Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.31 To Delete Functionality Permitting Primary Only Orders and Primary Sweep Orders To Be Designated With Intermarket Sweep Order Modifiers, 52077-52079 [2014-20697]
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Federal Register / Vol. 79, No. 169 / Tuesday, September 2, 2014 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
Offer and disclose any such adjustments
in accordance with Rule 13e–4 so that
the purchase price is not greater than
the NAV per Share on that day.
The request is similar to the Class
Relief for unlisted REITs.4 In particular,
the Company represents that the Tender
Offer is designed to provide a limited
source of liquidity for the Company’s
shareholders as there is no trading
market for the Shares.5 Furthermore,
according to the Company, the terms of
the Tender Offer will be fully disclosed
because the Tender Offer will be
conducted pursuant to the substantive,
procedural, and disclosure requirement
of Rule 13e–4, thus minimizing
potential manipulative effects.
Additionally, the Tender Offer price
will not be greater than the NAV per
Share for any day during the Tender
Offer period. Because the price at which
the Shares are sold and the price at
which the Shares will be purchased in
the tender offer are both based on the
NAV per Share and the Tender Offer
will be adjusted as described above,
which will result in the Tender Offer
price never being higher than the price
at which the Company sells Shares
during the Tender Offer, the
opportunity to manipulate the price at
which the Shares are being offered or
repurchased is minimized.
As a condition of the relief, the
Company must terminate the Tender
Offer should a secondary trading market
for the Shares develop. As a result, the
exemptive relief granted to the
Company for the Tender Offer should
not have a manipulative effect on the
applicable distribution. Additionally,
this exemptive relief is further
conditioned on the Tender Offer price
not being greater than the NAV per
Share for any day during the Tender
Offer period. This should help reduce
the potential for the Tender Offer having
a manipulative effect on the price of
such distributions as the purchases
should not improve the offering price.
Accordingly, we find that it is
appropriate in the public interest and is
consistent with the protection of
investors to grant a conditional
exemption from Rule 102(a) to permit
the Company to engage in the Tender
Offer for the Shares during the
applicable restricted period.
of engaging in the Tender Offer for the
Shares during the applicable restricted
period, subject to the following
conditions:
• The Company shall terminate the
Tender Offer if a secondary market for
the Shares being tendered develops;
• The Tender Offer price will not be
greater than the NAV per Share for any
day during the Tender Offer period; and
• The Company will be in
compliance with Rule 13e–4 at all times
during the Tender Offer period.
This exemption is subject to
modification or revocation 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, as
amended (‘‘Exchange Act’’).
Furthermore, the exemption is strictly
limited to the application of Rule 102 to
the Tender Offer as described above.
The Tender Offer should be
discontinued, pending presentation of
the facts for our consideration, in the
event that any material change occurs
with respect to any of the facts or
representations. In addition, persons
relying on this exemption are directed
to the antifraud and anti-manipulation
provisions of the federal securities laws,
particularly Section 10(b) of the
Exchange Act, and Rule 10b–5
thereunder. Responsibility for
compliance with these and any other
applicable provisions of the federal
securities laws must rest with the
persons relying on this exemption. This
order should not be considered a view
with respect to any other question that
the transactions may raise, including,
but not limited to the adequacy of the
disclosure concerning, and the
applicability of other federal or state
laws to, such transactions.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–20699 Filed 8–29–14; 8:45 am]
BILLING CODE P
Conclusion
It is hereby ordered, pursuant to Rule
102(e), that the Company is exempt
from Rule 102(a) for the limited purpose
4 Class
Relief, supra note 2.
Company represents that it has no intention
to list its shares of common stock for trading on a
national securities exchange or other over-thecounter trading market.
5 The
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72915; File No. SR–
NYSEArca–2014–87]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Arca
Equities Rule 7.31 To Delete
Functionality Permitting Primary Only
Orders and Primary Sweep Orders To
Be Designated With Intermarket Sweep
Order Modifiers
August 26, 2014.
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 August
13, 2014, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Equities Rule 7.31 to delete
functionality permitting Primary Only
Orders (‘‘PO Order’’) and Primary
Sweep Orders (‘‘PSO’’) to be designated
with Intermarket Sweep Order (‘‘ISO’’)
modifiers. The text of the proposed rule
change is available on the Exchange’s
Web site 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.
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
6 17
PO 00000
CFR 200.30–3(a)(6).
Frm 00135
Fmt 4703
Sfmt 4703
52077
E:\FR\FM\02SEN1.SGM
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Federal Register / Vol. 79, No. 169 / Tuesday, September 2, 2014 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to amend
Rules 7.31(x) and (kk) to eliminate the
ability of Users to enter PO Orders and
PSOs with ISO modifiers. A PO Order
is a market or limit order that is routed
to the primary market by the Exchange.
Currently, Rule 7.31(x)(4) permits a PO
Order to be entered with an ISO
Modifier and places the responsibility of
Regulation NMS compliance on the
broker-dealer that designates the PO
Order with an ISO Modifier. A PSO is
a PO Order that first sweeps the
Exchange book and then any
unexecuted portion is routed to the
primary market. Similar to Rule
7.31(x)(4), Rule 7.31(kk)(2) permits a
PSO to be entered with an ISO Modifier
and places the responsibility of
Regulation NMS compliance on the
broker-dealer that designates the PSO
with an ISO Modifier.
The Exchange proposes to delete
Rules 7.31(x)(4) and 7.31(kk)(2) to no
longer permit PO Orders and PSOs to be
entered with ISO Modifiers. Instead, if
a User were to enter an ISO instruction
on a PO Order or PSO, the Exchange
will reject such order. To reflect this
change, the Exchange proposes to
amend Rules 7.31(x) and 7.31(kk) to
provide that PO Orders and PSOs may
not be designated as an ISO. The
Exchange is not proposing any other
changes to the use of ISOs.
The Exchange believes it is
appropriate to no longer accept PO
Orders and PSOs entered with ISO
modifiers. While the Exchange has
placed the responsibility of Regulation
NMS compliance on the originating
broker-dealer, the Exchange believes
that the proposal would avoid the
appearance of the Exchange’s routing
broker of violating Regulation NMS
requirements should the originating
broker-dealer not be appropriately
marking orders as ISO, even though
responsibility rests with the originating
broker-dealer. The proposed change
would more clearly delineate such
Regulation NMS requirements with a
single party—the originating brokerdealer. Either the originating brokerdealer will directly enter ISOs at the
necessary trading centers to comply
with Regulation NMS or submit a
routable order to the Exchange and the
Exchange will route the order as
necessary to ensure compliance with
Regulation NMS.
The Exchange will announce the
implementation date of the systems
VerDate Mar<15>2010
16:57 Aug 29, 2014
Jkt 232001
functionality associated with the
proposed rule change by Trader Update
to be published no later than 30 days
following the effective date. The
implementation date will be no later
than 30 days following the issuance of
the Trader Update.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
2. Statutory Basis
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act,4 in general, and furthers the
objectives of Section 6(b)(5),5 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, in general, to protect
investors and the public interest.
The Exchange believes that rejecting
PO Orders and PSOs with ISO modifiers
will protect investors and the public
interest because the proposal will limit
the number of ISO orders routed to
other market centers for which, at the
time of the route, the Exchange is
unaware whether the originating brokerdealer has complied with its Regulation
NMS obligations. The Exchange believes
that the rule proposal might reduce the
potential in which an ISO is routed by
the Exchange to an away market without
the originating broker-dealer complying
with Regulation NMS. Additionally, the
Exchange does not believe that
eliminating the ability to enter PO
Orders and PSOs with ISO modifiers
will have a detrimental effect on the
market because ETP Holders have the
option either to enter ISOs directly to
the necessary trading centers to comply
with Regulation NMS or submit a
routable order to the Exchange and the
Exchange will route the order as
necessary to ensure compliance with
Regulation NMS.
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
Exchange believes the [sic] eliminating
the ability to add an ISO modifier to PO
Orders and PSOs will not impose any
burden on competition because ETP
Holders have the option either to enter
ISOs directly to the necessary trading
centers to comply with Regulation NMS
or submit a routable order to the
Exchange and the Exchange will route
the order as necessary to ensure
compliance with Regulation NMS.
4 15
5 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00136
Fmt 4703
Sfmt 4703
No written comments were solicited
or received with respect to the proposed
rule change.
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(6) thereunder.7 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)
thereunder.8
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) 9 of the Act to
determine whether the proposed rule
change 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 Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
6 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
8 17 CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with 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.
9 15 U.S.C. 78s(b)(2)(B).
7 17
E:\FR\FM\02SEN1.SGM
02SEN1
Federal Register / Vol. 79, No. 169 / Tuesday, September 2, 2014 / Notices
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEArca–2014–87 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–72923; File No. SR–NYSE–
2014–43]
• 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–2014–87. 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 Web site (https://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 Web site 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 NYSE’s
principal office and on its Internet Web
site at www.nyse.com. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2014–87 and should be
submitted on or before September 23,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
mstockstill on DSK4VPTVN1PROD with NOTICES
[FR Doc. 2014–20697 Filed 8–29–14; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending Its
Fees for Non-Display Use of NYSE
OpenBook, NYSE Trades, and NYSE
BBO, and To Establish Fees for NonDisplay Use of NYSE Order Imbalances
August 26, 2014.
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 August
13, 2014, 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 selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
fees for non-display use of NYSE
OpenBook, NYSE Trades, and NYSE
BBO, and to establish fees for nondisplay use of NYSE Order Imbalances,
operative on September 1, 2014. The
text of the proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, on the Commission’s Web
site at www.sec.gov, 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
10 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:57 Aug 29, 2014
Jkt 232001
PO 00000
Frm 00137
Fmt 4703
Sfmt 4703
52079
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
non-display fees for NYSE OpenBook,
NYSE Trades, and NYSE BBO, to
establish such fees for NYSE Order
Imbalances, and to establish managed
non-display services fees for NYSE
BBO, operative on September 1, 2014.
The Exchange established the current
non-display and managed non-display
services fees for NYSE OpenBook, NYSE
Trades, and NYSE BBO in April 2013.4
The Exchange now proposes to change
those fees and to establish similar fees
for NYSE Order Imbalances.
Under the proposal, non-display use
would continue to mean accessing,
processing, or consuming an NYSE data
product delivered via direct and/or
Redistributor 5 data feeds for a purpose
other than in support of a data
recipient’s display or further internal or
external redistribution (‘‘Non-Display
Use’’). As is the case today, non-display
and managed non-display services fees
would apply to the Non-Display Use of
the data product as part of automated
calculations or algorithms to support
trading decision-making processes or
the operation of trading platforms.
The Exchange is proposing to expand
the types of uses considered NonDisplay Use to also include non-trading
uses. In addition, the proposal would
specify that Non-Display Use would
include any trading use, rather than
only certain types of trading, such as
high frequency or algorithmic trading,
as under the current fee structure.
Under the proposal, examples of NonDisplay Use would include any trading
in any asset class, automated order or
quote generation and/or order pegging,
price referencing for algorithmic trading
or smart order routing, operations
control programs, investment analysis,
order verification, surveillance
programs, risk management,
compliance, and portfolio management.
The Exchange believes that non-trading
uses benefit data recipients by allowing
users to automate functions, achieving
greater speed and accuracy, and in turn,
for example, reducing costs of labor to
perform the functions manually. This
approach would address the difficulties
4 See Securities Exchange Act Release No. 69278
(April 2, 2013), 78 FR 20973 (April 8, 2013) (SR–
NYSE–2013–25) (‘‘2013 Release’’).
5 ‘‘Redistributor’’ means a vendor or any person
that provides a real-time NYSE data product to a
data recipient or to any system that a data recipient
uses, irrespective of the means of transmission or
access.
E:\FR\FM\02SEN1.SGM
02SEN1
]]>Agencies
[Federal Register Volume 79, Number 169 (Tuesday, September 2, 2014)]
[Notices]
[Pages 52077-52079]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-20697]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72915; File No. SR-NYSEArca-2014-87]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Equities Rule 7.31 To Delete Functionality Permitting Primary Only
Orders and Primary Sweep Orders To Be Designated With Intermarket Sweep
Order Modifiers
August 26, 2014.
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 August 13, 2014, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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 NYSE Arca Equities Rule 7.31 to
delete functionality permitting Primary Only Orders (``PO Order'') and
Primary Sweep Orders (``PSO'') to be designated with Intermarket Sweep
Order (``ISO'') modifiers. The text of the proposed rule change is
available on the Exchange's Web site 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 52078]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to amend Rules 7.31(x) and (kk) to
eliminate the ability of Users to enter PO Orders and PSOs with ISO
modifiers. A PO Order is a market or limit order that is routed to the
primary market by the Exchange. Currently, Rule 7.31(x)(4) permits a PO
Order to be entered with an ISO Modifier and places the responsibility
of Regulation NMS compliance on the broker-dealer that designates the
PO Order with an ISO Modifier. A PSO is a PO Order that first sweeps
the Exchange book and then any unexecuted portion is routed to the
primary market. Similar to Rule 7.31(x)(4), Rule 7.31(kk)(2) permits a
PSO to be entered with an ISO Modifier and places the responsibility of
Regulation NMS compliance on the broker-dealer that designates the PSO
with an ISO Modifier.
The Exchange proposes to delete Rules 7.31(x)(4) and 7.31(kk)(2) to
no longer permit PO Orders and PSOs to be entered with ISO Modifiers.
Instead, if a User were to enter an ISO instruction on a PO Order or
PSO, the Exchange will reject such order. To reflect this change, the
Exchange proposes to amend Rules 7.31(x) and 7.31(kk) to provide that
PO Orders and PSOs may not be designated as an ISO. The Exchange is not
proposing any other changes to the use of ISOs.
The Exchange believes it is appropriate to no longer accept PO
Orders and PSOs entered with ISO modifiers. While the Exchange has
placed the responsibility of Regulation NMS compliance on the
originating broker-dealer, the Exchange believes that the proposal
would avoid the appearance of the Exchange's routing broker of
violating Regulation NMS requirements should the originating broker-
dealer not be appropriately marking orders as ISO, even though
responsibility rests with the originating broker-dealer. The proposed
change would more clearly delineate such Regulation NMS requirements
with a single party--the originating broker-dealer. Either the
originating broker-dealer will directly enter ISOs at the necessary
trading centers to comply with Regulation NMS or submit a routable
order to the Exchange and the Exchange will route the order as
necessary to ensure compliance with Regulation NMS.
The Exchange will announce the implementation date of the systems
functionality associated with the proposed rule change by Trader Update
to be published no later than 30 days following the effective date. The
implementation date will be no later than 30 days following the
issuance of the Trader Update.
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act,\4\ in general, and furthers the objectives of Section
6(b)(5),\5\ 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, in general, to protect
investors and the public interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that rejecting PO Orders and PSOs with ISO
modifiers will protect investors and the public interest because the
proposal will limit the number of ISO orders routed to other market
centers for which, at the time of the route, the Exchange is unaware
whether the originating broker-dealer has complied with its Regulation
NMS obligations. The Exchange believes that the rule proposal might
reduce the potential in which an ISO is routed by the Exchange to an
away market without the originating broker-dealer complying with
Regulation NMS. Additionally, the Exchange does not believe that
eliminating the ability to enter PO Orders and PSOs with ISO modifiers
will have a detrimental effect on the market because ETP Holders have
the option either to enter ISOs directly to the necessary trading
centers to comply with Regulation NMS or submit a routable order to the
Exchange and the Exchange will route the order as necessary to ensure
compliance with Regulation NMS.
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 Exchange believes the
[sic] eliminating the ability to add an ISO modifier to PO Orders and
PSOs will not impose any burden on competition because ETP Holders have
the option either to enter ISOs directly to the necessary trading
centers to comply with Regulation NMS or submit a routable order to the
Exchange and the Exchange will route the order as necessary to ensure
compliance with Regulation NMS.
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 \6\ and Rule 19b-4(f)(6) thereunder.\7\
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) thereunder.\8\
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6).
\8\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with 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.
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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) \9\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\9\ 15 U.S.C. 78s(b)(2)(B).
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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 Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
[[Page 52079]]
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2014-87 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-2014-87. 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 Web site (https://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 Web site 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 NYSE's principal office and on its
Internet Web site at www.nyse.com. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSEArca-2014-87 and should be submitted on or before
September 23, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-20697 Filed 8-29-14; 8:45 am]
BILLING CODE 8011-01-P
