82 FR 58667 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period for the Exchange's Retail Liquidity Program Until June 30, 2018

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 238 (December 13, 2017)

Page Range		58667-58668
FR Document		2017-26821
Federal Register, Volume 82 Issue 238 (Wednesday, December 13, 2017)
[Federal Register Volume 82, Number 238 (Wednesday, December 13, 2017)]
[Notices]
[Pages 58667-58668]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26821]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82230; File No. SR-NYSE-2017-64]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Extend the Pilot Period for the Exchange's Retail Liquidity Program 
Until June 30, 2018

December 7, 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 November 30, 2017, New York Stock Exchange LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been prepared by the Exchange. 
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 extend the pilot period for the Exchange's 
Retail Liquidity Program (the ``Retail Liquidity Program'' or the 
``Program''), which is currently scheduled to expire on December 31, 
2017, until June 30, 2018. The proposed rule change is available on the 
Exchange's website 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 purpose of this filing is to extend the pilot period of the 
Retail Liquidity Program, currently scheduled to expire on December 31, 
2017,\4\ until June 30, 2018.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 80844 (June 1, 
2017), 82 FR 26562 (June 7, 2017) (SR-NYSE-2017-26).
---------------------------------------------------------------------------

Background
    In July 2012, the Commission approved the Retail Liquidity Program 
on a pilot basis.\5\ The Program is designed to attract retail order 
flow to the Exchange, and allows such order flow to receive potential 
price improvement. The Program is currently limited to trades occurring 
at prices equal to or greater than $1.00 per share. Under the Program, 
Retail Liquidity Providers (``RLPs'') are able to provide potential 
price improvement in the form of a non-displayed order that is priced 
better than the Exchange's best protected bid or offer (``PBBO''), 
called a Retail Price Improvement Order (``RPI''). When there is an RPI 
in a particular security, the Exchange disseminates an indicator, known 
as the Retail Liquidity Identifier, indicating that such interest 
exists. Retail Member Organizations (``RMOs'') can submit a Retail 
Order to the Exchange, which would interact, to the extent possible, 
with available contra-side RPIs.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 67347 (July 3, 
2012), 77 FR 40673 (July 10, 2012) (``RLP Approval Order'') (SR-
NYSE-2011-55).
---------------------------------------------------------------------------

    The Retail Liquidity Program was approved by the Commission on a 
pilot basis. Pursuant to NYSE Rule 107C(m), the pilot period for the 
Program is scheduled to end on December 31, 2017.
Proposal To Extend the Operation of the Program
    The Exchange established the Retail Liquidity Program in an attempt 
to attract retail order flow to the Exchange by potentially providing 
price improvement to such order flow. The Exchange believes that the 
Program promotes competition for retail order flow by allowing Exchange 
members to submit RPIs to interact with Retail Orders. Such competition 
has the ability to promote efficiency by facilitating the price 
discovery process and generating additional investor interest in 
trading securities, thereby promoting capital formation. The Exchange 
believes that extending the pilot is appropriate because it will allow 
the Exchange and the Commission additional time to analyze data 
regarding the Program that the Exchange has committed to provide.\6\ As 
such, the Exchange believes that it is appropriate to extend the 
current operation of the Program.\7\ Through this filing, the Exchange 
seeks to amend NYSE Rule 107C(m) and extend the current pilot period of 
the Program until June 30, 2018.
---------------------------------------------------------------------------

    \6\ See id. at 40681.
    \7\ Concurrently with this filing, the Exchange has submitted a 
request for an extension of the exemption under Regulation NMS Rule 
612 previously granted by the Commission that permits it to accept 
and rank the undisplayed RPIs. See Letter from Martha Redding, Asst. 
Corporate Secretary, NYSE Group, Inc. to Brent J. Fields, Secretary, 
Securities and Exchange Commission, dated November 30, 2017.
---------------------------------------------------------------------------

2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\8\ in general, and furthers the objectives of Section 6(b)(5),\9\ 
in particular, in that it is designed to promote just and equitable 
principles of trade, 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. The Exchange 
believes that extending the pilot period for the Retail Liquidity 
Program is consistent with these principles because the Program is 
reasonably designed to attract retail order flow to the exchange 
environment, while helping to ensure that retail investors benefit from 
the better price that liquidity providers are willing to give their 
orders. Additionally, as previously stated, the competition promoted by 
the Program may facilitate the price discovery process and potentially 
generate additional investor interest in trading securities. The 
extension of the pilot

[[Page 58668]]

period will allow the Commission and the Exchange to continue to 
monitor the Program for its potential effects on public price 
discovery, and on the broader market structure.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 
simply extends an established pilot program for an additional six 
months, thus allowing the Retail Liquidity Program to enhance 
competition for retail order flow and contribute to the public price 
discovery process.

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

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

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSE-2017-64 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSE-2017-64. 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 website (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 website 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-NYSE-2017-64 and 
should be submitted on or before January 3, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-26821 Filed 12-12-17; 8:45 am]
BILLING CODE 8011-01-P
58668 Federal Register / Vol. 82, No. 238 / Wednesday, December 13, 2017 / Notices

period will allow the Commission and action is necessary or appropriate in the comment submissions. You should
the Exchange to continue to monitor the public interest, for the protection of submit only information that you wish
Program for its potential effects on investors, or otherwise in furtherance of to make available publicly.
public price discovery, and on the the purposes of the Act. If the All submissions should refer to File
broader market structure. Commission takes such action, the Number SR–NYSE–2017–64 and should
Commission shall institute proceedings be submitted on or before January 3,
B. Self-Regulatory Organization’s under Section 19(b)(2)(B) 14 of the Act to 2018.
Statement on Burden on Competition determine whether the proposed rule For the Commission, by the Division of
The Exchange does not believe that change should be approved or Trading and Markets, pursuant to delegated
the proposed rule change will impose disapproved. authority.15
any burden on competition that is not Eduardo A. Aleman,
IV. Solicitation of Comments
necessary or appropriate in furtherance Assistant Secretary.
of the purposes of the Act. The Interested persons are invited to
[FR Doc. 2017–26821 Filed 12–12–17; 8:45 am]
proposed rule change simply extends an submit written data, views, and
BILLING CODE 8011–01–P
established pilot program for an arguments concerning the foregoing,
additional six months, thus allowing the including whether the proposed rule
Retail Liquidity Program to enhance change is consistent with the Act. SECURITIES AND EXCHANGE
competition for retail order flow and Comments may be submitted by any of COMMISSION
contribute to the public price discovery the following methods:
process. [Release No. 34–82235; File No. 4–443]
Electronic Comments
C. Self-Regulatory Organization’s • Use the Commission’s internet Joint Industry Plan; Order Approving
Statement on Comments on the comment form (http://www.sec.gov/ the Fourth Amendment to the Plan for
Proposed Rule Change Received From rules/sro.shtml); or the Purpose of Developing and
Members, Participants, or Others • Send an email to rule-comments@ Implementing Procedures Designed To
sec.gov. Please include File Number SR– Facilitate the Listing and Trading of
No written comments were solicited
NYSE–2017–64 on the subject line. Standardized Options
or received with respect to the proposed
rule change. Paper Comments December 7, 2017.
III. Date of Effectiveness of the • Send paper comments in triplicate I. Introduction
Proposed Rule Change and Timing for to Secretary, Securities and Exchange
On August 16, 2017, Chicago Board
Commission Action Commission, 100 F Street NE,
Options Exchange, Incorporated (now
Washington, DC 20549–1090.
The Exchange has filed the proposed known as Cboe Exchange, Inc.), on
rule change pursuant to Section All submissions should refer to File behalf of the BATS Exchange, Inc. (now
19(b)(3)(A)(iii) of the Act 10 and Rule Number SR–NYSE–2017–64. This file known as Cboe BZX Exchange, Inc.);
19b–4(f)(6) thereunder.11 Because the number should be included on the Box Options Exchange, LLC; C2
proposed rule change does not: (i) subject line if email is used. To help the Exchange, Incorporated (now known as
Significantly affect the protection of Commission process and review your Cboe C2 Exchange, Inc.); EDGX
investors or the public interest; (ii) comments more efficiently, please use Exchange, Inc. (now known as Cboe
impose any significant burden on only one method. The Commission will EDGX Exchange, Inc.); Miami
competition; and (iii) become operative post all comments on the Commission’s International Securities Exchange, LLC;
prior to 30 days from the date on which internet website (http://www.sec.gov/ MIAX PEARL, LLC; Nasdaq BX, Inc.;
it was filed, or such shorter time as the rules/sro.shtml). Copies of the Nasdaq GEMX, LLC; Nasdaq ISE, LLC;
Commission may designate, if submission, all subsequent Nasdaq MRX, LLC; Nasdaq Options
consistent with the protection of amendments, all written statements Market, LLC; Nasdaq PHLX, LLC; NYSE
investors and the public interest, the with respect to the proposed rule American, LLC; NYSE Arca, Inc.; and
proposed rule change has become change that are filed with the the Options Clearing Corporation
effective pursuant to Section 19(b)(3)(A) Commission, and all written (‘‘OCC’’) (together, the ‘‘Plan
of the Act and Rule 19b–4(f)(6)(iii) communications relating to the Sponsors’’), filed with the Securities
thereunder. proposed rule change between the and Exchange Commission
A proposed rule change filed under Commission and any person, other than (‘‘Commission’’ or ‘‘SEC’’) pursuant to
Rule 19b–4(f)(6) 12 normally does not those that may be withheld from the Section 11A(a)(3) of the Securities
become operative prior to 30 days after public in accordance with the Exchange Act of 1934 (‘‘Act’’) 1 and Rule
the date of the filing. However, pursuant provisions of 5 U.S.C. 552, will be 608 thereunder,2 a proposal to amend
to Rule 19b–4(f)(6)(iii),13 the available for website viewing and the Plan for the Purpose of Developing
Commission may designate a shorter printing in the Commission’s Public and Implementing Procedures Designed
time if such action is consistent with the Reference Room, 100 F Street NE, to Facilitate the Listing and Trading of
protection of investors and the public Washington, DC 20549 on official Standardized Options (‘‘OLPP’’ or
interest. business days between the hours of ‘‘Plan’’).3 The proposed amendment
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the (‘‘Amendment’’ or ‘‘Amendment No. 4’’)
filing of such proposed rule change, the filing also will be available for
sradovich on DSK3GMQ082PROD with NOTICES

Commission summarily may inspection and copying at the principal 15 17 CFR 200.30–3(a)(12).
temporarily suspend such rule change if office of the Exchange. All comments 1 15 U.S.C. 78k–1(a)(3).
it appears to the Commission that such received will be posted without change. 2 17 CFR 242.608.

Persons submitting comments are 3 The full text of the OLPP is available at: https://

10 15 cautioned that we do not redact or edit www.theocc.com/components/docs/clearing/
U.S.C. 78s(b)(3)(A)(iii). services/options_listing_procedures_plan.pdf. See
11 17 CFR 240.19b–4(f)(6). personal identifying information from also Securities Exchange Act Release No. 44521, 66
12 17 CFR 240.19b–4(f)(6).
FR 36809 (July 13, 2001) (order approving the
13 17 CFR 240.19b–4(f)(6)(iii). 14 15 U.S.C. 78s(b)(2)(B). OLPP).

VerDate Sep<11>2014 18:53 Dec 12, 2017 Jkt 244001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\13DEN1.SGM 13DEN1
Document Created: 2017-12-13 01:23:56
Document Modified: 2017-12-13 01:23:56
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 58667