82 FR 51890 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Arca Rules 7.31-E and 7.35-E
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 215 (November 8, 2017)
Federal Register Volume 82, Issue 215 (November 8, 2017)
| Page Range | 51890-51892 | |
| FR Document | 2017-24255 |
[Federal Register Volume 82, Number 215 (Wednesday, November 8, 2017)] [Notices] [Pages 51890-51892] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-24255] [[Page 51890]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82004; File No. SR-NYSEArca-2017-126] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Arca Rules 7.31-E and 7.35-E November 2, 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 (``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. --------------------------------------------------------------------------- \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 NYSE Arca Rules 7.31-E (Orders and Modifiers) and 7.35-E (Auctions) to establish a minimum dollar threshold into the price protection mechanisms provided for in the respective rules; (2) clarify the order processing specified in Rule 7.35-E(e)(8)(C); and (3) make technical non-substantive changes to Rules 7.31-E and 7.35-E. The proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to: (1) Amend NYSE Arca Rules 7.31-E (Orders and Modifiers) and NYSE Arca Rule 7.35-E (Auctions) to establish a minimum dollar threshold into the price protection mechanisms provided for in the respective rules; (2) clarify the order processing specified in Rule 7.35-E(e)(8)(C); and (3) make technical non-substantive changes to Rules 7.31-E and 7.35-E. Proposed Changes To Establish a Minimum Dollar Threshold for Price Protection Mechanisms Rule 7.31-E(a)(1)(B) describes the price protection mechanism for Market Orders, i.e., Trading Collars. Currently, Rule 7.31- E(a)(1)(B)(i) provides that the Trading Collar will be based on a price that is a specified percentage away from the consolidated last sale price. Rule 7.31-E (a)(1)(B)(i) further provides that the upper (lower) boundary of the Trading Collar is the consolidated last sale price increased (decreased) by the specified percentage truncated to the minimum price variation (``MPV'') for the security. Additionally, Rule 7.31-E(a)(2)(B) describes the price protection mechanism for Limit Orders, i.e. Limit Order Price Protection. Currently, Rule 7.31-E(a)(2)(B) provides that a Limit Orders to buy (sell) will be rejected if it is priced at or above (below) a specified percentage away from the National Best Offer (National Best Bid) (``NBO'' and ``NBB'', respectively). Rule 7.35-E(a)(10) describes the price protection mechanism for Auctions, i.e., Auction Collar. Currently, Rule 7.35-E(a)(10)(A) provides that the Auction Collar for the Core Open Auction and Closing Auction is based on a price that is a specified percentage away from the Auction Reference Price for the applicable auction. The upper (lower) boundary of the Auction Collar is the Auction Reference Price increased (decreased) by the specified percentage, truncated to the MPV. The Exchange proposes to amend these price protection mechanisms to introduce a minimum dollar threshold for lower-price securities, as follows:Trading Collar: The Exchange proposes to amend Rule 7.31- E(a)(1)(B)(i) to introduce a minimum dollar threshold, of $0.15, into the calculation of the Trading Collar. As such, the proposed rule would provide that the Trading Collar would be based on a price that is the greater of $0.15, or a specified percentage away from the consolidated last sale. Accordingly, the upper boundary and lower boundary of the Trading Collar would be the consolidated last sale price increased and decreased, respectively, by the greater of $0.15 or the specified percentage. Limit Order Price Protection: The Exchange proposes to amend Rule 7.31-E(a)(2)(B) to introduce the same proposed minimum dollar threshold that is specified above for the Trading Collar, of $0.15, into the Limit Order Price Protection calculation. Accordingly, the proposed rule would provide that a Limit Order to buy (sell) would be rejected if it was priced at or above (below) the greater of $0.15 or a specified percentage away from the NBO (NBB). The Exchange believes that the introduction of a minimum dollar threshold enhances the Limit Order Price Protection and encourages price continuity specifically in lower priced illiquid securities. Auction Collar: Similarly, the Exchange also proposes to amend Rule 7.35-E(a)(10)(A) to provide that the Auction Collar for the Core Open Auction and Closing Auction would be based on a price that is the greater of $0.15 or a specified percentage away from the Auction Reference Price. Accordingly, the proposed rule would provide that the upper (lower) boundary of the Auction Collar would be the Auction Reference Price increased (decreased) by the greater of $0.15 or the specified percentage. The Exchange believes that adding a minimum dollar threshold to the Trading Collar, Limit Order Price Protection, and Auction Collar calculations would enhance the respective price protection mechanisms for securities with a reference price below $1.50 because using a percentage multiplier for such securities would result in too narrow of a price protection mechanism. This proposed rule change is consistent with how other exchanges specify static price collar thresholds for lower-price securities. Also, the Auction Collar applicable for Trading Halt Auctions, described in Rule 7.35-E(e)(7), provides that for securities with an Auction reference price under $3.00, the price collar threshold for auction collars would be a static $0.15 instead of 5 percent.\4\ --------------------------------------------------------------------------- \4\ See also Nasdaq Stock Market LLC (``Nasdaq'') Rule 4703(d) (providing that ``any portion of a Primary Pegging Order or Market Pegging Order that would execute . . . at a price more than $0.25 or 5 percent worse that the NBBO . . . will be cancelled)'' and Bats BZX Exchange, Inc. (``BZX'') Rule 27.2, Interpretations and Policies .01 and Bats Rule 11.13 (stating that BZX ``will not execute any portion of a bid at a price more than the greater of 5 cents or 0.5 percent higher than the lowest Protected Offer''). --------------------------------------------------------------------------- [[Page 51891]] Proposed Change To Clarify Order Processing as Specified in Rule 7.35-E Rule 7.35-E(e)(8) describes the Trading Halt Auction Imbalance Freeze and provides that if a pause or halt is extended, the Trading Halt Auction Imbalance Freeze for the prior period will end, new orders and order instructions received during the prior period's Trading Halt Auction Freeze will be processed, and the Exchange will accept order entry and cancellation as provided for in Rule 7.18-E(c) until the next Trading Halt Auction Imbalance Freeze. The Exchange proposes to amend Rule 7.35-E(e)(8)(C) to clarify that requests to cancel and requests to cancel and replace Market Orders, LOO Orders, Limit Orders, and IO Orders will be accepted but not processed until either after the Trading Halt Auction concludes (current rule text) or, if a pause or halt is extended, when the Trading Halt Auction Imbalance Freeze for the prior period ends (proposed rule text). Accordingly Rule 7.35- E(e)(8)(C) would read as follows (proposed additions italicized): Requests to cancel and requests to cancel and replace Market Orders, LOO Orders, Limit Orders, and IO Orders will be accepted but not processed until either after the Trading Halt Auction concludes, as provided for in paragraph (h) of this Rule, or, if a pause or halt is extended, when the Trading Halt Auction Imbalance Freeze for the prior period ends. The Exchange believes that the proposed changes clarify when requests to cancel and requests to cancel and replace Market Orders, LOO Orders, Limit Orders, and IO Orders would be processed if a pause or halt is extended, and that in such circumstances, the Exchange would not wait until the end of the Trading Halt Auction to process these messages. Proposed Changes To Make Technical and Conforming Updates to Rules 7.31-E and 7.35-E The Exchange proposes to replace the word ``truncated'' with the words ``rounded down'' \5\ in Rules 7.31-E(a)(1)(B)(i) and 7.35- E(a)(10)(A). The Exchange believes that conforming the terminology used within Rules 7.31-E \6\ and 7.35-E and elsewhere in Exchange's rules promotes clarity and transparency. --------------------------------------------------------------------------- \5\ See Rule 7.46-E(f)(2)(A), which provides that references to truncating to the MPV in Exchange rules instead mean rounding down to the applicable quoting MPV for tick pilot securities. \6\ See Rule 7.31-E(a)(2)(B) which provides that ``Limit Order Price Protection . . . will be rounded down to the nearest price at the applicable MPV.'' --------------------------------------------------------------------------- Finally, the Exchange proposes a non-substantive, technical amendment to Rule 7.31-E(c)(5)(C) to correct a typographical error by adding the word ``be'' and replacing the word ``that'' with ``than.'' Implementation The Exchange anticipates implementing the proposed changes to establish a minimum dollar threshold into the Trading Collar, Limit Order Price Protection, and Auction Collar in the fourth quarter of 2017 and will announce by Trader Update the implementation date of those proposed rule changes. All other proposed changes would be implemented upon effectiveness of this filing. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Exchange Act,\7\ in general, and with Section 6(b)(5),\8\ 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the proposed changes relating to adding a minimum price threshold to Rules 7.31-E(a)(1)(B)(i), 7.31-E(a)(2)(B), and 7.35-E(a)(10)(A) 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 would enhance the Exchange's price protection mechanisms, which protect from aberrant prices and reduce the likelihood of halts, thus improving continuous trading and price discovery. Further, the proposal to enhance the price protection mechanisms by adding a minimum dollar threshold would assist with the maintenance of fair and orderly markets because such mechanisms protect investors from potentially receiving executions away from the prevailing market prices at any given time. The proposed changes to introduce the $0.15 minimum dollar threshold is not novel and is similar in nature to that of other national securities exchanges which incorporate dollar thresholds into the calculation of the respective price protection mechanisms.\9\ --------------------------------------------------------------------------- \9\ See supra note 4. --------------------------------------------------------------------------- The Exchange believes that the proposed amendment to Rules 7.35- E(e)(8) to clarify order processing would remove impediments to and perfect the mechanism of a free and open market and a national market system because the proposed rule changes are designed to promote clarity, consistency, and transparency in Exchange rules. The Exchange also believes that replacing the term ``truncated'' with the term ``rounded down'' in Rules 7.31-E(a)(1)(B)(i) and, 7.35- E(a)(10)(A) would remove impediments to and perfect the mechanism of a free and open market and a national market system because they are designed to promote clarity, consistency, and transparency in Exchange rules. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not intended to address competitive issues but rather would (1) provide for a more effective price protection mechanism, specifically for lower-priced securities; (2) clarify the order processing in Rule 7.35- E(e)(8)(C) to promote clarity, consistency, and transparency; and (3) make technical non-substantive changes to Rules 7.31-E and 7.35-E. 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, it has become effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the Commission 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. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- [[Page 51892]] At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-NYSEArca-2017-126 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-2017-126. 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-2017-126 and should be submitted on or before November 29, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-24255 Filed 11-7-17; 8:45 am] BILLING CODE 8011-01-P
![51890 Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s on a price that is the greater of $0.15,
COMMISSION Statement of the Purpose of, and the or a specified percentage away from the
Statutory Basis for, the Proposed Rule consolidated last sale. Accordingly, the
[Release No. 34–82004; File No. SR– Change upper boundary and lower boundary of
NYSEArca–2017–126] the Trading Collar would be the
1. Purpose
consolidated last sale price increased
Self-Regulatory Organizations; NYSE The Exchange proposes to: (1) Amend and decreased, respectively, by the
NYSE Arca Rules 7.31–E (Orders and greater of $0.15 or the specified
Arca, Inc.; Notice of Filing and
Modifiers) and NYSE Arca Rule 7.35–E percentage.
Immediate Effectiveness of Proposed
Rule Change To Amend NYSE Arca
(Auctions) to establish a minimum • Limit Order Price Protection: The
dollar threshold into the price Exchange proposes to amend Rule 7.31–
Rules 7.31–E and 7.35–E
protection mechanisms provided for in E(a)(2)(B) to introduce the same
November 2, 2017. the respective rules; (2) clarify the order proposed minimum dollar threshold
processing specified in Rule 7.35– that is specified above for the Trading
Pursuant to Section 19(b)(1) 1 of the E(e)(8)(C); and (3) make technical non- Collar, of $0.15, into the Limit Order
Securities Exchange Act of 1934 substantive changes to Rules 7.31–E and Price Protection calculation.
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3 7.35–E. Accordingly, the proposed rule would
notice is hereby given that, on October provide that a Limit Order to buy (sell)
20, 2017, NYSE Arca, Inc. (‘‘Exchange’’ Proposed Changes To Establish a
would be rejected if it was priced at or
or ‘‘NYSE Arca’’) filed with the Minimum Dollar Threshold for Price
above (below) the greater of $0.15 or a
Securities and Exchange Commission Protection Mechanisms
specified percentage away from the
(‘‘Commission’’) the proposed rule Rule 7.31–E(a)(1)(B) describes the NBO (NBB). The Exchange believes that
change as described in Items I and II price protection mechanism for Market the introduction of a minimum dollar
below, which Items have been prepared Orders, i.e., Trading Collars. Currently, threshold enhances the Limit Order
by the self-regulatory organization. The Rule 7.31–E(a)(1)(B)(i) provides that the Price Protection and encourages price
Commission is publishing this notice to Trading Collar will be based on a price continuity specifically in lower priced
solicit comments on the proposed rule that is a specified percentage away from illiquid securities.
change from interested persons. the consolidated last sale price. Rule • Auction Collar: Similarly, the
7.31–E (a)(1)(B)(i) further provides that Exchange also proposes to amend Rule
I. Self-Regulatory Organization’s
the upper (lower) boundary of the 7.35–E(a)(10)(A) to provide that the
Statement of the Terms of Substance of Trading Collar is the consolidated last Auction Collar for the Core Open
the Proposed Rule Change sale price increased (decreased) by the Auction and Closing Auction would be
The Exchange proposes to amend specified percentage truncated to the based on a price that is the greater of
NYSE Arca Rules 7.31–E (Orders and minimum price variation (‘‘MPV’’) for $0.15 or a specified percentage away
Modifiers) and 7.35–E (Auctions) to the security. from the Auction Reference Price.
establish a minimum dollar threshold Additionally, Rule 7.31–E(a)(2)(B) Accordingly, the proposed rule would
into the price protection mechanisms describes the price protection provide that the upper (lower) boundary
provided for in the respective rules; (2) mechanism for Limit Orders, i.e. Limit of the Auction Collar would be the
clarify the order processing specified in Order Price Protection. Currently, Rule Auction Reference Price increased
Rule 7.35–E(e)(8)(C); and (3) make 7.31–E(a)(2)(B) provides that a Limit (decreased) by the greater of $0.15 or the
technical non-substantive changes to Orders to buy (sell) will be rejected if it specified percentage.
is priced at or above (below) a specified The Exchange believes that adding a
Rules 7.31–E and 7.35–E. The proposed
percentage away from the National Best minimum dollar threshold to the
rule change is available on the
Offer (National Best Bid) (‘‘NBO’’ and Trading Collar, Limit Order Price
Exchange’s Web site at www.nyse.com,
‘‘NBB’’, respectively). Protection, and Auction Collar
at the principal office of the Exchange, Rule 7.35–E(a)(10) describes the price
and at the Commission’s Public calculations would enhance the
protection mechanism for Auctions, i.e., respective price protection mechanisms
Reference Room. Auction Collar. Currently, Rule 7.35– for securities with a reference price
II. Self-Regulatory Organization’s E(a)(10)(A) provides that the Auction below $1.50 because using a percentage
Statement of the Purpose of, and Collar for the Core Open Auction and multiplier for such securities would
Statutory Basis for, the Proposed Rule Closing Auction is based on a price that result in too narrow of a price protection
Change is a specified percentage away from the mechanism. This proposed rule change
Auction Reference Price for the is consistent with how other exchanges
In its filing with the Commission, the applicable auction. The upper (lower) specify static price collar thresholds for
self-regulatory organization included boundary of the Auction Collar is the lower-price securities. Also, the Auction
statements concerning the purpose of, Auction Reference Price increased Collar applicable for Trading Halt
and basis for, the proposed rule change (decreased) by the specified percentage, Auctions, described in Rule 7.35–
and discussed any comments it received truncated to the MPV. E(e)(7), provides that for securities with
on the proposed rule change. The text The Exchange proposes to amend an Auction reference price under $3.00,
of those statements may be examined at these price protection mechanisms to the price collar threshold for auction
the places specified in Item IV below. introduce a minimum dollar threshold collars would be a static $0.15 instead
The Exchange has prepared summaries, for lower-price securities, as follows: of 5 percent.4
ethrower on DSK3G9T082PROD with NOTICES
set forth in sections A, B, and C below, • Trading Collar: The Exchange
of the most significant parts of such proposes to amend Rule 7.31– 4 See also Nasdaq Stock Market LLC (‘‘Nasdaq’’)
statements. E(a)(1)(B)(i) to introduce a minimum Rule 4703(d) (providing that ‘‘any portion of a
dollar threshold, of $0.15, into the Primary Pegging Order or Market Pegging Order that
would execute . . . at a price more than $0.25 or
1 15 U.S.C. 78s(b)(1). calculation of the Trading Collar. As 5 percent worse that the NBBO . . . will be
2 15 U.S.C. 78a. such, the proposed rule would provide cancelled)’’ and Bats BZX Exchange, Inc. (‘‘BZX’’)
3 17 CFR 240.19b–4. that the Trading Collar would be based Rule 27.2, Interpretations and Policies .01 and Bats
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![51892 Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices
At any time within 60 days of the Washington, DC 20549 on official rule changes. For the reasons discussed
filing of the proposed rule change, the business days between the hours of below, the Commission approves the
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the proposed rule changes.
temporarily suspend such rule change if filing also will be available for
II. Description of the Proposed Rule
it appears to the Commission that such inspection and copying at the principal
office of the Exchange. All comments Changes
action is necessary or appropriate in the
public interest, for the protection of received will be posted without change. The Clearing Agencies propose to
investors, or otherwise in furtherance of Persons submitting comments are adopt the Clearing Agency Securities
the purposes of the Act. If the cautioned that we do not redact or edit Valuation Framework (‘‘Framework’’) of
Commission takes such action, the personal identifying information from the Clearing Agencies, as described
Commission shall institute proceedings comment submissions. You should below.
to determine whether the proposed rule submit only information that you wish
to make available publicly. All A. Overview of the Framework
change should be approved or
disapproved. submissions should refer to File The Framework would address the
Number SR–NYSEArca–2017–126 and manner in which the Clearing Agencies
IV. Solicitation of Comments should be submitted on or before select and review ‘‘Pricing Vendors’’
Interested persons are invited to November 29, 2017. and value securities that the Clearing
submit written data, views, and For the Commission, by the Division of Agencies process or otherwise hold. The
arguments concerning the foregoing, Trading and Markets, pursuant to delegated proposed rule changes would set forth
including whether the proposed rule authority.12 the securities valuation practices
change is consistent with the Act. Eduardo A. Aleman, adopted by the Clearing Agencies for
Comments may be submitted by any of Assistant Secretary. securities eligible for clearance and
the following methods: [FR Doc. 2017–24255 Filed 11–7–17; 8:45 am] settlement processing by the applicable
Electronic Comments BILLING CODE 8011–01–P
Clearing Agency; and in the case of
FICC and NSCC, as central
• Use the Commission’s Internet counterparties (‘‘CCPs’’), securities
comment form (http://www.sec.gov/ SECURITIES AND EXCHANGE eligible to be held in their respective
rules/sro.shtml); or COMMISSION clearing funds.4
• Send an email to rule-comments@
sec.gov. Please include File Number SR– [Release No. 34–82006; File Nos. SR–DTC– B. Selection of Pricing Vendors
NYSEArca–2017–126 on the subject 2017–016; SR–NSCC–2017–016; SR–FICC–
2017–020] Each Clearing Agency would price
line. securities for both end-of-day and
Paper Comments Self-Regulatory Organizations; The intraday value primarily through pricing
• Send paper comments in triplicate Depository Trust Company; National data supplied by third-party pricing
to Secretary, Securities and Exchange Securities Clearing Corporation; Fixed vendors (‘‘Pricing Vendors’’).5 For most
Commission, 100 F Street NE., Income Clearing Corporation; Order securities, Pricing Vendors would
Washington, DC 20549–1090. Approving Proposed Rule Changes To supply the Clearing Agencies with
Adopt the Clearing Agency Securities intraday pricing data on at least an
All submissions should refer to File hourly basis.6 Pricing Vendors would be
Valuation Framework
Number SR–NYSEArca-2017–126. This selected by each Clearing Agency based
file number should be included on the November 2, 2017. on a review of their service, including,
subject line if email is used. To help the at a minimum, a review of Pricing
Commission process and review your I. Introduction
On September 8, 2017, The Vendors’ securities coverage and a price
comments more efficiently, please use quality check.7
only one method. The Commission will Depository Trust Company (‘‘DTC’’),
National Securities Clearing Corporation The Framework would provide that
post all comments on the Commission’s
(‘‘NSCC’’), and Fixed Income Clearing each security be assigned a primary
Internet Web site (http://www.sec.gov/
Corporation (‘‘FICC,’’ each a ‘‘Clearing source Pricing Vendor (‘‘Primary Pricing
rules/sro.shtml). Copies of the
Agency,’’ and together with DTC and Vendor’’) and a secondary source
submission, all subsequent
NSCC, the ‘‘Clearing Agencies’’), filed Pricing Vendor (‘‘Secondary Pricing
amendments, all written statements
with the Securities and Exchange Vendor’’).8 In the event that the Primary
with respect to the proposed rule
Commission (‘‘Commission’’) proposed Pricing Vendor becomes unavailable,
change that are filed with the
rule changes SR–DTC–2017–016, SR– unreliable, or otherwise unusable with
Commission, and all written
NSCC–2017–016, and SR–FICC–2017– respect to a security, the Secondary
communications relating to the
020, respectively, pursuant to Section Pricing Vendor would be designated as
proposed rule change between the
19(b)(1) of the Securities Exchange Act the replacement for the Primary Pricing
Commission and any person, other than
of 1934 (‘‘Act’’) 1 and Rule 19b–4 Vendor with respect to such security.9
those that may be withheld from the
public in accordance with the thereunder.2 The proposed rule changes Each Clearing Agency would perform
provisions of 5 U.S.C. 552, will be were published for comment in the due diligence on each Pricing Vendor
available for Web site viewing and Federal Register on September 27, prior to engagement, and at least
printing in the Commission’s Public 2017.3 The Commission did not receive annually thereafter, to assess the
Reference Room, 100 F Street NE., any comment letters on the proposed
ethrower on DSK3G9T082PROD with NOTICES
4 Id.
12 17 5 Id. at 45107.
give the Commission written notice of its intent to CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1). 6 Certain securities may not be priced daily, and
file the proposed rule change, along with a brief
description and the text of the proposed rule 2 17 CFR 240.19b–4. others may only be priced once each business day.
change, at least five business days prior to the date 3 See Securities Exchange Act Release No. 81667 Id.
7 Id.
of filing of the proposed rule change, or such (September 21, 2017), 82 FR 45106 (September 27,
8 Id.
shorter time as designated by the Commission. The 2017) (SR–DTC–2017–016; SR–NSCC–2017–016;
Exchange has satisfied this requirement. SR–FICC–2017–020) (‘‘Notice’’). 9 Id.
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Document Created: 2017-11-08 01:20:19
Document Modified: 2017-11-08 01:20:19
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 51890 |
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