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, Number 128 (Tuesday, July 3, 2018)]
[Notices]
[Pages 31236-31237]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14283]


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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\
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    \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).
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    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.
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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-NYSEArca-2018-46.
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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. 2018-14283 Filed 7-2-18; 8:45 am]
BILLING CODE 8011-01-P