Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change To Adopt a New Order Type Called the Mid-Point Discretionary Order, 26473-26474 [2014-10540]
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Federal Register / Vol. 79, No. 89 / Thursday, May 8, 2014 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEMKT–2014–42 on the
subject line.
No written comments were solicited
or received with respect to the proposed
rule change.
Paper Comments
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 25 and Rule
19b–4(f)(6) thereunder.26 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.27
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) 28 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
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All submissions should refer to File
Number SR–NYSEMKT–2014–42. 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 at 100 F Street NE.,
Washington, DC 20549–1090 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. 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–
NYSEMKT–2014–42, and should be
submitted on or before May 29, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–10538 Filed 5–7–14; 8:45 am]
U.S.C. 78s(b)(3)(A)(iii).
26 17 CFR 240.19b–4(f)(6).
27 17 CFR 240.19b–4(f)(6)(iii). 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.
28 15 U.S.C. 78s(b)(2)(B).
VerDate Mar<15>2010
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72086; File No. SR–EDGX–
2014–05]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Designation
of Longer Period for Commission
Action on Proposed Rule Change To
Adopt a New Order Type Called the
Mid-Point Discretionary Order
May 2, 2014.
On March 7, 2014, EDGX Exchange,
Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend its rules to add a new
order type called the Mid-Point
Discretionary Order and to reflect the
priority of Mid-Point Discretionary
Orders. The proposed rule change was
published for comment in the Federal
Register on March 25, 2014.3 The
Commission received no comment
letters.
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether these
proposed rule changes should be
disapproved. The 45th day for this filing
is May 9, 2014.
The Commission is extending the 45day time period for Commission action
on the proposed rule change. The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider and take action on the
Exchange’s proposed rule change.
Accordingly, pursuant to Section
19(b)(2)(A)(ii)(I) of the Act 5 and for the
reasons stated above, the Commission
designates June 23, 2014, as the date by
which the Commission should either
approve or disapprove, or institute
proceedings to determine whether to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 71747
(March 19, 2014), 79 FR 16401.
4 15 U.S.C. 78s(b)(2).
5 15 U.S.C. 78s(b)(2)(A)(ii)(I).
2 17
29 17
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 79, No. 89 / Thursday, May 8, 2014 / Notices
disapprove, the proposed rule change
(File No. SR–EDGX–2014–05).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–10540 Filed 5–7–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72081; File No. SR–
NYSEArca–2014–04]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of
Amendment No. 1 and Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove a Proposed
Rule Change, as Modified by
Amendment No. 1, To Amend NYSE
Arca, Inc.’s Rules by Revising the
Order of Priority of Bids and Offers
When Executing Orders in Open
Outcry
May 2, 2014.
I. Introduction
On January 15, 2014, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to revise the order of priority of
bids and offers when executing orders
in open outcry. The proposed rule
change was published for comment in
the Federal Register on February 3,
2014.3 On March 18, 2014, the
Commission extended the time period
for Commission action on the proposal
to May 2, 2014.4 The Commission
received ten comment letters from seven
commenters regarding the proposal,5 as
5 15
U.S.C. 78s(b)(2)(A)(ii)(I).
CFR 200.30–3(a)(31).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 71425
(January 28, 2014), 79 FR 6258 (‘‘Notice’’).
4 See Securities Exchange Act Release No. 71733
(March 18, 2014), 79 FR 16072 (March 24, 2014).
5 See Letter from Darren Story, dated January 29,
2014 (‘‘Story Letter I’’); Letter from Abraham Kohen,
AK FE Consultants LLC, dated January 31, 2014
(‘‘Kohen Letter I’’); Letter from David Spack, Chief
Compliance Officer, Casey Securities, LLC, dated
February 3, 2014 (‘‘Casey Letter’’); Letter from
Abraham Kohen, AK FE Consultants LLC, dated
February 4, 2014 (‘‘Kohen Letter II’’); Letter from
Angel Alvira, dated February 12, 2014 (‘‘Alvira
Letter’’); Letter from Donald Hart, dated February
12, 2014 (‘‘Hart Letter I’’); Letter from Doug
Patterson, Chief Compliance Officer, Cutler Group,
LP, dated February 13, 2014 (‘‘Cutler Letter’’); Letter
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well as a response to the comment
letters from NYSE Arca.6 On April 29,
2014, the Exchange filed Amendment
No. 1 to the proposed rule change.7 The
Commission is publishing this notice
and order to solicit comments on the
proposed rule change, as modified by
Amendment No. 1, from interested
persons and to institute proceedings
pursuant to Section 19(b)(2)(B) of the
Act 8 to determine whether to approve
or disapprove the proposed rule change,
as modified by Amendment No. 1.
Institution of proceedings does not
indicate that the Commission has
reached any conclusions with respect to
the proposed rule change, nor does it
mean that the Commission will
ultimately disapprove the proposed rule
change. Rather, as discussed below, the
Commission seeks additional input from
interested parties on the changes to the
proposed rule change, as modified by
Amendment No. 1.
II. Description of the Proposal
NYSE Arca proposes to amend its
rules governing the priority of bids and
offers on its Consolidated Book by
revising the order of priority in open
outcry to afford priority to bids and
offers represented by Market Makers 9
and Floor Brokers 10 (collectively,
‘‘Crowd Participants’’) 11 over certain
equal-priced bids and offers of non–
Customers 12 on the Consolidated
Regulatory Officer, Susquehanna International
Group, LLP (‘‘SIG’’), dated March 14, 2014 (‘‘SIG
Letter’’); and Letter from Darren Story, dated March
21, 2014 (‘‘Story Letter II’’).
6 See Letter from Martha Redding, Chief Counsel,
NYSE Euronext, dated April 4, 2014 (‘‘NYSE Arca
Response’’).
7 In Amendment No. 1, the Exchange revised the
rule text for proposed Rule 6.47: (1) To clarify that
Floor Brokers, when crossing two orders in open
outcry, may not trade through any non-Customer
bids or offers on the Consolidated Book that are
priced better than the proposed execution price;
and (2) to conform the term ‘‘bids and offers’’ to
‘‘bids or offers’’ in paragraphs (a) and (c)
thereunder. Amendment No. 1 has been placed in
the public comment file for SR–NYSEArca–2014–04
at https://www.sec.gov/comments/sr-nysearca-201404/nysearca201404.shtml (see letter from Martha
Redding, Chief Counsel, NYSE Euronext, to Kevin
M. O’Neill, Deputy Secretary, Commission, dated
April 30, 2014) and also is available on the
Exchange’s Web site at https://www.nyse.com/
nysenotices/nysearca/rule-filings/pdf.action;
jsessionid=FACF4F6772B1316D973F5
D4E2D258ACE?file_no=SR-NYSEArca-2014-04&
seqnum=2.
8 15 U.S.C. 78s(b)(2)(B).
9 See Rule 6.32 (Market Maker Defined).
10 See Rule 6.43 (Options Floor Broker Defined).
11 The term ‘‘Crowd Participants’’ means the
Market Makers appointed to an option issue under
Rule 6.35, and any Floor Brokers actively
representing orders at the best bid or offer on the
Exchange for a particular option series. See Rule
6.1(b)(38).
12 A non-Customer is a market participant who
does not meet the definition of Customer as defined
in paragraph (c)(6) of Rule 15c3–1 under the
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Book 13 during the execution of an order
in open outcry on the Floor 14 of the
Exchange.15
Current Rule 6.75(a) provides that any
bids displayed on the Consolidated
Book have priority over same-priced
bids represented in open outcry. Such
priority also is described in current Rule
6.47, which governs crossing orders in
open outcry. Floor Broker crossing
transactions, as described in Rule
6.47(a)(3), may not trade ahead of bids
or offers on the Consolidated Book that
are priced equal to or better than the
proposed crossing price. The Exchange
stated that, because of this priority
afforded to the Consolidated Book,
Crowd Participants who have negotiated
a large transaction ultimately might not
be able to participate in its execution.16
The Exchange proposed to restructure
its priority rules so that bids and offers
of Crowd Participants would have
priority over equal-priced bids and
offers of non-Customers on the
Consolidated Book that are ranked in
time priority behind any equal-priced
Customer bids and offers on the
Consolidated Book. Equal-priced
Customer 17 interest would continue to
be afforded priority over Crowd
Participants in the execution of an open
outcry transaction. In addition,
consistent with the existing price/time
priority presently applicable to bids and
offers on the Consolidated Book, equalpriced non-Customer bids and offers
ranked in time priority ahead of
Customer interest also would be
afforded priority over Crowd
Participants in the execution of an open
outcry transaction. In the Exchange’s
view, the proposed rule change strikes
the appropriate balance between
encouraging larger negotiated
transactions in open outcry, while at the
Securities Exchange Act of 1934, 17 CFR 240.15c3–
1. See Rule 6.1(b)(29).
13 The Exchange also proposed to make nonsubstantive changes to existing rule text contained
in Rules 6.47 and 6.75. See Notice, 79 FR at 6260
for a description of these non-substantive changes.
14 See Rule 1.1(i).
15 The term ‘‘Consolidated Book’’ means the
Exchange’s electronic book of limit orders for the
accounts of Public Customers and broker-dealers,
and Quotes with Size. See Rule 6.1(b)(37).
16 See Notice, 79 FR at 6258. The Exchange stated
that Crowd Participants could negotiate a
transaction with an understanding of the make-up
of bids and offers on the Consolidated Book at the
beginning of open outcry. However, as the trade is
executed, the Consolidated Book could update with
newly-arriving electronically-entered bids and
offers that have priority under current Rule 6.75(a).
The Exchange noted that, given the speed at which
quotes can flicker in the Consolidated Book, Crowd
Participants who have agreed to a transaction in
open outcry do not know if they will actually
participate on the trade until after execution. Id. at
6258–59.
17 See supra note 12.
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]]>Agencies
[Federal Register Volume 79, Number 89 (Thursday, May 8, 2014)]
[Notices]
[Pages 26473-26474]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-10540]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72086; File No. SR-EDGX-2014-05]
Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Designation of Longer Period for Commission Action on Proposed Rule
Change To Adopt a New Order Type Called the Mid-Point Discretionary
Order
May 2, 2014.
On March 7, 2014, EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend its rules to add a new order type called
the Mid-Point Discretionary Order and to reflect the priority of Mid-
Point Discretionary Orders. The proposed rule change was published for
comment in the Federal Register on March 25, 2014.\3\ The Commission
received no comment letters.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 71747 (March 19,
2014), 79 FR 16401.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \4\ provides that within 45 days of the
publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether these proposed rule changes should be disapproved.
The 45th day for this filing is May 9, 2014.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The Commission is extending the 45-day time period for Commission
action on the proposed rule change. The Commission finds that it is
appropriate to designate a longer period within which to take action on
the proposed rule change so that it has sufficient time to consider and
take action on the Exchange's proposed rule change.
Accordingly, pursuant to Section 19(b)(2)(A)(ii)(I) of the Act \5\
and for the reasons stated above, the Commission designates June 23,
2014, as the date by which the Commission should either approve or
disapprove, or institute proceedings to determine whether to
[[Page 26474]]
disapprove, the proposed rule change (File No. SR-EDGX-2014-05).
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2)(A)(ii)(I).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-10540 Filed 5-7-14; 8:45 am]
BILLING CODE 8011-01-P
