83_FR_31340 83 FR 31212 - Self-Regulatory Organizations; New York Stock Exchange LLC; Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Liquidity Program Until December 31, 2018

83 FR 31212 - Self-Regulatory Organizations; New York Stock Exchange LLC; Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Liquidity Program Until December 31, 2018

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 128 (July 3, 2018)

Page Range31212-31213
FR Document2018-14287

Federal Register, Volume 83 Issue 128 (Tuesday, July 3, 2018) 
[Federal Register Volume 83, Number 128 (Tuesday, July 3, 2018)]
[Notices]
[Pages 31212-31213]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14287]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83541; File No. SR-NYSE-2011-55]


Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Granting an Extension to Limited Exemptions From Rule 612(c) of 
Regulation NMS in Connection With the Exchange's Retail Liquidity 
Program Until December 31, 2018

June 28, 2018.
    On July 3, 2012, 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 the New 
York Stock Exchange LLC (``NYSE'') a limited exemption from the Sub-
Penny Rule in connection with the operation of the Exchange's Retail 
Liquidity Program (the ``Program'').\2\ The limited exemption was 
granted concurrently with the Commission's approval of the Exchange's 
proposal to adopt its 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 are scheduled to expire 
on June 30, 2018.\4\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 67347 (July 3, 
2012), 77 FR 40673 (July 10, 2012) (SR-NYSE-2011-55; SR-NYSEAmex-
2011-84) (``Order'').
    \3\ See id.
    \4\ On July 30, 2013, the Exchange requested an extension of the 
exemption for the Program. See Letter from Janet McGinness, SVP and 
Corporate Secretary, NYSE Euronext, to Elizabeth M. Murphy, 
Secretary, Commission, dated July 30, 2013. The pilot period for the 
Program was extended until July 31, 2014. See Securities Exchange 
Act Release No. 70096 (August 2, 2013), 78 FR 48520 (August 8, 2013) 
(SR-NYSE-2013-48). On July 30, 2014, the Exchange requested another 
extension of the exemption for the Program. See Letter from Martha 
Redding, Chief Counsel, NYSE, to Kevin M O'Neill, Deputy Secretary, 
Commission, dated July 30, 2014. The pilot period for the Program 
was extended until March 31, 2015. See Securities Exchange Act 
Release No. 72629 (July 16, 2014), 79 FR 42564 (July 22, 2014) (SR-
NYSE-2014-35). On February 27, 2015, the Exchange requested another 
extension of the exemption for the Program. See Letter from Martha 
Redding, Senior Counsel, NYSE, to Brent J. Fields, Secretary, 
Commission, dated February 27, 2015. The pilot period for the 
Program was extended until September 30, 2015. See Securities 
Exchange Act Release No. 74454 (March 6, 2015), 80 FR 13054 (March 
12, 2015) (SR-NYSE-2015-10). On September 17, 2015, the Exchange 
requested another extension of the exemption for the Program. See 
Letter from Martha Redding, Senior Counsel, NYSE, 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 No. 75993 (September 28, 2015), 80 
FR 59844 (October 2, 2015) (SR-NYSE2015-41). On March 17, 2016, the 
Exchange requested another extension of the exemption for the 
Program. See Letter from Martha Redding, Senior Counsel, NYSE, 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. 77426 (March 23, 2016), 81 FR 
17533 (March 29, 2016) (SR-NYSE-2016-25). On August 8, 2016, the 
Exchange requested another extension of the exemption for the 
Program. See Letter from Martha Redding, Associate General Counsel, 
NYSE, 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. 78600 (August 17, 
2016), 81 FR 57642 (August 23, 2016) (SR-NYSE-2016-54). On November 
28, 2016, the Exchange requested another extension of the exemption 
for the Program. See Letter from Martha Redding, Associate General 
Counsel, NYSE, 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.79493 
(December 7, 2016), 81 FR 90019 (December 13, 2016) (SR-NYSE-2016-
82). On May 23, 2017, the Exchange requested another extension of 
the exemption for the Program. See Letter from Martha Redding, 
Associate General Counsel, NYSE, 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. 80844 (June 1, 2017), 82 FR 26562 (June 7, 2017) (SR-
NYSE-2017-26). On November 30, 2017, the Exchange requested another 
extension of the exemption for the Program. See Letter from Martha 
Redding, Assistant Secretary, NYSE, to Brent J. Fields, Secretary, 
Commission, dated November 30, 2017. The pilot period for the 
Program was extended until June 30, 2018. See Securities Exchange 
Act Release No. 82230 (December 7, 2017), 82 FR 58667 (December 13, 
2017) (SR-NYSE-2017-64).
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    The Exchange now seeks to extend the exemption until December 31, 
2018.\5\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends

[[Page 31213]]

the operation of the Program through the same date.\6\ In its request 
to extend the exemption, the Exchange notes that the participation in 
the Program has increased more recently with additional Retail 
Liquidity Providers. Accordingly, the Exchange has asked for additional 
time to both allow for additional opportunities for greater 
participation in the Program and allow for further assessment of the 
results of such participation. For this reason and the reasons stated 
in the Order originally granting the limited exemptions, the Commission 
finds that extending the exemption, pursuant to its authority under 
Rule 612(c) of Regulation NMS, is appropriate in the public interest 
and consistent with the protection of investors.
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    \5\ See Letter from Martha Redding, Associate General Counsel 
and Assistant Secretary, NYSE to Brent J. Fields, Secretary, 
Commission, dated June 14, 2018.
    \6\ See SR-NYSE-2018-29.
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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 
December 31, 2018.
    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.\7\
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    \7\ 17 CFR 200.30-3(a)(83).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14287 Filed 7-2-18; 8:45 am]
BILLING CODE 8011-01-P

31212 Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices Commission hereby waives the 30-day Washington, DC 20549 on official The Exchange now seeks to extend operative delay and designates the business days between the hours of the exemption until December 31, proposal operative upon filing.15 10:00 a.m. and 3:00 p.m. Copies of the 2018.5 The Exchange’s request was At any time within 60 days of the filing also will be available for made in conjunction with an filing of the proposed rule change, the inspection and copying at the principal immediately effective filing that extends Commission summarily may offices of the Exchange. All comments temporarily suspend such rule change if received will be posted without change. Secretary, NYSE Euronext, to Elizabeth M. Murphy, it appears to the Commission that such Persons submitting comments are Secretary, Commission, dated July 30, 2013. The pilot period for the Program was extended until July action is necessary or appropriate in the cautioned that we do not redact or edit 31, 2014. See Securities Exchange Act Release No. public interest, for the protection of personal identifying information from 70096 (August 2, 2013), 78 FR 48520 (August 8, investors, or otherwise in furtherance of comment submissions. You should 2013) (SR–NYSE–2013–48). On July 30, 2014, the submit only information that you wish Exchange requested another extension of the the purposes of the Act. If the exemption for the Program. See Letter from Martha Commission takes such action, the to make available publicly. All Redding, Chief Counsel, NYSE, to Kevin M O’Neill, Commission shall institute proceedings submissions should refer to File Deputy Secretary, Commission, dated July 30, 2014. to determine whether the proposed rule Number SR–NYSEArca–2018–46, and The pilot period for the Program was extended until should be submitted on or before July March 31, 2015. See Securities Exchange Act change should be approved or Release No. 72629 (July 16, 2014), 79 FR 42564 disapproved. 24, 2018. (July 22, 2014) (SR–NYSE–2014–35). On February For the Commission, by the Division of 27, 2015, the Exchange requested another extension IV. Solicitation of Comments of the exemption for the Program. See Letter from Trading and Markets, pursuant to delegated Martha Redding, Senior Counsel, NYSE, to Brent J. Interested persons are invited to authority.16 Fields, Secretary, Commission, dated February 27, submit written data, views, and Eduardo A. Aleman, 2015. The pilot period for the Program was arguments concerning the foregoing, Assistant Secretary. extended until September 30, 2015. See Securities including whether the proposed rule Exchange Act Release No. 74454 (March 6, 2015), [FR Doc. 2018–14285 Filed 7–2–18; 8:45 am] 80 FR 13054 (March 12, 2015) (SR–NYSE–2015–10). change is consistent with the Act. BILLING CODE 8011–01–P On September 17, 2015, the Exchange requested Comments may be submitted by any of another extension of the exemption for the Program. the following methods: See Letter from Martha Redding, Senior Counsel, NYSE, to Brent J. Fields, Secretary, Commission, Electronic Comments SECURITIES AND EXCHANGE dated September 17, 2015. The pilot period for the COMMISSION Program was extended until March 31, 2016. See • Use the Commission’s internet Securities Exchange Act Release No. 75993 comment form (http://www.sec.gov/ [Release No. 34–83541; File No. SR–NYSE– (September 28, 2015), 80 FR 59844 (October 2, 2011–55] 2015) (SR–NYSE2015–41). On March 17, 2016, the rules/sro.shtml); or Exchange requested another extension of the • Send an email to rule-comments@ Self-Regulatory Organizations; New exemption for the Program. See Letter from Martha sec.gov. Please include File Number SR– York Stock Exchange LLC; Order Redding, Senior Counsel, NYSE, to Brent J. Fields, NYSEArca–2018–46 on the subject line. Granting an Extension to Limited Secretary, Commission, dated March 17, 2016. The pilot period for the Program was extended until Paper Comments Exemptions From Rule 612(c) of August 31, 2016. See Securities Exchange Act Regulation NMS in Connection With Release No. 77426 (March 23, 2016), 81 FR 17533 • Send paper comments in triplicate the Exchange’s Retail Liquidity (March 29, 2016) (SR–NYSE–2016–25). On August to Secretary, Securities and Exchange Program Until December 31, 2018 8, 2016, the Exchange requested another extension Commission, 100 F Street NE, of the exemption for the Program. See Letter from Martha Redding, Associate General Counsel, NYSE, Washington, DC 20549–1090. June 28, 2018. to Brent J. Fields, Secretary, Commission, dated All submissions should refer to File On July 3, 2012, the Securities and August 8, 2016. The pilot period for the Program Number SR–NYSEArca–2018–46. This Exchange Commission (‘‘Commission’’) was extended until December 31, 2016. See issued an order pursuant to its authority Securities Exchange Act Release No. 78600 (August file number should be included on the 17, 2016), 81 FR 57642 (August 23, 2016) (SR– subject line if email is used. To help the under Rule 612(c) of Regulation NMS NYSE–2016–54). On November 28, 2016, the Commission process and review your (‘‘Sub-Penny Rule’’) 1 that granted the Exchange requested another extension of the comments more efficiently, please use New York Stock Exchange LLC exemption for the Program. See Letter from Martha (‘‘NYSE’’) a limited exemption from the Redding, Associate General Counsel, NYSE, to only one method. The Commission will Brent J. Fields, Secretary, Commission, dated post all comments on the Commission’s Sub-Penny Rule in connection with the November 28, 2016. The pilot period for the internet website (http://www.sec.gov/ operation of the Exchange’s Retail Program was extended until June 30, 2017. See rules/sro.shtml). Copies of the Liquidity Program (the ‘‘Program’’).2 Securities Exchange Act Release No.79493 The limited exemption was granted (December 7, 2016), 81 FR 90019 (December 13, submission, all subsequent 2016) (SR–NYSE–2016–82). On May 23, 2017, the amendments, all written statements concurrently with the Commission’s Exchange requested another extension of the with respect to the proposed rule approval of the Exchange’s proposal to exemption for the Program. See Letter from Martha change that are filed with the adopt its Program for a one-year pilot Redding, Associate General Counsel, NYSE, to term.3 The exemption was granted Brent J. Fields, Secretary, Commission, dated May Commission, and all written 23, 2017. The pilot period for the Program was communications relating to the coterminous with the effectiveness of extended until December 31, 2017. See Securities proposed rule change between the the pilot Program; both the pilot Exchange Act Release No. 80844 (June 1, 2017), 82 Commission and any person, other than Program and exemption are scheduled FR 26562 (June 7, 2017) (SR–NYSE–2017–26). On to expire on June 30, 2018.4 November 30, 2017, the Exchange requested those that may be withheld from the another extension of the exemption for the Program. public in accordance with the See Letter from Martha Redding, Assistant 16 17 CFR 200.30–3(a)(12), (59). provisions of 5 U.S.C. 552, will be Secretary, NYSE, to Brent J. Fields, Secretary, sradovich on DSK3GMQ082PROD with NOTICES 1 17 CFR 242.612(c). available for website viewing and Commission, dated November 30, 2017. The pilot 2 See Securities Exchange Act Release No. 67347 period for the Program was extended until June 30, printing in the Commission’s Public (July 3, 2012), 77 FR 40673 (July 10, 2012) (SR– 2018. See Securities Exchange Act Release No. Reference Room, 100 F Street NE, NYSE–2011–55; SR–NYSEAmex–2011–84) 82230 (December 7, 2017), 82 FR 58667 (December (‘‘Order’’). 13, 2017) (SR–NYSE–2017–64). 15 For purposes only of waiving the 30-day 3 See id. 5 See Letter from Martha Redding, Associate operative delay, the Commission has considered the 4 On July 30, 2013, the Exchange requested an General Counsel and Assistant Secretary, NYSE to proposed rule’s impact on efficiency, competition, extension of the exemption for the Program. See Brent J. Fields, Secretary, Commission, dated June and capital formation. See 15 U.S.C. 78c(f). Letter from Janet McGinness, SVP and Corporate 14, 2018. VerDate Sep<11>2014 17:07 Jul 02, 2018 Jkt 244001 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1

Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 31213 the operation of the Program through (‘‘Act’’),1 and Rule 19b–4 thereunder,2 expire on June 30, 2018.3 The Exchange the same date.6 In its request to extend notice is hereby given that on June 26, proposes to extend the Penny Pilot the exemption, the Exchange notes that 2018, Nasdaq MRX, LLC (‘‘MRX’’ or Program through December 31, 2018, the participation in the Program has ‘‘Exchange’’) filed with the Securities and to provide a revised date for adding increased more recently with additional and Exchange Commission (‘‘SEC’’ or replacement issues to the Penny Pilot Retail Liquidity Providers. Accordingly, ‘‘Commission’’) the proposed rule Program. The Exchange proposes that the Exchange has asked for additional change as described in Items I and II any Penny Pilot Program issues that time to both allow for additional below, which Items have been prepared have been delisted may be replaced on opportunities for greater participation in by the Exchange. The Commission is the second trading day following July 1, the Program and allow for further publishing this notice to solicit 2018. The replacement issues will be assessment of the results of such comments on the proposed rule change selected based on trading activity for the participation. For this reason and the from interested persons. most recent six month period excluding reasons stated in the Order originally the month immediately preceding the I. Self-Regulatory Organization’s replacement (i.e., beginning December granting the limited exemptions, the Statement of the Terms of Substance of 1, 2017, and ending May 31, 2018). This Commission finds that extending the the Proposed Rule Change filing does not propose any substantive exemption, pursuant to its authority under Rule 612(c) of Regulation NMS, is The Exchange proposes to amend its changes to the Penny Pilot Program: All appropriate in the public interest and rules to extend a pilot program to quote classes currently participating will consistent with the protection of and to trade certain options classes in remain the same and all minimum investors. penny increments (‘‘Penny Pilot increments will remain unchanged. The Therefore, it is hereby ordered that, Program’’). Exchange believes the benefits to public pursuant to Rule 612(c) of Regulation The text of the proposed rule change customers and other market participants NMS, the Exchange is granted a limited is available on the Exchange’s website at who will be able to express their true exemption from Rule 612 of Regulation http://nasdaqmrx.cchwallstreet.com/, at prices to buy and sell options have been NMS that allows it to accept and rank the principal office of the Exchange, and demonstrated to outweigh any increase orders priced equal to or greater than at the Commission’s Public Reference in quote traffic. $1.00 per share in increments of $0.001, Room. 2. Statutory Basis in connection with the operation of its II. Self-Regulatory Organization’s Retail Liquidity Program, until The Exchange believes that the Statement of the Purpose of, and proposed rule change is consistent with December 31, 2018. Statutory Basis for, the Proposed Rule the requirements of the Act and the The limited and temporary exemption Change rules and regulations thereunder that extended by this Order is subject to In its filing with the Commission, the are applicable to a national securities modification or revocation if at any time Exchange included statements exchange, and, in particular, with the the Commission determines that such concerning the purpose of and basis for requirements of Section 6(b) of the Act.4 action is necessary or appropriate in the proposed rule change and discussed Specifically, the proposed rule change is furtherance of the purposes of the any comments it received on the consistent with Section 6(b)(5) of the Securities Exchange Act of 1934. proposed rule change. The text of these Act,5 because it is designed to promote Responsibility for compliance with any statements may be examined at the just and equitable principles of trade, applicable provisions of the Federal remove impediments to and perfect the securities laws must rest with the places specified in Item IV below. The Exchange has prepared summaries, set mechanisms of a free and open market persons relying on the exemptions that and a national market system and, in are the subject of this Order. forth in sections A, B, and C below, of the most significant aspects of such general, to protect investors and the For the Commission, by the Division of public interest. In particular, the Trading and Markets, pursuant to delegated statements. proposed rule change, which extends authority.7 A. Self-Regulatory Organization’s the Penny Pilot Program for an Eduardo A. Aleman, Statement of the Purpose of, and additional six months, will enable Assistant Secretary. Statutory Basis for, the Proposed Rule public customers and other market [FR Doc. 2018–14287 Filed 7–2–18; 8:45 am] Change participants to express their true prices BILLING CODE 8011–01–P to buy and sell options to the benefit of 1. Purpose all market participants. Under the Penny Pilot Program, the minimum price variation for all B. Self-Regulatory Organization’s SECURITIES AND EXCHANGE participating options classes, except for Statement on Burden on Competition COMMISSION the Nasdaq-100 Index Tracking Stock In accordance with Section 6(b)(8) of [Release No. 34–83534; File No. SR–MRX– (‘‘QQQQ’’), the SPDR S&P 500 Exchange the Act,6 the Exchange does not believe 2018–22] Traded Fund (‘‘SPY’’) and the iShares that the proposed rule change will Russell 2000 Index Fund (‘‘IWM’’), is impose any burden on intermarket or Self-Regulatory Organizations; Nasdaq $0.01 for all quotations in options series intramarket competition that is not MRX, LLC; Notice of Filing and necessary or appropriate in furtherance Immediate Effectiveness of Proposed that are quoted at less than $3 per contract and $0.05 for all quotations in of the purposes of the Act. Specifically, Rule Change To Extend the Penny the Exchange believes that, by extending options series that are quoted at $3 per sradovich on DSK3GMQ082PROD with NOTICES Pilot Program the expiration of the Penny Pilot contract or greater. QQQQ, SPY and June 28, 2018. IWM are quoted in $0.01 increments for 3 See Exchange Act Release No. 82364 (December Pursuant to Section 19(b)(1) of the all options series. The Penny Pilot 19, 2017), 82 FR 61056 (December 26, 2017) (SR– Securities Exchange Act of 1934 Program is currently scheduled to MRX–2017–28). 4 15 U.S.C. 78f(b). 6 See SR–NYSE–2018–29. 1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78f(b)(5). 7 17 CFR 200.30–3(a)(83). 2 17 CFR 240.19b–4. 6 15 U.S.C. 78f(b)(8). VerDate Sep<11>2014 17:07 Jul 02, 2018 Jkt 244001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1


Document Created: 2018-07-02 23:55:37
Document Modified: 2018-07-02 23:55:37
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 Citation83 FR 31212 
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