82 FR 8444 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Amending the NYSE Arca Equities Rule 5 and Rule 8 Series

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 15 (January 25, 2017)

Page Range		8444-8445
FR Document		2017-01612
Federal Register, Volume 82 Issue 15 (Wednesday, January 25, 2017)
[Federal Register Volume 82, Number 15 (Wednesday, January 25, 2017)]
[Notices]
[Pages 8444-8445]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01612]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79834; File No. SR-NYSEArca-2017-01]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Proposed Rule Change Amending the NYSE Arca Equities Rule 5 and Rule 
8 Series

January 18, 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 January 6, 2017, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') 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 self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Arca Equities Rule 5 and 
Rule 8 series to add additional continued listing standards as well as 
clarify the procedures it will undertake when an ETP is noncompliant 
with applicable rules. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the listing rules for ETPs in the 
Rule 5 and Rule 8 series of the NYSE Arca Equities rule book to add 
additional continued listing standards as well as clarify the 
procedures it will undertake when an ETP is noncompliant with 
applicable rules. The proposed rule changes are being made in concert 
with discussions with the SEC. Staff (``Staff'') of the SEC's Division 
of Trading and Markets (``T&M'') requested that the Exchange adopt 
certain additional continued listing standards for ETPs.
    As a result, the proposed amended rules reflect the guidance 
provided by T&M Staff to clarify that most initial listing standards, 
as well as certain representations included in Exchange rule filings 
under SEC Rule 19b-4 to list an ETP (``Exchange Rule Filings''), are 
also considered continued listing standards. The Exchange Rule Filing 
representations that will also be required to be maintained on a 
continuous basis include (a) the description of the fund and (b) the 
fund's investment restrictions.
    The proposed rule changes require that ETPs listed by the Exchange 
without an Exchange Rule Filing must maintain the initial index or 
reference asset criteria on a continued basis. For example, in the case 
of a domestic equity index, these criteria generally include: (a) 
Stocks with 90% of the weight of the index must have a minimum market 
value of at least $75 million; (b) stocks with 70% of the weight of the 
index must have a minimum monthly trading volume of at least 250,000 
shares; (c) the most heavily weighted component cannot exceed 30% of 
the weight of the index, and the five most heavily weighted stocks 
cannot exceed 65%; (d) there must be at least 13 stocks in the index; 
and (e) all securities in the index must be listed in the U.S. There 
are similar criteria for international indexes, fixed-income indexes 
and indexes with a combination of components.
    If an Exchange Rule Filing is made to list a specific ETP, the 
proposed rule change requires that the issuer of the security comply on 
a continuing basis with any statements or representations contained in 
the applicable rule proposal, including (a) the description of the 
portfolio and (b) limitations on portfolio holdings or reference 
assets. The NYSE Arca listing rules will also be modified to require 
that issuers of securities listed under the Rule 5 and Rule 8 series 
must notify the Exchange regarding instances of non-compliance. In 
addition, while listed ETPs are currently subject to the delisting 
process in Rule 5.5(m), the rules will be clarified to make this 
explicit.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\4\ in general, and furthers the 
objectives of Sections 6(b)(5) \5\ of the Act, in particular, in that 
it is designed 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. 
The Exchange also believes that the proposed rule change is consistent 
with Section 6(b)(5) \6\ of the Act in that it is

[[Page 8445]]

not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(5).
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    The proposed rule changes accomplish these objectives by enhancing 
Exchange rules by clarifying that most initial listing standards, as 
well as certain representations included in Exchange Rule Filings to 
list an ETP, are considered continued listing standards. Additionally, 
the NYSE Arca listing rules will be modified to require that issuers of 
securities listed under the Rule 5 and Rule 8 series must notify the 
Exchange regarding instances of non-compliance and to clarify that 
deficiencies will be subject to the delisting process in Rule 5.5(m). 
The Exchange believes that these amendments will enhance the NYSE Arca 
listing rules, thereby serving to improve the national market system 
and protect investors and the public interest.

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 not necessary or appropriate in 
furtherance of the purposes of the Act, as amended. The Exchange 
believes that the proposed rule change to amend the listing rules for 
ETPs in the NYSE Arca Rule 5 and Rule 8 series and the related 
notification requirement will have no impact on competition. 
Furthermore, since T&M Staff has provided the same guidance regarding 
ETP continued listing requirements to all exchanges, the Exchange 
believes that there will be no effect on 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 within such longer period 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 such 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-NYSEArca-2017-01 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-NYSEArca-2017-01. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEArca-2017-01 and should 
be submitted on or before February 15, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-01612 Filed 1-24-17; 8:45 am]
 BILLING CODE 8011-01-P
8444 Federal Register / Vol. 82, No. 15 / Wednesday, January 25, 2017 / Notices

The Commission invites comments on publishing this notice to solicit description of the fund and (b) the
whether the Postal Service’s request(s) comments on the proposed rule change fund’s investment restrictions.
in the captioned docket(s) are consistent from interested persons. The proposed rule changes require
with the policies of title 39. For that ETPs listed by the Exchange
I. Self-Regulatory Organization’s without an Exchange Rule Filing must
request(s) that the Postal Service states
Statement of the Terms of Substance of maintain the initial index or reference
concern market dominant product(s),
the Proposed Rule Change asset criteria on a continued basis. For
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39 The Exchange proposes to amend the example, in the case of a domestic
U.S.C. 3642, 39 CFR part 3010, and 39 NYSE Arca Equities Rule 5 and Rule 8 equity index, these criteria generally
CFR part 3020, subpart B. For request(s) series to add additional continued include: (a) Stocks with 90% of the
that the Postal Service states concern listing standards as well as clarify the weight of the index must have a
competitive product(s), applicable procedures it will undertake when an minimum market value of at least $75
statutory and regulatory requirements ETP is noncompliant with applicable million; (b) stocks with 70% of the
include 39 U.S.C. 3632, 39 U.S.C. 3633, rules. The proposed rule change is weight of the index must have a
39 U.S.C. 3642, 39 CFR part 3015, and available on the Exchange’s Web site at minimum monthly trading volume of at
39 CFR part 3020, subpart B. Comment www.nyse.com, at the principal office of least 250,000 shares; (c) the most
deadline(s) for each request appear in the Exchange, and at the Commission’s heavily weighted component cannot
section II. Public Reference Room. exceed 30% of the weight of the index,
and the five most heavily weighted
II. Docketed Proceeding(s) II. Self-Regulatory Organization’s stocks cannot exceed 65%; (d) there
1. Docket No(s).: MC2017–79 and Statement of the Purpose of, and must be at least 13 stocks in the index;
CP2017–106; Filing Title: Request of the Statutory Basis for, the Proposed Rule and (e) all securities in the index must
United States Postal Service to Add Change be listed in the U.S. There are similar
Priority Mail Contract 288 to criteria for international indexes, fixed-
In its filing with the Commission, the income indexes and indexes with a
Competitive Product List and Notice of
self-regulatory organization included combination of components.
Filing (Under Seal) of Unredacted
statements concerning the purpose of, If an Exchange Rule Filing is made to
Governors’ Decision, Contract, and
and basis for, the proposed rule change list a specific ETP, the proposed rule
Supporting Data; Filing Acceptance
and discussed any comments it received change requires that the issuer of the
Date: January 18, 2017; Filing Authority:
on the proposed rule change. The text security comply on a continuing basis
39 U.S.C. 3642 and 39 CFR 3020.30 et
of those statements may be examined at with any statements or representations
seq.; Public Representative: Helen F.
the places specified in Item IV below. contained in the applicable rule
Vettori; Comments Due: January 27,
The Exchange has prepared summaries, proposal, including (a) the description
2017.
set forth in sections A, B, and C below, of the portfolio and (b) limitations on
This notice will be published in the
of the most significant parts of such portfolio holdings or reference assets.
Federal Register.
statements. The NYSE Arca listing rules will also be
Stacy L. Ruble, modified to require that issuers of
A. Self-Regulatory Organization’s
Secretary. securities listed under the Rule 5 and
Statement of the Purpose of, and
[FR Doc. 2017–01686 Filed 1–24–17; 8:45 am] Statutory Basis for, the Proposed Rule Rule 8 series must notify the Exchange
BILLING CODE 7710–FW–P Change regarding instances of non-compliance.
In addition, while listed ETPs are
1. Purpose currently subject to the delisting process
SECURITIES AND EXCHANGE The Exchange proposes to amend the in Rule 5.5(m), the rules will be clarified
COMMISSION listing rules for ETPs in the Rule 5 and to make this explicit.
[Release No. 34–79834; File No. SR– Rule 8 series of the NYSE Arca Equities 2. Statutory Basis
NYSEArca–2017–01] rule book to add additional continued
The Exchange believes that the
listing standards as well as clarify the
Self-Regulatory Organizations; NYSE proposed rule change is consistent with
procedures it will undertake when an
Arca, Inc.; Notice of Filing of Proposed Section 6(b) of the Act,4 in general, and
ETP is noncompliant with applicable
Rule Change Amending the NYSE Arca furthers the objectives of Sections
rules. The proposed rule changes are
Equities Rule 5 and Rule 8 Series 6(b)(5) 5 of the Act, in particular, in that
being made in concert with discussions
it is designed to promote just and
with the SEC. Staff (‘‘Staff’’) of the SEC’s
January 18, 2017. equitable principles of trade, to foster
Division of Trading and Markets
Pursuant to Section 19(b)(1) 1 of the cooperation and coordination with
(‘‘T&M’’) requested that the Exchange
Securities Exchange Act of 1934 (the persons engaged in regulating, clearing,
adopt certain additional continued
‘‘Act’’),2 and Rule 19b–4 thereunder,3 settling, processing information with
listing standards for ETPs.
notice is hereby given that on January 6, respect to, and facilitating transactions
2017, NYSE Arca, Inc. (the ‘‘Exchange’’ As a result, the proposed amended in securities, to remove impediments to
or ‘‘NYSE Arca’’) filed with the rules reflect the guidance provided by and perfect the mechanism of a free and
Securities and Exchange Commission T&M Staff to clarify that most initial open market and a national market
(‘‘SEC’’ or ‘‘Commission’’) the proposed listing standards, as well as certain system, and, in general, to protect
representations included in Exchange
mstockstill on DSK3G9T082PROD with NOTICES

rule change as described in Items I and investors and the public interest. The
II below, which Items have been rule filings under SEC Rule 19b–4 to list Exchange also believes that the
prepared by the self-regulatory an ETP (‘‘Exchange Rule Filings’’), are proposed rule change is consistent with
organization. The Commission is also considered continued listing Section 6(b)(5) 6 of the Act in that it is
standards. The Exchange Rule Filing
1 15 U.S.C. 78s(b)(1). representations that will also be 4 15 U.S.C. 78f(b).
2 15 U.S.C. 78a. required to be maintained on a 5 15 U.S.C. 78f(b)(5).
3 17 CFR 240.19b–4. continuous basis include (a) the 6 15 U.S.C. 78f(b)(5).

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Federal Register / Vol. 82, No. 15 / Wednesday, January 25, 2017 / Notices 8445

not designed to permit unfair IV. Solicitation of Comments For the Commission, by the Division of
discrimination between customers, Trading and Markets, pursuant to delegated
issuers, brokers, or dealers. Interested persons are invited to authority.7
The proposed rule changes submit written data, views, and Eduardo A. Aleman,
accomplish these objectives by arguments concerning the foregoing, Assistant Secretary.
enhancing Exchange rules by clarifying including whether the proposed rule [FR Doc. 2017–01612 Filed 1–24–17; 8:45 am]
that most initial listing standards, as change is consistent with the Act. BILLING CODE 8011–01–P
well as certain representations included Comments may be submitted by any of
in Exchange Rule Filings to list an ETP, the following methods:
are considered continued listing SECURITIES AND EXCHANGE
Electronic Comments COMMISSION
standards. Additionally, the NYSE Arca
listing rules will be modified to require • Use the Commission’s Internet [Release No. 34–79835; File No. SR–Phlx–
that issuers of securities listed under the comment form (http://www.sec.gov/ 2016–119]
Rule 5 and Rule 8 series must notify the rules/sro.shtml); or
Exchange regarding instances of non- Self-Regulatory Organizations;
compliance and to clarify that • Send an email to rule-comments@ NASDAQ PHLX LLC; Order Granting
deficiencies will be subject to the sec.gov. Please include File Number SR– Accelerated Approval of a Proposed
delisting process in Rule 5.5(m). The NYSEArca–2017–01 on the subject line. Rule Change, as Modified by
Exchange believes that these Paper Comments Amendment No. 1 Thereto, To Amend
amendments will enhance the NYSE the PIXL Price Improvement Auction in
Arca listing rules, thereby serving to • Send paper comments in triplicate Phlx Rule 1080(n) and To Make Pilot
improve the national market system and to Brent J. Fields, Secretary, Securities Program Permanent
protect investors and the public interest. and Exchange Commission, 100 F Street
January 18, 2017.
B. Self-Regulatory Organization’s NE., Washington, DC 20549–1090.
I. Introduction
Statement on Burden on Competition All submissions should refer to File
Number SR–NYSEArca–2017–01. This On December 6, 2016, NASDAQ
The Exchange does not believe that PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed
the proposed rule change will impose file number should be included on the
subject line if email is used. To help the with the Securities and Exchange
any burden on competition not Commission (‘‘SEC’’ or ‘‘Commission’’),
necessary or appropriate in furtherance Commission process and review your
pursuant to Section 19(b)(1) of the
of the purposes of the Act, as amended. comments more efficiently, please use
Securities Exchange Act of 1934
The Exchange believes that the only one method. The Commission will
(‘‘Act’’) 1, and Rule 19b–4 thereunder,2 a
proposed rule change to amend the post all comments on the Commission’s
proposed rule change to amend the
listing rules for ETPs in the NYSE Arca Internet Web site (http://www.sec.gov/ eligibility requirements for its Price
Rule 5 and Rule 8 series and the related rules/sro.shtml). Copies of the Improvement XL mechanism (‘‘PIXL’’ or
notification requirement will have no submission, all subsequent ‘‘Auction’’) and make permanent those
impact on competition. Furthermore, amendments, all written statements aspects of PIXL that are currently
since T&M Staff has provided the same with respect to the proposed rule operating on a pilot basis. On December
guidance regarding ETP continued change that are filed with the 15, 2016, the Exchange filed
listing requirements to all exchanges, Commission, and all written Amendment No. 1 to the proposed rule
the Exchange believes that there will be communications relating to the change, which amended and replaced
no effect on competition. proposed rule change between the the proposed rule change in its entirety.
C. Self-Regulatory Organization’s Commission and any person, other than The proposed rule change, as modified
Statement on Comments on the those that may be withheld from the by Amendment No. 1, was published for
Proposed Rule Change Received From public in accordance with the comment in the Federal Register on
Members, Participants, or Others provisions of 5 U.S.C. 552, will be December 22, 2016.3 The Commission
available for Web site viewing and received no comments regarding the
No written comments were solicited proposal. This order approves the
printing in the Commission’s Public
or received with respect to the proposed proposed rule change, as modified by
rule change. Reference Room, 100 F Street NE.,
Washington, DC 20549, on official Amendment No. 1, on an accelerated
III. Date of Effectiveness of the business days between the hours of basis.
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the II. Description of the Proposal
Commission Action filing also will be available for
The Exchange adopted PIXL in
Within 45 days of the date of inspection and copying at the principal October 2010 as a price-improvement
publication of this notice in the Federal office of the Exchange. All comments mechanism on the Exchange.4 PIXL is a
Register or within such longer period received will be posted without change; component of the Exchange’s fully
up to 90 days (i) as the Commission may the Commission does not edit personal automated options trading system,
designate if it finds such longer period identifying information from PHLX XL®, that allows an Exchange
to be appropriate and publishes its submissions. You should submit only member (an ‘‘Initiating Member’’) to
reasons for so finding or (ii) as to which information that you wish to make
mstockstill on DSK3G9T082PROD with NOTICES

the self-regulatory organization available publicly. All submissions 7 17 CFR 200.30–3(a)(12).
consents, the Commission will: should refer to File Number SR– 1 15 U.S.C. 78s(b)(1).
(A) By order approve or disapprove NYSEArca–2017–01 and should be 2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 79584
such proposed rule change, or submitted on or before February 15,
(December 16, 2016), 81 FR 93979 (‘‘Notice’’).
(B) institute proceedings to determine 2017. 4 See Securities Exchange Act Release No. 63027
whether the proposed rule change (October 1, 2010), 75 FR 62160 (October 7, 2010)
should be disapproved. (SR–Phlx–2010–108) (‘‘PIXL Approval Order’’).

VerDate Sep<11>2014 20:29 Jan 24, 2017 Jkt 241001 PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 E:\FR\FM\25JAN1.SGM 25JAN1
Document Created: 2017-01-25 00:09:14
Document Modified: 2017-01-25 00:09:14
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 8444