83 FR 64419 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period for the Exchange's Retail Liquidity Program Until June 30, 2019
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 240 (December 14, 2018)
Federal Register Volume 83, Issue 240 (December 14, 2018)
| Page Range | 64419-64421 | |
| FR Document | 2018-27083 |
[Federal Register Volume 83, Number 240 (Friday, December 14, 2018)] [Notices] [Pages 64419-64421] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-27083] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84773; File No. SR-NYSEARCA-2018-89] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period for the Exchange's Retail Liquidity Program Until June 30, 2019 December 10, 2018. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on November 30, 2018, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (``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 extend the pilot period for the Exchange's Retail Liquidity Program (the ``Retail Liquidity Program'' or the ``Program''), which is currently scheduled to expire on December 31, 2018, until June 30, 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. 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 extend the pilot period for the Retail Liquidity Program, currently scheduled to expire on December 31, 2018,\4\ until June 30, 2019. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 83538 (June 28, 2018), 83 FR 31210 (July 3, 2018) (SR-NYSEArca-2018-46). --------------------------------------------------------------------------- Background In July 2012, the Commission approved the Retail Liquidity Program on a pilot basis.\5\ The Program is designed to attract retail order flow to the Exchange, and allows such order flow to receive potential price improvement. The Program is currently limited to trades occurring at prices equal to or greater than $1.00 per share. Under the Program, Retail Liquidity Providers (``RLPs'') are able to provide potential price improvement in the form of a non-displayed order that is priced better than the Exchange's best protected bid or offer (``PBBO''), called a Retail Price Improvement Order (``RPI''). When there is an RPI in a particular security, the Exchange disseminates an indicator, known as the Retail Liquidity Identifier, indicating that such interest exists. Retail Member Organizations (``RMOs'') can submit a Retail Order to the Exchange, which would interact, to the extent possible, with available contra-side RPIs. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 71176 (December 23, 2013), 78 FR 79524 (December 30, 2013) (SR-NYSEArca-2013-107) (``RLP Approval Order''). --------------------------------------------------------------------------- The Retail Liquidity Program was approved by the Commission on a pilot basis. Pursuant to NYSE Arca Rule 7.44-E(m), the pilot period for the Program is scheduled to end on December 31, 2018. Proposal To Extend the Operation of the Program The Exchange established the Retail Liquidity Program in an attempt to attract retail order flow to the Exchange by potentially providing price improvement to such order flow. The Exchange believes that the Program promotes competition for retail order flow by allowing Exchange members to submit RPIs to interact with Retail Orders. Such competition has the ability to promote efficiency by facilitating the price discovery process and generating additional investor interest in trading securities, thereby promoting capital formation. The Exchange believes that [[Page 64420]] extending the pilot is appropriate because it will allow the Exchange and the Commission additional time to analyze data regarding the Program that the Exchange has committed to provide.\6\ As such, the Exchange believes that it is appropriate to extend the current operation of the Program.\7\ Through this filing, the Exchange seeks to amend NYSE Arca Rule 7.44-E(m) and extend the current pilot period of the Program until June 30, 2019. --------------------------------------------------------------------------- \6\ See id., 78 FR at 79529. \7\ Concurrently with this filing, the Exchange has submitted a request for an extension of the exemption under Regulation NMS Rule 612 previously granted by the Commission that permits it to accept and rank the undisplayed RPIs. See Letter from Martha Redding, Associate General Counsel and Asst. Corporate Secretary, NYSE Group, Inc. to Brent J. Fields, Secretary, Securities and Exchange Commission, dated November 30, 2018. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\8\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\9\ in particular, in that it is designed 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that extending the pilot period for the Retail Liquidity Program is consistent with these principles because the Program is reasonably designed to attract retail order flow to the exchange environment, while helping to ensure that retail investors benefit from the better price that liquidity providers are willing to give their orders. Additionally, as previously stated, the competition promoted by the Program may facilitate the price discovery process and potentially generate additional investor interest in trading securities. The extension of the pilot period will allow the Commission and the Exchange to continue to monitor the Program for its potential effects on public price discovery, and on the broader market structure. 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 rule change simply extends an established pilot program for an additional six months, thus allowing the Retail Liquidity Program to enhance competition for retail order flow and contribute to the public price discovery process. 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A)(iii). \11\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\13\ the Commission may 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. --------------------------------------------------------------------------- \12\ 17 CFR 240.19b-4(f)(6). \13\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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-NYSEArca-2018-89 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2018-89. 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-NYSEArca-2018-89 and should be submitted on or before January 4, 2019. [[Page 64421]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2018-27083 Filed 12-13-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 64419
including whether the proposed rule SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
change is consistent with the Act. COMMISSION Statement of the Purpose of, and the
Comments may be submitted by any of Statutory Basis for, the Proposed Rule
the following methods: [Release No. 34–84773; File No. SR– Change
Electronic Comments NYSEARCA–2018–89] 1. Purpose
• Use the Commission’s internet Self-Regulatory Organizations; NYSE The Exchange proposes to extend the
comment form (http://www.sec.gov/ pilot period for the Retail Liquidity
Arca, Inc.; Notice of Filing and
rules/sro.shtml); or Program, currently scheduled to expire
• Send an email to rule-comments@ Immediate Effectiveness of Proposed
on December 31, 2018,4 until June 30,
sec.gov. Please include File Number SR– Rule Change To Extend the Pilot 2019.
Phlx–2018–79 on the subject line. Period for the Exchange’s Retail
Liquidity Program Until June 30, 2019 Background
Paper Comments In July 2012, the Commission
December 10, 2018.
• Send paper comments in triplicate approved the Retail Liquidity Program
to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) 1 of the on a pilot basis.5 The Program is
Commission, 100 F Street NE, Securities Exchange Act of 1934 designed to attract retail order flow to
Washington, DC 20549–1090. (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 the Exchange, and allows such order
All submissions should refer to File notice is hereby given that, on flow to receive potential price
Number SR–Phlx–2018–79. This file November 30, 2018, NYSE Arca, Inc. improvement. The Program is currently
number should be included on the (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed limited to trades occurring at prices
subject line if email is used. To help the with the Securities and Exchange equal to or greater than $1.00 per share.
Commission process and review your Commission (‘‘Commission’’) the Under the Program, Retail Liquidity
comments more efficiently, please use proposed rule change as described in Providers (‘‘RLPs’’) are able to provide
only one method. The Commission will Items I, II, and III below, which Items potential price improvement in the form
post all comments on the Commission’s have been prepared by the self- of a non-displayed order that is priced
internet website (http://www.sec.gov/ regulatory organization. The better than the Exchange’s best
rules/sro.shtml). Copies of the Commission is publishing this notice to protected bid or offer (‘‘PBBO’’), called
submission, all subsequent solicit comments on the proposed rule a Retail Price Improvement Order
amendments, all written statements (‘‘RPI’’). When there is an RPI in a
change from interested persons.
with respect to the proposed rule particular security, the Exchange
change that are filed with the I. Self-Regulatory Organization’s disseminates an indicator, known as the
Commission, and all written Statement of the Terms of Substance of Retail Liquidity Identifier, indicating
communications relating to the the Proposed Rule Change that such interest exists. Retail Member
proposed rule change between the Organizations (‘‘RMOs’’) can submit a
Commission and any person, other than The Exchange proposes to extend the Retail Order to the Exchange, which
those that may be withheld from the pilot period for the Exchange’s Retail would interact, to the extent possible,
public in accordance with the Liquidity Program (the ‘‘Retail Liquidity with available contra-side RPIs.
provisions of 5 U.S.C. 552, will be Program’’ or the ‘‘Program’’), which is The Retail Liquidity Program was
available for website viewing and currently scheduled to expire on approved by the Commission on a pilot
printing in the Commission’s Public December 31, 2018, until June 30, 2019. basis. Pursuant to NYSE Arca Rule
Reference Room, 100 F Street NE, The proposed rule change is available 7.44–E(m), the pilot period for the
Washington, DC 20549, on official on the Exchange’s website at Program is scheduled to end on
business days between the hours of www.nyse.com, at the principal office of December 31, 2018.
10:00 a.m. and 3:00 p.m. Copies of the the Exchange, and at the Commission’s Proposal To Extend the Operation of the
filing also will be available for Public Reference Room. Program
inspection and copying at the principal
office of the Exchange. All comments II. Self-Regulatory Organization’s The Exchange established the Retail
received will be posted without change. Statement of the Purpose of, and Liquidity Program in an attempt to
Persons submitting comments are Statutory Basis for, the Proposed Rule attract retail order flow to the Exchange
cautioned that we do not redact or edit Change by potentially providing price
personal identifying information from improvement to such order flow. The
comment submissions. You should In its filing with the Commission, the Exchange believes that the Program
submit only information that you wish self-regulatory organization included promotes competition for retail order
to make available publicly. All statements concerning the purpose of, flow by allowing Exchange members to
submissions should refer to File and basis for, the proposed rule change submit RPIs to interact with Retail
Number SR–Phlx–2018–79 and should and discussed any comments it received Orders. Such competition has the ability
be submitted on or before January 4, on the proposed rule change. The text to promote efficiency by facilitating the
2019. of those statements may be examined at price discovery process and generating
the places specified in Item IV below. additional investor interest in trading
For the Commission, by the Division of securities, thereby promoting capital
Trading and Markets, pursuant to delegated The Exchange has prepared summaries,
formation. The Exchange believes that
amozie on DSK3GDR082PROD with NOTICES1
authority.10 set forth in sections A, B, and C below,
Eduardo A. Aleman, of the most significant parts of such 4 See Securities Exchange Act Release No. 83538
Deputy Secretary. statements. (June 28, 2018), 83 FR 31210 (July 3, 2018) (SR–
[FR Doc. 2018–27075 Filed 12–13–18; 8:45 am] NYSEArca–2018–46).
5 See Securities Exchange Act Release No. 71176
BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1).
(December 23, 2013), 78 FR 79524 (December 30,
2 15 U.S.C. 78a. 2013) (SR–NYSEArca–2013–107) (‘‘RLP Approval
10 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. Order’’).
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![Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 64421
For the Commission, by the Division of that the industry-wide total time burden Disbursement Center, 14925 Kingsport
Trading and Markets, pursuant to delegated is approximately 1.5 hours. Road, Fort Worth, TX 76155.
authority.15 Written comments are invited on: (a) FOR FURTHER INFORMATION CONTACT: A.
Eduardo A. Aleman, Whether the proposed collection of Escobar, Office of Disaster Assistance,
Deputy Secretary. information is necessary for the proper U.S. Small Business Administration,
[FR Doc. 2018–27083 Filed 12–13–18; 8:45 am] performance of the functions of the 409 3rd Street SW, Suite 6050,
BILLING CODE 8011–01–P Commission, including whether the Washington, DC 20416, (202) 205–6734.
information shall have practical utility; SUPPLEMENTARY INFORMATION: Notice is
(b) the accuracy of the Commission’s hereby given that as a result of the
SECURITIES AND EXCHANGE estimates of the burden of the proposed Administrator’s disaster declaration,
COMMISSION collection of information; (c) ways to applications for disaster loans may be
SEC File No. 270–149, OMB Control No. enhance the quality, utility, and clarity filed at the address listed above or other
3235–0130] of the information collected; and (d) locally announced locations.
ways to minimize the burden of the The following areas have been
Proposed Collection; Comment collection of information on determined to be adversely affected by
Request respondents, including through the use the disaster:
of automated collection techniques or Primary Area: Guam.
Upon Written Request, Copies Available other forms of information technology.
From: Securities and Exchange Contiguous Areas:
Consideration will be given to None.
Commission, Office of FOIA Services, comments and suggestions submitted in
100 F Street NE, Washington, DC The Interest Rates are:
writing within 60 days of this
20549–2736. publication. Percent
Extension: An agency may not conduct or
Rule 17Ad–2(c), (d), and (h) sponsor, and a person is not required to For Physical Damage:
Notice is hereby given that pursuant respond to, a collection of information Homeowners with Credit Avail-
to the Paperwork Reduction Act of 1995 under the PRA unless it displays a able Elsewhere ...................... 4.000
currently valid OMB control number. Homeowners without Credit
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Please direct your written comments Available Elsewhere .............. 2.000
Securities and Exchange Commission Businesses with Credit Avail-
(‘‘Commission’’) is soliciting comments to: Charles Riddle, Acting Director/Chief
able Elsewhere ...................... 7.350
on the existing collection of information Information Officer, Securities and Businesses without Credit
provided for in Rule 17Ad–2(c), (d), and Exchange Commission, c/o Candace Available Elsewhere .............. 3.675
(h), (17 CFR 240.17Ad–2(c), (d), and Kenner, 100 F Street NE Washington, Non-Profit Organizations with
(h)), under the Securities Exchange Act DC 20549, or send an email to: PRA_ Credit Available Elsewhere ... 2.500
of 1934 (15 U.S.C. 78a et seq.). The Mailbox@sec.gov. Non-Profit Organizations with-
Commission plans to submit this Dated: December 10, 2018. out Credit Available Else-
where ..................................... 2.500
existing collection of information to the Eduardo A. Aleman, For Economic Injury:
Office of Management and Budget Deputy Secretary. Businesses & Small Agricultural
(‘‘OMB’’) for extension and approval. [FR Doc. 2018–27092 Filed 12–13–18; 8:45 am] Cooperatives without Credit
Rule 17Ad–2(e),(d), and (h) Available Elsewhere .............. 3.675
BILLING CODE 8011–01–P
enumerates the requirements with Non-Profit Organizations with-
which transfer agents must comply to out Credit Available Else-
inform the Commission or the where ..................................... 2.500
appropriate regulator of a transfer SMALL BUSINESS ADMINISTRATION
agent’s failure to meet the minimum The number assigned to this disaster
[Disaster Declaration #15827 and #15828;
performance standards set by the Guam Disaster Number GU–00005]
for physical damage is 15827 8 and for
Commission rule by filing a notice. economic injury is 15828 0.
The Commission receives Administrative Declaration of a The Territory which received an EIDL
approximately 3 notices a year pursuant Disaster for the Territory of Guam Declaration # is Guam.
to Rule 17Ad–2(c), (d), and (h). The (Catalog of Federal Domestic Assistance
estimated annual time burden of these AGENCY: U.S. Small Business Number 59008)
filings on respondents is minimal in Administration.
Dated: December 7, 2018.
view of: (a) The readily available nature ACTION: Notice.
Linda E. McMahon,
of most of the information required to be
SUMMARY: This is a notice of an Administrator.
included in the notice (since that
information must be compiled and Administrative declaration of a disaster [FR Doc. 2018–27118 Filed 12–13–18; 8:45 am]
retained pursuant to other Commission for the Territory of Guam dated. 12/07/ BILLING CODE 8025–01–P
rules); and (b) the summary fashion in 2018.
which such information must be Incident: Typhoon Mangkhut.
Incident Period: 09/10/2018 through SMALL BUSINESS ADMINISTRATION
presented in the notice (most notices are
one page or less in length). In light of 09/11/2018. [Disaster Declaration #15829 and #15830;
the above, and based on the experience DATES: Issued on 12/07/2018. Maryland Disaster Number MD–00040]
amozie on DSK3GDR082PROD with NOTICES1
of the staff regarding the notices, the Physical Loan Application Deadline
Commission staff estimates that, on Date: 02/05/2019. Administrative Declaration of a
average, most notices require Economic Injury (EIDL) Loan Disaster for the State of Maryland
approximately one-half hour to prepare. Application Deadline Date: 09/09/2019.
AGENCY: U.S. Small Business
Thus, the Commission staff estimates ADDRESSES: Submit completed loan Administration.
applications to: U.S. Small Business ACTION: Notice.
15 17 CFR 200.30–3(a)(12). Administration, Processing and
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Document Created: 2018-12-14 03:49:55
Document Modified: 2018-12-14 03:49:55
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 64419 |
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