83 FR 26327 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.37E and Rule 7.45E With Respect to NYSE National's Reopening of Trading and Reactivating Connection to the Securities Information Processors
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 109 (June 6, 2018)
Federal Register Volume 83, Issue 109 (June 6, 2018)
| Page Range | 26327-26329 | |
| FR Document | 2018-12115 |
[Federal Register Volume 83, Number 109 (Wednesday, June 6, 2018)] [Notices] [Pages 26327-26329] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-12115] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83357; File No. SR-NYSEAMER-2018-24] Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.37E and Rule 7.45E With Respect to NYSE National's Reopening of Trading and Reactivating Connection to the Securities Information Processors May 31, 2018. 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 May 18, 2018, NYSE American LLC (the ``Exchange'' or ``NYSE American'') filed with the Securities and Exchange Commission (``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 [[Page 26328]] 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 the Substance of the Proposed Rule Change The Exchange proposes to: (1) Amend Rule 7.37E to amend in Exchange rules the Exchange's use of data feeds from NYSE National, Inc. (``NYSE National'') for order handling and execution, order routing, and regulatory compliance; and (2) amend Rule 7.45E to reflect that Archipelago Securities LLC (``Arca Securities'') would function as a routing broker for the Exchange's affiliate, NYSE National. 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to update and amend the table in Rule 7.37E that sets forth on a market-by-market basis the specific network processor and proprietary data feeds that the Exchange utilizes for the handling, execution and routing of orders, and for performing the regulatory compliance checks related to each of those functions. NYSE National intends to reopen trading and reactivate its connections to the securities information processors (``SIPs''). To reflect that, the Exchange proposes to revise Rule 7.37E to specify which data feeds the Exchange would use for NYSE National. Rule 7.37E currently provides that NYSE National uses the SIP data feeds as the primary source and does not have a secondary source. The Exchange proposes to use the direct data feeds for NYSE National and would use the SIP data feeds as a secondary source. Additionally, the Exchange proposes to amend Rule 7.45E to reflect that Arca Securities would function as a routing broker for the Exchange's affiliate, NYSE National. Specifically, the Exchange proposes to amend Rule 7.45E(c)(1) and (2) to reference NYSE National as an affiliate of the Exchange for the purposes of the inbound routing function performed by Arca Securities. The proposed rule change would provide more clarity and transparency to all the functions that Arca Securities performs on behalf of the Exchange and its affiliates, which now includes NYSE National. The Exchange is not proposing any substantive change to the rule. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\4\ in general, and furthers the objectives of Section 6(b)(5),\5\ in particular, because it is 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. The Exchange believes its proposal to update the table in Rule 7.37E will ensure that the rule correctly identifies on a market-by-market basis all of the specific network processor and proprietary data feeds that the Exchange utilizes for the handling, execution and routing of orders, and for performing the regulatory compliance checks to each of those functions. The proposed rule change also removes impediments to and perfects the mechanism of a free and open market and protects investors and the public interest because it provides additional specificity, clarity and transparency. The Exchange believes its proposal to amend Rule 7.45E removes impediments to and perfects the mechanism of a free and open market and protects investors and the public interest because the proposed rule change would enhance the clarity and transparency in Exchange Rules surrounding the inbound routing function performed by Arca Securities for the Exchange's affiliate, NYSE National. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(B). \5\ 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 change is not designed to address any competitive issue but rather would provide the public and investors with information about which data feeds the Exchange uses for execution and routing decisions, and provide clarity in Exchange rules that Arca Securities would perform the inbound routing function on behalf on the Exchange's affiliate, NYSE National. 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 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 for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\ --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A). \7\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written ntoice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \8\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \9\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposed rule change may become operative upon filing. The Exchange states that waiver of the operative delay would be consistent with the protection of investors and the public interest because it will allow the Exchange to immediately provide enhanced [[Page 26329]] transparency in Exchange rules regarding which data feeds the Exchange will use for NYSE National and clarify in the Exchange's rules that Arca Securities will perform the inbound routing function for NYSE National. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal as operative upon filing.\10\ --------------------------------------------------------------------------- \8\ 17 CFR 240.19b-4(f)(6). \9\ 17 CFR 240.19b-4(f)(6)(iii). \10\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the 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 to determine whether the proposed rule should be approved or 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 CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-NYSEAMER-2018-24 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-NYSEAMER-2018-24. 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-NYSEAMER-2018-24, and should be submitted on or before June 27, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-12115 Filed 6-5-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices 26327
market share and revenue of the affected and the Commission that could result change that are filed with the
exchange. from maintaining the former fees and Commission, and all written
For the reasons described above, the credits on the Price List. The communications relating to the
Exchange believes that the proposed Commission believes that waiving the proposed rule change between the
rule change reflects this competitive 30-day operative delay is consistent Commission and any person, other than
environment. with the protection of investors and the those that may be withheld from the
C. Self-Regulatory Organization’s public interest as it would allow the public in accordance with the
Statement on Comments on the Exchange to offer co-location services provisions of 5 U.S.C. 552, will be
Proposed Rule Change Received From without undue delay. Accordingly, the available for website viewing and
Members, Participants, or Others Commission waives the 30-day printing in the Commission’s Public
operative delay and designates the Reference Room, 100 F Street NE,
No written comments were solicited proposed rule change operative upon Washington, DC 20549 on official
or received with respect to the proposed filing.64 business days between the hours of
rule change. At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the
III. Date of Effectiveness of the filing of such proposed rule change, the filing also will be available for
Proposed Rule Change and Timing for Commission summarily may inspection and copying at the principal
Commission Action temporarily suspend such rule change if office of the Exchange. All comments
it appears to the Commission that such received will be posted without change.
The Exchange has filed the proposed action is necessary or appropriate in the Persons submitting comments are
rule change pursuant to Section public interest, for the protection of cautioned that we do not redact or edit
19(b)(3)(A)(iii) of the Act 59 and Rule investors, or otherwise in furtherance of personal identifying information from
19b–4(f)(6) thereunder.60 Because the the purposes of the Act. If the comment submissions. You should
proposed rule change does not: (i) Commission takes such action, the submit only information that you wish
Significantly affect the protection of Commission shall institute proceedings to make available publicly. All
investors or the public interest; (ii) under Section 19(b)(2)(B) 65 of the Act to submissions should refer to File
impose any significant burden on determine whether the proposed rule Number SR–NYSENAT–2018–07 and
competition; and (iii) become operative change should be approved or should be submitted on or before June
prior to 30 days from the date on which disapproved. 27, 2018.
it was filed, or such shorter time as the
Commission may designate, if IV. Solicitation of Comments For the Commission, by the Division of
consistent with the protection of Trading and Markets, pursuant to delegated
Interested persons are invited to authority.66
investors and the public interest, the submit written data, views, and Eduardo A. Aleman,
proposed rule change has become arguments concerning the foregoing,
effective pursuant to Section 19(b)(3)(A) Assistant Secretary.
including whether the proposed rule
of the Act and Rule 19b–4(f)(6)(iii) [FR Doc. 2018–12111 Filed 6–5–18; 8:45 am]
change is consistent with the Act.
thereunder.61 Comments may be submitted by any of BILLING CODE 8011–01–P
A proposed rule change filed under the following methods:
Rule 19b–4(f)(6) 62 normally does not
become operative prior to 30 days after Electronic Comments SECURITIES AND EXCHANGE
the date of the filing. However, pursuant • Use the Commission’s internet COMMISSION
to Rule 19b4(f)(6)(iii),63 the Commission comment form (http://www.sec.gov/ [Release No. 34–83357; File No. SR–
may designate a shorter time if such rules/sro.shtml); or NYSEAMER–2018–24]
action is consistent with the protection • Send an email to rule-comments@
of investors and the public interest. The sec.gov. Please include File Number SR– Self-Regulatory Organizations; NYSE
Exchange has requested that the NYSENAT–2018–07 on the subject line. American LLC; Notice of Filing and
Commission waive the 30-day operative Immediate Effectiveness of Proposed
delay so that the proposed rule change Paper Comments Rule Change To Amend Rule 7.37E and
may become operative immediately • Send paper comments in triplicate Rule 7.45E With Respect to NYSE
upon filing. The Exchange believes that to Secretary, Securities and Exchange National’s Reopening of Trading and
such waiver is consistent with the Commission, 100 F Street NE, Reactivating Connection to the
protection of investors and the public Washington, DC 20549–1090. Securities Information Processors
interest because it would allow the All submissions should refer to File
May 31, 2018.
Exchange to provide the proposed co- Number SR–NYSENAT–2018–07. This
file number should be included on the Pursuant to Section 19(b)(1) 1 of the
location services to coincide with the
subject line if email is used. To help the Securities Exchange Act of 1934 (the
launch of the Exchange. The Exchange
Commission process and review your ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
also notes that waiver would promote
comments more efficiently, please use notice is hereby given that on May 18,
transparency and potentially reduce
only one method. The Commission will 2018, NYSE American LLC (the
confusion among members, the public,
post all comments on the Commission’s ‘‘Exchange’’ or ‘‘NYSE American’’) filed
59 15 U.S.C. 78s(b)(3)(A)(iii). internet website (http://www.sec.gov/ with the Securities and Exchange
60 17 CFR 240.19b–4(f)(6). rules/sro.shtml). Copies of the Commission (‘‘Commission’’) the
61 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
submission, all subsequent proposed rule change as described in
Items I and II below, which Items have
daltland on DSKBBV9HB2PROD with NOTICES
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
amendments, all written statements
with respect to the proposed rule been prepared by the self-regulatory
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
organization. The Commission is
change, or such shorter time as designated by the 64 For purposes only of waiving the 30-day
66 17 CFR 200.30–3(a)(12).
Commission. The Exchange has satisfied this operative delay, the Commission has considered the
requirement. proposed rule’s impact on efficiency, competition, 1 15 U.S.C. 78s(b)(1).
62 17 CFR 240.19b–4(f)(6). and capital formation. See 15 U.S.C. 78c(f). 2 15 U.S.C 78a.
63 17 CFR 240.19b–4(f)(6)(iii). 65 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices 26329
transparency in Exchange rules change that are filed with the solicit comments on the proposed rule
regarding which data feeds the Commission, and all written change from interested persons.
Exchange will use for NYSE National communications relating to the
I. Self-Regulatory Organization’s
and clarify in the Exchange’s rules that proposed rule change between the
Statement of the Terms of the Substance
Arca Securities will perform the Commission and any person, other than
those that may be withheld from the of the Proposed Rule Change
inbound routing function for NYSE
National. The Commission believes that public in accordance with the The Exchange proposes to: (1) Amend
waiving the 30-day operative delay is provisions of 5 U.S.C. 552, will be Rule 7.37–E to specify in Exchange rules
consistent with the protection of available for website viewing and the Exchange’s use of data feeds from
investors and the public interest. printing in the Commission’s Public NYSE National, Inc. (‘‘NYSE National’’)
Therefore, the Commission hereby Reference Room, 100 F Street NE, for order handling and execution, order
waives the operative delay and Washington, DC 20549 on official routing, and regulatory compliance; and
designates the proposal as operative business days between the hours of (2) amend Rule 7.45–E to reflect that
upon filing.10 10:00 a.m. and 3:00 p.m. Copies of the Archipelago Securities LLC (‘‘Arca
At any time within 60 days of the filing also will be available for Securities’’) would function as a routing
filing of the proposed rule change, the inspection and copying at the principal broker for the Exchange’s affiliate, NYSE
Commission summarily may office of the Exchange. All comments National. The proposed rule change is
temporarily suspend such rule change if received will be posted without change. available on the Exchange’s website at
it appears to the Commission that such Persons submitting comments are www.nyse.com, at the principal office of
action is necessary or appropriate in the cautioned that we do not redact or edit the Exchange, and at the Commission’s
public interest, for the protection of personal identifying information from Public Reference Room.
investors, or otherwise in furtherance of comment submissions. You should
the purposes of the Act. If the submit only information that you wish II. Self-Regulatory Organization’s
Commission takes such action, the to make available publicly. All Statement of the Purpose of, and
Commission shall institute proceedings submissions should refer to File Statutory Basis for, the Proposed Rule
to determine whether the proposed rule Number SR–NYSEAMER–2018–24, and Change
should be approved or disapproved. should be submitted on or before June In its filing with the Commission, the
27, 2018. self-regulatory organization included
IV. Solicitation of Comments
For the Commission, by the Division of statements concerning the purpose of,
Interested persons are invited to Trading and Markets, pursuant to delegated and basis for, the proposed rule change
submit written data, views, and authority.11 and discussed any comments it received
arguments concerning the foregoing, Eduardo A. Aleman, on the proposed rule change. The text
including whether the proposed rule Assistant Secretary. of those statements may be examined at
change is consistent with the Act. [FR Doc. 2018–12115 Filed 6–5–18; 8:45 am] the places specified in Item IV below.
Comments may be submitted by any of The Exchange has prepared summaries,
BILLING CODE 8011–01–P
the following methods: set forth in sections A, B, and C below,
Electronic Comments of the most significant parts of such
SECURITIES AND EXCHANGE statements.
• Use the Commission’s internet
COMMISSION A. Self-Regulatory Organization’s
comment form (http://www.sec.gov/
rules/sro.shtml); or [Release No. 34–83352; File No. SR– Statement of the Purpose of, and
• Send an email to rule-comments@ NYSEArca–2018–37] Statutory Basis for, the Proposed Rule
sec.gov. Please include File Number SR– Change
NYSEAMER–2018–24 on the subject Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and 1. Purpose
line.
Immediate Effectiveness of Proposed The Exchange proposes to update and
Paper Comments Rule Change To Amend Rule 7.37–E amend the table in Rule 7.37–E that sets
• Send paper comments in triplicate and Rule 7.45–E With Respect to NYSE forth on a market-by-market basis the
to Secretary, Securities and Exchange National’s Reopening of Trading and specific network processor and
Commission, 100 F Street NE, Reactivating Connection to the proprietary data feeds that the Exchange
Washington, DC 20549–1090. Securities Information Processors utilizes for the handling, execution and
All submissions should refer to File routing of orders, and for performing the
May 31, 2018.
Number SR–NYSEAMER–2018–24. This regulatory compliance checks related to
Pursuant to Section 19(b)(1) 1 of the
file number should be included on the each of those functions. Specifically, the
Securities Exchange Act of 1934 (the
subject line if email is used. To help the table would be amended to include
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Commission process and review your NYSE National, which intends to
notice is hereby given that on May 18,
comments more efficiently, please use reopen trading and reactivate its
2018, NYSE Arca, Inc. (the ‘‘Exchange’’
only one method. The Commission will connections to the securities
or ‘‘NYSE Arca’’) filed with the
post all comments on the Commission’s information processors (‘‘SIPs’’). To
Securities and Exchange Commission
internet website (http://www.sec.gov/ reflect that, the Exchange proposes to
(‘‘Commission’’) the proposed rule
rules/sro.shtml). Copies of the amend Rule 7.37–E to specify which
change as described in Items I and II
submission, all subsequent data feeds the Exchange would use for
below, which Items have been prepared
daltland on DSKBBV9HB2PROD with NOTICES
amendments, all written statements NYSE National. As proposed, the
by the self-regulatory organization. The
with respect to the proposed rule Exchange would use the direct data
Commission is publishing this notice to
feeds for NYSE National and would use
10 For purposes only of waiving the 30-day
1117 CFR 200.30–3(a)(12). the SIP data feeds as a secondary source.
operative delay, the Commission has also
considered the proposed rule’s impact on
1 15 U.S.C.78s(b)(1). Additionally, the Exchange proposes
efficiency, competition, and capital formation. See 2 15 U.S.C. 78a. to amend Rule 7.45–E to reflect that
15 U.S.C. 78c(f). 3 17 CFR 240.19b–4. Arca Securities would function as a
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Document Created: 2018-06-06 00:53:59
Document Modified: 2018-06-06 00:53:59
| 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 | 83 FR 26327 |
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