plan, a member may resume trading
                                                                                                            as constituting a ‘‘non-controversial’’
                                                    amendments to create the New                                                                                  otherwise than on an exchange if
                                                                                                            rule change under paragraph (f)(6) of
                                                    Alternative standard to satisfy the                     Rule 19b–4 under the Act,3 which                      trading has commenced on the Primary
                                                    quarterly trading requirement is                        renders the proposal effective upon                   Listing Exchange (or on another national
                                                    reasonably designed to preserve the                     receipt of this filing by the Commission.             securities exchange in the case of the
                                                    market making function performed by                     The Commission is publishing this                     resumption of trading following a ten-
                                                    non-SQT ROTs and thereby serves to                      notice to solicit comments on the                     minute Trading Pause) and either: (1)
                                                    maintain a fair and orderly market and                  proposed rule change from interested                  The member has received the Price
                                                    should remove impediments to and                        persons.                                              Bands from the Processor; or (2) if
                                                    perfect the mechanism of a free and                                                                           immediately following a Trading Pause
                                                                                                            I. Self-Regulatory Organization’s
                                                    open market and a national market                                                                             or Regulatory Halt the member has not
                                                                                                            Statement of the Terms of Substance of
                                                    system and help protect investors and                                                                         yet received the Price Bands from the
                                                                                                            the Proposed Rule Change
                                                    the public interest, consistent with                                                                          Processor, the member has calculated an
                                                    Section 6(b)(5) of the Act.                                FINRA is proposing to amend FINRA                  upper price band and lower price band
                                                                                                            Rule 6121 (Trading Halts Due to                       consistent with the methodology
                                                    IV. Conclusion                                          Extraordinary Market Volatility) to                   provided for in Section V of the Plan
                                                                                                            reflect recent amendments to the                      and ensures that any transactions prior
                                                      It is therefore ordered, pursuant to                  Regulation NMS Plan to Address
                                                    Section 19(b)(2) of the Act 23 that the                                                                       to the receipt of the Price Bands from
                                                                                                            Extraordinary Volatility (‘‘Plan’’)                   the Processor are within the ranges
                                                    proposed rule change (SR–Phlx–2017–                     regarding the resumption of trading in a
                                                    67), be, and hereby is, approved.                                                                             provided for pursuant to the Plan. In
                                                                                                            security subject to the Plan.4                        addition, the Rule provides that, where
                                                      For the Commission, by the Division of                   The text of the proposed rule change
                                                                                                                                                                  the Primary Listing Exchange does not
                                                    Trading and Markets, pursuant to delegated              is available on FINRA’s Web site at
                                                                                                                                                                  reopen for trading at the end of a ten-
                                                    authority.24                                            http://www.finra.org, at the principal
                                                                                                                                                                  minute Trading Pause (and has issued
                                                    Eduardo A. Aleman,                                      office of FINRA and at the
                                                                                                                                                                  notice that it cannot resume trading for
                                                                                                            Commission’s Public Reference Room.
                                                    Assistant Secretary.                                                                                          a reason other than a significant
                                                    [FR Doc. 2017–21996 Filed 10–11–17; 8:45 am]            II. Self-Regulatory Organization’s                    imbalance), a member may resume
                                                    BILLING CODE 8011–01–P
                                                                                                            Statement of the Purpose of, and                      trading otherwise than on an exchange
                                                                                                            Statutory Basis for, the Proposed Rule                if trading has commenced in such NMS
                                                                                                            Change                                                Stock on at least one other national
                                                                                                               In its filing with the Commission,                 securities exchange.
                                                                                                            FINRA included statements concerning                     On January 19, 2017, the Commission
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                                                                            the purpose of and basis for the                      approved the Twelfth Amendment to
                                                                                                            proposed rule change and discussed any                the Plan, which provides, among other
                                                                                                                                                                  things, that a Trading Pause will
                                                      20 See id. at 39928.
                                                                                                              1 15 U.S.C. 78s(b)(1).                              continue until the Primary Listing
                                                                                                              2 17 CFR 240.19b–4.
                                                      21 See id. at 39927 and 39928.                                                                              Exchange has reopened trading using its
                                                                                                              3 17 CFR 240.19b–4(f)(6).
                                                      22 See id. at 39927.
                                                                                                              4 Unless otherwise specified, the capitalized
                                                                                                                                                                  established reopening procedures, even
                                                      23 15 U.S.C. 78s(b)(2).
                                                                                                            terms used herein have the same meanings as set
                                                                                                                                                                  if such reopening is more than 10
                                                      24 17 CFR 200.30–3(a)(12).                            forth in the Plan.                                    minutes after the beginning of a Trading


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                                                                                Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices                                         47587

                                                    Pause.5 The Twelfth Amendment                           Price Bands from the Processor and at                 necessary or appropriate in furtherance
                                                    generally provides that the only time                   least one other national security                     of the purposes of the Act. The
                                                    trading may resume in the absence of a                  exchange has already resumed trading.                 proposed rule change seeks to conform
                                                    Reopening Price from the Primary                        FINRA believes that requiring trading to              the requirements applicable to member
                                                    Listing Exchange is if the Primary                      first commence on at least one other                  trading otherwise than on an exchange
                                                    Listing Exchange notifies the Processor                 national securities exchange prior to the             under the Rule to the Twelfth
                                                    that it is unable to reopen due to a                    resumption of trading over the counter                Amendment to the Plan.
                                                    systems or technology issue.                            continues to be appropriate and is
                                                       To conform to this change, FINRA is                  consistent with existing FINRA rules                  C. Self-Regulatory Organization’s
                                                    amending Rule 6121.01 to provide that                   and guidance regarding the resumption                 Statement on Comments on the
                                                    a member may not resume trading                         of over-the-counter trading in a paused               Proposed Rule Change Received From
                                                    otherwise than on an exchange                           security.8                                            Members, Participants, or Others
                                                    following a Trading Pause or Regulatory                    FINRA has filed the proposed rule                    Written comments were neither
                                                    Halt in an NMS Stock that is subject to                 change for immediate effectiveness. The               solicited nor received.
                                                    the Plan unless trading has commenced                   operative date of the proposed rule
                                                    on the Primary Listing Exchange and                     change will be the same as the                        III. Date of Effectiveness of the
                                                    either: (1) The member has received the                 implementation date of the Twelfth                    Proposed Rule Change and Timing for
                                                    Price Bands from the Processor; or (2) if               Amendment to the Plan.9                               Commission Action
                                                    the Processor hasn’t yet disseminated                   2. Statutory Basis                                       Because the foregoing proposed rule
                                                    Price Bands, but a Reference Price is                                                                         change does not: (i) Significantly affect
                                                    available, the member calculates and                       FINRA believes that the proposed rule              the protection of investors or the public
                                                    applies Price Bands based on the same                   change is consistent with the provisions              interest; (ii) impose any significant
                                                    Reference Price that the Processor                      of Section 15A(b)(6) of the Act,10 which
                                                                                                                                                                  burden on competition; and (iii) become
                                                    would use for calculating such Price                    requires, among other things, that
                                                                                                                                                                  operative for 30 days from the date on
                                                    Bands until such member receives Price                  FINRA rules must be designed to
                                                                                                                                                                  which it was filed, or such shorter time
                                                    Bands from the Processor, consistent                    prevent fraudulent and manipulative
                                                                                                                                                                  as the Commission may designate, it has
                                                    with Section V(A)(1) 6 of the Plan (i.e.,               acts and practices, to promote just and
                                                                                                                                                                  become effective pursuant to Section
                                                    ‘‘Synthetic Price Bands’’). Thus,                       equitable principles of trade, and, in
                                                                                                                                                                  19(b)(3)(A) of the Act 14 and Rule 19b–
                                                    consistent with the Twelfth                             general, to protect investors and the
                                                                                                                                                                  4(f)(6) thereunder.15
                                                    Amendment, the proposed amendments                      public interest.
                                                                                                               The proposed rule change is designed                  At any time within 60 days of the
                                                    provide that a member may only use                                                                            filing of the proposed rule change, the
                                                                                                            to conform to the Twelfth Amendment
                                                    Synthetic Price Bands in the limited                                                                          Commission summarily may
                                                                                                            to the Plan, which was approved by the
                                                    circumstance where a Reference Price is                 Commission as being consistent with                   temporarily suspend such rule change if
                                                    available but Price Bands have not yet                  Section 11A of the Act 11 and Rule 608                it appears to the Commission that such
                                                    been disseminated by the Processor.7                    thereunder 12 because it is appropriate               action is necessary or appropriate in the
                                                       Finally, the proposed amendments                                                                           public interest, for the protection of
                                                                                                            in the public interest, for the protection
                                                    provide that a member may,                                                                                    investors, or otherwise in furtherance of
                                                                                                            of investors and the maintenance of fair
                                                    nonetheless, resume trading otherwise                                                                         the purposes of the Act. If the
                                                                                                            and orderly markets, and that it removes
                                                    than on an exchange in an NMS Stock                                                                           Commission takes such action, the
                                                                                                            impediments to, and perfects the
                                                    that is subject to the Plan if the Primary                                                                    Commission shall institute proceedings
                                                                                                            mechanism of, a national market
                                                    Listing Exchange notifies the Processor                                                                       to determine whether the proposed rule
                                                                                                            system.13 The proposed rule change
                                                    that it is unable to reopen the security                                                                      should be approved or disapproved.
                                                                                                            seeks to help ensure that the goals of the
                                                    due to a systems or technology issue, or
                                                                                                            Plan are met; thus, FINRA believes that               IV. Solicitation of Comments
                                                    if the Primary Listing Exchange reopens
                                                                                                            the proposed rule change will further
                                                    trading with a quotation that has a zero                                                                        Interested persons are invited to
                                                                                                            the goals of investor protection and fair
                                                    bid or zero offer, or both, and: (1) The                                                                      submit written data, views and
                                                                                                            and orderly markets.
                                                    member has received the Price Bands                                                                           arguments concerning the foregoing,
                                                    from the Processor; and (2) trading has                 B. Self-Regulatory Organization’s                     including whether the proposed rule
                                                    commenced on at least one other                         Statement on Burden on Competition                    change is consistent with the Act.
                                                    national securities exchange. In these                    FINRA does not believe that the                     Comments may be submitted by any of
                                                    limited circumstances, trading may                      proposed rule change will result in any               the following methods:
                                                    resume otherwise than on an exchange                    burden on competition that is not
                                                    in the absence of a Reopening Price                                                                           Electronic Comments
                                                    from the Primary Listing Exchange, but                    8 See FAQ #6 (When can trading in a paused            • Use the Commission’s Internet
                                                    only where the member has received the                  security resume?) in Regulatory Notice 10–30 (June    comment form (http://www.sec.gov/
                                                                                                            2010); see also Regulatory Notice 13–12 (March
                                                                                                            2013).
                                                                                                                                                                  rules/sro.shtml); or
                                                       5 See Securities Exchange Act Release No. 79410

                                                    (November 28, 2016), 81 FR 87114 (December 2,
                                                                                                              9 See Securities Exchange Act Release No. 81720       • Send an email to rule-comments@
                                                    2016) (Notice of Filing of the Twelfth Amendment        (September 26, 2017), https://www.sec.gov/rules/      sec.gov. Please include File Number SR–
                                                    to the National Market System Plan to Address           sro/nms/2017/34-81720.pdf (Notice of Filing and       FINRA–2017–031 on the subject line.
                                                    Extraordinary Market Volatility) (‘‘Twelfth             Immediate Effectiveness of the Fifteenth
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    Amendment’’); see also Securities Exchange Act          Amendment to the National Market System Plan to       Paper Comments
                                                    Release No. 79845 (January 19, 2017), 82 FR 8551        Address Extraordinary Market Volatility) (providing
                                                    (January 26, 2017) (Order Approving the Twelfth         that the implementation date for the changes to the     • Send paper comments in triplicate
                                                    Amendment to the National Market System Plan to         Plan set forth in the Twelfth and Thirteenth          to Secretary, Securities and Exchange
                                                    Address Extraordinary Market Volatility)                Amendment would be changed to no later than
                                                                                                            November 30, 2017).
                                                                                                                                                                  Commission, 100 F Street NE.,
                                                    (‘‘Approval Order’’).
                                                       6 FINRA is correcting a reference to the Plan in       10 15 U.S.C. 78o–3(b)(6).                           Washington, DC 20549–1090.
                                                                                                              11 15 U.S.C. 78k–1.
                                                    the existing rule text by replacing ‘‘Section
                                                    VI(A)(1)’’ with ‘‘Section V(A)(1).’’                      12 17 CFR 242.608.                                    14 15   U.S.C. 78s(b)(3)(A).
                                                       7 See supra note 5.                                    13 See Approval Order at 8552.                        15 17   CFR 240.19b–4(f)(6).



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                                                    47588                              Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices

                                                    All submissions should refer to File                                   SECURITIES AND EXCHANGE                                II. Self-Regulatory Organization’s
                                                    Number SR–FINRA–2017–031. This file                                    COMMISSION                                             Statement of the Purpose of, and
                                                    number should be included on the                                                                                              Statutory Basis for, the Proposed Rule
                                                    subject line if email is used. To help the                             [Release No. 34–81828; File No. SR–                    Change
                                                    Commission process and review your                                     NYSEAMER–2017–22]
                                                    comments more efficiently, please use                                                                                           In its filing with the Commission, the
                                                    only one method. The Commission will                                   Self-Regulatory Organizations; NYSE                    self-regulatory organization included
                                                    post all comments on the Commission’s                                  American LLC; Notice of Filing and                     statements concerning the purpose of,
                                                    Internet Web site (http://www.sec.gov/                                 Immediate Effectiveness of Proposed                    and basis for, the proposed rule change
                                                    rules/sro.shtml). Copies of the                                                                                               and discussed any comments it received
                                                                                                                           Change To Modify the NYSE American
                                                    submission, all subsequent                                                                                                    on the proposed rule change. The text
                                                                                                                           Options Fee Schedule
                                                    amendments, all written statements                                                                                            of those statements may be examined at
                                                    with respect to the proposed rule                                      October 5, 2017.                                       the places specified in Item IV below.
                                                    change that are filed with the                                                                                                The Exchange has prepared summaries,
                                                    Commission, and all written                                               Pursuant to Section 19(b)(1) 1 of the
                                                                                                                           Securities Exchange Act of 1934 (the                   set forth in sections A, B, and C below,
                                                    communications relating to the                                                                                                of the most significant parts of such
                                                    proposed rule change between the                                       ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                                                                                           notice is hereby given that, on October                statements.
                                                    Commission and any person, other than
                                                    those that may be withheld from the                                    4, 2017, NYSE American LLC (the                        A. Self-Regulatory Organization’s
                                                    public in accordance with the                                          ‘‘Exchange’’ or ‘‘NYSE American’’) filed               Statement of the Purpose of, and the
                                                    provisions of 5 U.S.C. 552, will be                                    with the Securities and Exchange                       Statutory Basis for, the Proposed Rule
                                                    available for Web site viewing and                                     Commission (the ‘‘Commission’’) the                    Change
                                                    printing in the Commission’s Public                                    proposed rule change as described in
                                                    Reference Room, 100 F Street NE.,                                      Items I, II, and III below, which Items                1. Purpose
                                                    Washington, DC 20549, on official                                      have been prepared by the self-                          The purpose of this filing is to modify
                                                    business days between the hours of 10                                  regulatory organization. The
                                                    a.m. and 3 p.m. Copies of such filing                                                                                         the Fee Schedule, effective October 4,
                                                                                                                           Commission is publishing this notice to                2017. Specifically, the Exchange
                                                    also will be available for inspection and                              solicit comments on the proposed rule
                                                    copying at the principal office of                                                                                            proposes to (i) modify the monthly rates
                                                                                                                           change from interested persons.                        for certain American Trading Permits
                                                    FINRA. All comments received will be
                                                    posted without change; the Commission                                  I. Self-Regulatory Organization’s                      (each an ‘‘ATP’’); and (ii) reduce the
                                                    does not edit personal identifying                                     Statement of the Terms of Substance of                 Messages to Contracts Traded Ratio
                                                    information from submissions. You                                      the Proposed Rule Change                               Fees.
                                                    should submit only information that
                                                                                                                              The Exchange proposes to modify the                 Monthly ATP Fees
                                                    you wish to make available publicly. All
                                                    submissions should refer to File                                       NYSE American Options Fee Schedule                       NYSE American Market Makers (each,
                                                    Number SR–FINRA–2017–031 and                                           (‘‘Fee Schedule’’). The Exchange                       an ‘‘MM’’) must have a certain number
                                                    should be submitted on or before                                       proposes to implement the fee change                   of ATPs each month in order to submit
                                                    November 2, 2017.                                                      effective October 4, 2017.4 The                        electronic quotations in option issues in
                                                      For the Commission, by the Division of                               proposed change is available on the                    their appointment.5 The Exchange
                                                    Trading and Markets, pursuant to delegated                             Exchange’s Web site at www.nyse.com,                   currently employs a sliding scale for the
                                                    authority.16                                                           at the principal office of the Exchange,               cost to each MM per ATP, with the
                                                    Eduardo A. Aleman,                                                     and at the Commission’s Public                         amount decreasing as the number of
                                                    Assistant Secretary.                                                   Reference Room.                                        ATPs utilized increases, as follows: 6
                                                    [FR Doc. 2017–21994 Filed 10–11–17; 8:45 am]
                                                    BILLING CODE 8011–01–P


                                                                                                                                      Monthly fee
                                                                                   ATP type                                                               Number of issues permitted in a market makers quoting assignment
                                                                                                                                       per ATP

                                                    MM   1st ATP ..................................................................           $8,000     60 plus the Bottom 45%.
                                                    MM   2nd ATP ................................................................              6,000     150 plus the Bottom 45%.
                                                    MM   3rd ATP .................................................................             5,000     500 plus the Bottom 45%.
                                                    MM   4th ATP .................................................................             4,000     1,100 plus the Bottom 45%.
                                                    MM   5th ATP .................................................................             3,000     All issues traded on the Exchange.
                                                    MM   6th or more ATPs ..................................................                   2,000     All issues traded on the Exchange.



                                                      Thus, an MM that would like the                                      must pay for the requisite number of                   needs to be able to submit quotes in all
                                                    privilege of quoting in all issues traded                              ATPs for each individual MM to submit                  issues traded on the Exchange. In this
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    on the Exchange must have at least five                                quotes on the Exchange. For example,                   example, the MM firm would have to
                                                    ATPs. And, if an MM firm sponsors                                      assume an MM firm has three                            pay for 15 ATPs (five for each
                                                    multiple individual MMs, the MM firm                                   individual MMs and that each MM                        individual MM).
                                                      16 17 CFR 200.30–3(a)(12).                                             4 The Exchange originally filed to amend the Fee     publicdocs/nyse/markets/american-options/NYSE_
                                                      1 15 U.S.C.78s(b)(1).                                                Schedule on September 29, 2017 (SR–NYSEAmer–           American_Options_Fee_Schedule.pdf.
                                                      2 15 U.S.C. 78a.                                                     2017–20) and withdrew such filing on October 4,          6 See id. (providing, in relevant part, that ‘‘[e]ach

                                                      3 17 CFR 240.19b–4.
                                                                                                                           2017.                                                  calendar quarter, with a one-month lag, the
                                                                                                                             5 See Fee Schedule, Section III.A. (Monthly ATP      Exchange will publish on its Web site a list of the
                                                                                                                           Fees), available here, https://www.nyse.com/           Bottom 45% of issues traded’’).



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Document Created: 2018-10-25 10:06:32
Document Modified: 2018-10-25 10:06:32
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 47586 

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