82 FR 58458 - Self-Regulatory Organizations; New York Stock Exchange LLC; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS In Connection With the Exchange's Retail Liquidity Program Until June 30, 2018

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 237 (December 12, 2017)

[Federal Register Volume 82, Number 237 (Tuesday, December 12, 2017)]
[Notices]
[Pages 58458-58459]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26727]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82228; File No. SR-NYSE-2011-55]


Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Granting an Extension to Limited Exemption From Rule 612(c) of 
Regulation NMS In Connection With the Exchange's Retail Liquidity 
Program Until June 30, 2018

December 7, 2017.
    On July 3, 2012, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted the New 
York Stock Exchange LLC (``NYSE'' or ``Exchange'') a limited exemption 
from the Sub-Penny Rule in connection with the operation of the 
Exchange's Retail Liquidity Program (``Program'').\2\ The limited 
exemption was granted concurrently with the Commission's approval of 
the Exchange's proposal to adopt the Program for a one-year pilot 
term.\3\ The exemption was granted coterminous with the effectiveness 
of the pilot Program; both the pilot Program and exemption, as 
previously extended, are scheduled to expire on December 31, 2017.\4\
---------------------------------------------------------------------------

    \1\ 17 CFR 242.612(c)
    \2\ See Securities Exchange Act Release No. 67347 (July 3, 
2012), 77 FR 40673 (July 10, 2012) (SR-NYSE-2011-55) (``RLP Approval 
Order'').
    \3\ See id. The Sub-Penny Exemption was originally granted by 
the Commission concurrently with the approval of the Program. See 
id. On July 30, 2013, the Exchange requested an extension of the 
exemption for the Program. See Letter from Janet McGinness, SVP and 
Corporate Secretary, NYSE Euronext, to Elizabeth M. Murphy, 
Secretary, Commission, dated July 30, 2013. The pilot period for the 
Program was extended until July 31, 2014. See Securities Exchange 
Act Release No. 70096 (August 2, 2013), 78 FR 48520 (August 8, 2013) 
(NYSE-2013-48). On July 30, 2014, the Exchange requested a second 
extension of the exemption for the Program. See Letter from Martha 
Redding, Chief Counsel, NYSE, to Kevin M. O'Neill, Deputy Secretary, 
Commission, dated July 30, 2014. The pilot period for the Program 
was extended until March 31, 2015. See Securities Exchange Act 
Release No. 72629 (July 16, 2014), 79 FR 42564 (July 22, 2014) 
(NYSE-2014-35). On February 27, 2015, the Exchange requested a third 
extension of the exemption for the Program. See Letter from Martha 
Redding, Senior Counsel, NYSE, to Brent J. Fields, Secretary, 
Commission, dated February 27, 2015. The pilot period for the 
Program was extended until September 30, 2015. See Securities 
Exchange Act Release No. 74454 (March 6, 2015), 80 FR 13054 (March 
12, 2015) (SR-NYSE-2015-10). On September 17, 2015, the Exchange 
requested a fourth extension of the exemption for the Program. See 
Letter from Martha Redding, Senior Counsel, NYSE, to Brent J. 
Fields, Secretary, Commission, dated September 17, 2015. The pilot 
period for the Program was extended until March 31, 2016. See 
Securities Exchange Act Release No. 75993 (September 28, 2015), 80 
FR 59844 (October 2, 2015) (SR-NYSE-2015-41). On March 17, 2016, the 
Exchange requested a fifth extension of the exemption for the 
Program. See Letter from Martha Redding, Senior Counsel, NYSE, to 
Brent J. Fields, Secretary, Commission, dated March 17, 2016. The 
pilot period for the Program was extended until August 31, 2016. See 
Securities Exchange Act Release No. 77426 (March 23, 2016), 81 FR 
17533 (March 29, 2016) (SR-NYSE-2016-25). On August 8, 2016, the 
Exchange requested a sixth extension of the exemption for the 
Program. See Letter from Martha Redding, Associate General Counsel, 
NYSE, to Brent J. Fields, Secretary, Commission, dated August 8, 
2016. The pilot period for the Program was extended until December 
31, 2016. See Securities Exchange Act Release No. 78600 (August 17, 
2016), 81 FR 57642 (August 23, 2016) (SR-NYSE-2016-54). On November 
28, 2016, the Exchange requested a seventh extension of the 
exemption for the Program. See Letter from Martha Redding, Associate 
General Counsel, NYSE, to Brent J. Fields, Secretary, Commission, 
dated November 28, 2016. The pilot period for the Program was 
extended until June 30, 2017. See Securities Exchange Act Release 
No. 79493 (December 7, 2016), 81 FR 90019 (December 13, 2016) (SR-
NYSE-2016-82). On May 23, 2017, the Exchange requested an eighth 
extension of the exemption for the Program. See Letter from Martha 
Redding, Associate General Counsel, NYSE, to Brent J. Fields, 
Secretary, Commission, dated May 23, 2017. The pilot period for the 
Program was extended until December 31, 2017. See Securities 
Exchange Act Release No. 80844 (June 1, 2017), 82 FR 26562 (June 7, 
2017) (SR-NYSE-2017-26).
    \4\ See Securities Exchange Act Release No. 80844 (June 1, 
2017), 82 FR 26562 (June 7, 2017) (SR-NYSE-2017-26).
---------------------------------------------------------------------------

    The Exchange now seeks to further extend the exemption until June 
30, 2018.\5\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the Program 
through the same date.\6\ In its request to extend the exemption, the 
Exchange notes that participation in the program has increased 
recently.\7\ Accordingly, the Exchange has asked for additional time to 
allow the Exchange and the Commission to analyze more data concerning 
the Program, which the Exchange committed to provide to the 
Commission.\8\ For this reason and the reasons stated in the Order 
originally granting the limited exemption, the Commission finds, 
pursuant to its authority under Rule 612(c) of Regulation NMS, that 
extending the exemption is appropriate in the public interest and 
consistent with the protection of investors.
---------------------------------------------------------------------------

    \5\ See Letter from Martha Redding, Assistant Secretary, NYSE, 
to Brent J. Fields, Secretary, Commission, dated November 30, 2017 
(``NYSE Letter'').
    \6\ See SR-NYSE-2017-64.
    \7\ See NYSE Letter, supra note 5 at 3.
    \8\ See RLP Approval Order, supra note 2, 77 FR at 40681.
---------------------------------------------------------------------------

    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612 of Regulation NMS that allows it to accept and rank orders priced 
equal to or greater than $1.00 per share in increments of $0.001,

[[Page 58459]]

in connection with the operation of its Retail Liquidity Program, until 
June 30, 2018.
    The limited and temporary exemption extended by this Order are 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934.
    Responsibility for compliance with any applicable provisions of the 
Federal securities laws must rest with the persons relying on the 
exemptions that are the subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(83).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-26727 Filed 12-11-17; 8:45 am]
 BILLING CODE 8011-01-P