83 FR 50427 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 67 To Specify That D-Quote Functionality Under Rule 67(f)(5) Will Continue To Be in Effect Until Six Months After the End of the Pilot Period
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 194 (October 5, 2018)
Federal Register Volume 83, Issue 194 (October 5, 2018)
| Page Range | 50427-50430 | |
| FR Document | 2018-21678 |
[Federal Register Volume 83, Number 194 (Friday, October 5, 2018)] [Notices] [Pages 50427-50430] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-21678] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84330; File No. SR-NYSE-2018-43] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 67 To Specify That D-Quote Functionality Under Rule 67(f)(5) Will Continue To Be in Effect Until Six Months After the End of the Pilot Period October 1, 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 September 24, 2018, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self- regulatory organization. The Commission is 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 Substance of the Proposed Rule Change The Exchange proposes to amend Rule 67 (Tick Size Pilot Plan) to specify that d-Quote functionality under Rule 67(f)(5) will continue to be in effect until six months after the end of the pilot period (which will be April 2, 2019). 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. [[Page 50428]] A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Rule 67 (Tick Size Pilot Plan) to specify that d-Quote functionality described under Rule 67(f)(5) will continue to be in effect for all pilot securities (``Pilot Securities'') under the plan for the Tick Size Pilot Program (the ``Plan'') until six months after the end of the pilot period (which will be April 2, 2019). Background On August 25, 2014, NYSE Group, Inc., on behalf of Bats BZX Exchange, Inc. (f/k/a BATS Exchange, Inc.), Bats BYX Exchange, Inc. (f/ k/a BATS Y-Exchange, Inc.), Chicago Stock Exchange, Inc., Bats EDGA Exchange, Inc. (f/k/a EDGA Exchange, Inc.), Bats EDGX Exchange, Inc. (f/k/a EDGX Exchange, Inc.), the Financial Industry Regulatory Authority, Inc. (``FINRA''), NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, the Nasdaq Stock Market LLC, NYSE MKT LLC, NYSE Arca, Inc., and the Exchange (collectively, the ``Participants''), filed the Plan to Implement a Tick Size Pilot Program (``Plan'') \4\ with the Securities and Exchange Commission (the ``Commission''), pursuant to Section 11A of the Act \5\ and Rule 608 of Regulation NMS thereunder.\6\ The Participants filed the Plan to comply with an order issued by the Commission on June 24, 2014 (the ``June 2014 Order'').\7\ The Plan was published for comment in the Federal Register on November 7, 2014,\8\ and approved by the Commission, as modified, on May 6, 2015.\9\ --------------------------------------------------------------------------- \4\ See Securities and Exchange Act Release No. 74892 (May 6, 2015), 80 FR 27513 (File No. 4-657) (``Tick Plan Approval Order''). See, also, Securities and Exchange Act Release No. 76382 (November 6, 2015) (File No. 4-657), 80 FR 70284 (File No. 4-657) (November 13, 2015), which extended the pilot period commencement date from May 6, 2015 to October 3, 2016. The Plan was submitted to the Commission pursuant to Rule 608 of Regulation NMS. 17 CFR 242.608. \5\ 15 U.S.C. 78k-1. \6\ See Letter from Brendon J. Weiss, Vice President, Intercontinental Exchange, Inc., to Secretary, Commission, dated August 25, 2014. \7\ See Securities Exchange Act Release No. 72460 (June 24, 2014), 79 FR 36840 (June 30, 2014). \8\ See Securities and Exchange Act Release No. 73511 (November 3, 2014), 79 FR 66423 (File No. 4-657) (Tick Plan Filing). \9\ See Tick Plan Approval Order, supra note 4. See also Securities Exchange Act Release No. 77277 (March 3, 2016), 81 FR 12162 (March 8, 2016) (File No. 4-657), amending the Plan to add National Stock Exchange, Inc. as a Participant. --------------------------------------------------------------------------- The Plan includes stocks of companies with $3 billion or less in market capitalization, an average daily trading volume of one million shares or less, and a volume weighted average price of at least $2.00 for every trading day. The Plan consists of a control group (``Control Group'') of approximately 1400 Pilot Securities and three test groups with 400 Pilot Securities in each selected by a stratified sampling.\10\ --------------------------------------------------------------------------- \10\ See Section V of the Plan for identification of Pilot Securities, including criteria for selection and grouping. --------------------------------------------------------------------------- During the pilot, Pilot Securities in the Control Group are quoted at the current tick size increment of $0.01 per share and trade at the currently permitted increments. Pilot Securities in the first test group (``Test Group One'') are quoted in $0.05 minimum increments but continue to trade at any price increment that is currently permitted.\11\ Pilot Securities in the second test group (``Test Group Two'') are quoted in $0.05 minimum increments and trade at $0.05 minimum increments subject to a midpoint exception, a retail investor exception, and a negotiated trade exception.\12\ Pilot Securities in Test Group Three are subject to the same terms as Test Group Two and are also subject to the ``Trade-at'' requirement to prevent price matching by a person not displaying at a price of a Trading Center's ``Best Protected Bid or ``Best Protected Offer,'' unless an enumerated exception applies.\13\ In addition to the exceptions provided under Test Group Two, an exception for Block Size orders and exceptions that closely resemble those under Rule 611 of Regulation NMS (``Rule 611'') \14\ apply to the Trade-at requirement. --------------------------------------------------------------------------- \11\ See Section VI(B) of the Plan. Pilot Securities in Test Group One will be subject to a midpoint exception and a retail investor exception. \12\ See Section VI(C) of the Plan. \13\ See Section VI(D) of the Plan. \14\ 17 CFR 242.611. --------------------------------------------------------------------------- The pilot period commenced on October 3, 2016 and is in effect for a period of two years following commencement, until April 2, 2019 (the ``Pilot Period'')[sic]. Pursuant to an exemption granted under Rule 608(e) of Regulation NMS, the quoting and trading requirements of the Plan will terminate at the end of trading on Friday, September 28, 2018, instead of at the end of trading on Tuesday, October 2, 2018.\15\ At the close of trading on September 28, 2018, all Pilot Securities will be moved into the Control Group and certain data collection provisions under Appendix B and C of the Plan will continue to apply through six (6) months after the end of the Pilot Period, which will be April 2, 2019.\16\ --------------------------------------------------------------------------- \15\ See Letter from David S. Shillman, Associate Director, for the Commission, by the Division of Trading of Markets, pursuant to delegated authority, to John Ramsay, Chief Market Policy Officer, IEX Group, Inc., dated September 10, 2018. \16\ See, supra, note 16. --------------------------------------------------------------------------- Amendment to Rule 67--d-Quotes The Exchange adopted Rule 67 to implement the requirements specified in the Plan. Rule 67(f)(5) states that, in all Pilot Securities, d-Quotes to buy (sell) will not exercise discretion if (i) exercising discretion would result in an execution equal to or higher (lower) than the price of a protected offer (bid), or (ii) the price of a protected bid (offer) is equal to or higher (lower) than the filed price of the d-Quote. As noted above, at the end of the Pilot Period, Test Group One, Test Group Two and Test Group Three Pilot Securities will be moved into the Control Group. Because Rule 67(f)(5) applies to all Pilot Securities, including Pilot Securities in the Control Group, all Pilot Securities will continue to be subject to Rule 67(f)(5) for the six-month period after the end of the Pilot Period. To make this clear, the Exchange proposes to amend the first paragraph of Rule 67, which currently provides that ``The provisions of this Rule will be in effect during a pilot to coincide with the Pilot Period for the Regulation NMS Tick Size Pilot Plan,'' to add that ``[p]aragraph (f)(5) of this Rule will continue to be in effect for all Pilot Securities for six months after the end of the Pilot Period.'' The Exchange believes that this proposed rule change will promote transparency that the existing Rule 67(f)(5) requirement, which is applicable to Control Group Pilot Securities, would continue to be applicable to all Pilot Securities for the six-month period following the end of the Pilot Period. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\17\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\18\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, 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 that the proposed rule change is consistent with the Act because it facilitates data analysis during the data collection period specified under a Plan [[Page 50429]] approved by the Commission pursuant to an order issued by the Commission in reliance on Section 11A of the Act.\19\ More specifically, the Exchange believes that the proposed rule change would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would promote transparency and clarity in Exchange rules that an existing provision in Rule 67 relating to how Control Group Pilot Securities are processed would continue during the six-month period following the end of the Pilot Period and during which certain data collection provisions under Appendix B and C of the Plan will continue to apply. By specifying that Rule 67(f)(5) would continue to apply through the six-month period after the end of the Pilot Period, during which all Pilot Securities will be in the Control Group, this proposed rule change ensures that the Exchange's system functionality during the six-month period after the end of the Pilot Period will be in compliance with the Plan. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78f(b). \18\ 15 U.S.C. 78f(b)(5). \19\ See, supra, note 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 changes are being made to establish, maintain, and enforce written policies and procedures that are reasonably designed to comply with the trading and quoting requirements specified in the Plan, of which other equities exchanges are also Participants. The proposed changes facilitate data analysis during the data collection period specified under the Plan. Therefore, the proposed changes would not impose any burden on competition, while providing certainty of treatment and execution of trading interests on the Exchange to market participants in NMS Stocks that are acting in compliance with the requirements specified in the Plan. 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 foregoing 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) \20\ of the Act and Rule 19b- 4(f)(6) thereunder.\21\ --------------------------------------------------------------------------- \20\ 15 U.S.C. 78s(b)(3)(A). \21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice 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. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \22\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \23\ 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 proposal may become operative immediately upon filing. The Exchange notes that the Plan's quoting and trading rule obligations will cease on September 28, 2018, and this proposed rule change should be operative on or before that date in order to provide notice to members that the provisions of Rule 67(f)(5) would continue to apply during the six-month period following the end of the Pilot Period. The Commission believes that the proposed rule change provides clarity as to the requirements under Rule 67(f)(5) during the post-Pilot Period. In addition, the Commission believes that the proposed rule change should ensure that the data collected under the Tick Size Pilot during the post-Pilot Period remains consistent with the data collected during the Pilot Period. Based on the foregoing, the Commission believes the waiver of the 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 operative upon filing.\24\ --------------------------------------------------------------------------- \22\ 17 CFR 240.19b-4(f)(6). \23\ 17 CFR 240.19b-4(f)(6)(iii). \24\ 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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 [email protected]. Please include File Number SR-NYSE-2018-43 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSE-2018-43. 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-NYSE-2018-43 and should [[Page 50430]] be submitted on or before October 26, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\25\ Eduardo A. Aleman, Assistant Secretary. --------------------------------------------------------------------------- \25\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2018-21678 Filed 10-4-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices 50427
A proposed rule change filed Paper Comments SECURITIES AND EXCHANGE
pursuant to Rule 19b–4(f)(6) under the COMMISSION
Act 20 normally does not become • Send paper comments in triplicate
operative for 30 days after the date of its to Secretary, Securities and Exchange [Release No. 34–84330; File No. SR–NYSE–
filing. However, Rule 19b–4(f)(6)(iii) 21 Commission, 100 F Street NE, 2018–43]
permits the Commission to designate a Washington, DC 20549–1090.
shorter time if such action is consistent Self-Regulatory Organizations; New
All submissions should refer to File York Stock Exchange LLC; Notice of
with the protection of investors and the
Number SR–NASDAQ–2018–077. This Filing and Immediate Effectiveness of
public interest. The Exchange has
file number should be included on the Proposed Rule Change To Amend Rule
requested that the Commission waive
the 30-day operative delay so that the subject line if email is used. To help the 67 To Specify That D-Quote
proposed rule change may become Commission process and review your Functionality Under Rule 67(f)(5) Will
operative upon filing. Waiver of the comments more efficiently, please use Continue To Be in Effect Until Six
operative delay would allow the only one method. The Commission will Months After the End of the Pilot
Exchange to promptly amend its rule to post all comments on the Commission’s Period
exclude Orders with a Minimum internet website (http://www.sec.gov/
rules/sro.shtml). Copies of the October 1, 2018.
Quantity Order Attribute from the
Nasdaq Crosses and Cross price submission, all subsequent Pursuant to Section 19(b)(1) 1 of the
calculations,22 and promptly implement amendments, all written statements Securities Exchange Act of 1934 (the
system changes in accordance with the with respect to the proposed rule ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
rule. The Commission believes that change that are filed with the notice is hereby given that on
waiver of the 30-day operative delay is Commission, and all written September 24, 2018, New York Stock
consistent with the protection of Exchange LLC (‘‘NYSE’’ or the
communications relating to the
investors and the public interest. ‘‘Exchange’’) filed with the Securities
proposed rule change between the
Accordingly, the Commission hereby and Exchange Commission (the
Commission and any person, other than
waives the operative delay and ‘‘Commission’’) the proposed rule
those that may be withheld from the change as described in Items I, II, and
designates the proposed rule change public in accordance with the
operative upon filing.23 III below, which Items have been
provisions of 5 U.S.C. 552, will be prepared by the self-regulatory
At any time within 60 days of the
filing of the proposed rule change, the available for website viewing and organization. The Commission is
Commission summarily may printing in the Commission’s Public publishing this notice to solicit
temporarily suspend such rule change if Reference Room, 100 F Street NE, comments on the proposed rule change
it appears to the Commission that such Washington, DC 20549 on official from interested persons.
action is necessary or appropriate in the business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the I. Self-Regulatory Organization’s
public interest, for the protection of Statement of the Terms of Substance of
investors, or otherwise in furtherance of filing also will be available for
the Proposed Rule Change
the purposes of the Act. If the inspection and copying at the principal
Commission takes such action, the office of the Exchange. All comments The Exchange proposes to amend
Commission shall institute proceedings received will be posted without change. Rule 67 (Tick Size Pilot Plan) to specify
to determine whether the proposed rule Persons submitting comments are that d-Quote functionality under Rule
change should be approved or cautioned that we do not redact or edit 67(f)(5) will continue to be in effect
disapproved. personal identifying information from until six months after the end of the
comment submissions. You should pilot period (which will be April 2,
IV. Solicitation of Comments 2019). The proposed rule change is
submit only information that you wish
Interested persons are invited to available on the Exchange’s website at
to make available publicly. All
submit written data, views, and www.nyse.com, at the principal office of
arguments concerning the foregoing, submissions should refer to File
the Exchange, and at the Commission’s
including whether the proposed rule Number SR–NASDAQ–2018–077, and
Public Reference Room.
change is consistent with the Act. should be submitted on or before
Comments may be submitted by any of October 26, 2018. II. Self-Regulatory Organization’s
the following methods: For the Commission, by the Division of
Statement of the Purpose of, and
Trading and Markets, pursuant to delegated
Statutory Basis for, the Proposed Rule
Electronic Comments Change
authority.24
• Use the Commission’s internet Eduardo A. Aleman, In its filing with the Commission, the
comment form (http://www.sec.gov/ self-regulatory organization included
rules/sro.shtml); or Assistant Secretary.
statements concerning the purpose of,
• Send an email to rule-comments@ [FR Doc. 2018–21679 Filed 10–4–18; 8:45 am]
and basis for, the proposed rule change
sec.gov. Please include File Number SR– BILLING CODE 8011–01–P
and discussed any comments it received
NASDAQ–2018–077 on the subject line. on the proposed rule change. The text
20 17
of those statements may be examined at
CFR 240.19b–4(f)(6).
21 17
the places specified in Item IV below.
CFR 240.19b–4(f)(6)(iii).
The Exchange has prepared summaries,
daltland on DSKBBV9HB2PROD with NOTICES
22 According to the Exchange, no market
participant has requested participation of the set forth in sections A, B, and C below,
Minimum Quantity Order Attribute in any of the of the most significant parts of such
Nasdaq Crosses. statements.
23 For purposes only of waiving the 30-day
operative delay, the Commission also has
1 15 U.S.C. 78s(b)(1).
considered the proposed rule’s impact on
2 15 U.S.C. 78a.
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 24 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
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A. Self-Regulatory Organization’s market capitalization, an average daily collection provisions under Appendix B
Statement of the Purpose of, and the trading volume of one million shares or and C of the Plan will continue to apply
Statutory Basis for, the Proposed Rule less, and a volume weighted average through six (6) months after the end of
Change price of at least $2.00 for every trading the Pilot Period, which will be April 2,
day. The Plan consists of a control 2019.16
1. Purpose
group (‘‘Control Group’’) of
The Exchange proposes to amend Amendment to Rule 67—d-Quotes
approximately 1400 Pilot Securities and
Rule 67 (Tick Size Pilot Plan) to specify three test groups with 400 Pilot The Exchange adopted Rule 67 to
that d-Quote functionality described Securities in each selected by a implement the requirements specified
under Rule 67(f)(5) will continue to be stratified sampling.10 in the Plan. Rule 67(f)(5) states that, in
in effect for all pilot securities (‘‘Pilot During the pilot, Pilot Securities in all Pilot Securities, d-Quotes to buy
Securities’’) under the plan for the Tick the Control Group are quoted at the (sell) will not exercise discretion if (i)
Size Pilot Program (the ‘‘Plan’’) until six current tick size increment of $0.01 per exercising discretion would result in an
months after the end of the pilot period share and trade at the currently execution equal to or higher (lower)
(which will be April 2, 2019). permitted increments. Pilot Securities in than the price of a protected offer (bid),
the first test group (‘‘Test Group One’’) or (ii) the price of a protected bid (offer)
Background
are quoted in $0.05 minimum is equal to or higher (lower) than the
On August 25, 2014, NYSE Group, increments but continue to trade at any filed price of the d-Quote. As noted
Inc., on behalf of Bats BZX Exchange, price increment that is currently above, at the end of the Pilot Period,
Inc. (f/k/a BATS Exchange, Inc.), Bats permitted.11 Pilot Securities in the Test Group One, Test Group Two and
BYX Exchange, Inc. (f/k/a BATS second test group (‘‘Test Group Two’’) Test Group Three Pilot Securities will
Y-Exchange, Inc.), Chicago Stock are quoted in $0.05 minimum be moved into the Control Group.
Exchange, Inc., Bats EDGA Exchange, increments and trade at $0.05 minimum Because Rule 67(f)(5) applies to all Pilot
Inc. (f/k/a EDGA Exchange, Inc.), Bats increments subject to a midpoint Securities, including Pilot Securities in
EDGX Exchange, Inc. (f/k/a EDGX exception, a retail investor exception, the Control Group, all Pilot Securities
Exchange, Inc.), the Financial Industry and a negotiated trade exception.12 Pilot will continue to be subject to Rule
Regulatory Authority, Inc. (‘‘FINRA’’), Securities in Test Group Three are 67(f)(5) for the six-month period after
NASDAQ OMX BX, Inc., NASDAQ subject to the same terms as Test Group the end of the Pilot Period. To make this
OMX PHLX LLC, the Nasdaq Stock Two and are also subject to the ‘‘Trade- clear, the Exchange proposes to amend
Market LLC, NYSE MKT LLC, NYSE at’’ requirement to prevent price the first paragraph of Rule 67, which
Arca, Inc., and the Exchange matching by a person not displaying at currently provides that ‘‘The provisions
(collectively, the ‘‘Participants’’), filed a price of a Trading Center’s ‘‘Best of this Rule will be in effect during a
the Plan to Implement a Tick Size Pilot Protected Bid or ‘‘Best Protected Offer,’’ pilot to coincide with the Pilot Period
Program (‘‘Plan’’) 4 with the Securities unless an enumerated exception for the Regulation NMS Tick Size Pilot
and Exchange Commission (the applies.13 In addition to the exceptions Plan,’’ to add that ‘‘[p]aragraph (f)(5) of
‘‘Commission’’), pursuant to Section provided under Test Group Two, an this Rule will continue to be in effect for
11A of the Act 5 and Rule 608 of exception for Block Size orders and all Pilot Securities for six months after
Regulation NMS thereunder.6 The exceptions that closely resemble those the end of the Pilot Period.’’ The
Participants filed the Plan to comply under Rule 611 of Regulation NMS Exchange believes that this proposed
with an order issued by the Commission (‘‘Rule 611’’) 14 apply to the Trade-at rule change will promote transparency
on June 24, 2014 (the ‘‘June 2014 requirement. that the existing Rule 67(f)(5)
Order’’).7 The Plan was published for The pilot period commenced on requirement, which is applicable to
comment in the Federal Register on October 3, 2016 and is in effect for a Control Group Pilot Securities, would
November 7, 2014,8 and approved by period of two years following continue to be applicable to all Pilot
the Commission, as modified, on May 6, commencement, until April 2, 2019 (the Securities for the six-month period
2015.9 ‘‘Pilot Period’’)[sic]. Pursuant to an following the end of the Pilot Period.
The Plan includes stocks of exemption granted under Rule 608(e) of
companies with $3 billion or less in Regulation NMS, the quoting and 2. Statutory Basis
trading requirements of the Plan will The Exchange believes that its
4 See Securities and Exchange Act Release No.
terminate at the end of trading on proposal is consistent with Section 6(b)
74892 (May 6, 2015), 80 FR 27513 (File No. 4–657) Friday, September 28, 2018, instead of
(‘‘Tick Plan Approval Order’’). See, also, Securities
of the Act,17 in general, and furthers the
and Exchange Act Release No. 76382 (November 6, at the end of trading on Tuesday, objectives of Section 6(b)(5) of the Act,18
2015) (File No. 4–657), 80 FR 70284 (File No. 4– October 2, 2018.15 At the close of in particular, in that it is designed to
657) (November 13, 2015), which extended the pilot trading on September 28, 2018, all Pilot prevent fraudulent and manipulative
period commencement date from May 6, 2015 to Securities will be moved into the
October 3, 2016. The Plan was submitted to the
acts and practices, to promote just and
Commission pursuant to Rule 608 of Regulation Control Group and certain data equitable principles of trade, to remove
NMS. 17 CFR 242.608. impediments to and perfect the
10 See Section V of the Plan for identification of
5 15 U.S.C. 78k–1.
mechanism of a free and open market
6 See Letter from Brendon J. Weiss, Vice Pilot Securities, including criteria for selection and
grouping.
and a national market system, and, in
President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014. 11 See Section VI(B) of the Plan. Pilot Securities general, to protect investors and the
7 See Securities Exchange Act Release No. 72460 in Test Group One will be subject to a midpoint public interest. The Exchange believes
exception and a retail investor exception. that the proposed rule change is
daltland on DSKBBV9HB2PROD with NOTICES
(June 24, 2014), 79 FR 36840 (June 30, 2014).
12 See Section VI(C) of the Plan.
8 See Securities and Exchange Act Release No. consistent with the Act because it
13 See Section VI(D) of the Plan.
73511 (November 3, 2014), 79 FR 66423 (File No. facilitates data analysis during the data
4–657) (Tick Plan Filing). 14 17 CFR 242.611.
9 See Tick Plan Approval Order, supra note 4. See 15 See Letter from David S. Shillman, Associate
collection period specified under a Plan
also Securities Exchange Act Release No. 77277 Director, for the Commission, by the Division of
16 See,supra, note 16.
(March 3, 2016), 81 FR 12162 (March 8, 2016) (File Trading of Markets, pursuant to delegated authority,
17 15 U.S.C. 78f(b).
No. 4–657), amending the Plan to add National to John Ramsay, Chief Market Policy Officer, IEX
Stock Exchange, Inc. as a Participant. Group, Inc., dated September 10, 2018. 18 15 U.S.C. 78f(b)(5).
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![50430 Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
be submitted on or before October 26, Percent Law 106–50, the Veterans
2018. entrepreneurship and Small Business
The Interest Rates are: Development Act of 1999, and the
For the Commission, by the Division of
For Physical Damage: Military Reservist and Veteran Small
Trading and Markets, pursuant to delegated
Homeowners with Credit Avail- Business Reauthorization Act of 2008,
authority.25
able Elsewhere ...................... 4.000
Eduardo A. Aleman, Homeowners without Credit
this notice establishes the application
Assistant Secretary. Available Elsewhere .............. 2.000 filing period for the Military Reservist
[FR Doc. 2018–21678 Filed 10–4–18; 8:45 am] Businesses with Credit Avail- Economic Injury Disaster Loan Program
able Elsewhere ...................... 7.350 (MREIDL).
BILLING CODE 8011–01–P
Businesses without Credit Effective 10/01/2018, small
Available Elsewhere .............. 3.675 businesses employing military reservists
Non-Profit Organizations with may apply for economic injury disaster
Credit Available Elsewhere ... 2.500 loans if those employees are called up
SMALL BUSINESS ADMINISTRATION Non-Profit Organizations with-
to active duty during a period of
out Credit Available Else-
[Disaster Declaration #15707 and #15708; where ..................................... 2.500 military conflict or have received notice
Northern Mariana Islands Disaster Number For Economic Injury: of an expected call-up, and those
MP–00007] Businesses & Small Agricultural employees are essential to the success of
Cooperatives without Credit the small business daily operations.
Presidential Declaration of a Major Available Elsewhere .............. 3.675 The purpose of the MREIDL program
Disaster for the Commonwealth of the Non-Profit Organizations with- is to provide funds to an eligible small
Northern Mariana Islands out Credit Available Else- business to meet its ordinary and
where ..................................... 2.500 necessary operating expenses that it
AGENCY: U.S. Small Business
Administration. could have met, but is unable to meet,
The number assigned to this disaster
because an essential employee was
ACTION: Notice. for physical damage is 157078 and for
called-up or expects to be called-up to
economic injury is 157080.
SUMMARY: This is a Notice of the active duty in his or her role as a
(Catalog of Federal Domestic Assistance military reservist. These loans are
Presidential declaration of a major Number 59008)
disaster for the Commonwealth of the intended only to provide the amount of
NORTHERN MARIANA ISLANDS James Rivera, working capital needed by a small
(FEMA–4396–DR), dated 09/29/2018. Associate Administrator for Disaster business to pay its necessary obligations
Incident: Typhoon Mangkhut. Assistance. as they mature until operations return to
Incident Period: 09/10/2018 through [FR Doc. 2018–21707 Filed 10–4–18; 8:45 am] normal after the essential employee is
09/11/2018. BILLING CODE 8025–01–P
released from active duty. For
information/applications contact 1–
DATES: Issued on 09/29/2018.
800–659–2955 or visit www.sba.gov.
Physical Loan Application Deadline
SMALL BUSINESS ADMINISTRATION Applications for the Military Reservist
Date: 11/28/2018.
Economic Injury Disaster Loan Program
Economic Injury (EIDL) Loan [Disaster Declaration Number #15711 may be filed at the above address.
Application Deadline Date: 07/01/2019. Disaster Number #ZZ–00014]
The Interest Rate for eligible small
ADDRESSES: Submit completed loan businesses is 4.000.
applications to: U.S. Small Business The Entire United States and U.S.
Territories; Military Reservist The number assigned is 157110.
Administration, Processing and (Catalog of Federal Domestic Assistance
Disbursement Center, 14925 Kingsport Economic Injury Disaster Loan
Program (MREIDL) Number 59008)
Road, Fort Worth, TX 76155.
AGENCY: U.S. Small Business James Rivera,
FOR FURTHER INFORMATION CONTACT:
A. Escobar, Office of Disaster Administration. Associate Administrator for Disaster
Assistance, U.S. Small Business Assistance.
ACTION: Notice.
Administration, 409 3rd Street SW, [FR Doc. 2018–21705 Filed 10–4–18; 8:45 am]
Suite 6050, Washington, DC 20416, SUMMARY: This is a notice of the Military BILLING CODE 8025–01–P
(202) 205–6734. Reservist Economic Injury Disaster Loan
Program (MREIDL), dated 10/01/2018.
SUPPLEMENTARY INFORMATION: Notice is
DATES: Issued on 10/01/2018. SMALL BUSINESS ADMINISTRATION
hereby given that as a result of the
MREIDL Loan Application Deadline [Disaster Declaration # 15701 and # 15702;
President’s major disaster declaration on
Date: 1 year after the essential employee Hawaii Disaster Number HI–00052]
09/29/2018, applications for disaster
is discharged or released from active
loans may be filed at the address listed
duty. Presidential Declaration of a Major
above or other locally announced
locations. ADDRESSES: Submit completed loan Disaster for Public Assistance Only for
The following areas have been applications to: U.S. Small Business the State of Hawaii
determined to be adversely affected by Administration, Processing and AGENCY: U.S. Small Business
the disaster: Disbursement Center, 14925 Kingsport Administration.
Primary Areas (Physical Damage and Road, Fort Worth, TX 76155.
ACTION: Notice.
daltland on DSKBBV9HB2PROD with NOTICES
Economic Injury Loans): Rota, FOR FURTHER INFORMATION CONTACT: A.
Saipan, Tinian. Escobar, Office of Disaster Assistance, SUMMARY: This is a Notice of the
Contiguous Areas (Economic Injury U.S. Small Business Administration, Presidential declaration of a major
Loans Only): 409 3rd Street SW, Suite 6050, disaster for Public Assistance Only for
None. Washington, DC 20416, (202) 205–6734. the State of HAWAII (FEMA–4395–DR),
SUPPLEMENTARY INFORMATION: Notice is dated 09/27/2018.
25 17 CFR 200.30–3(a)(12). hereby given that as a result of Public Incident: Hurricane Lane.
VerDate Sep<11>2014 17:11 Oct 04, 2018 Jkt 247001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\05OCN1.SGM 05OCN1](https://thefederalregister.org/doc/83_FR_50621/page/4.svg)
Document Created: 2018-10-05 01:52:53
Document Modified: 2018-10-05 01:52:53
| 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 50427 |
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