82 FR 51447 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Exchange Calculation of the Intraday Indicative Value for Specified Exchange-Traded Products

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 213 (November 6, 2017)

Page Range		51447-51449
FR Document		2017-24045

Federal Register, Volume 82 Issue 213 (Monday, November 6, 2017)

[Federal Register Volume 82, Number 213 (Monday, November 6, 2017)]
[Notices]
[Pages 51447-51449]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-24045]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81985; File No. SR-NYSEArca-2017-127]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Regarding Exchange
Calculation of the Intraday Indicative Value for Specified Exchange-
Traded Products

October 31, 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 20, 2017, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission the proposed
rule change as described in Items I and II below, which Items have been
prepared by the self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to modify representations made in proposed
rule changes previously filed with the Securities and Exchange
Commission (``Commission'') regarding Exchange calculation of the
``Intraday Indicative Value'' (or comparable intra-day value) for
specified exchange-traded products. The proposed rule change is
available on the Exchange's Web site at www.nyse.com, at the principal
office of

[[Page 51448]]

the Exchange, and at the Commission's Public Reference Room.

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

In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
Exchange rules relating to listing of certain exchange-traded
products (``ETPs'') require that an ``Intraday Indicative Value''
(``IIV'') or comparable intra-day value be disseminated at least every
15 seconds during the Exchange's Core Trading Session as defined in
Rule 7.34-E (a) (normally 9:30 a.m. to 4:00 p.m. Eastern Time).\4\ The
Commission has approved a number of NYSE Arca proposed rule changes
relating to NYSE Arca's listing and trading of shares of ETPs in which
the Exchange stated that the Exchange will calculate the IIV for those
ETPs. These proposed rule changes are listed in Exhibit 3 to this
filing (``Exhibit 3 Filings'').
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\4\ The following Exchange rules require dissemination of an
intraday indicative value for specified ETPs: Rule 5.2-E(j)(3)
(Investment Company Units); Rule 5.2-E (j)(6) (Index-Linked
Securities); Rule 8.100-E (Portfolio Depositary Receipts); Rule
8.200-E (Trust Issued Receipts); Rule 8.201-E (Commodity-Based Trust
Shares); Rule 8.202-E (Currency Trust Shares); Rule 8.203-E
(Commodity Index Trust Shares); Rule 8.204-E (Commodity Futures
Trust Shares); Rule 8.300-E (Partnership Units); Rule; 8.600-E
(Managed Fund Shares); and Rule 8.700-E (Managed Trust Securities).
These rules use different terms to denote the intraday indicative
value: Intraday Indicative Value (Rules 5.2-E (j)(3), 8.100-E and
8.700-E); Indicative Value (Rule 8.200-E); Indicative Trust Value
(Rules 8.201-E; 8.202-E and 8.203-E); Indicative Partnership Value
(Rule 8.300-E); and Portfolio Indicative Value (Rule 8.600-E). As
used herein, the term ``IIV'' encompasses the terms Intraday
Indicative Value, Indicative Value, Indicative Trust Value,
Indicative Partnership Value, and Portfolio Indicative Value, as
referenced in Exchange rules. In addition, such term encompasses the
term ``Indicative Optimized Portfolio Value'' (or ``IOPV'') as used
in certain ``Exhibit 3 Filings'' (as defined below).
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The Exchange proposes to revise the representations made in the
Exhibit 3 Filings that state that the Exchange will calculate the IIV
for a particular ETP to state that the IIV will be calculated and
widely disseminated by one or more major market data vendors. This
proposed change is consistent with representations the Exchange has
made in other filing [sic] relating to ETP listings.\5\ The Exchange
proposes this change so that ETP issuers, who may select and change the
IIV calculation agent for a particular ETP, may choose to use a
calculation agent other than the Exchange, provided that such IIV is
calculated and widely disseminated by one or more major market data
vendors.\6\ All other representations in the Exhibit 3 Filings
regarding the IIV remain the same and are not changing as a result of
this proposed rule change.
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\5\ The Exchange's proposed rule changes relating to ETP
listings generally have stated that the IIV would be calculated and
widely disseminated by, or widely disseminated by, an independent
third party, one or more major market data vendors, a third party
market data provider, or similar entities other than the Exchange.
See, e.g., Securities Exchange Act Release No. 68667 (January 16,
2013), 78 FR 4955 (January 23, 2013) (SR-NYSEArca-2012-109) (Order
Granting Approval of Proposed Rule Change Relating to the Listing
and Trading of Shares of the U.S. Equity High Volatility Put Write
Index Fund under NYSE Arca Equities Rule 5.2(j)(3)). In addition,
the Exchange rules referenced supra at note 4 do not specify that
the Exchange will calculate the IIV for any ETP.
\6\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available IIVs
taken from the Consolidated Tape Association or other data feeds.
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2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under section 6(b)(5) \7\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
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\7\ 15 U.S.C. 78f(b)(5).
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The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest. The Exchange's proposal to revise the representations
made in the Exhibit 3 Filings that state that the Exchange will
calculate the IIV for a particular ETP to state that the IIV will be
calculated and widely disseminated by one or more major market data
vendors is consistent with representations the Exchange has made in
other filings relating to ETP listings.\8\ The Exchange proposes this
change so that ETP issuers, who may select and change the IIV
calculation agent for a particular ETP, may choose to use a calculation
agent other than the Exchange, provided that such IIV is calculated and
widely disseminated by one or more major market data vendors. While the
Exchange rules referenced in note 4 above require that an IIV be
disseminated at least every 15 seconds during the Exchange's Core
Trading Session, such rules do not specify that the Exchange will
calculate the IIV for any ETP.\9\
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\8\ See note 5, supra.
\9\ See note 4, supra.
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B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose [sic] of the Act. The Exchange believes
the proposed rule change will enhance competition among ETP issuers by
providing each issuer with additional flexibility to change its IIV
calculation agent promptly based on business needs.

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

No written comments were solicited or received with respect to the
proposed rule change.

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

Because the 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, the proposed rule change has become effective
pursuant to section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6)
thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Commission believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest because it will allow ETP issuers for the Exhibit 3 Filings to
choose to use a calculation agent other than the Exchange, provided
that such IIV is calculated and widely disseminated by

[[Page 51449]]

one or more major market data vendors, without undue delay. Therefore,
the Commission designates the proposed rule change to be operative upon
filing.\12\
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\12\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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.

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-NYSEArca-2017-127 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-NYSEArca-2017-127. 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. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2017-127 and should
be submitted on or before November 27, 2017.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24045 Filed 11-3-17; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 51447

Act, in particular section 17A(b)(3)(F), Act 26 and Rule 19b–4(f)(6) will be posted without change. Persons
cited above. thereunder.27 submitting comments are cautioned that
Rule 17Ad–22(e)(21) requires, inter At any time within 60 days of the we do not redact or edit personal
alia, that each covered clearing agency filing of the proposed rule change, the identifying information from comment
establish, implement, maintain and Commission summarily may submissions. You should submit only
enforce written policies and procedures temporarily suspend such rule change if information that you wish to make
reasonably designed to be efficient and it appears to the Commission that such available publicly.
effective in meeting the requirements of action is necessary or appropriate in the All submissions should refer to File
its participants and the markets it public interest, for the protection of Number SR–DTC–2017–020 and should
serves.25 Pursuant to the proposed rule investors, or otherwise in furtherance of be submitted on or before November 27,
change, the Rules would be updated to the purposes of the Act. 2017.
establish a framework for DTC to IV. Solicitation of Comments For the Commission, by the Division of
provide Acknowledgement Letters to Trading and Markets, pursuant to delegated
Interested persons are invited to authority.28
Participants and Pledgees who are DCOs
submit written data, views and
or FCMs that would allow them to meet Eduardo A. Aleman,
arguments concerning the foregoing,
their requirements under the Customer Assistant Secretary.
including whether the proposed rule
Property Segregation Rules, while [FR Doc. 2017–24049 Filed 11–3–17; 8:45 am]
change is consistent with the Act.
utilizing the efficiency provided by DTC
Comments may be submitted by any of BILLING CODE 8011–01–P
book-entry transfers, consistent with the
the following methods:
requirements of Rule 17Ad–22(e)(21),
cited above. Electronic Comments SECURITIES AND EXCHANGE
(B) Clearing Agency’s Statement on • Use the Commission’s Internet COMMISSION
Burden on Competition comment form (http://www.sec.gov/
[Release No. 34–81985; File No. SR–
rules/sro.shtml); or
NYSEArca–2017–127]
DTC does not believe that the • Send an email to rule-comments@
proposed rule change would have any sec.gov. Please include File Number SR– Self-Regulatory Organizations; NYSE
impact, or impose any burden, on DTC–2017–020 on the subject line. Arca, Inc.; Notice of Filing and
competition because the proposed Rule
Paper Comments Immediate Effectiveness of Proposed
and its features would be available to all
• Send paper comments in triplicate Rule Change Regarding Exchange
Participants and Pledgees equally on a
to Secretary, Securities and Exchange Calculation of the Intraday Indicative
non-discriminatory basis. Participants
Commission, 100 F Street NE., Value for Specified Exchange-Traded
and Pledgees will be charged fees
Washington, DC 20549–1090. Products
applicable to the maintenance of
Accounts and transaction fees that are All submissions should refer to File October 31, 2017.
not different from established published Number SR–DTC–2017–020. This file Pursuant to section 19(b)(1) 1 of the
fees. number should be included on the Securities Exchange Act of 1934
subject line if email is used. To help the (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
(C) Clearing Agency’s Statement on
Commission process and review your notice is hereby given that, on October
Comments on the Proposed Rule
comments more efficiently, please use 20, 2017, NYSE Arca, Inc. (‘‘Exchange’’
Change Received From Members,
only one method. The Commission will or ‘‘NYSE Arca’’) filed with the
Participants, or Others
post all comments on the Commission’s Securities and Exchange Commission
DTC has not solicited and does not Internet Web site (http://www.sec.gov/ the proposed rule change as described
intend to solicit comments regarding the rules/sro.shtml). Copies of the in Items I and II below, which Items
proposed rule change. DTC has not submission, all subsequent have been prepared by the self-
received any unsolicited written amendments, all written statements regulatory organization. The
comments from interested parties. To with respect to the proposed rule Commission is publishing this notice to
the extent DTC receives written change that are filed with the solicit comments on the proposed rule
comments on the proposed rule change, Commission, and all written change from interested persons.
DTC will forward such comments to the communications relating to the
Commission. proposed rule change between the I. Self-Regulatory Organization’s
Commission and any person, other than Statement of the Terms of Substance of
III. Date of Effectiveness of the those that may be withheld from the the Proposed Rule Change
Proposed Rule Change and Timing for public in accordance with the The Exchange proposes to modify
Commission Action provisions of 5 U.S.C. 552, will be representations made in proposed rule
Because the foregoing proposed rule available for Web site viewing and changes previously filed with the
change does not: printing in the Commission’s Public Securities and Exchange Commission
(i) Significantly affect the protection Reference Room, 100 F Street NE., (‘‘Commission’’) regarding Exchange
of investors or the public interest; Washington, DC 20549–1090 on official calculation of the ‘‘Intraday Indicative
business days between the hours of Value’’ (or comparable intra-day value)
(ii) impose any significant burden on 10:00 a.m. and 3:00 p.m. Copies of the for specified exchange-traded products.
competition; and
Pmangrum on DSK3GDR082PROD with NOTICES

filing also will be available for The proposed rule change is available
(iii) become operative for 30 days inspection and copying at the principal on the Exchange’s Web site at
from the date on which it was filed, or office of DTC and on DTCC’s Web site www.nyse.com, at the principal office of
such shorter time as the Commission (http://dtcc.com/legal/sec-rule-
may designate, it has become effective filings.aspx). All comments received 28 17 CFR 200.30–3(a)(12).
pursuant to section 19(b)(3)(A) of the 1 15 U.S.C. 78s(b)(1).
26 15 U.S.C. 78s(b)(3)(A). 2 15 U.S.C. 78a.
25 17 CFR 240.17Ad–22(e)(21). 27 17 CFR 240.19b–4(f)(6). 3 17 CFR 240.19b–4.

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51448 Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices

the Exchange, and at the Commission’s state that the IIV will be calculated and calculated and widely disseminated by
Public Reference Room. widely disseminated by one or more one or more major market data vendors.
major market data vendors. This While the Exchange rules referenced in
II. Self-Regulatory Organization’s
proposed change is consistent with note 4 above require that an IIV be
Statement of the Purpose of, and
representations the Exchange has made disseminated at least every 15 seconds
Statutory Basis for, the Proposed Rule
in other filing [sic] relating to ETP during the Exchange’s Core Trading
Change
listings.5 The Exchange proposes this Session, such rules do not specify that
In its filing with the Commission, the change so that ETP issuers, who may the Exchange will calculate the IIV for
self-regulatory organization included select and change the IIV calculation any ETP.9
statements concerning the purpose of, agent for a particular ETP, may choose
and basis for, the proposed rule change B. Self-Regulatory Organization’s
to use a calculation agent other than the
and discussed any comments it received Statement on Burden on Competition
Exchange, provided that such IIV is
on the proposed rule change. The text calculated and widely disseminated by The Exchange does not believe that
of those statements may be examined at one or more major market data the proposed rule change will impose
the places specified in Item IV below. vendors.6 All other representations in any burden on competition that is not
The Exchange has prepared summaries, the Exhibit 3 Filings regarding the IIV necessary or appropriate in furtherance
set forth in sections A, B, and C below, remain the same and are not changing of the purpose [sic] of the Act. The
of the most significant parts of such as a result of this proposed rule change. Exchange believes the proposed rule
statements. change will enhance competition among
2. Statutory Basis ETP issuers by providing each issuer
A. Self-Regulatory Organization’s
The basis under the Act for this with additional flexibility to change its
Statement of the Purpose of, and the
proposed rule change is the requirement IIV calculation agent promptly based on
Statutory Basis for, the Proposed Rule
under section 6(b)(5) 7 that an exchange business needs.
Change
have rules that are designed to prevent
C. Self-Regulatory Organization’s
1. Purpose fraudulent and manipulative acts and
Statement on Comments on the
Exchange rules relating to listing of practices, to promote just and equitable
Proposed Rule Change Received From
certain exchange-traded products principles of trade, to remove
Members, Participants, or Others
(‘‘ETPs’’) require that an ‘‘Intraday impediments to, and perfect the
mechanism of a free and open market No written comments were solicited
Indicative Value’’ (‘‘IIV’’) or comparable
and, in general, to protect investors and or received with respect to the proposed
intra-day value be disseminated at least
the public interest. rule change.
every 15 seconds during the Exchange’s
Core Trading Session as defined in Rule The proposed rule change is designed III. Date of Effectiveness of the
7.34–E (a) (normally 9:30 a.m. to 4:00 to perfect the mechanism of a free and Proposed Rule Change and Timing for
p.m. Eastern Time).4 The Commission open market and, in general, to protect Commission Action
has approved a number of NYSE Arca investors and the public interest. The
Exchange’s proposal to revise the Because the proposed rule change
proposed rule changes relating to NYSE does not (i) significantly affect the
Arca’s listing and trading of shares of representations made in the Exhibit 3
Filings that state that the Exchange will protection of investors or the public
ETPs in which the Exchange stated that interest; (ii) impose any significant
the Exchange will calculate the IIV for calculate the IIV for a particular ETP to
state that the IIV will be calculated and burden on competition; and (iii) become
those ETPs. These proposed rule operative for 30 days from the date on
changes are listed in Exhibit 3 to this widely disseminated by one or more
major market data vendors is consistent which it was filed, or such shorter time
filing (‘‘Exhibit 3 Filings’’). as the Commission may designate, the
The Exchange proposes to revise the with representations the Exchange has
made in other filings relating to ETP proposed rule change has become
representations made in the Exhibit 3 effective pursuant to section 19(b)(3)(A)
Filings that state that the Exchange will listings.8 The Exchange proposes this
change so that ETP issuers, who may of the Act 10 and Rule 19b–4(f)(6)
calculate the IIV for a particular ETP to thereunder.11
select and change the IIV calculation
4 The following Exchange rules require agent for a particular ETP, may choose The Exchange has asked the
dissemination of an intraday indicative value for to use a calculation agent other than the Commission to waive the 30-day
specified ETPs: Rule 5.2–E(j)(3) (Investment Exchange, provided that such IIV is operative delay so that the proposal may
Company Units); Rule 5.2–E (j)(6) (Index-Linked become operative immediately upon
Securities); Rule 8.100–E (Portfolio Depositary 5 The Exchange’s proposed rule changes relating filing. The Commission believes that
Receipts); Rule 8.200–E (Trust Issued Receipts);
Rule 8.201–E (Commodity-Based Trust Shares); to ETP listings generally have stated that the IIV waiver of the 30-day operative delay is
Rule 8.202–E (Currency Trust Shares); Rule 8.203– would be calculated and widely disseminated by, consistent with the protection of
E (Commodity Index Trust Shares); Rule 8.204–E or widely disseminated by, an independent third investors and the public interest
(Commodity Futures Trust Shares); Rule 8.300–E party, one or more major market data vendors, a
third party market data provider, or similar entities because it will allow ETP issuers for the
(Partnership Units); Rule; 8.600–E (Managed Fund
Shares); and Rule 8.700–E (Managed Trust other than the Exchange. See, e.g., Securities Exhibit 3 Filings to choose to use a
Securities). These rules use different terms to Exchange Act Release No. 68667 (January 16, 2013), calculation agent other than the
denote the intraday indicative value: Intraday 78 FR 4955 (January 23, 2013) (SR–NYSEArca– Exchange, provided that such IIV is
Indicative Value (Rules 5.2–E (j)(3), 8.100–E and 2012–109) (Order Granting Approval of Proposed
Rule Change Relating to the Listing and Trading of calculated and widely disseminated by
8.700–E); Indicative Value (Rule 8.200–E);
Indicative Trust Value (Rules 8.201–E; 8.202–E and Shares of the U.S. Equity High Volatility Put Write
Index Fund under NYSE Arca Equities Rule 9 See note 4, supra.
Pmangrum on DSK3GDR082PROD with NOTICES

8.203–E); Indicative Partnership Value (Rule 8.300–
E); and Portfolio Indicative Value (Rule 8.600–E). 5.2(j)(3)). In addition, the Exchange rules referenced 10 15 U.S.C. 78s(b)(3)(A).
As used herein, the term ‘‘IIV’’ encompasses the supra at note 4 do not specify that the Exchange 11 17 CFR 240.19b–4(f)(6). As required under Rule

terms Intraday Indicative Value, Indicative Value, will calculate the IIV for any ETP. 19b–4(f)(6)(iii), the Exchange provided the
6 Currently, it is the Exchange’s understanding
Indicative Trust Value, Indicative Partnership Commission with written notice of its intent to file
Value, and Portfolio Indicative Value, as referenced that several major market data vendors display and/ the proposed rule change, along with a brief
in Exchange rules. In addition, such term or make widely available IIVs taken from the description and the text of the proposed rule
encompasses the term ‘‘Indicative Optimized Consolidated Tape Association or other data feeds. change, at least five business days prior to the date
7 15 U.S.C. 78f(b)(5).
Portfolio Value’’ (or ‘‘IOPV’’) as used in certain of filing of the proposed rule change, or such
‘‘Exhibit 3 Filings’’ (as defined below). 8 See note 5, supra. shorter time as designated by the Commission.

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Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 51449

one or more major market data vendors, 10:00 a.m. and 3:00 p.m. Copies of the level specified in the Rule have been
without undue delay. Therefore, the filing also will be available for required to identify themselves to the
Commission designates the proposed inspection and copying at the principal Commission by filing Form 13H through
rule change to be operative upon office of the Exchange. All comments the Commission’s EDGAR system. The
filing.12 received will be posted without change. Commission has implemented the
At any time within 60 days of the Persons submitting comments are broker-dealer recordkeeping, reporting,
filing of such proposed rule change, the cautioned that we do not redact or edit and monitoring requirements of the
Commission summarily may personal identifying information from Rule in phases through a series of
temporarily suspend such rule change if comment submissions. You should exemptive orders establishing certain
it appears to the Commission that such submit only information that you wish delayed compliance dates.3 Currently,
action is necessary or appropriate in the to make available publicly. All certain broker-dealers are required to
public interest, for the protection of submissions should refer to File keep records of and report to the
investors, or otherwise in furtherance of Number SR–NYSEArca–2017–127 and Commission upon request transaction
the purposes of the Act. should be submitted on or before data for certain of their customers that
November 27, 2017. are either a large trader or an
IV. Solicitation of Comments
For the Commission, by the Division of Unidentified Large Trader.4 Most
Interested persons are invited to Trading and Markets, pursuant to delegated recently, the Commission provided a
submit written data, views, and authority.13 temporary exemption from specified
arguments concerning the foregoing, Eduardo A. Aleman, provisions of the Rule for certain broker-
including whether the proposed rule Assistant Secretary. dealers (‘‘Phase Three’’)—provisions
change is consistent with the Act. [FR Doc. 2017–24045 Filed 11–3–17; 8:45 am] which otherwise would have fully
Comments may be submitted by any of BILLING CODE 8011–01–P implemented the entirety of the
the following methods: recordkeeping and reporting
Electronic Comments responsibilities of Rule 13h–1 by, in
SECURITIES AND EXCHANGE particular, requiring the capture and
• Use the Commission’s Internet COMMISSION reporting of execution time on trades of
comment form (http://www.sec.gov/ all large traders—until November 1,
rules/sro.shtml); or [Release No. 34–81993]
2017.5
• Send an email to rule-comments@ The Financial Information Forum
Order Temporarily Exempting Certain
sec.gov. Please include File Number SR– (‘‘FIF’’) and Securities Industry and
Broker-Dealers From Specified
NYSEArca–2017–127 on the subject Provisions of the Recordkeeping, Financial Markets Association
line. Reporting, and Monitoring (‘‘SIFMA,’’ and, together with FIF, the
Paper Comments Responsibilities of Rule 13h–1 Under ‘‘Industry Organizations’’) have asked
the Securities Exchange Act of 1934 the Commission to eliminate Phase
• Send paper comments in triplicate Three of the Rule, which would impose
to Secretary, Securities and Exchange October 31, 2017. the remaining requirements on all
Commission, 100 F Street NE., broker-dealers and all large trader
Washington, DC 20549–1090. I. Introduction
customers.6 Alternatively, the Industry
All submissions should refer to File On July 27, 2011, the Securities and
Number SR–NYSEArca–2017–127. This Exchange Commission (‘‘Commission’’) 3 See Securities Exchange Act Release Nos. 66839

file number should be included on the adopted Rule 13h–1 (‘‘Rule 13h–1’’ or (April 20, 2012), 77 FR 25007 (April 26, 2012)
subject line if email is used. To help the the ‘‘Rule’’) under the Securities (‘‘Phase One Order’’) (establishing Phase One);
Exchange Act of 1934 (‘‘Exchange 69281 (April 3, 2013), 78 FR 20960 (April 8, 2013)
Commission process and review your (‘‘Phase Two Extension Order’’) (extending the
comments more efficiently, please use Act’’) 1 to assist the Commission in both compliance date for Phase Two to November 1,
only one method. The Commission will identifying and obtaining information 2013); 70150 (August 8, 2013), 78 FR 49556 (August
post all comments on the Commission’s on market participants that conduct a 14, 2013) (‘‘Phases Two and Three Order’’)
substantial amount of trading activity, (modifying Phase Two and providing for Phase
Internet Web site (http://www.sec.gov/ Three); and 76322 (October 30, 2015), 80 FR 68590
rules/sro.shtml). Copies of the as measured by volume or market value, (November 5, 2015) (‘‘Phase Three Extension
submission, all subsequent in national market system (‘‘NMS’’) Order’’) (extension of compliance date for Phase
amendments, all written statements securities (such persons are referred to Three until November 1, 2017).

with respect to the proposed rule as ‘‘large traders’’).2 The Rule requires 4 Rule 13h–1(a)(9) defines ‘‘Unidentified Large

certain large traders to identify Trader’’ as ‘‘each person who has not complied
change that are filed with the with the [large trader identification requirements of
Commission, and all written themselves to the Commission on Form the Rule] that a registered broker-dealer knows or
communications relating to the 13H. The Rule also requires, among has reason to know is a large trader.’’ The Rule
proposed rule change between the other things, certain broker-dealers to provides that, for purposes of determining whether
maintain records of large trader a registered broker-dealer has reason to know that
Commission and any person, other than a person is a large trader, ‘‘a registered broker-dealer
those that may be withheld from the transaction information and to report need take into account only transactions in NMS
public in accordance with the such information to the Commission securities effected by or through such broker-
provisions of 5 U.S.C. 552, will be upon request. Since December 1, 2011, dealer.’’ Rule 13h–1(a)(9).
5 See Phase Three Extension Order, supra note 3
available for Web site viewing and persons whose trading activity reached
(extending the Phase Three compliance date until
printing in the Commission’s Public or exceeded the identifying activity
Pmangrum on DSK3GDR082PROD with NOTICES

November 1, 2017). See also Phases Two and Three
Reference Room, 100 F Street NE., Order, supra note 3, 78 FR at 49560.
13 17 CFR 200.30–3(a)(12). 6 See Undated letter from William H. Herbert,
Washington, DC 20549 on official 1 17 CFR 240.13h–1. Managing Director, FIF, to Heather Seidel, Acting
business days between the hours of 2 See Securities Exchange Act Release No. 64976 Director, Division of Trading and Markets
(July 27, 2011), 76 FR 46960 (August 3, 2011) (‘‘Division’’), Commission (‘‘FIF I’’), available at
12 For purposes only of waiving the 30-day (‘‘Large Trader Adopting Release’’). The effective https://www.sec.gov/comments/s7-10-10/s71010-
operative delay, the Commission has considered the date of Rule 13h–1 was October 3, 2011. See also 1558852-131535.pdf; Letter from Thomas F. Price,
proposed rule’s impact on efficiency, competition, Exchange Act Rule 600(b)(46) of Regulation NMS Managing Director, Operations, Technology, and
and capital formation. See 15 U.S.C. 78c(f). (defining ‘‘NMS security’’). Continued

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Document Created: 2017-11-07 10:30:29
Document Modified: 2017-11-07 10:30:29

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 51447