82_FR_59919 82 FR 59679 - Self-Regulatory Organizations; NYSE Arca, Inc.; 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

82 FR 59679 - Self-Regulatory Organizations; NYSE Arca, Inc.; 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 240 (December 15, 2017)

Page Range59679-59680
FR Document2017-26984

Federal Register, Volume 82 Issue 240 (Friday, December 15, 2017) 
[Federal Register Volume 82, Number 240 (Friday, December 15, 2017)]
[Notices]
[Pages 59679-59680]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26984]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82281; File No. SR-NYSEArca-2013-107]


Self-Regulatory Organizations; NYSE Arca, Inc.; 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 11, 2017.
    On December 23, 2013, 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 NYSE 
Arca, Inc. (``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\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 71176 (December 23, 
2013), 78 FR 79524 (December 30, 2013) (SR-NYSEArca-2013-107) (``RLP 
Approval Order'').
    \3\ See id.
    \4\ The Sub-Penny Exemption was originally granted by the 
Commission concurrently with the approval of the Program. See id. On 
March 19, 2015, the Exchange requested an extension of the exemption 
for the Program. See letter from Martha Redding, Senior Counsel and 
Assistant Secretary, to Brent J. Fields, Secretary, Commission, 
dated March 19, 2015. The pilot period for the Program was extended 
until September 30, 2015. See Securities Exchange Act Release No. 
74572 (Mar. 24, 2015), 80 FR 16705 (Mar. 30, 2015) (SR-NYSEArca-
2015-22). On September 17, 2015, the Exchange requested an extension 
of the exemption for the Program. See letter from Martha Redding, 
Senior Counsel and Assistant Secretary, 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 Nos. 75994 (Sept. 28, 2015), 80 FR 59834 (Oct. 
2, 2015) (SR-NYSEArca-2015-84) and 77236 (Feb. 25, 2016), 81 FR 
10943 (Mar. 2, 2016) (SR-NYSEArca-2016-30). On March 17, 2016, the 
Exchange requested another extension of the exemption for the 
Program. See letter from Martha Redding, Senior Counsel and 
Assistant Secretary, 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. 77425 
(Mar. 23, 2016), 81 FR 17523 (Mar. 29, 2016) (SR-NYSEArca-2016-47). 
On August 8, 2016, the Exchange requested another extension of the 
exemption for the Program. See Letter from Martha Redding, Associate 
General Counsel and Assistant Secretary, 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. 78601 (Aug. 17, 2016), 81 FR 57632 (Aug. 
23, 2016) (SR-NYSEArca-2016-113). On November 28, 2016, the Exchange 
requested another extension of the exemption for the program. See 
Letter from Martha Redding, Associate General Counsel and Assistant 
Secretary, 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. 79495 (Dec. 7, 
2016), 81 FR 90033 (Dec. 13, 2016) (SR NYSEArca-2016-157). On May 
23, 2017, the Exchange requested another extension of the exemption 
for the program. See Letter from Martha Redding, Associate General 
Counsel and Assistant Secretary, 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.80851 (June 2, 2017), 82 FR 26722 (June 8, 2017) (SR-
NYSEArca-2017-63).
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    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 RLP 
Approval 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.
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    \5\ See Letter from Martha Redding, Assistant Secretary, NYSE, 
to Brent J. Fields, Secretary, Commission, dated November 30, 2017 
(``NYSE Arca Letter'').
    \6\ See SR-NYSEArca-2017-137.
    \7\ See NYSE Arca Letter, supra note 5, at 3.
    \8\ See RLP Approval Order, supra note 2, 78 FR at 79529.
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    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, in 
connection with the operation of its Retail Liquidity Program, until 
June 30, 2018.

[[Page 59680]]

    The limited and temporary exemption extended by this Order is 
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\
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    \9\ 17 CFR 200.30-3(a)(83).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-26984 Filed 12-14-17; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Notices 59679 arguments concerning the foregoing, For the Commission, by the Division of The Exchange now seeks to further including whether the proposed rule Trading and Markets, pursuant to delegated extend the exemption until June 30, change is consistent with the Act. authority.15 2018.5 The Exchange’s request was Comments may be submitted by any of Robert W. Errett, made in conjunction with an the following methods: Deputy Secretary. immediately effective filing that extends [FR Doc. 2017–27010 Filed 12–14–17; 8:45 am] the operation of the Program through Electronic Comments BILLING CODE 8011–01–P the same date.6 In its request to extend the exemption, the Exchange notes that • Use the Commission’s internet participation in the program has comment form (http://www.sec.gov/ SECURITIES AND EXCHANGE increased recently.7 Accordingly, the rules/sro.shtml); or COMMISSION Exchange has asked for additional time • Send an email to rule-comments@ to allow the Exchange and the [Release No. 34–82281; File No. SR– sec.gov. Please include File Number SR– Commission to analyze more data NYSEArca–2013–107] NYSEARCA–2017–137 on the subject concerning the Program, which the line. Self-Regulatory Organizations; NYSE Exchange committed to provide to the Arca, Inc.; Order Granting an Commission.8 For this reason and the Paper Comments reasons stated in the RLP Approval Extension to Limited Exemption From • Send paper comments in triplicate Rule 612(c) of Regulation NMS in Order originally granting the limited to Secretary, Securities and Exchange Connection With the Exchange’s Retail exemption, the Commission finds, Commission, 100 F Street NE, Liquidity Program Until June 30, 2018 pursuant to its authority under Rule 612(c) of Regulation NMS, that Washington, DC 20549–1090. December 11, 2017. extending the exemption is appropriate All submissions should refer to File On December 23, 2013, the Securities in the public interest and consistent Number SR–NYSEARCA–2017–137. and Exchange Commission with the protection of investors. This file number should be included on (‘‘Commission’’) issued an order Therefore, it is hereby ordered that, the subject line if email is used. To help pursuant to its authority under Rule pursuant to Rule 612(c) of Regulation the Commission process and review 612(c) of Regulation NMS (‘‘Sub-Penny NMS, the Exchange is granted a limited your comments more efficiently, please Rule’’) 1 that granted NYSE Arca, Inc. exemption from Rule 612 of Regulation use only one method. The Commission (‘‘Exchange’’) a limited exemption from NMS that allows it to accept and rank will post all comments on the the Sub-Penny Rule in connection with orders priced equal to or greater than Commission’s internet website (http:// the operation of the Exchange’s Retail $1.00 per share in increments of $0.001, www.sec.gov/rules/sro.shtml). Copies of Liquidity Program (‘‘Program’’).2 The in connection with the operation of its limited exemption was granted Retail Liquidity Program, until June 30, the submission, all subsequent concurrently with the Commission’s 2018. amendments, all written statements approval of the Exchange’s proposal to with respect to the proposed rule adopt the Program for a one-year pilot Senior Counsel and Assistant Secretary, to Brent J. change that are filed with the term.3 The exemption was granted Fields, Secretary, Commission, dated March 17, Commission, and all written coterminous with the effectiveness of 2016. The pilot period for the Program was communications relating to the extended until August 31, 2016. See Securities the pilot Program; both the pilot Exchange Act Release No. 77425 (Mar. 23, 2016), 81 proposed rule change between the Program and exemption, as previously FR 17523 (Mar. 29, 2016) (SR–NYSEArca–2016–47). Commission and any person, other than extended, are scheduled to expire on On August 8, 2016, the Exchange requested another those that may be withheld from the extension of the exemption for the Program. See December 31, 2017.4 Letter from Martha Redding, Associate General public in accordance with the Counsel and Assistant Secretary, to Brent J. Fields, provisions of 5 U.S.C. 552, will be 15 17 CFR 200.30–3(a)(12). Secretary, Commission, dated August 8, 2016. The available for website viewing and 1 17 CFR 242.612(c). pilot period for the Program was extended until 2 See Securities Exchange Act Release No. 71176 December 31, 2016. See Securities Exchange Act printing in the Commission’s Public Release No. 78601 (Aug. 17, 2016), 81 FR 57632 (December 23, 2013), 78 FR 79524 (December 30, Reference Room, 100 F Street NE, 2013) (SR–NYSEArca–2013–107) (‘‘RLP Approval (Aug. 23, 2016) (SR–NYSEArca–2016–113). On Washington, DC 20549 on official Order’’). November 28, 2016, the Exchange requested business days between the hours of 3 See id. another extension of the exemption for the program. 4 The Sub-Penny Exemption was originally See Letter from Martha Redding, Associate General 10:00 a.m. and 3:00 p.m. Copies of the Counsel and Assistant Secretary, to Brent J. Fields, granted by the Commission concurrently with the filing also will be available for approval of the Program. See id. On March 19, 2015, Secretary, Commission, dated November 28, 2016. inspection and copying at the principal The pilot period for the Program was extended until the Exchange requested an extension of the June 30, 2017. See Securities Exchange Act Release office of the Exchange. All comments exemption for the Program. See letter from Martha No. 79495 (Dec. 7, 2016), 81 FR 90033 (Dec. 13, received will be posted without change. Redding, Senior Counsel and Assistant Secretary, to 2016) (SR NYSEArca–2016–157). On May 23, 2017, Brent J. Fields, Secretary, Commission, dated March Persons submitting comments are the Exchange requested another extension of the 19, 2015. The pilot period for the Program was exemption for the program. See Letter from Martha cautioned that we do not redact or edit extended until September 30, 2015. See Securities Redding, Associate General Counsel and Assistant personal identifying information from Exchange Act Release No. 74572 (Mar. 24, 2015), 80 Secretary, to Brent J. Fields, Secretary, Commission, FR 16705 (Mar. 30, 2015) (SR–NYSEArca–2015–22). comment submissions. You should On September 17, 2015, the Exchange requested an dated May 23, 2017. The pilot period for the submit only information that you wish Program was extended until December 31, 2017. extension of the exemption for the Program. See See Securities Exchange Act Release No.80851 to make available publicly. letter from Martha Redding, Senior Counsel and (June 2, 2017), 82 FR 26722 (June 8, 2017) (SR– Assistant Secretary, to Brent J. Fields, Secretary, sradovich on DSK3GMQ082PROD with NOTICES All submissions should refer to File NYSEArca–2017–63). Commission, dated September 17, 2015. The pilot 5 See Letter from Martha Redding, Assistant Number SR–NYSEARCA–2017–137 and period for the Program was extended until March Secretary, NYSE, to Brent J. Fields, Secretary, 31, 2016. See Securities Exchange Act Release Nos. should be submitted on or before 75994 (Sept. 28, 2015), 80 FR 59834 (Oct. 2, 2015) Commission, dated November 30, 2017 (‘‘NYSE January 5, 2018. (SR–NYSEArca–2015–84) and 77236 (Feb. 25, Arca Letter’’). 6 See SR–NYSEArca–2017–137. 2016), 81 FR 10943 (Mar. 2, 2016) (SR–NYSEArca– 7 See NYSE Arca Letter, supra note 5, at 3. 2016–30). On March 17, 2016, the Exchange requested another extension of the exemption for 8 See RLP Approval Order, supra note 2, 78 FR the Program. See letter from Martha Redding, at 79529. VerDate Sep<11>2014 23:42 Dec 14, 2017 Jkt 244001 PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1

59680 Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Notices The limited and temporary exemption comments from the Participants.5 On from the Participants.8 On November 7, extended by this Order is subject to June 30, 2017, the Commission 2017, the Exchange filed Amendment modification or revocation if at any time temporarily suspended and initiated No. 1 to the proposed rule change.9 On the Commission determines that such proceedings to determine whether to November 9, 2017, the Commission action is necessary or appropriate in approve or disapprove the proposed extended the time period within which furtherance of the purposes of the rule change.6 The Commission to approve the proposed rule change or Securities Exchange Act of 1934. thereafter received seven comment disapprove the proposed rule change to Responsibility for compliance with letters,7 and a response to comments January 14, 2018.10 On December 7, any applicable provisions of the Federal 2017, the Exchange filed Amendment securities laws must rest with the Patricia L. Cerny and Steven O’Malley, Compliance No. 2 to the proposed rule change, as persons relying on the exemptions that Consultants, to Brent J. Fields, Secretary, described in Items I and II below, which Commission (dated June 12, 2017), available at: are the subject of this Order. https://www.sec.gov/comments/sr-cboe-2017-040/ Items have been prepared by the For the Commission, by the Division of cboe2017040-1799253-153675.pdf; Letter from Exchange. The Commission is Trading and Markets, pursuant to delegated Daniel Zinn, General Counsel, OTC Markets Group publishing this notice to solicit Inc., to Eduardo A. Aleman, Assistant Secretary, comments from interested persons on authority.9 Commission (dated June 13, 2017), available at: Robert W. Errett, https://www.sec.gov/comments/sr-finra-2017-011/ Amendment No. 2. Deputy Secretary. finra2017011-1801717-153703.pdf; Letter from Joanna Mallers, Secretary, FIA Principal Traders I. Self-Regulatory Organization’s [FR Doc. 2017–26984 Filed 12–14–17; 8:45 am] Group, to Brent J. Fields, Secretary, Commission Statement of the Terms of the Substance BILLING CODE 8011–01–P (dated June 22, 2017), available at: https:// of the Proposed Rule Change www.sec.gov/comments/sr-cboe-2017-040/ cboe2017040-1819670-154195.pdf; Letter from The Exchange is filing with the Stuart J. Kaswell, Executive Vice President and Securities and Exchange Commission SECURITIES AND EXCHANGE Managing Director, General Counsel, Managed (‘‘Commission’’) a proposed rule change COMMISSION Funds Association, to Brent J. Fields, Secretary, to amend the Fee Schedule to amend Commission (dated June 23, 2017), available at: [Release No. 34–82267; File No. SR–BOX– https://www.sec.gov/comments/sr-finra-2017-011/ the fees for Industry Members related to 2017–16] finra2017011-1822454-154283.pdf; and Letter from the CAT NMS Plan. The text of the Suzanne H. Shatto, Investor, to Commission (dated proposed rule change is available from Self-Regulatory Organizations; BOX June 27, 2017), available at: https://www.sec.gov/ comments/sr-batsedgx-2017-22/batsedgx201722- the principal office of the Exchange, at Options Exchange LLC; Notice of 154443.pdf. The Commission also received a the Commission’s Public Reference Filing of Amendment No. 2 to a comment letter which is not pertinent to these Room and also on the Exchange’s Proposed Rule Change Amending proposed rule changes. See Letter from Christina Crouch, Smart Ltd., to Brent J. Fields, Secretary, internet website at http:// Consolidated Audit Trail Funding Fees Commission (dated June 5, 2017), available at: boxexchange.com. https://www.sec.gov/comments/sr-batsbzx-2017-38/ December 11, 2017. batsbzx201738-1785545-153152.htm. II. Self-Regulatory Organization’s On May 15, 2017, BOX Options 5 See Letter from CAT NMS Plan Participants to Statement of the Purpose of, and Exchange LLC (‘‘Exchange’’ or ‘‘SRO’’) Brent J. Fields, Secretary, Commission (dated June Statutory Basis for, the Proposed Rule filed with the Securities and Exchange 29, 2017), available at: https://www.sec.gov/ Change comments/sr-batsbyx-2017-11/batsbyx201711- Commission (‘‘Commission’’), pursuant 1832632-154584.pdf. In its filing with the Commission, the to Section 19(b)(1) of the Securities 6 See Securities Exchange Act Release No. 81067 Exchange included statements Exchange Act of 1934 (‘‘Act’’) 1 and Rule (June 30, 2017), 82 FR 31656 (July 7, 2017). concerning the purpose of and basis for 19b–4 thereunder,2 a proposed rule 7 See Letter from W. Hardy Callcott, Partner, the proposed rule change and discussed change to adopt a fee schedule to Sidley Austin LLP, to Brent J. Fields, Secretary, Commission (dated July 27, 2017), available at: any comments it received on the establish the fees for Industry Members https://www.sec.gov/comments/sr-batsbyx-2017-11/ proposed rule change. The text of these related to the National Market System batsbyx201711-2148338-157737.pdf; Letter from statements may be examined at the Plan Governing the Consolidated Audit Kevin Coleman, General Counsel and Chief Compliance Officer, Belvedere Trading LLC, to places specified in Item IV below. The Trail (‘‘CAT NMS Plan’’). The proposed Brent J. Fields, Secretary, Commission (dated July Exchange has prepared summaries, set rule change was published in the 28, 2017), available at: https://www.sec.gov/ forth in Sections A, B, and C below, of Federal Register for comment on May comments/sr-batsbyx-2017-11/batsbyx201711- the most significant aspects of such 24, 2017.3 The Commission received 2148360-157740.pdf; Letter from Joanna Mallers, Secretary, FIA Principal Traders Group, to Brent J. statements. seven comment letters on the proposed Fields, Secretary, Commission (dated July 28, 2017), rule change,4 and a response to available at: https://www.sec.gov/comments/sr- A. Self-Regulatory Organization’s batsbyx-2017-11/batsbyx201711-2151228- Statement of the Purpose of, and 9 17 CFR 200.30–3(a)(83). 157745.pdf; Letter from Theodore R. Lazo, Statutory Basis for, the Proposed Rule 1 15 U.S.C. 78s(b)(1). Managing Director and Associate General Counsel, Change 2 17 CFR 240.19b–4. SIFMA, to Brent J. Fields, Secretary, Commission 3 See Securities Exchange Act Release No. 80721 (dated July 28, 2017), available at: https:// 1. Purpose www.sec.gov/comments/sr-batsbyx-2017-11/ (May 18, 2017), 82 FR 23864 (May 24, 2017) batsbyx201711-2150977-157744.pdf; Letter from BOX Options Exchange LLC, Cboe (‘‘Original Proposal’’). 4 Since the CAT NMS Plan Participants’ proposed Stuart J. Kaswell, Executive Vice President and BYX Exchange, Inc., Cboe BZX Managing Director, General Counsel, Managed rule changes to adopt fees to be charged to Industry Funds Association, to Brent J. Fields, Secretary, 8 See Letter from Michael Simon, Chair, CAT Members to fund the consolidated audit trail are Commission (dated July 28, 2017), available at: substantively identical, the Commission is https://www.sec.gov/comments/sr-batsbyx-2017-11/ NMS Plan Operating Committee, to Brent J. Fields, considering all comments received on the proposed batsbyx201711-2150818-157743.pdf; Letter from Commission, Secretary (dated November 2, 2017), rule changes regardless of the comment file to available at https://www.sec.gov/comments/sr- sradovich on DSK3GMQ082PROD with NOTICES John Kinahan, Chief Executive Officer, Group One which they were submitted. See text accompanying Trading, L.P., to Brent J. Fields, Secretary, batsbyx-2017-11/batsbyx201711-2674608- note 11 infra, for a list of the CAT NMS Plan Commission (dated August 10, 2017), available at: 161412.pdf. 9 Amendment No. 1 to the proposed rule change Participants. See Letter from Theodore R. Lazo, https://www.sec.gov/comments/sr-finra-2017-011/ Managing Director and Associate General Counsel, finra2017011-2214568-160619.pdf; Letter from replaced and superseded the Original Proposal in Securities Industry and Financial Markets Joseph Molluso, Executive Vice President and CFO, its entirety. See Securities Exchange Act Release Association, to Brent J. Fields, Secretary, Virtu Financial, to Brent J. Fields, Commission No. 82266 (December 11, 2017). Commission (dated June 6, 2017), available at: (dated August 18, 2017), available at: https:// 10 See Securities Exchange Act Release No. 82049 https://www.sec.gov/comments/sr-batsbzx-2017-38/ www.sec.gov/comments/sr-finra-2017-011/ (November 9, 2017), 82 FR 53549 (November 16, batsbzx201738-1788188-153228.pdf; Letter from finra2017011-2238648-160830.pdf. 2017). VerDate Sep<11>2014 23:42 Dec 14, 2017 Jkt 244001 PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1


Document Created: 2017-12-15 03:37:12
Document Modified: 2017-12-15 03:37:12
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 59679 
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