83 FR 23966 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Introduce the ATR Protection for Orders That Are Routed to Away Markets
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 100 (May 23, 2018)
Federal Register Volume 83, Issue 100 (May 23, 2018)
| Page Range | 23966-23968 | |
| FR Document | 2018-10978 |
[Federal Register Volume 83, Number 100 (Wednesday, May 23, 2018)] [Notices] [Pages 23966-23968] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-10978] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83278; File No. SR-ISE-2018-16] Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Introduce the ATR Protection for Orders That Are Routed to Away Markets May 17, 2018. I. Introduction On February 23, 2018, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to amend Exchange Rule 714 regarding the Acceptable Trade Range (``ATR'') functionality for orders that are routed to away markets. The proposed rule change was published for comment in the Federal Register on March 14, 2018.\3\ On April 20, 2018, the Exchange submitted Amendment No. 1 to the proposed rule change, which replaced and superseded the original filing in its entirety.\4\ On April 26, 2018, the Commission extended the time period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change to June 22, 2018.\5\ The Commission received no comments on the proposed rule change. The Commission is publishing this notice to solicit comment on Amendment No. 1 to the proposed rule change from interested persons and is approving the proposed rule change, as modified by Amendment No. 1, on an accelerated basis. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 82846 (March 9, 2018), 83 FR 11254 (``Notice''). \4\ See Letter to Brent J. Fields, Secretary, Commission, from Adrian Griffiths, Senior Associate General Counsel, Nasdaq, Inc., dated April 20, 2018 (``Amendment No. 1''). Amendment No. 1 revises the proposed rule change to: (i) Provide further discussion of the current application of the ATR to orders routed away; (ii) modify the proposed rule text regarding the recalculation of the ATR for orders routed away pursuant to Supplementary Material to Exchange Rule 1901, if the applicable National Best Bid (``NBB'') or the National Best Offer (``NBO'') price is improved at the time of routing; (iii) expand the discussion and justification for recalculating the ATR for such orders; and (iv) make other amendments to the proposed rule text to improve the understandability of the current ATR calculation. Amendment No. 1 was also submitted as a comment to the proposed rule change. Amendment No. 1 is available at: https://www.sec.gov/comments/sr-ise-2018-16/ise201816-3483594-162248.pdf. \5\ See Securities Exchange Act Release No. 83119 (April 26, 2018), 83 FR 19367 (May 2, 2018). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change, as Modified by Amendment No. 1 \6\ --------------------------------------------------------------------------- \6\ For a more detailed description of the proposal, see Notice, supra note 3; Amendment No. 1, supra note 4. --------------------------------------------------------------------------- The ATR is a functionality designed to prevent the Exchange's System \7\ from experiencing dramatic price swings by preventing the execution of orders beyond set thresholds.\8\ Pursuant to Exchange Rule 714(b)(1), the System calculates an ATR to limit the range of prices at which an order or quote will be allowed to execute.\9\ Upon receipt of a new order or quote, the ATR is calculated by taking the reference price, plus or minus a value to be determined by the Exchange, where the reference price is the NBB for sell orders/quotes and the NBO for buy orders/quotes.\10\ Accordingly, the ATR is: The reference price-(x) for sell orders/quotes; and the reference price + (x) for buy orders.\11\ If an order or quote reaches the outer limit of the ATR without being fully executed, then any unexecuted balance will be cancelled.\12\ --------------------------------------------------------------------------- \7\ The term ``System'' means the electronic system operated by the Exchange that receives and disseminates quotes, executes orders and reports transactions. See Exchange Rule 100(a)(53). \8\ See Amendment No. 1, supra note 4. \9\ See Exchange Rule 714(b)(1). \10\ See Notice, supra note 3, at 11254-55. For purposes of determining the value that will be added or subtracted from the reference price, there are three categories of options for the ATR: (1) Penny Pilot Options trading in one cent increments for options trading at less than $3.00 and increments of five cents for options trading at $3.00 or more, (2) Penny Pilot Options trading in one- cent increments for all prices, and (3) Non-Penny Pilot Options. See id. \11\ See Exchange Rule 714(b)(1)(i). \12\ See Exchange Rule 714(b)(1)(ii). The ATR is not available for All-or-None Orders or Complex Orders that leg into the regular order book. See Notice, supra note 3, at 11254, n.3. --------------------------------------------------------------------------- [[Page 23967]] The Exchange states that, currently, the System calculates a reference price for an incoming order or quote only when that order or quote rests or trades on the regular order book.\13\ Accordingly, orders that route to away exchanges do not always receive the ATR. Orders that first trade on the Exchange prior to being routed away receive the ATR, but orders that are routed away upon entry (or otherwise do not rest or trade on the regular order book) are not currently subject to the ATR.\14\ --------------------------------------------------------------------------- \13\ See Notice, supra note 3, at 11255. \14\ See Amendment No. 1, supra note 4. --------------------------------------------------------------------------- The Exchange now proposes to amend the ATR to modify how it applies to orders that are routed by the Exchange. First, the Exchange proposes to apply the ATR to orders that are routed to away markets without first trading on the Exchange.\15\ This means that, unlike today, the System will calculate an ATR for orders even if the order does not rest or trade on the regular order book prior to being routed.\16\ --------------------------------------------------------------------------- \15\ See Notice, supra note 3, at 11255. \16\ See Amendment No. 1, supra note 4. --------------------------------------------------------------------------- In addition, the Exchange proposes that, for orders routed to away markets pursuant to the Supplementary Material to Exchange Rule 1901,\17\ if the applicable NBB or NBO price is improved at the time the order is routed, a new ATR would be calculated based on the reference price at that time.\18\ The Exchange notes that the NBB or NBO price for a security may change during the ``Flash'' auction process described in Supplementary Material .02 to Rule 1901, and the proposed rule change would provide additional protection if the reference price was improved at the time the order is routed.\19\ Similarly, the Exchange represents that other routable orders not subject to the ``Flash'' auction process must still be processed by the System prior to routing, and during this processing time the market may have moved.\20\ Under the proposed rule change, if the NBB or NBO price has not improved at the time an order is routed, the ATR that was applied to the order upon entry into the System would apply.\21\ --------------------------------------------------------------------------- \17\ This could occur: (1) If an order is routed to an away market pursuant to Supplementary Material .02 to Rule 1901 (the ``Flash'' auction) without first trading against any Exchange interest in the ``Flash'' auction; (2) if an order is a ``Sweep Order'' as defined in Rule 715(s) and processed pursuant to Supplementary Material .05 to Rule 1901 instead of the ``Flash'' auction; or (3) if a Non-Customer Order opts out of the ``Flash'' auction and is processed pursuant to Supplementary Material .04 to Rule 1901. See Amendment No. 1, supra note 4. Supplementary Material .02 to Rule 1901 provides that orders to be routed to away markets may be eligible for a ``Flash'' auction wherein Exchange members are allowed the opportunity to enter responses to trade with the order prior to routing. See Notice, supra note 3, at 11255. \18\ See Amendment No. 1, supra note 4; proposed Exchange Rule 714(b)(1)(ii). In the Notice, the Exchange provides examples of how the ATR will be applied to orders routed to away markets. See Notice, supra note 3, at 11255. \19\ See Amendment No. 1, supra note 4. \20\ See Amendment No. 1, supra note 4. \21\ The Exchange states that the ATR is not again recalculated for orders after routing, so orders that are routed but not executed in full by an away market, and subsequently return to trade on the Exchange, would not receive a new ATR. See Amendment No. 1, supra note 4. --------------------------------------------------------------------------- The Exchange states that it intends to implement the ATR functionality described in the proposed rule change no later than October 31, 2018.\22\ --------------------------------------------------------------------------- \22\ See Notice, supra note 3, at 11255. The Exchange further states that it will announce the implementation date of this functionality in an Options Trader Alert prior to the launch date. See id. --------------------------------------------------------------------------- III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.\23\ In particular, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with Section 6(b)(5) of the Act,\24\ which requires, among other things, that the rules of a national securities exchange be 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 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. --------------------------------------------------------------------------- \23\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \24\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission believes that the ATR is reasonably designed to prevent executions of orders and quotes at prices that are significantly worse than the NBBO at the time of an order's submission and may reduce the potential negative impacts of unanticipated volatility in individual options.\25\ The Commission notes that the proposed rule change extends the application of the ATR to orders that route away immediately upon entry, thus offering these orders the same protections that the ATR provides to orders that first trade on the Exchange before being routed. The Commission also believes that recalculating the ATR for orders routed to away markets pursuant to the Supplementary Material to Rule 1901, if the applicable NBB or NBO price is improved at the time the order is routed, should help provide such orders with a price protection that better reflects the NBB or NBO. The Commission further believes that the proposed rule change will provide transparency and enhance investors' understanding of the operation of the ATR. The Commission notes that the Exchange will continue to use the NBB or NBO as the reference price for the ATR. For these reasons, the Commission believes that the proposed rule change, as modified by Amendment No. 1, is consistent with the Act. --------------------------------------------------------------------------- \25\ See Securities Exchange Act Release No. 80432 (April 11, 2017), 82 FR 18191, 18193-94 (April 17, 2018) (SR-ISE-2017-03) (Order approving, among other things, proposal to establish ATR). --------------------------------------------------------------------------- III. Solicitation of Comments on Amendment No. 1 Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether Amendment No. 1 to the proposed rule change is consistent with the Exchange Act. Comments may be submitted by any of the following methods: Electronic CommentsUse 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-ISE-2018-16 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-ISE-2018-16. 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 [[Page 23968]] 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-ISE- 2018-16 and should be submitted on or before June 13, 2018. V. Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1 The Commission finds good cause to approve the proposed rule change, as modified by Amendment No. 1, prior to the 30th day after the date of publication of notice of Amendment No. 1 in the Federal Register. As discussed above, Amendment No. 1 adds detail to the proposal and the proposed rule text regarding the operation of the ATR. Amendment No. 1 revises the proposed rule text to specify that for orders routed to away markets pursuant to the Supplementary Material to Rule 1901, if the applicable NBB or NBO price is improved at the time the order is routed, a new ATR will be calculated based on the reference price at that time. Amendment No. 1 also sets forth additional justification for the proposed rule change. The Commission believes that these revisions provide greater clarity with respect to the current and proposed application of the ATR for routed away orders. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Exchange Act,\26\ to approve the proposed rule change, as modified by Amendment No. 1 on an accelerated basis. --------------------------------------------------------------------------- \26\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act,\27\ that the proposed rule change (SR-ISE-2018-16), as modified by Amendment No. 1 thereto, be, and it hereby is, approved on an accelerated basis. --------------------------------------------------------------------------- \27\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\28\ --------------------------------------------------------------------------- \28\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-10978 Filed 5-22-18; 8:45 am] BILLING CODE 8011-01-P
![23966 Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices
At any time within 60 days of the personal identifying information from Commission extended the time period
filing of the proposed rule change, the comment submissions. You should within which to approve the proposed
Commission summarily may submit only information that you wish rule change, disapprove the proposed
temporarily suspend such rule change if to make available publicly. All rule change, or institute proceedings to
it appears to the Commission that such submissions should refer to File determine whether to disapprove the
action is: (i) Necessary or appropriate in Number SR–GEMX–2018–16 and proposed rule change to June 22, 2018.5
the public interest; (ii) for the protection should be submitted on or before June The Commission received no comments
of investors; or (iii) otherwise in 13, 2018. on the proposed rule change. The
furtherance of the purposes of the Act. For the Commission, by the Division of Commission is publishing this notice to
If the Commission takes such action, the Trading and Markets, pursuant to delegated solicit comment on Amendment No. 1
Commission shall institute proceedings authority.14 to the proposed rule change from
to determine whether the proposed rule Eduardo A. Aleman, interested persons and is approving the
should be approved or disapproved. Assistant Secretary. proposed rule change, as modified by
Amendment No. 1, on an accelerated
IV. Solicitation of Comments [FR Doc. 2018–10971 Filed 5–22–18; 8:45 am]
BILLING CODE 8011–01–P
basis.
Interested persons are invited to
submit written data, views, and II. Description of the Proposed Rule
arguments concerning the foregoing, Change, as Modified by Amendment
SECURITIES AND EXCHANGE No. 1 6
including whether the proposed rule
COMMISSION
change is consistent with the Act. The ATR is a functionality designed
Comments may be submitted by any of [Release No. 34–83278; File No. SR–ISE– to prevent the Exchange’s System 7 from
the following methods: 2018–16] experiencing dramatic price swings by
Electronic Comments preventing the execution of orders
Self-Regulatory Organizations; Nasdaq
beyond set thresholds.8 Pursuant to
• Use the Commission’s internet ISE, LLC; Notice of Filing of
Exchange Rule 714(b)(1), the System
comment form (http://www.sec.gov/ Amendment No. 1 and Order Granting
calculates an ATR to limit the range of
rules/sro.shtml); or Accelerated Approval of a Proposed
prices at which an order or quote will
• Send an email to rule-comments@ Rule Change, as Modified by
be allowed to execute.9 Upon receipt of
sec.gov. Please include File Number SR– Amendment No. 1, To Introduce the
a new order or quote, the ATR is
GEMX–2018–16 on the subject line. ATR Protection for Orders That Are
Routed to Away Markets calculated by taking the reference price,
Paper Comments plus or minus a value to be determined
• Send paper comments in triplicate May 17, 2018. by the Exchange, where the reference
to Secretary, Securities and Exchange price is the NBB for sell orders/quotes
I. Introduction
Commission, 100 F Street NE, and the NBO for buy orders/quotes.10
On February 23, 2018, Nasdaq ISE, Accordingly, the ATR is: The reference
Washington, DC 20549–1090. LLC (‘‘ISE’’ or ‘‘Exchange’’) filed with price¥(x) for sell orders/quotes; and the
All submissions should refer to File the Securities and Exchange reference price + (x) for buy orders.11 If
Number SR–GEMX–2018–16. This file Commission (‘‘Commission’’), pursuant an order or quote reaches the outer limit
number should be included on the to Section 19(b)(1) of the Securities of the ATR without being fully
subject line if email is used. To help the Exchange Act of 1934 (‘‘Act’’) 1 and Rule executed, then any unexecuted balance
Commission process and review your 19b–4 thereunder,2 a proposed rule will be cancelled.12
comments more efficiently, please use change to amend Exchange Rule 714
only one method. The Commission will regarding the Acceptable Trade Range ATR for such orders; and (iv) make other
post all comments on the Commission’s (‘‘ATR’’) functionality for orders that are amendments to the proposed rule text to improve
internet website (http://www.sec.gov/ routed to away markets. The proposed the understandability of the current ATR
rules/sro.shtml). Copies of the calculation. Amendment No. 1 was also submitted
rule change was published for comment as a comment to the proposed rule change.
submission, all subsequent in the Federal Register on March 14, Amendment No. 1 is available at: https://
amendments, all written statements 2018.3 On April 20, 2018, the Exchange www.sec.gov/comments/sr-ise-2018-16/ise201816-
with respect to the proposed rule submitted Amendment No. 1 to the 3483594-162248.pdf.
change that are filed with the proposed rule change, which replaced
5 See Securities Exchange Act Release No. 83119
Commission, and all written (April 26, 2018), 83 FR 19367 (May 2, 2018).
and superseded the original filing in its 6 For a more detailed description of the proposal,
communications relating to the entirety.4 On April 26, 2018, the see Notice, supra note 3; Amendment No. 1, supra
proposed rule change between the note 4.
Commission and any person, other than 14 17 CFR 200.30–3(a)(12). 7 The term ‘‘System’’ means the electronic system
those that may be withheld from the 1 15 U.S.C. 78s(b)(1). operated by the Exchange that receives and
public in accordance with the 2 17 CFR 240.19b–4. disseminates quotes, executes orders and reports
transactions. See Exchange Rule 100(a)(53).
provisions of 5 U.S.C. 552, will be 3 See Securities Exchange Act Release No. 82846
8 See Amendment No. 1, supra note 4.
available for website viewing and (March 9, 2018), 83 FR 11254 (‘‘Notice’’).
9 See Exchange Rule 714(b)(1).
4 See Letter to Brent J. Fields, Secretary,
printing in the Commission’s Public Commission, from Adrian Griffiths, Senior
10 See Notice, supra note 3, at 11254–55. For
Reference Room, 100 F Street NE, Associate General Counsel, Nasdaq, Inc., dated purposes of determining the value that will be
Washington, DC 20549, on official April 20, 2018 (‘‘Amendment No. 1’’). Amendment added or subtracted from the reference price, there
No. 1 revises the proposed rule change to: (i) are three categories of options for the ATR: (1)
business days between the hours of
daltland on DSKBBV9HB2PROD with NOTICES
Provide further discussion of the current Penny Pilot Options trading in one cent increments
10:00 a.m. and 3:00 p.m. Copies of the application of the ATR to orders routed away; (ii) for options trading at less than $3.00 and
filing also will be available for modify the proposed rule text regarding the increments of five cents for options trading at $3.00
inspection and copying at the principal recalculation of the ATR for orders routed away or more, (2) Penny Pilot Options trading in one-cent
pursuant to Supplementary Material to Exchange increments for all prices, and (3) Non-Penny Pilot
office of the Exchange. All comments Options. See id.
Rule 1901, if the applicable National Best Bid
received will be posted without change. (‘‘NBB’’) or the National Best Offer (‘‘NBO’’) price 11 See Exchange Rule 714(b)(1)(i).
Persons submitting comments are is improved at the time of routing; (iii) expand the 12 See Exchange Rule 714(b)(1)(ii). The ATR is not
cautioned that we do not redact or edit discussion and justification for recalculating the available for All-or-None Orders or Complex Orders
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![23968 Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices
public in accordance with the For the Commission, by the Division of the proposed rule change, as modified
provisions of 5 U.S.C. 552, will be Trading and Markets, pursuant to delegated by Amendment No. 1, on an accelerated
authority.28 basis, and is soliciting comments on
available for website viewing and
printing in the Commission’s Public Eduardo A. Aleman, Amendment No. 1.
Reference Room, 100 F Street NE, Assistant Secretary.
II. Description of the Proposal
Washington, DC 20549, on official [FR Doc. 2018–10978 Filed 5–22–18; 8:45 am]
BILLING CODE 8011–01–P On February 1, 2017, the Exchange
business days between the hours of
ceased trading operations.7 The
10:00 a.m. and 3:00 p.m. Copies of the
Exchange proposes to re-launch trading
filing also will be available for operations on Pillar, which is an
SECURITIES AND EXCHANGE
inspection and copying at the principal COMMISSION integrated trading technology platform
office of the Exchange. All comments designed to use a single specification for
received will be posted without change. [Release No. 34–83289; File No. SR–
NYSENAT–2018–02]
connecting to the equities and options
Persons submitting comments are markets operated by the Exchange and
cautioned that we do not redact or edit Self-Regulatory Organizations; NYSE its affiliates, NYSE Arca, Inc. (‘‘NYSE
personal identifying information from National, Inc.; Notice of Filing of Arca’’), NYSE American LLC (‘‘NYSE
comment submissions. You should Amendment No. 1 and Order Granting American’’), and New York Stock
submit only information that you wish Accelerated Approval of a Proposed Exchange LLC (‘‘NYSE’’).
to make available publicly. All Rule Change, as Amended by Currently, NYSE Arca’s cash equities
submissions should refer to File Amendment No. 1, To Support the Re- market,8 NYSE American’s cash equities
Number SR–ISE–2018–16 and should be Launch of NYSE National, Inc. on the market,9 and NYSE securities that trade
submitted on or before June 13, 2018. Pillar Trading Platform on an unlisted trading privileges basis 10
trade on Pillar. NYSE Arca, NYSE
V. Accelerated Approval of Proposed May 17, 2018. American, and NYSE have trading rules
Rule Change, as Modified by that are substantially similar and that
I. Introduction
Amendment No. 1 are based on the rule numbering
On February 21, 2018, NYSE framework of NYSE Arca.11
The Commission finds good cause to National, Inc. (‘‘NYSE National’’ or
approve the proposed rule change, as ‘‘Exchange’’) filed with the Securities Holders that are eligible for the expedited process
modified by Amendment No. 1, prior to and Exchange Commission for reinstatement under the proposal to register
the 30th day after the date of (‘‘Commission’’), pursuant to Section their Associated Persons with the Exchange; (iv)
19(b)(1) of the Securities Exchange Act commit to working with Commission staff to update
publication of notice of Amendment No. its membership rules and to file a separate filing
1 in the Federal Register. As discussed of 1934 (‘‘Act’’) 1 and Rule 19b–4 relating to its membership rules within 90 days of
above, Amendment No. 1 adds detail to thereunder,2 a proposed rule change in any approval of the instant proposal; (v) identify
the proposal and the proposed rule text connection with the re-launch of the which of the proposed Rules are based on the rules
Exchange on the Pillar trading platform. of NYSE American, as opposed to those based on
regarding the operation of the ATR. the rules of NYSE Arca; (vi) add provisions, based
Amendment No. 1 revises the proposed The proposed rule change was on rules of other self-regulatory organizations
published for comment in the Federal (‘‘SROs’’), that were not included in the original
rule text to specify that for orders routed
Register on March 13, 2018.3 The filing; (vii) add a rule relating to the requirements
to away markets pursuant to the for listed securities issued by Intercontinental
Commission received no comments on
Supplementary Material to Rule 1901, if the proposed rule change. On April 25, Exchange, Inc. (‘‘ICE’’) or its affiliates; (viii)
the applicable NBB or NBO price is specifically incorporate by reference certain rules of
2018, pursuant to Section 19(b)(2) of the the Financial Industry Regulatory Authority, Inc.
improved at the time the order is routed, Act,4 the Commission designated a (‘‘FINRA’’) that were only cited in the original
a new ATR will be calculated based on longer period within which to approve version of the filing; (ix) add clarifying language to
the reference price at that time. the proposed rule change, disapprove proposed rule text and the narrative describing the
proposal; and (x) correct various technical errors.
Amendment No. 1 also sets forth the proposed rule change, or institute The proposed revisions of the proposal made in
additional justification for the proposed proceedings to determine whether to Amendment No. 1 are incorporated in the
rule change. The Commission believes approve or disapprove the proposed Description of the Proposal herein. Amendment No.
that these revisions provide greater 1 is available at: https://www.sec.gov/comments/sr-
rule change.5 On May 16, 2018, the nysenat-2018-02/nysenat201802-3653908-
clarity with respect to the current and Exchange filed Amendment No. 1 to the 162416.pdf.
proposed application of the ATR for proposed rule change, which supersedes 7 See Securities Exchange Act Release No. 80018
routed away orders. Accordingly, the and replaces the original filing in its (February 10, 2017), 82 FR 10947 (February 16,
entirety.6 The Commission is approving 2017) (SR–NSX–2017–04) (‘‘Termination Filing’’).
Commission finds good cause, pursuant On January 31, 2017, ICE, through its wholly-owned
to Section 19(b)(2) of the Exchange subsidiary, NYSE Group, acquired all of the
28 17 CFR 200.30–3(a)(12).
Act,26 to approve the proposed rule outstanding capital stock of the Exchange (the
1 15 U.S.C. 78s(b)(1).
change, as modified by Amendment No. ‘‘Acquisition’’). See Securities Exchange Act
2 17 CFR 240.19b–4. Release No. 79902 (January 30, 2017), 82 FR 9258
1 on an accelerated basis. 3 See Securities Exchange Act Release No. 82819 (February 3, 2017) (SR–NSX–2016–16). Prior to the
(March 7, 2018), 83 FR 11098 (March 13, 2018) Acquisition, the Exchange was named ‘‘National
VI. Conclusion (‘‘Notice’’). Stock Exchange, Inc.’’ and was referred to as
4 15 U.S.C. 78s(b)(2). ‘‘NSX.’’
It is therefore ordered, pursuant to 5 See Securities Exchange Act Release No.83100 8 For a history of the implementation of Pillar on
Section 19(b)(2) of the Exchange Act,27 (April 25, 2018), 83 FR 19127 (May 1, 2018). NYSE Arca, see Notice, supra note 3, at footnote 6.
daltland on DSKBBV9HB2PROD with NOTICES
that the proposed rule change (SR–ISE– 6 In Amendment No. 1, the Exchange proposes, 9 For a history of the implementation of Pillar on
2018–16), as modified by Amendment among other things, to: (i) Delete proposed Rule 8 NYSE American, see Notice, supra note 3, at
and modify proposed Rule 5 to include only those footnote 7.
No. 1 thereto, be, and it hereby is, rules that would support the trading on an unlisted 10 For a history of the implementation of Pillar on
approved on an accelerated basis. trading privileges (‘‘UTP’’) basis of all NMS Stocks NYSE, see Notice, supra note 3, at footnote 8.
and the trading on a UTP basis of UTP Exchange 11 According to the Exchange, NYSE American
Traded Products; (ii) revise the proposed definition and NYSE proposed specific differences to certain
26 15 U.S.C. 78s(b)(2). of the term ‘‘UTP Exchange Traded Product’’; (iii) trading rules with respect to NYSE Arca to
27 15 U.S.C. 78s(b)(2). propose a grace period of 30 calendar days for ETP differentiate their respective trading models, noting,
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Document Created: 2018-05-22 23:49:20
Document Modified: 2018-05-22 23:49:20
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 83 FR 23966 |
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