83 FR 31236 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS In Connection With the Exchange's Retail Liquidity Programs Until December 31, 2018
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 128 (July 3, 2018)
Federal Register Volume 83, Issue 128 (July 3, 2018)
| Page Range | 31236-31237 | |
| FR Document | 2018-14283 |
[Federal Register Volume 83, Number 128 (Tuesday, July 3, 2018)] [Notices] [Pages 31236-31237] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-14283] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83543; File No. SR-NYSEArca-2013-107] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS In Connection With the Exchange's Retail Liquidity Programs Until December 31, 2018 June 28, 2018. On December 23, 2013, the Securities and Exchange Commission (``Commission'') issued an order pursuant to its authority under Rule 612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted NYSE Arca, Inc. (``Exchange'') a limited exemption from the Sub-Penny Rule in connection with the operation of the Exchange's Retail Liquidity Program (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\ --------------------------------------------------------------------------- \1\ 17 CFR 242.612(c). \2\ See Securities Exchange Act Release No. 71176 (December 23, 2013), 78 FR 79524 (December 30, 2013) (SR-NYSEArca-2013-107) (``Order''). \3\ See id. \4\ On March 19, 2015, the Exchange requested an extension of the exemption for the Program. See letter from Martha Redding, Senior Counsel and Assistant Secretary, to Brent J. Fields, Secretary, Commission, dated March 19, 2015. The pilot period for the Program was extended until September 30, 2015. See Securities Exchange Act Release No. 74572 (Mar. 24, 2015), 80 FR 16705 (Mar. 30, 2015) (SR-NYSEArca-2015-22). On September 17, 2015, the Exchange requested another extension of the exemption for the Program. See letter from Martha Redding, Senior Counsel and Assistant Secretary, to Brent J. Fields, Secretary, Commission, dated September 17, 2015. The pilot period for the Program was extended until March 31, 2016. See Securities Exchange Act Release Nos. 75994 (Sept. 28, 2015), 80 FR 59834 (Oct. 2, 2015) (SR-NYSEArca-2015-84) and 77236 (Feb. 25, 2016), 81 FR 10943 (Mar. 2, 2016) (SR-NYSEArca-2016-30). On March 17, 2016, the Exchange requested another extension of the exemption for the Program. See letter from Martha Redding, Senior Counsel and Assistant Secretary, to Brent J. Fields, Secretary, Commission, dated March 17, 2016. The pilot period for the Program was extended until August 31, 2016. See Securities Exchange Act Release No. 77425 (Mar. 23, 2016), 81 FR 17523 (Mar. 29, 2016) (SR-NYSEArca-2016-47). On August 8, 2016, the Exchange requested another extension of the exemption for the Program. See Letter from Martha Redding, Associate General Counsel and Assistant Secretary, to Brent J. Fields, Secretary, Commission, dated August 8, 2016. The pilot period for the Program was extended until December 31, 2016. See Securities Exchange Act Release No. 78601 (Aug. 17, 2016), 81 FR 57632 (Aug. 23, 2016) (SR-NYSEArca-2016-113). On November 28, 2016, the Exchange requested another extension of the exemption for the program. See Letter from Martha Redding, Associate General Counsel and Assistant Secretary, to Brent J. Fields, Secretary, Commission, dated November 28, 2016. The pilot period for the Program was extended until June 30, 2017. See Securities Exchange Act Release No. 79495 (Dec. 7, 2016), 81 FR 90033 (Dec. 13, 2016) (SR-NYSEArca-2016-157). On May 23, 2017, the Exchange requested another extension of the exemption for the program. See Letter from Martha Redding, Associate General Counsel and Assistant Secretary, to Brent J. Fields, Secretary, Commission, dated May 23, 2017. The pilot period for the Program was extended until December 31, 2017. See Securities Exchange Act Release No. 80851 (June 2, 2017), 82 FR 26722 (June 8, 2017) (SR- NYSEArca-2017-63). On November 30, 2017, the Exchange requested another extension of the exemption to 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. 82289 (December 11, 2017), 82 FR 59677 (December 15, 2017) (SR-NYSEArca-2017-137). --------------------------------------------------------------------------- The Exchange now seeks to extend the exemptions until December 31, 2018.\5\ The Exchange's request was made in conjunction with an immediately effective filing that extends [[Page 31237]] 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. --------------------------------------------------------------------------- \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-NYSEArca-2018-46. --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(83). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-14283 Filed 7-2-18; 8:45 am] BILLING CODE 8011-01-P
![31236 Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices
immediately. The Commission believes change that are filed with the approval of the Exchange’s proposal to
that waiving the 30-day operative delay Commission, and all written adopt its Program for a one-year pilot
is consistent with the protection of communications relating to the term.3 The exemption was granted
investors and the public interest, proposed rule change between the coterminous with the effectiveness of
because waiver would allow the pilot Commission and any person, other than the pilot Program; both the pilot
period to continue uninterrupted after those that may be withheld from the Program and exemption are scheduled
its current expiration date of June 30, public in accordance with the to expire on June 30, 2018.4
2018, thereby avoiding any potential provisions of 5 U.S.C. 552, will be The Exchange now seeks to extend
investor confusion that could result available for website viewing and the exemptions until December 31,
from temporary interruption in the pilot printing in the Commission’s Public 2018.5 The Exchange’s request was
program. For this reason, the Reference Room, 100 F Street NE, made in conjunction with an
Commission hereby waives the 30-day Washington, DC 20549 on official immediately effective filing that extends
operative delay and designates the business days between the hours of
3 See id.
proposal operative upon filing.16 10:00 a.m. and 3:00 p.m. Copies of the
4 On March 19, 2015, the Exchange requested an
At any time within 60 days of the filing also will be available for
extension of the exemption for the Program. See
filing of the proposed rule change, the inspection and copying at the principal letter from Martha Redding, Senior Counsel and
Commission summarily may offices of the Exchange. All comments Assistant Secretary, to Brent J. Fields, Secretary,
temporarily suspend such rule change if received will be posted without change. Commission, dated March 19, 2015. The pilot
period for the Program was extended until
it appears to the Commission that such Persons submitting comments are September 30, 2015. See Securities Exchange Act
action is necessary or appropriate in the cautioned that we do not redact or edit Release No. 74572 (Mar. 24, 2015), 80 FR 16705
public interest, for the protection of personal identifying information from (Mar. 30, 2015) (SR–NYSEArca–2015–22). On
investors, or otherwise in furtherance of comment submissions. You should September 17, 2015, the Exchange requested
another extension of the exemption for the Program.
the purposes of the Act. If the submit only information that you wish See letter from Martha Redding, Senior Counsel and
Commission takes such action, the to make available publicly. All Assistant Secretary, to Brent J. Fields, Secretary,
Commission shall institute proceedings submissions should refer to File Commission, dated September 17, 2015. The pilot
to determine whether the proposed rule Number SR–NYSE–2018–29, and period for the Program was extended until March
31, 2016. See Securities Exchange Act Release Nos.
change should be approved or should be submitted on or before July 75994 (Sept. 28, 2015), 80 FR 59834 (Oct. 2, 2015)
disapproved. 24, 2018. (SR–NYSEArca–2015–84) and 77236 (Feb. 25,
For the Commission, by the Division of 2016), 81 FR 10943 (Mar. 2, 2016) (SR–NYSEArca–
IV. Solicitation of Comments 2016–30). On March 17, 2016, the Exchange
Trading and Markets, pursuant to delegated requested another extension of the exemption for
Interested persons are invited to authority.17 the Program. See letter from Martha Redding,
submit written data, views, and Eduardo A. Aleman, Senior Counsel and Assistant Secretary, to Brent J.
arguments concerning the foregoing, Assistant Secretary. Fields, Secretary, Commission, dated March 17,
including whether the proposed rule 2016. The pilot period for the Program was
[FR Doc. 2018–14286 Filed 7–2–18; 8:45 am] extended until August 31, 2016. See Securities
change is consistent with the Act. BILLING CODE 8011–01–P Exchange Act Release No. 77425 (Mar. 23, 2016), 81
Comments may be submitted by any of FR 17523 (Mar. 29, 2016) (SR–NYSEArca–2016–47).
the following methods: On August 8, 2016, the Exchange requested another
extension of the exemption for the Program. See
Electronic Comments SECURITIES AND EXCHANGE Letter from Martha Redding, Associate General
COMMISSION Counsel and Assistant Secretary, to Brent J. Fields,
• Use the Commission’s internet Secretary, Commission, dated August 8, 2016. The
comment form (http://www.sec.gov/ [Release No. 34–83543; File No. SR– pilot period for the Program was extended until
rules/sro.shtml); or NYSEArca–2013–107] December 31, 2016. See Securities Exchange Act
• Send an email to rule-comments@ Release No. 78601 (Aug. 17, 2016), 81 FR 57632
Self-Regulatory Organizations; NYSE (Aug. 23, 2016) (SR–NYSEArca–2016–113). On
sec.gov. Please include File Number SR– November 28, 2016, the Exchange requested
Arca, Inc.; Order Granting an
NYSE–2018–29 on the subject line. another extension of the exemption for the program.
Extension to Limited Exemptions From See Letter from Martha Redding, Associate General
Paper Comments Rule 612(c) of Regulation NMS In Counsel and Assistant Secretary, to Brent J. Fields,
Connection With the Exchange’s Retail Secretary, Commission, dated November 28, 2016.
• Send paper comments in triplicate The pilot period for the Program was extended until
Liquidity Programs Until December 31,
to Secretary, Securities and Exchange June 30, 2017. See Securities Exchange Act Release
2018
Commission, 100 F Street NE, No. 79495 (Dec. 7, 2016), 81 FR 90033 (Dec. 13,
Washington, DC 20549–1090. June 28, 2018. 2016) (SR–NYSEArca–2016–157). On May 23, 2017,
the Exchange requested another extension of the
All submissions should refer to File On December 23, 2013, the Securities exemption for the program. See Letter from Martha
Number SR–NYSE–2018–29. This file and Exchange Commission Redding, Associate General Counsel and Assistant
number should be included on the (‘‘Commission’’) issued an order Secretary, to Brent J. Fields, Secretary, Commission,
dated May 23, 2017. The pilot period for the
subject line if email is used. To help the pursuant to its authority under Rule Program was extended until December 31, 2017.
Commission process and review your 612(c) of Regulation NMS (‘‘Sub-Penny See Securities Exchange Act Release No. 80851
comments more efficiently, please use Rule’’) 1 that granted NYSE Arca, Inc. (June 2, 2017), 82 FR 26722 (June 8, 2017) (SR–
only one method. The Commission will (‘‘Exchange’’) a limited exemption from NYSEArca–2017–63). On November 30, 2017, the
Exchange requested another extension of the
post all comments on the Commission’s the Sub-Penny Rule in connection with exemption to the program. See Letter from Martha
internet website (http://www.sec.gov/ the operation of the Exchange’s Retail Redding, Assistant Secretary, NYSE, to Brent J.
rules/sro.shtml). Copies of the Liquidity Program (the ‘‘Program’’).2 Fields, Secretary, Commission, dated November 30,
sradovich on DSK3GMQ082PROD with NOTICES
submission, all subsequent The limited exemption was granted 2017. The pilot period for the Program was
extended until June 30, 2018. See Securities
amendments, all written statements concurrently with the Commission’s Exchange Act Release No. 82289 (December 11,
with respect to the proposed rule 2017), 82 FR 59677 (December 15, 2017) (SR–
17 17
CFR 200.30–3(a)(12), (59). NYSEArca–2017–137).
16 For 1 17
CFR 242.612(c).
purposes only of waiving the 30-day 5 See Letter from Martha Redding, Associate
operative delay, the Commission has considered the 2 See Securities Exchange Act Release No. 71176 General Counsel and Assistant Secretary, NYSE to
proposed rule’s impact on efficiency, competition, (December 23, 2013), 78 FR 79524 (December 30, Brent J. Fields, Secretary, Commission, dated June
and capital formation. See 15 U.S.C. 78c(f). 2013) (SR–NYSEArca–2013–107) (‘‘Order’’). 14, 2018.
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![Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 31237
the operation of the Program through Reform and Consumer Protection Act, notice and discussed any comments it
the same date.6 In its request to extend entitled Payment, Clearing and received on the advance notice. The text
the exemption, the Exchange notes that Settlement Supervision Act of 2010 of these statements may be examined at
the participation in the Program has (‘‘Clearing Supervision Act’’) 1 and Rule the places specified in Item IV below.
increased more recently with additional 19b–4(n)(1)(i) 2 under the Securities OCC has prepared summaries, set forth
Retail Liquidity Providers. Accordingly, Exchange Act of 1934 (‘‘Act’’),3 notice is in sections A and B below, of the most
the Exchange has asked for additional hereby given that on May 25, 2018, The significant aspects of these statements.
time to both allow for additional Options Clearing Corporation (‘‘OCC’’)
(A) Clearing Agency’s Statement on
opportunities for greater participation in filed with the Securities and Exchange
Comments on the Advance Notice
the Program and allow for further Commission (‘‘Commission’’) an
Received From Members, Participants or
assessment of the results of such advance notice as described in Items I,
Others
participation. For this reason and the II and III below, which Items have been
reasons stated in the Order originally prepared by OCC. On June 26, 2018, Written comments were not and are
granting the limited exemptions, the OCC filed Amendment No. 1 to the not intended to be solicited with respect
Commission finds that extending the advance notice.4 The Commission is to the proposed rule change and none
exemption, pursuant to its authority publishing this notice to solicit have been received. OCC will notify the
under Rule 612(c) of Regulation NMS, is comments on the advance notice from Commission of any written comments
appropriate in the public interest and interested persons, and to provide received by OCC.
consistent with the protection of notice that the Commission does not (B) Advance Notices Filed Pursuant to
investors. object to the changes set forth in the Section 806(e) of the Payment, Clearing,
Therefore, it is hereby ordered that, advance notice. and Settlement Supervision Act
pursuant to Rule 612(c) of Regulation
NMS, the Exchange is granted a limited I. Clearing Agency’s Statement of the Description of the Proposed Change
exemption from Rule 612 of Regulation Terms of Substance of the Advance
Notice Background
NMS that allows it to accept and rank
orders priced equal to or greater than This advance notice is filed in This advance notice is being filed in
$1.00 per share in increments of $0.001, connection with a proposed change to connection with a proposed change in
in connection with the operation of its its operations in the form of the the form of the replacement of a
Retail Liquidity Program, until replacement of a revolving credit facility revolving credit facility that OCC
December 31, 2018. that OCC maintains for a 364-day term maintains for a 364-day term and that it
The limited and temporary exemption and that it may use (i) in anticipation of may use (i) in anticipation of a potential
extended by this Order is subject to a potential default by or suspension of default by or suspension of a Clearing
modification or revocation if at any time a Clearing Member, (ii) to meet Member, (ii) to meet obligations arising
the Commission determines that such obligations arising out of the default or out of the default or suspension of a
action is necessary or appropriate in suspension of a Clearing Member, (iii) to Clearing Member, (iii) to meet
furtherance of the purposes of the meet reasonably anticipated liquidity reasonably anticipated liquidity needs
Securities Exchange Act of 1934. needs for same-day settlement as a for same-day settlement as a result of
Responsibility for compliance with any result of the failure of any bank or the failure of any bank or securities or
applicable provisions of the Federal securities or commodities clearing commodities clearing organization to
securities laws must rest with the organization to achieve daily settlement, achieve daily settlement, or (iv) to meet
persons relying on the exemptions that or (iv) to meet obligations arising out of obligations arising out of the failure of
are the subject of this Order. the failure of a bank or securities or a bank or securities or commodities
commodities clearing organization to clearing organization to perform its
For the Commission, by the Division of obligations due to its bankruptcy,
Trading and Markets, pursuant to delegated perform its obligations due to its
authority.7 bankruptcy, insolvency, receivership or insolvency, receivership or suspension
suspension of operations. of operations (‘‘Permitted Use
Eduardo A. Aleman,
All terms with initial capitalization Circumstances’’). In any such Permitted
Assistant Secretary.
not defined herein have the same Use Circumstance, OCC has certain
[FR Doc. 2018–14283 Filed 7–2–18; 8:45 am] conditional authority under its By-Laws
meaning as set forth in OCC’s By-Laws
BILLING CODE 8011–01–P
and Rules.5 and Rules to borrow or otherwise obtain
funds from third parties using Clearing
II. Clearing Agency’s Statement of the Member margin deposits and/or
SECURITIES AND EXCHANGE Purpose of, and Statutory Basis for, the Clearing Fund contributions.6
COMMISSION Advance Notice OCC’s existing credit facility
[Release No. 34–83529; File No. SR–OCC– In its filing with the Commission, (‘‘Existing Facility’’) was implemented
2018–802] OCC included statements concerning as of June 30, 2017, through the
the purpose of and basis for the advance execution of a credit agreement among
Self-Regulatory Organizations; The OCC, the administrative agent, collateral
Options Clearing Corporation; Notice 1 12
U.S.C. 5465(e)(1). agent and the lenders that are parties to
of Filing of Advance Notice of and No 2 17
CFR 240.19b–4(n)(1)(i). the agreement from time to time. The
Objection to The Options Clearing 3 15 U.S.C. 78a et seq. Existing Facility provides short-term
Corporation’s Proposal To Enter Into a 4 Amendment No. 1 replaced and superseded the secured borrowings in an aggregate
sradovich on DSK3GMQ082PROD with NOTICES
New Credit Facility Agreement Initial Filing in its entirety. The only substantive principal amount of $2 billion but may
change in Amendment No. 1 was to remove OCC’s
be increased to $3 billion if OCC so
June 27, 2018. proposal to establish certain ‘‘evergreen’’ provisions
for future renewals of its revolving credit facility. requests and sufficient commitments
Pursuant to Section 806(e)(1) of Title
Amendment No. 1 did not change the purpose,
VIII of the Dodd-Frank Wall Street basis, or terms of the proposed renewal. 6 See generally Article VIII, Sections 5(a), (b) and
5 OCC’s By-Laws and Rules can be found on (e) of OCC’s By-Laws; Interpretation and Policy .06
6 See SR–NYSEArca–2018–46. OCC’s public website: http://optionsclearing.com/ to Article VIII, Section 5; OCC Rules 1102 and
7 17 CFR 200.30–3(a)(83). about/publications/bylaws.jsp. 1104(b).
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Document Created: 2018-07-02 23:55:31
Document Modified: 2018-07-02 23:55:31
| 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 31236 |
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