82 FR 48870 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 80C, 104, 107B, and 128
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 202 (October 20, 2017)
Federal Register Volume 82, Issue 202 (October 20, 2017)
| Page Range | 48870-48873 | |
| FR Document | 2017-22755 |
[Federal Register Volume 82, Number 202 (Friday, October 20, 2017)] [Notices] [Pages 48870-48873] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-22755] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81880; File No. SR-NYSE-2017-51] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 80C, 104, 107B, and 128 October 16, 2017. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that on October 3, 2017, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') filed with the Securities and Exchange Commission (``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. --------------------------------------------------------------------------- \1\ 15 U.S.C.78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rules 80C, 104, 107B, and 128. 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 [[Page 48871]] the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Rule 80C(b) (Limit Up-Limit Down Plan and Trading Pauses in Individual Securities Due to Extraordinary Market Volatility) to conform its rule governing trading pauses to forthcoming changes to be implemented to the Regulation NMS Plan to Address Extraordinary Market Volatility (``Plan''); \4\ Rule 104(a)(1)(B) (Dealings and Responsibilities of DMMs) and Rule 107B (Supplemental Liquidity Providers) to delete obsolete rule cross references; and Rule 128(a) (Clearly Erroneous Executions For NYSE Equities) to exclude executions as a result of a reopening transaction from review as clearly erroneous transactions. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 79845 (January 19, 2017), 82 FR 8551 (January 26, 2017) (File No. 4-631) (Order Approving the twelfth amendment to the Plan) (``LULD Amendment 12''). See also Securities Exchange Act Release Nos. 80455 (April 13, 2017), 82 FR 18519 (April 19, 2017) (File No. 4-631) (Order approving the thirteenth amendment to the Plan) and 81720 (September 26, 2017), 82 FR 45922 (October 2, 2017) (File No. 4-631) (Notice of immediate effectiveness of fifteenth amendment to the Plan, which extended the implementation date of LULD Amendment 12). --------------------------------------------------------------------------- Discussion Among other things, LULD Amendment 12 would require that trading centers may not resume trading in an NMS Stock following a Trading Pause without Price Bands in such NMS Stock.\5\ Such Price Bands would be based on the Reopening Price reported by a Primary Listing Exchange, unless a Primary Listing Exchange notifies the Processor that it is unable to reopen trading in an NMS Stock due to a systems or technology issue. In such case, the Price Band would be the last effective Price Band that was in a Limit State before the Trading Pause. Accordingly, once LULD Amendment 12 is implemented, trading centers may not resume trading if a Primary Listing Exchange does not report a Reopening Price within ten minutes after the declaration of a Trading Pause. In addition, under LULD Amendment 12, if an NMS Stock is in a Trading Pause during the last ten minutes of trading before the end of Regular Trading Hours, the Primary Listing Exchange shall not reopen trading and shall attempt to execute a closing transaction using its established closing procedures. --------------------------------------------------------------------------- \5\ Unless otherwise specified, capitalized terms used herein have the same meaning as set forth in the Plan or in Exchange rules. --------------------------------------------------------------------------- In anticipation of the implementation of LULD Amendment 12, the Exchange proposes to amend Rule 80C(b) to delete obsolete text and conform the remaining text to LULD Amendment 12.\6\ First, the Exchange proposes to amend Rule 80C(b) to delete the text following the heading of Rule 80C(b) and delete Rules 80C(b)(1), (b)(1)(A)-(C), and (b)(3). This rule text governed how trading pauses were triggered before the Plan was implemented and is now obsolete. Second, the Exchange proposes that the text currently set forth in Rule 80C(b)(2), (b)(2)(B), and (b)(2)(E) would be moved to be the rule text for Rule 80C(b). In moving this rule text, the Exchange proposes to delete the rule text currently set forth in Rules 80C(b)(2)(C) and (D) as inconsistent with LULD Amendment 12, described above.\7\ Third, the Exchange proposes to re- number current Rule 80C(b)(4) as proposed Rule 80C(b)(1) and amend this paragraph to add that the Exchange would notify the Processor if the Exchange is unable to reopen trading at the end of a Trading pause due to a systems or technology issue, which is consistent with LULD Amendment 12. Fourth, the Exchange proposes to delete Rule 80C(b)(5) as inapplicable to the Exchange application of Rule 80C, which governs trading only in NYSE-listed securities. --------------------------------------------------------------------------- \6\ The proposed amendments to Rule 80C are based on amendments to NYSE Arca, Inc. (``NYSE Arca'') Rule 7.11-E that similarly relate to the implementation of LULD Amendment 12. See Securities Exchange Act Release Nos. 79846 (January 19, 2017), 82 FR 8548 (January 26, 2017) (SR-NYSEArca-2016-130) (Approval Order) (the ``NYSE Arca Reopening Filing''). \7\ The text that the Exchange would delete provides that ``[i]n the event of a significant imbalance at the end of a Trading Pause, the Exchange may delay the re-opening of a security'' and ``[t]he Exchange will issue a notification if it cannot resume trading for a reason other than a significant imbalance.'' --------------------------------------------------------------------------- Finally, the Exchange proposes to add proposed Rule 80C(b)(2), which would specify how the Exchange would process orders if there is a Trading Pause during the last ten minutes of trading before the end of Regular Trading Hours. As proposed, if the reopening following a Trading Pause would be in the last ten minutes of trading before the end of regular trading hours, the Exchange would not reopen trading in that security and would not transition to continuous trading. As further proposed and consistent with LULD Amendment 12, the Exchange would remain paused and would conduct a closing transaction in such security as provided for in Rule 123C. The proposed rule would further provide that in such circumstances, MOO and LOO Orders entered during the Trading Pause would not participate in the closing auction and would be cancelled.\8\ The Exchange proposes to add this rule text to provide transparency to member organizations of how orders that are designated to participate in a reopening transaction would be handled if the Exchange transitions to a closing auction without first reopening trading.\9\ --------------------------------------------------------------------------- \8\ This proposed rule text is based on NYSE Arca Rule 7.35- E(e)(10). See Securities Exchange Act Release No. 81603 (September 13, 2017), 82 FR 43609 (September 18, 2017) (SR-NYSEArca-2017-102) (``Arca Filing''). \9\ The Exchange also proposes non-substantive amendments to changes references from the term ``shall'' to the term ``will.'' --------------------------------------------------------------------------- In addition, the Exchange proposes to amend Rule 104(a)(1)(B)(iii) and (iv) and Rule 107B(d)(1)(B)(iii) and (iv) to remove obsolete cross references and to reflect that the applicable percentages are based on how a security is designated under the Plan.\10\ Rules 104(a)(1)(B) and 107B(d)(1)(B) set forth, among other things, the obligation of DMMs and SLMMs to maintain a bid (offer) not more than the ``Designated Percentage'' away from the then current National Best Bid (Offer) (``NBBO'') and if the NBBO changes such that the DMM's or SLMM's bid/ offer is more than the ``Defined Limit'' away from the NBBO, the DMM or SLMM must enter an updated bid (offer). The Exchange proposes to amend Rule 104(a)(1)(B)(iii) and (iv) and Rule 107B(d)(1)(B)(iii) and (iv) to remove cross-references to Rule 80C and instead use Plan definitions for specifying which securities are subject to which ``Designated Percentages'' and ``Defined Limits.'' Accordingly, as proposed, these rules would be amended as follows: --------------------------------------------------------------------------- \10\ The Exchange's affiliated equities exchanges have made similar change to their rules. See Arca Reopen [sic] Filing, supra note 8 (amending NYSE Arca Rule 7.23-E(a)(1)(B)(iii) and (iv)) and Securities Exchange Act Release No. 80577 (May 2, 2017), 82 FR 21446 (May 8, 2017) (SR-NYSEMKT-2017-04) (Order approving NYSE American LLC (``NYSE American'') Rule 7.23E(a)(1)(B)(iii) and (iv)). The proposed rule changes are also based on Bats BZX, Inc. (``BZX'') Rule 11.8(d)(2)(D) and (E). ---------------------------------------------------------------------------The phrase ``securities subject to Rule 80C(a)(i)'' would be replaced with the phrases ``Tier 1 NMS Stocks under the Limit Up- Limit Down Plan'' or ``Tier 1 NMS Stocks;'' the phrase ``securities subject to Rule 80C(a)(ii)'' would be replaced with the phrases ``Tier 2 NMS Stocks under the Limit Up- Limit Down Plan with a price equal to or greater than $1.00'' or [[Page 48872]] ``Tier 2 NMS Stocks with a price equal to or greater than $1.00;'' the phrase ``securities subject to Rule 80C(a)(iii)'' would be replaced with the phrase ``Tier 2 NMS Stocks with a price lower than $1.00;'' and The phrase ``when Rule 80C is not in effect'' would be deleted. Because rights and warrants are not subject to the Plan, but are subject to market maker quoting requirements, the Exchange proposes to provide that for purposes of Rule 104(a)(1)(B)(iii) and (iv) and Rule 107B(d)(1)(B)(iii) and (iv), rights and warrants would be considered Tier 2 NMS Stocks. This proposed rule text is consistent with current practice and the now-obsolete cross references to Rule 80C.\11\ --------------------------------------------------------------------------- \11\ Securities previously subject to Rule 80C(a)(ii) were all NMS Stocks, other than securities included in the S&P 500[supreg] Index, Russell 1000[supreg] Index, and a pilot list of Exchange Traded Products, with a price equal to or greater than $1 and securities previously subject to Rule 80C(a)(iii) were all NMS Stocks, other than securities included in the S&P 500[supreg] Index, Russell 1000[supreg] Index, and a pilot list of Exchange Traded Products, with a price less than $1.00. See Securities Exchange Act Release No. 64420 (May 6, 2011), 76 FR 27675 (May 12, 2011) (SR- NYSE-2011-21) (Notice of filing). --------------------------------------------------------------------------- Finally, the Exchange proposes to amend Rule 128(a) to provide that executions as a result of reopening transaction would not be eligible for a request to review as clearly erroneous under paragraph (b) of Rule 128. This proposed rule changes is based on changes approved in the NYSE Arca Reopening Filing for NYSE Arca Rule 7.10-E.\12\ The Exchange believes that the proposed rule text would implement the standardized trading practice that reopening auctions would not be eligible for review as a clearly erroneous execution. --------------------------------------------------------------------------- \12\ See NYSE Arca Reopening Filing, supra note 6. --------------------------------------------------------------------------- Because of the technology changes associated with the proposed amendments to Rule 80C and 128, the Exchange will announce the implementation date of those proposed rule changes by Trader Update, which will be no later than the scheduled implementation date of LULD Amendment 12. The Exchange proposes that the amendments to Rule 104 and 107B would be operative upon the operative date of this proposed rule change. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\13\ in general, and furthers the objectives of Section 6(b)(5),\14\ 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the proposed changes would 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, because they are designed to conform the Exchange's rules with LULD Amendment 12. The Exchange believes that the proposed amendments to Rule 80C would remove impediments to and perfect the mechanism of a free and open market and a national market system because they would remove obsolete rule text and amend the remaining rule text to conform to the requirements of LULD Amendment 12, described above. The Exchange further believes that the proposed amendments to Rule 104(a)(1)(B) and Rule 107B(d)(1)(B) would remove impediments to and perfect the mechanism of a free and open market and a national market system because they would remove obsolete rule references and conform the Exchange's rules with those of NYSE American and BZX. Finally, the Exchange believes that the proposed amendments to Rule 128(a) would provide for uniform clearly erroneous rules across all Primary Listing Exchanges, thus providing certainty to member organizations of when a trade would be eligible for review as a clearly erroneous execution. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that the proposed rule change is not designed to address any competitive issues, but rather, to eliminate obsolete rule text and conform Exchange rules with changes that will be implemented with LULD Amendment 12. 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(6) thereunder.\16\ Because the 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(iii). \16\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\18\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \17\ 17 CFR 240.19b-4(f)(6). \18\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \19\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: [[Page 48873]] 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-NYSE-2017-51 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-NYSE-2017-51. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSE-2017-51 and should be submitted on or before November 13, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-22755 Filed 10-19-17; 8:45 am] BILLING CODE 8011-01-P
![48870 Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Notices
(‘‘Phlx’’), offers its members a monthly proposed rule change, the Commission information that you wish to make
fee cap of $42,000 for its active SQF summarily may temporarily suspend available publicly. All submissions
ports.11 such rule change if it appears to the should refer to File Number SR–GEMX–
The Exchange believes that the Commission that such action is: (i) 2017–44 and should be submitted on or
proposed increase of the SQF Fee Cap Necessary or appropriate in the public before November 13, 2017.
is equitable and not unfairly interest; (ii) for the protection of For the Commission, by the Division of
discriminatory because the fee cap will investors; or (iii) otherwise in Trading and Markets, pursuant to delegated
apply uniformly to all Market Makers furtherance of the purposes of the Act. authority.13
utilizing SQF and SQF Purge Ports. If the Commission takes such action, the Eduardo A. Aleman,
Commission shall institute proceedings Assistant Secretary.
B. Self-Regulatory Organization’s to determine whether the proposed rule
Statement on Burden on Competition [FR Doc. 2017–22756 Filed 10–19–17; 8:45 am]
should be approved or disapproved.
BILLING CODE 8011–01–P
The Exchange does not believe that
IV. Solicitation of Comments
the proposed rule change will impose
any burden on competition not Interested persons are invited to
SECURITIES AND EXCHANGE
necessary or appropriate in furtherance submit written data, views, and
COMMISSION
of the purposes of the Act. The arguments concerning the foregoing,
Exchange operates in a highly including whether the proposed rule [Release No. 34–81880; File No. SR–NYSE–
competitive market in which market change is consistent with the Act. 2017–51]
participants can readily favor competing Comments may be submitted by any of
the following methods: Self-Regulatory Organizations; New
venues if they deem fee levels at a
York Stock Exchange LLC; Notice of
particular venue to be excessive, or Electronic Comments Filing and Immediate Effectiveness of
rebate opportunities available at other
venues to be more favorable. In such an • Use the Commission’s Internet Proposed Rule Change To Amend
comment form (http://www.sec.gov/ Rules 80C, 104, 107B, and 128
environment, the Exchange must
continually adjust its fees to remain rules/sro.shtml); or
October 16, 2017.
• Send an email to rule-comments@
competitive with other exchanges and Pursuant to Section 19(b)(1) 1 of the
sec.gov. Please include File Number SR–
with alternative trading systems that Securities Exchange Act of 1934
GEMX–2017–44 on the subject line.
have been exempted from compliance (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
with the statutory standards applicable Paper Comments notice is hereby given that on October
to exchanges. Because competitors are • Send paper comments in triplicate 3, 2017, New York Stock Exchange LLC
free to modify their own fees in to Brent J. Fields, Secretary, Securities (‘‘NYSE’’ or the ‘‘Exchange’’) filed with
response, and because market and Exchange Commission, 100 F Street the Securities and Exchange
participants may readily adjust their NE., Washington, DC 20549–1090. Commission (‘‘Commission’’) the
order routing practices, the Exchange All submissions should refer to File proposed rule change as described in
believes that the degree to which fee Number SR–GEMX–2017–44. This file Items I, II, and III below, which Items
changes in this market may impose any number should be included on the have been prepared by the self-
burden on competition is extremely subject line if email is used. To help the regulatory organization. The
limited. Commission process and review your Commission is publishing this notice to
In this instance, the proposed increase comments more efficiently, please use solicit comments on the proposed rule
in the SQF Fee Cap would not burden only one method. The Commission will change from interested persons.
competition because it would apply post all comments on the Commission’s
uniformly to all Market Makers utilizing I. Self-Regulatory Organization’s
Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of
SQF and SQF Purge Ports. Accordingly, rules/sro.shtml). Copies of the
the Exchange does not believe that the the Proposed Rule Change
submission, all subsequent
proposed fee changes herein will impair The Exchange proposes to amend
amendments, all written statements
the ability of members or competing Rules 80C, 104, 107B, and 128. The
with respect to the proposed rule
order execution venues to maintain proposed rule change is available on the
change that are filed with the
their competitive standing in the Exchange’s Web site at www.nyse.com,
Commission, and all written
financial markets. at the principal office of the Exchange,
communications relating to the
and at the Commission’s Public
C. Self-Regulatory Organization’s proposed rule change between the
Reference Room.
Statement on Comments on the Commission and any person, other than
Proposed Rule Change Received From those that may be withheld from the II. Self-Regulatory Organization’s
Members, Participants, or Others public in accordance with the Statement of the Purpose of, and
provisions of 5 U.S.C. 552, will be Statutory Basis for, the Proposed Rule
No written comments were either
available for Web site viewing and Change
solicited or received.
printing in the Commission’s Public In its filing with the Commission, the
III. Date of Effectiveness of the Reference Room, 100 F Street NE., self-regulatory organization included
Proposed Rule Change and Timing for Washington, DC 20549, on official statements concerning the purpose of,
Commission Action business days between the hours of and basis for, the proposed rule change
10:00 a.m. and 3:00 p.m. Copies of the
srobinson on DSKBC5CHB2PROD with NOTICES
The foregoing rule change has become and discussed any comments it received
effective pursuant to Section filing also will be available for on the proposed rule change. The text
19(b)(3)(A)(ii) of the Act.12 At any time inspection and copying at the principal of those statements may be examined at
within 60 days of the filing of the office of the Exchange. All comments
received will be posted without change; 13 17 CFR 200.30–3(a)(12).
11 See Phlx Pricing Schedule, VII. Other Member the Commission does not edit personal 1 15 U.S.C.78s(b)(1).
Fees, B. Port Fees. identifying information from 2 15 U.S.C. 78a.
12 15 U.S.C. 78s(b)(3)(A)(ii). submissions. You should submit only 3 17 CFR 240.19b–4.
VerDate Sep<11>2014 16:22 Oct 19, 2017 Jkt 244001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\20OCN1.SGM 20OCN1](https://thefederalregister.org/doc/82_FR_49072/page/1.svg)
![Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Notices 48871
the places specified in Item IV below. during the last ten minutes of trading would remain paused and would
The Exchange has prepared summaries, before the end of Regular Trading conduct a closing transaction in such
set forth in sections A, B, and C below, Hours, the Primary Listing Exchange security as provided for in Rule 123C.
of the most significant parts of such shall not reopen trading and shall The proposed rule would further
statements. attempt to execute a closing transaction provide that in such circumstances,
using its established closing procedures. MOO and LOO Orders entered during
A. Self-Regulatory Organization’s the Trading Pause would not participate
In anticipation of the implementation
Statement of the Purpose of, and the in the closing auction and would be
of LULD Amendment 12, the Exchange
Statutory Basis for, the Proposed Rule cancelled.8 The Exchange proposes to
proposes to amend Rule 80C(b) to delete
Change add this rule text to provide
obsolete text and conform the remaining
1. Purpose text to LULD Amendment 12.6 First, the transparency to member organizations
The Exchange proposes to amend Exchange proposes to amend Rule of how orders that are designated to
Rule 80C(b) (Limit Up-Limit Down Plan 80C(b) to delete the text following the participate in a reopening transaction
heading of Rule 80C(b) and delete Rules would be handled if the Exchange
and Trading Pauses in Individual
80C(b)(1), (b)(1)(A)–(C), and (b)(3). This transitions to a closing auction without
Securities Due to Extraordinary Market
rule text governed how trading pauses first reopening trading.9
Volatility) to conform its rule governing
were triggered before the Plan was In addition, the Exchange proposes to
trading pauses to forthcoming changes amend Rule 104(a)(1)(B)(iii) and (iv) and
to be implemented to the Regulation implemented and is now obsolete.
Second, the Exchange proposes that the Rule 107B(d)(1)(B)(iii) and (iv) to
NMS Plan to Address Extraordinary remove obsolete cross references and to
Market Volatility (‘‘Plan’’); 4 Rule text currently set forth in Rule 80C(b)(2),
(b)(2)(B), and (b)(2)(E) would be moved reflect that the applicable percentages
104(a)(1)(B) (Dealings and are based on how a security is
Responsibilities of DMMs) and Rule to be the rule text for Rule 80C(b). In
moving this rule text, the Exchange designated under the Plan.10 Rules
107B (Supplemental Liquidity 104(a)(1)(B) and 107B(d)(1)(B) set forth,
Providers) to delete obsolete rule cross proposes to delete the rule text currently
set forth in Rules 80C(b)(2)(C) and (D) as among other things, the obligation of
references; and Rule 128(a) (Clearly DMMs and SLMMs to maintain a bid
Erroneous Executions For NYSE inconsistent with LULD Amendment 12,
described above.7 Third, the Exchange (offer) not more than the ‘‘Designated
Equities) to exclude executions as a Percentage’’ away from the then current
result of a reopening transaction from proposes to re-number current Rule
80C(b)(4) as proposed Rule 80C(b)(1) National Best Bid (Offer) (‘‘NBBO’’) and
review as clearly erroneous transactions. if the NBBO changes such that the
and amend this paragraph to add that
Discussion the Exchange would notify the DMM’s or SLMM’s bid/offer is more
Processor if the Exchange is unable to than the ‘‘Defined Limit’’ away from the
Among other things, LULD
reopen trading at the end of a Trading NBBO, the DMM or SLMM must enter
Amendment 12 would require that
pause due to a systems or technology an updated bid (offer). The Exchange
trading centers may not resume trading
issue, which is consistent with LULD proposes to amend Rule 104(a)(1)(B)(iii)
in an NMS Stock following a Trading
Amendment 12. Fourth, the Exchange and (iv) and Rule 107B(d)(1)(B)(iii) and
Pause without Price Bands in such NMS
proposes to delete Rule 80C(b)(5) as (iv) to remove cross-references to Rule
Stock.5 Such Price Bands would be
inapplicable to the Exchange 80C and instead use Plan definitions for
based on the Reopening Price reported
application of Rule 80C, which governs specifying which securities are subject
by a Primary Listing Exchange, unless a
trading only in NYSE-listed securities. to which ‘‘Designated Percentages’’ and
Primary Listing Exchange notifies the
Finally, the Exchange proposes to add ‘‘Defined Limits.’’ Accordingly, as
Processor that it is unable to reopen
proposed Rule 80C(b)(2), which would proposed, these rules would be
trading in an NMS Stock due to a
specify how the Exchange would amended as follows:
systems or technology issue. In such • The phrase ‘‘securities subject to
case, the Price Band would be the last process orders if there is a Trading
Rule 80C(a)(i)’’ would be replaced with
effective Price Band that was in a Limit Pause during the last ten minutes of
the phrases ‘‘Tier 1 NMS Stocks under
State before the Trading Pause. trading before the end of Regular
the Limit Up-Limit Down Plan’’ or ‘‘Tier
Accordingly, once LULD Amendment Trading Hours. As proposed, if the
1 NMS Stocks;’’
12 is implemented, trading centers may reopening following a Trading Pause
• the phrase ‘‘securities subject to
not resume trading if a Primary Listing would be in the last ten minutes of
Rule 80C(a)(ii)’’ would be replaced with
Exchange does not report a Reopening trading before the end of regular trading
the phrases ‘‘Tier 2 NMS Stocks under
Price within ten minutes after the hours, the Exchange would not reopen
the Limit Up-Limit Down Plan with a
declaration of a Trading Pause. In trading in that security and would not
price equal to or greater than $1.00’’ or
addition, under LULD Amendment 12, transition to continuous trading. As
if an NMS Stock is in a Trading Pause further proposed and consistent with 8 This proposed rule text is based on NYSE Arca
LULD Amendment 12, the Exchange Rule 7.35–E(e)(10). See Securities Exchange Act
4 See Securities Exchange Act Release No. 79845 Release No. 81603 (September 13, 2017), 82 FR
(January 19, 2017), 82 FR 8551 (January 26, 2017) 6 The proposed amendments to Rule 80C are 43609 (September 18, 2017) (SR–NYSEArca–2017–
(File No. 4–631) (Order Approving the twelfth based on amendments to NYSE Arca, Inc. (‘‘NYSE 102) (‘‘Arca Filing’’).
amendment to the Plan) (‘‘LULD Amendment 12’’). Arca’’) Rule 7.11–E that similarly relate to the 9 The Exchange also proposes non-substantive
See also Securities Exchange Act Release Nos. implementation of LULD Amendment 12. See amendments to changes references from the term
80455 (April 13, 2017), 82 FR 18519 (April 19, Securities Exchange Act Release Nos. 79846 ‘‘shall’’ to the term ‘‘will.’’
2017) (File No. 4–631) (Order approving the (January 19, 2017), 82 FR 8548 (January 26, 2017) 10 The Exchange’s affiliated equities exchanges
srobinson on DSKBC5CHB2PROD with NOTICES
thirteenth amendment to the Plan) and 81720 (SR–NYSEArca–2016–130) (Approval Order) (the have made similar change to their rules. See Arca
(September 26, 2017), 82 FR 45922 (October 2, ‘‘NYSE Arca Reopening Filing’’). Reopen [sic] Filing, supra note 8 (amending NYSE
2017) (File No. 4–631) (Notice of immediate 7 The text that the Exchange would delete Arca Rule 7.23–E(a)(1)(B)(iii) and (iv)) and
effectiveness of fifteenth amendment to the Plan, provides that ‘‘[i]n the event of a significant Securities Exchange Act Release No. 80577 (May 2,
which extended the implementation date of LULD imbalance at the end of a Trading Pause, the 2017), 82 FR 21446 (May 8, 2017) (SR–NYSEMKT–
Amendment 12). Exchange may delay the re-opening of a security’’ 2017–04) (Order approving NYSE American LLC
5 Unless otherwise specified, capitalized terms and ‘‘[t]he Exchange will issue a notification if it (‘‘NYSE American’’) Rule 7.23E(a)(1)(B)(iii) and
used herein have the same meaning as set forth in cannot resume trading for a reason other than a (iv)). The proposed rule changes are also based on
the Plan or in Exchange rules. significant imbalance.’’ Bats BZX, Inc. (‘‘BZX’’) Rule 11.8(d)(2)(D) and (E).
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![Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Notices 48873
Electronic Comments SMALL BUSINESS ADMINISTRATION ACTION: Amendment 3.
• Use the Commission’s Internet [Disaster Declaration #15324 and #15325; SUMMARY: This is an amendment of the
comment form (http://www.sec.gov/ Florida Disaster Number FL–00131] Presidential declaration of a major
rules/sro.shtml); or disaster for the State of California
Presidential Declaration Amendment of
• Send an email to rule-comments@ (FEMA–4344–DR), dated 10/12/2017.
a Major Disaster for Public Assistance Incident: Wildfires.
sec.gov. Please include File Number SR– Only for the State of Florida Incident Period: 10/08/2017 and
NYSE–2017–51 on the subject line.
AGENCY: U.S. Small Business continuing.
Paper Comments Administration. DATES: Issued on 10/15/2017.
ACTION: Amendment 2. Physical Loan Application Deadline
• Send paper comments in triplicate
Date: 12/11/2017.
to Secretary, Securities and Exchange SUMMARY: This is an amendment of the Economic Injury (EIDL) Loan
Commission, 100 F Street NE., Presidential declaration of a major Application Deadline Date: 07/12/2018.
Washington, DC 20549–1090. disaster for Public Assistance Only for
ADDRESSES: Submit completed loan
All submissions should refer to File the State of Florida (FEMA–4337–DR),
applications to: U.S. Small Business
dated 09/21/2017.
Number SR–NYSE–2017–51. This file Administration, Processing and
Incident: Hurricane Irma.
number should be included on the Disbursement Center, 14925 Kingsport
Incident Period: 09/04/2017 and
subject line if email is used. To help the Road, Fort Worth, TX 76155.
continuing.
Commission process and review your FOR FURTHER INFORMATION CONTACT: A.
comments more efficiently, please use DATES: Issued on 10/11/2017. Escobar, Office of Disaster Assistance,
only one method. The Commission will Physical Loan Application Deadline U.S. Small Business Administration,
post all comments on the Commission’s Date: 11/20/2017. 409 3rd Street SW., Suite 6050,
Economic Injury (EIDL) Loan Washington, DC 20416, (202) 205–6734.
Internet Web site (http://www.sec.gov/
Application Deadline Date: 06/21/2018.
rules/sro.shtml). Copies of the SUPPLEMENTARY INFORMATION: The notice
submission, all subsequent ADDRESSES: Submit completed loan
of the President’s major disaster
amendments, all written statements applications to: U.S. Small Business declaration for the State of California,
with respect to the proposed rule Administration, Processing and dated 10/12/2017, is hereby amended to
Disbursement Center, 14925 Kingsport include the following areas as adversely
change that are filed with the
Road, Fort Worth, TX 76155. affected by the disaster:
Commission, and all written
FOR FURTHER INFORMATION CONTACT:
communications relating to the Primary Counties (Physical Damage and
proposed rule change between the A. Escobar, Office of Disaster Economic Injury Loans): Nevada,
Assistance, U.S. Small Business Orange
Commission and any person, other than
Administration, 409 3rd Street SW., Contiguous Counties (Economic Injury
those that may be withheld from the
Suite 6050, Washington, DC 20416, Loans Only):
public in accordance with the
(202) 205–6734. California: Los Angeles, Riverside,
provisions of 5 U.S.C. 552, will be
SUPPLEMENTARY INFORMATION: The notice San Bernardino, San Diego
available for Web site viewing and
of the President’s major disaster Nevada: Washoe
printing in the Commission’s Public
declaration for Private Non-Profit All other information in the original
Reference Room, 100 F Street NE.,
organizations in the State of FLORIDA, declaration remains unchanged.
Washington, DC 20549 on official dated 09/21/2017, is hereby amended to
business days between the hours of include the following areas as adversely (Catalog of Federal Domestic Assistance
10:00 a.m. and 3:00 p.m. Copies of the affected by the disaster. Number 59008)
filing also will be available for Rafaela Monchek,
Primary Counties: Citrus, Columbia,
inspection and copying at the principal
Gadsden, Hernando, Liberty, Acting Associate Administrator for Disaster
office of the Exchange. All comments Madison, Polk, Suwannee Assistance.
received will be posted without change; All other information in the original [FR Doc. 2017–22763 Filed 10–19–17; 8:45 am]
the Commission does not edit personal declaration remains unchanged. BILLING CODE 8025–01–P
identifying information from
(Catalog of Federal Domestic Assistance
submissions. You should submit only
Number 59008)
information that you wish to make SMALL BUSINESS ADMINISTRATION
available publicly. All submissions James E. Rivera,
[Disaster Declaration #15330 and #15331;
should refer to File Number SR–NYSE– Associate Administrator for Disaster
SEMINOLE TRIBE of FLORIDA Disaster
2017–51 and should be submitted on or Assistance.
Number FL–00132]
before November 13, 2017. [FR Doc. 2017–22805 Filed 10–19–17; 8:45 am]
For the Commission, by the Division of BILLING CODE 8025–01–P Presidential Declaration Amendment of
Trading and Markets, pursuant to delegated a Major Disaster for the Seminole Tribe
authority.20 of Florida
SMALL BUSINESS ADMINISTRATION
Eduardo A. Aleman, AGENCY: U.S. Small Business
[Disaster Declaration #15352 and #15353;
srobinson on DSKBC5CHB2PROD with NOTICES
Assistant Secretary. Administration.
CALIFORNIA Disaster Number CA–00279]
[FR Doc. 2017–22755 Filed 10–19–17; 8:45 am] ACTION: Amendment 1.
BILLING CODE 8011–01–P Presidential Declaration Amendment of
a Major Disaster for the State of SUMMARY: This is an amendment of the
California Presidential declaration of a major
disaster for the Seminole Tribe of
AGENCY:U.S. Small Business Florida (FEMA–4341–DR), dated 09/27/
20 17 CFR 200.30–3(a)(12). Administration. 2017.
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Document Created: 2017-10-20 00:06:35
Document Modified: 2017-10-20 00:06:35
| 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 48870 |
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