82 FR 57322 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing of Proposed Rule Change To Amend Rule 971.1NY To Amend the Duration of a Customer Best Execution Auction

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 231 (December 4, 2017)

Page Range		57322-57325
FR Document		2017-25990
Federal Register, Volume 82 Issue 231 (Monday, December 4, 2017)
[Federal Register Volume 82, Number 231 (Monday, December 4, 2017)]
[Notices]
[Pages 57322-57325]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25990]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82162; File No. SR-NYSEAMER-2017-26]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing of Proposed Rule Change To Amend Rule 971.1NY To Amend the 
Duration of a Customer Best Execution Auction

November 28, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on November 17, 2017, NYSE American LLC (the ``Exchange'' or 
``NYSE American'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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 Rule 971.1NY (Electronic Cross 
Transactions) to amend the duration of a Customer Best Execution 
(``CUBE'') Auction. 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 amend Rule 971.1NY to modify the 
parameters for the duration of a CUBE Auction. The CUBE Auction is an 
electronic crossing mechanism for single-leg orders with a price 
improvement auction on the Exchange.
    An ATP Holder (``Initiating Participant'') may initiate a CUBE 
Auction by electronically submitting for execution a limit order it 
represents as agent on behalf of a public customer, broker dealer, or 
any other entity (``CUBE Order'') against principal interest or against 
any other order it represents as agent, provided the Initiating 
Participant complies with Rule 971.1NY. When the Exchange receives a 
valid CUBE Order for auction processing, a Request for Responses 
(``RFR'') detailing the series, the side of

[[Page 57323]]

the market, the size of the CUBE Order, and the limit price of the CUBE 
Order is sent to all ATP Holders that subscribe to receive RFR 
messages. Currently, the Auction lasts for a random period of time 
between 500-750 milliseconds, unless it is concluded early.\4\ The 
Exchange proposes to amend Rule 971.1NY(c)(2)(B) to provide that the 
duration of a CUBE Auction shall be a random period of time within 
parameters designated by the Exchange, which random time period [sic] 
shall be no less than 100 milliseconds and no more than 1 second. This 
proposed change is consistent with the recently amended rules of other 
exchanges, such as the NASDAQ International Securities Exchange 
(``ISE''), NASDAQ BX (``BX''), NASDAQ PHLX (``PHLX''), Miami 
International Securities Exchange, LLC (``MIAX''), and Chicago Board 
Options Exchange (``CBOE'').\5\ When approving the change to exposure 
periods in these mechanisms, the Securities and Exchange Commission 
(``Commission'') concluded that reducing the time periods was 
consistent with the Act.\6\
---------------------------------------------------------------------------

    \4\ See Rule 971.1NY(c)(2)(B) (providing that the Response Time 
Interval is ``the period of time during which responses to the RFR 
may be entered, which will last for a random period of time between 
500 and 750 milliseconds''). See Rule 971.1NY(c)(4)(A)-(F) 
(providing the scenarios that would result in the early end of a 
CUBE Auction).
    \5\ See Securities Exchange Act Release Nos. 79733 (January 4, 
2017), 82 FR 3055 (January 10, 2017) (SR-ISE-2016-26); 76301 
(October 29, 2015), 80 FR 68347 (November 4, 2015) (SR-BX-2015-032); 
77557 (April 7, 2016), 81 FR 21935 (April 13, 2016) (SR-PHLX-2016-
40); 80570 (May 1, 2017), 82 FR 21288 (May 5, 2017) (SR-MIAX-2017-
16); and 80421 (April 10, 2017), 82 FR 18048 (April 14, 2017) (SR-
CBOE-2017-029).
    \6\ Id.
---------------------------------------------------------------------------

    The Exchange believes that moving to the proposed range structure 
provides the Exchange with greater flexibility in establishing the 
optimal duration for the CUBE Auction. The Exchange believes that 
permitting a minimum duration as low as 100 milliseconds would reduce 
market risk for all ATP Holders executing trades on the Exchange via 
the CUBE Auction. Initiating Participants are required to guarantee an 
execution at the National Best Bid or Offer (``NBBO'') or at a better 
price, and are subject to market risk during the time the CUBE Order is 
exposed to other ATP Holders.\7\ While other participants are also 
subject to market risk, those providing RFR Responses may cancel their 
responses.\8\ The Exchange believes that the Initiating Participant 
plays a critical role in the CUBE Auction process. Their willingness to 
guarantee that CUBE Orders receive an execution at the NBBO or, in some 
cases, a better price, is the catalyst for an order gaining the 
opportunity for price improvement. The Exchange believes that allowing 
a CUBE Auction period of no less than 100 milliseconds and no more than 
1 second (when the CUBE does not conclude early) \9\ would benefit ATP 
Holders utilizing the CUBE Auction. The Exchange believes it could be 
in the best interest of Initiating Participants to minimize the CUBE 
Auction duration while continuing to allow other ATP Holders adequate 
time to respond with their best priced responses.
---------------------------------------------------------------------------

    \7\ See Rule 971.1NY(a).
    \8\ See Rule 971.1NY(c)(2)(C)(i)(d).
    \9\ See supra note 4.
---------------------------------------------------------------------------

    The Exchange notes the Commission previously approved other 
exchanges' rules that provide for a specified auction response time as 
low as 100 milliseconds and that the Exchange is not proposing to go 
lower than the lowest previously approved timer range.\10\ Further, 
consistent with this proposal, the Commission has likewise allowed 
other exchanges to retain the flexibility to choose a response period 
of up to 1 second.\11\
---------------------------------------------------------------------------

    \10\ See supra note 5.
    \11\ See, e.g., ISE Rule 723(c)(1) (providing ISE ``will 
designate via circular a time of no less than 100 milliseconds and 
no more than 1 second'' during which its members can submit 
responses to the ISE price improvement mechanism).
---------------------------------------------------------------------------

    Accordingly, the Exchange proposes to amend Rule 971.1NY(c)(2)(B) 
to remove the reference to the duration of the current timer setting 
and replace it with language providing that ``[t] he Response Time 
Interval will last for a random period of time within parameters 
determined by the Exchange and announced by Trader Update. The minimum/
maximum parameters for the Response Time Interval will be no less than 
100 milliseconds and no more than one (1) second.'' \12\ The Exchange 
will continue to utilize a random timer for each CUBE Auction, because 
it believes (as it articulated when adopting the CUBE), that the use of 
a random time period for RFR Responses provides the CUBE with a 
functional difference to distinguish it from similar price improvement 
mechanisms offered by other exchanges.\13\
---------------------------------------------------------------------------

    \12\ See proposed Rule 971.1NY(c)(2)(B).
    \13\ See Securities Exchange Act Release No. 72025 (April 25, 
2014), 79 FR 24779, 24782 and 24787 (May 1, 2017) (SR-NYSEMKT-2014-
17) (the ``CUBE Approval Order'') (describing the operation of the 
random timer for the duration of the Response Timer Interval).
---------------------------------------------------------------------------

    The Exchange does not believe that requiring the CUBE Auction to 
run for a random time of at least 500 milliseconds (absent an early 
end) is necessary in today's market where, generally, ATP Holders' 
systems have the capability to respond within 100 milliseconds or less. 
As such, reducing the minimum potential Response Time Interval in the 
CUBE is appropriate as ATP Holders no longer need 500 milliseconds to 
respond to an Auction. Further, reducing the potential minimum Response 
Time Interval would allow ATP Holders the opportunity to seek out 
liquidity in an expedient manner that is consistent with today's system 
capabilities.
    The Exchange believes that ATP Holders operate electronic systems 
that enable them to react and respond to orders in a meaningful way in 
fractions of a second. The Exchange anticipates that its ATP Holders 
would continue to compete within the proposed Response Time Interval 
designated by the Exchange. In particular, the Exchange believes that 
the proposed Response Time Interval--which would be a random period of 
time no less than 100 milliseconds and no more than 1 second--would 
continue to provide ATP Holders with sufficient time to respond to, 
compete for, and provide price improvement for CUBE Orders. As such, 
the Exchange believes this proposed change would continue to provide 
the investing public with more timely executions, and reduce their 
market risk.
    To substantiate that ATP Holders are able to receive, process and 
communicate a response to an auction broadcast within 100 milliseconds, 
the Exchange surveyed all responders to a CUBE Auction over the last 
three months. Each of these ATP Holders confirmed that they can 
receive, process and communicate a response back to the Exchange within 
100 milliseconds.
    With regard to the impact of this proposal on system capacity, the 
Exchange has analyzed its capacity and represents that it has the 
necessary systems capacity to handle the potential additional traffic 
associated with the additional transactions that may occur with the 
implementation of the proposed modification to the Response Time 
Interval to no less than 100 milliseconds. Additionally, the Exchange 
represents that its System will be able to sufficiently maintain an 
audit trail for order and trade information with the reduction in the 
Response Time Interval.
Implementation
    Pursuant to the modified rule, the Exchange will announce by Trader 
Update any changes to the current random time period applicable to CUBE 
Auctions in advance.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b)

[[Page 57324]]

of the Act,\14\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\15\ in particular, in that 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 regulating, clearing, settling, 
processing information with respect to, and 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.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the proposed rule change would provide investors 
with more timely execution of their option orders, while ensuring that 
there is an adequate exposure of orders in the mechanisms. 
Additionally, the proposed change could provide more CUBE Orders an 
opportunity for price improvement because it would reduce market risk 
for ATP Holders that participate in CUBE Auctions. Finally, as 
mentioned above, other exchanges such as ISE, BX, PHLX, MIAX, and CBOE, 
have already amended their rules to permit response times consistent 
with the instant proposal--i.e., no less than 100 milliseconds and no 
more than 1 second.\16\ As such, the Exchange believes the proposed 
rule change would help perfect the mechanism for a free and open 
national market system, and generally help protect investors and the 
public's interest.\17\
---------------------------------------------------------------------------

    \16\ See supra note 5.
    \17\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes the proposed rule change is not unfairly 
discriminatory because the Response Time Interval for each CUBE Auction 
would be the same for all participating ATP Holders. As is the case 
today, all ATP Holders would continue to have an equal opportunity to 
receive the broadcast and respond with their best prices during the 
auction. Additionally, the Exchange believes the proposed modification 
to the Response Time Interval to be as low as 100 milliseconds would 
reduce the market risk for all ATP Holders, inclusive of Initiating 
Participants and those ATP Holders responding to a CUBE Action.\18\
---------------------------------------------------------------------------

    \18\ The Exchange notes that, as proposed, the duration of a 
CUBE Auction could be a maximum of 1 second, as determined and 
announced by the Exchange.
---------------------------------------------------------------------------

    Finally, the proposal would promote just and equitable principles 
of trade because it would allow the Exchange to continue to use a 
random timer for each CUBE Auction (within the outside parameters 
announced by the Exchange), which timer provides the CUBE with a 
functional difference to distinguish it from similar price improvement 
mechanisms offered by other exchanges.\19\ The Exchange believes this 
flexibility would allow the Exchange to modify the outside parameters 
of uninterrupted CUBE Auctions to provide ATP Holders with sufficient 
time to submit RFR Responses and would encourage competition among 
participants, thereby enhancing the potential for price improvement for 
the CUBE Order.
---------------------------------------------------------------------------

    \19\ See CUBE Approval Order, supra note 13.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposal to provide the 
Exchange flexibility in determining potentially shorter durations for 
CUBE Auctions does not impose an undue burden on intra-market 
competition as the Exchange believes that allowing for a Response Time 
Interval of no less than 100 milliseconds and no more than 1 second 
(absent an early end) would benefit all ATP Holders utilizing the CUBE 
Auctions. Specifically, it is in Initiating Participants' best interest 
to minimize the Response Time Interval while continuing to allow other 
ATP Holders adequate time to electronically respond.
    The proposed rule would allow ATP Holders to respond quickly at the 
most favorable price while reducing the risk that the market will move 
against that response. The Exchange believes that its ATP Holders would 
be able to compete within a Response Time Interval of no less than 100 
milliseconds and no more than 1 second, and that any random duration 
within this range is a sufficient amount of time to respond to, compete 
for, and provide price improvement for CUBE Orders, which would, in 
turn, provide investors and other market participants more timely 
executions, and reduce their market risk.
    The Exchange does not believe its proposed rule change would impose 
an undue burden on inter-market competition as the Exchange notes other 
exchanges offer similar functionality with similar auction duration 
lengths.\20\
---------------------------------------------------------------------------

    \20\ See supra note 5. See also ISE Rule 723(c)(1); BX Rules, 
Chapter VI, Section 9(ii)(A)(3); PHLX Rule 1080(n)(ii)(A)(4); MIAX 
Rule 515A; and CBOE Rule 6.74A and 6.74B.
---------------------------------------------------------------------------

    For all the reasons stated, the Exchange does not believe that the 
proposed rule change would impose any burden on competition not 
necessary or appropriate in furtherance of the purposes of the Act, and 
believes the proposed change would enhance competition.

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or up to 90 days (i) as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or (ii) as to which the self-regulatory 
organization consents, the Commission will:
    (A) by order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be 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-NYSEAMER-2017-26 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAMER-2017-26. 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

[[Page 57325]]

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-NYSEAMER-2017-26 and should 
be submitted on or before December 26, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
Eduardo A. Aleman,
Assistant Secretary.
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2017-25990 Filed 12-1-17; 8:45 am]
BILLING CODE 8011-01-P
57322 Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Notices

C. Self-Regulatory Organization’s number should be included on the 17, 2017, NYSE American LLC (the
Statement on Comments on the subject line if email is used. To help the ‘‘Exchange’’ or ‘‘NYSE American’’) filed
Proposed Rule Change Received From Commission process and review your with the Securities and Exchange
Members, Participants, or Others comments more efficiently, please use Commission (the ‘‘Commission’’) the
No written comments were either only one method. The Commission will proposed rule change as described in
solicited or received. post all comments on the Commission’s Items I, II, and III below, which Items
Internet Web site (http://www.sec.gov/ have been prepared by the self-
III. Date of Effectiveness of the rules/sro.shtml). Copies of the regulatory organization. The
Proposed Rule Change and Timing for submission, all subsequent Commission is publishing this notice to
Commission Action amendments, all written statements solicit comments on the proposed rule
Because the foregoing proposed rule with respect to the proposed rule change from interested persons.
change does not: (i) Significantly affect change that are filed with the
Commission, and all written I. Self-Regulatory Organization’s
the protection of investors or the public
communications relating to the Statement of the Terms of Substance of
interest; (ii) impose any significant
proposed rule change between the the Proposed Rule Change
burden on competition; and (iii) become
operative for 30 days from the date on Commission and any person, other than The Exchange proposes to amend
which it was filed, or such shorter time those that may be withheld from the Rule 971.1NY (Electronic Cross
as the Commission may designate, it has public in accordance with the Transactions) to amend the duration of
become effective pursuant to Section provisions of 5 U.S.C. 552, will be a Customer Best Execution (‘‘CUBE’’)
19(b)(3)(A)(iii) of the Act 11 and available for Web site viewing and Auction. The proposed rule change is
subparagraph (f)(6) of Rule 19b–4 printing in the Commission’s Public available on the Exchange’s Web site at
thereunder.12 Reference Room, 100 F Street NE., www.nyse.com, at the principal office of
At any time within 60 days of the Washington, DC 20549, on official the Exchange, and at the Commission’s
filing of the proposed rule change, the business days between the hours of Public Reference Room.
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
temporarily suspend such rule change if filing also will be available for II. Self-Regulatory Organization’s
it appears to the Commission that such inspection and copying at the principal Statement of the Purpose of, and
action is: (i) Necessary or appropriate in office of the Exchange. All comments Statutory Basis for, the Proposed Rule
the public interest; (ii) for the protection received will be posted without change. Change
of investors; or (iii) otherwise in Persons submitting comments are In its filing with the Commission, the
furtherance of the purposes of the Act. cautioned that we do not redact or edit self-regulatory organization included
If the Commission takes such action, the personal identifying information from statements concerning the purpose of,
Commission shall institute proceedings comment submissions. You should and basis for, the proposed rule change
to determine whether the proposed rule submit only information that you wish and discussed any comments it received
should be approved or disapproved. to make available publicly. All on the proposed rule change. The text
submissions should refer to File of those statements may be examined at
IV. Solicitation of Comments Number SR–GEMX–2017–53 and the places specified in Item IV below.
Interested persons are invited to should be submitted on or before The Exchange has prepared summaries,
submit written data, views, and December 26, 2017. set forth in sections A, B, and C below,
arguments concerning the foregoing, For the Commission, by the Division of of the most significant parts of such
including whether the proposed rule Trading and Markets, pursuant to delegated statements.
change is consistent with the Act. authority.13
Comments may be submitted by any of A. Self-Regulatory Organization’s
Eduardo A. Aleman,
the following methods: Statement of the Purpose of, and the
Assistant Secretary.
Statutory Basis for, the Proposed Rule
Electronic Comments [FR Doc. 2017–25992 Filed 12–1–17; 8:45 am] Change
• Use the Commission’s Internet BILLING CODE 8011–01–P
1. Purpose
comment form (http://www.sec.gov/
rules/sro.shtml); or The Exchange proposes to amend
• Send an email to rule-comments@ SECURITIES AND EXCHANGE Rule 971.1NY to modify the parameters
sec.gov. Please include File Number SR– COMMISSION for the duration of a CUBE Auction. The
GEMX–2017–53 on the subject line. [Release No. 34–82162; File No. SR– CUBE Auction is an electronic crossing
NYSEAMER–2017–26] mechanism for single-leg orders with a
Paper Comments
price improvement auction on the
• Send paper comments in triplicate Self-Regulatory Organizations; NYSE Exchange.
to Secretary, Securities and Exchange American LLC; Notice of Filing of An ATP Holder (‘‘Initiating
Commission, 100 F Street NE., Proposed Rule Change To Amend Rule Participant’’) may initiate a CUBE
Washington, DC 20549–1090. 971.1NY To Amend the Duration of a Auction by electronically submitting for
All submissions should refer to File Customer Best Execution Auction execution a limit order it represents as
Number SR–GEMX–2017–53. This file agent on behalf of a public customer,
November 28, 2017.
Pursuant to Section 19(b)(1) 1 of the broker dealer, or any other entity
11 15 U.S.C. 78s(b)(3)(A)(iii). (‘‘CUBE Order’’) against principal
sradovich on DSK3GMQ082PROD with NOTICES

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 interest or against any other order it
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file notice is hereby given that on November represents as agent, provided the
the proposed rule change, along with a brief Initiating Participant complies with
description and text of the proposed rule change, 13 17 Rule 971.1NY. When the Exchange
at least five business days prior to the date of filing CFR 200.30–3(a)(12).
of the proposed rule change, or such shorter time
1 15 U.S.C.78s (b)(1). receives a valid CUBE Order for auction
as designated by the Commission. The Exchange 2 15 U.S.C. 78a. processing, a Request for Responses
has satisfied this requirement. 3 17 CFR 240.19b–4. (‘‘RFR’’) detailing the series, the side of

VerDate Sep<11>2014 18:22 Dec 01, 2017 Jkt 244001 PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 E:\FR\FM\04DEN1.SGM 04DEN1
57324 Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Notices

of the Act,14 in general, and furthers the Exchange), which timer provides the purposes of the Act, and believes the
objectives of Section 6(b)(5) of the Act,15 CUBE with a functional difference to proposed change would enhance
in particular, in that it is designed to distinguish it from similar price competition.
prevent fraudulent and manipulative improvement mechanisms offered by
C. Self-Regulatory Organization’s
acts and practices, to promote just and other exchanges.19 The Exchange
Statement on Comments on the
equitable principles of trade, to foster believes this flexibility would allow the
cooperation and coordination with Exchange to modify the outside Proposed Rule Change Received From
persons engaged in regulating, clearing, parameters of uninterrupted CUBE Members, Participants, or Others
settling, processing information with Auctions to provide ATP Holders with No written comments were solicited
respect to, and facilitating transactions sufficient time to submit RFR Responses or received with respect to the proposed
in securities, to remove impediments to and would encourage competition rule change.
and perfect the mechanism of a free and among participants, thereby enhancing III. Date of Effectiveness of the
open market and a national market the potential for price improvement for
Proposed Rule Change and Timing for
system and, in general, to protect the CUBE Order.
Commission Action
investors and the public interest.
In particular, the proposed rule B. Self-Regulatory Organization’s Within 45 days of the date of
change would provide investors with Statement on Burden on Competition publication of this notice in the Federal
more timely execution of their option The Exchange does not believe that Register or up to 90 days (i) as the
orders, while ensuring that there is an the proposed rule change would impose Commission may designate if it finds
adequate exposure of orders in the any burden on competition that is not such longer period to be appropriate
mechanisms. Additionally, the necessary or appropriate in furtherance and publishes its reasons for so finding
proposed change could provide more of the purposes of the Act. The proposal or (ii) as to which the self-regulatory
CUBE Orders an opportunity for price to provide the Exchange flexibility in organization consents, the Commission
improvement because it would reduce determining potentially shorter will:
market risk for ATP Holders that durations for CUBE Auctions does not (A) by order approve or disapprove
participate in CUBE Auctions. Finally, impose an undue burden on intra- the proposed rule change, or
as mentioned above, other exchanges market competition as the Exchange (B) institute proceedings to determine
such as ISE, BX, PHLX, MIAX, and believes that allowing for a Response whether the proposed rule change
CBOE, have already amended their rules Time Interval of no less than 100 should be disapproved.
to permit response times consistent with milliseconds and no more than 1 second
IV. Solicitation of Comments
the instant proposal—i.e., no less than (absent an early end) would benefit all
100 milliseconds and no more than 1 ATP Holders utilizing the CUBE Interested persons are invited to
second.16 As such, the Exchange Auctions. Specifically, it is in Initiating submit written data, views, and
believes the proposed rule change Participants’ best interest to minimize arguments concerning the foregoing,
would help perfect the mechanism for a the Response Time Interval while including whether the proposed rule
free and open national market system, continuing to allow other ATP Holders change is consistent with the Act.
and generally help protect investors and adequate time to electronically respond. Comments may be submitted by any of
the public’s interest.17 The proposed rule would allow ATP the following methods:
The Exchange believes the proposed Holders to respond quickly at the most
Electronic Comments
rule change is not unfairly favorable price while reducing the risk
discriminatory because the Response that the market will move against that • Use the Commission’s Internet
Time Interval for each CUBE Auction response. The Exchange believes that its comment form (http://www.sec.gov/
would be the same for all participating ATP Holders would be able to compete rules/sro.shtml); or
ATP Holders. As is the case today, all within a Response Time Interval of no • Send an email to rule-comments@
ATP Holders would continue to have an less than 100 milliseconds and no more sec.gov. Please include File Number SR–
equal opportunity to receive the than 1 second, and that any random NYSEAMER–2017–26 on the subject
broadcast and respond with their best duration within this range is a sufficient line.
prices during the auction. Additionally, amount of time to respond to, compete Paper Comments
the Exchange believes the proposed for, and provide price improvement for
modification to the Response Time CUBE Orders, which would, in turn, • Send paper comments in triplicate
Interval to be as low as 100 milliseconds provide investors and other market to Brent J. Fields, Secretary, Securities
would reduce the market risk for all participants more timely executions, and Exchange Commission, 100 F Street
ATP Holders, inclusive of Initiating and reduce their market risk. NE., Washington, DC 20549–1090.
Participants and those ATP Holders The Exchange does not believe its All submissions should refer to File
responding to a CUBE Action.18 proposed rule change would impose an Number SR–NYSEAMER–2017–26. This
Finally, the proposal would promote undue burden on inter-market file number should be included on the
just and equitable principles of trade competition as the Exchange notes other subject line if email is used. To help the
because it would allow the Exchange to exchanges offer similar functionality Commission process and review your
continue to use a random timer for each with similar auction duration lengths.20 comments more efficiently, please use
CUBE Auction (within the outside For all the reasons stated, the only one method. The Commission will
parameters announced by the Exchange does not believe that the post all comments on the Commission’s
proposed rule change would impose any Internet Web site (http://www.sec.gov/
sradovich on DSK3GMQ082PROD with NOTICES

14 15 U.S.C. 78f(b). burden on competition not necessary or rules/sro.shtml). Copies of the
15 15 U.S.C. 78f(b)(5). appropriate in furtherance of the submission, all subsequent
16 See supra note 5.
amendments, all written statements
17 15 U.S.C. 78f(b)(5). 19 SeeCUBE Approval Order, supra note 13.
18 The Exchange notes that, as proposed, the 20 See
with respect to the proposed rule
supra note 5. See also ISE Rule 723(c)(1);
duration of a CUBE Auction could be a maximum BX Rules, Chapter VI, Section 9(ii)(A)(3); PHLX
change that are filed with the
of 1 second, as determined and announced by the Rule 1080(n)(ii)(A)(4); MIAX Rule 515A; and CBOE Commission, and all written
Exchange. Rule 6.74A and 6.74B. communications relating to the

VerDate Sep<11>2014 18:22 Dec 01, 2017 Jkt 244001 PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 E:\FR\FM\04DEN1.SGM 04DEN1
Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Notices 57325

proposed rule change between the of International Security and Federal Security Service (FSB)
Commission and any person, other than Nonproliferation, Department of State, Foreign Intelligence Service (SVR)
those that may be withheld from the Washington, DC 20520, tel.: 202–647–
public in accordance with the 5193, FOLEYPH@STATE.GOV. Main Intelligence Directorate of the
provisions of 5 U.S.C. 552, will be General Staff of the Russian Armed
Background Forces (GRU)
available for Web site viewing and
printing in the Commission’s Public Pursuant to the authority in Section Special Technology Center
Reference Room, 100 F Street NE., 231(d) of the Countering Russian
Zorsecurity
Washington, DC 20549, on official Influence in Europe and Eurasia Act of
business days between the hours of 2017 (Pub. L. 115–44), (‘‘the Act’’), the Dated: October 26, 2017.
10:00 a.m. and 3:00 p.m. Copies of the Secretary of State is issuing this Rex W. Tillerson,
filing also will be available for guidance to specify the following as Secretary of State.
inspection and copying at the principal persons that are part of, or operate for [FR Doc. 2017–26087 Filed 12–1–17; 8:45 am]
office of the Exchange. All comments or on behalf of, the defense and
BILLING CODE 4710–27–P
received will be posted without change. intelligence sectors of the Government
Persons submitting comments are of the Russian Federation:
cautioned that we do not redact or edit Section 231(d) List regarding the DEPARTMENT OF STATE
personal identifying information from Russian Defense Sector of the
comment submissions. You should Government of the Russian Federation
[Public Notice: 10210]
submit only information that you wish Admiralty Shipyard JSC
to make available publicly. All Almaz-Antey Air and Space Defense Notice of Determinations; Culturally
submissions should refer to File Corporation JSC
Significant Objects Imported for
Number SR–NYSEAMER–2017–26 and Dolgoprudny Research Production JSC
Federal Research and Production Center Exhibition Determinations: ‘‘Palmyra:
should be submitted on or before
Titan Barrikady JSC (Titan Design Loss and Remembrance’’ Exhibition
December 26, 2017.
For the Commission, by the Division of Bureau)
Izhevsk Mechanical Plant (Baikal) SUMMARY: Notice is hereby given of the
Trading and Markets, pursuant to delegated following determinations: I hereby
authority.21 Izhmash Concern JSC
Kalashnikov Concern JSC determine that certain objects to be
Eduardo A. Aleman, included in the exhibition ‘‘Palmyra:
Kalinin Machine Building Plant JSC
Assistant Secretary. Loss and Remembrance,’’ imported from
(KMZ)
[FR Doc. 2017–25990 Filed 12–1–17; 8:45 am] abroad for temporary exhibition within
KBP Instrument Design Bureau
BILLING CODE 8011–01–P MIC NPO Mashinostroyenia the United States, are of cultural
Molot Oruzhie significance. The objects are imported
Mytishchinski Mashinostroitelny Zavod pursuant to a loan agreement with the
DEPARTMENT OF STATE Novator Experimental Design Bureau foreign owner or custodian. I also
[Public Notice 10159]
NPO High Precision Systems JSC determine that the exhibition or display
NPO Splav JSC of the exhibit objects at The J. Paul Getty
Guidance on Specified Persons Under Oboronprom OJSC Museum at the Getty Villa, Malibu,
Section 231 of the Countering Russian Radio-Electronic Technologies (KRET) California, from on or about April 18,
Influence in Europe and Eurasia Act of Radiotechnical and Information Systems
2018, until on or about May 27, 2019,
2017 (RTI) Concern
and at possible additional exhibitions or
Research and Production Corporation
Uralvagonzavod JSC venues yet to be determined, is in the
ACTION: Guidance to specify persons that
are part of, or operate for or on behalf Rosoboronexport OJSC (ROE) national interest.
of, the defense and intelligence sectors Rostec (Russian Technologies State FOR FURTHER INFORMATION CONTACT:
of the Government of the Russian Corporation) Elliot Chiu in the Office of the Legal
Federation; notice. Russian Aircraft Corporation MiG Adviser, U.S. Department of State
Russian Helicopters JSC (telephone: 202–632–6471; email:
SUMMARY: The Department of State is Sozvezdie Concern JSC
issuing this guidance to specify the section2459@state.gov). The mailing
State Research and Production
persons that are part of, or operate for address is U.S. Department of State,
Enterprise Bazalt JSC
or on behalf of, the defense and L/PD, SA–5, Suite 5H03, Washington,
Sukhoi Aviation JSC
intelligence sectors of the Government Tactical Missiles Corporation JSC DC 20522–0505.
of the Russian Federation. This Tikhomirov Scientific Research Institute SUPPLEMENTARY INFORMATION: The
guidance, including the list specifying JSC foregoing determinations were made
persons, was developed through a Tupolev JSC pursuant to the authority vested in me
robust interagency process and may be United Aircraft Corporation by the Act of October 19, 1965 (79 Stat.
updated or amended as circumstances United Engine Corporation 985; 22 U.S.C. 2459), E.O. 12047 of
warrant. United Instrument Manufacturing March 27, 1978, the Foreign Affairs
Applicable Dates: The specification of Corporation
persons identified in this notice Reform and Restructuring Act of 1998
sradovich on DSK3GMQ082PROD with NOTICES

United Shipbuilding Corporation
pursuant to the Act is applicable on (112 Stat. 2681, et seq.; 22 U.S.C. 6501
Section 231(d) List regarding the
December 4, 2017. Russian Intelligence Sector of the note, et seq.), Delegation of Authority
FOR FURTHER INFORMATION CONTACT: Government of the Russian Federation No. 234 of October 1, 1999, Delegation
Philip A. Foley, Director, Office of Autonomous Noncommercial of Authority No. 236–3 of August 28,
Counterproliferation Initiatives, Bureau Professional Organization/ 2000 (and, as appropriate, Delegation of
Professional Association of Designers Authority No. 257–1 of December 11,
21 17 CFR 200.30–3(a)(12). of Data Processing (ANO PO KSI) 2015). I have ordered that Public Notice

VerDate Sep<11>2014 18:22 Dec 01, 2017 Jkt 244001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 E:\FR\FM\04DEN1.SGM 04DEN1
Document Created: 2017-12-02 00:40:53
Document Modified: 2017-12-02 00:40:53
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 57322