Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 86 To Extend the Hours for the Core Bond Trading Session for NYSE Bonds SM, 38639-38641 [2014-15813]
Download as PDF
<![CDATA[
Federal Register / Vol. 79, No. 130 / Tuesday, July 8, 2014 / Notices
securities that are not issued or
guaranteed by Government Entities to
20% of its net assets.
(13) Under normal market conditions,
the Fund will seek to invest at least 75%
of its net assets that are invested in
preferred securities in preferred
securities that have a minimum initial
issuance amount of at least $100
million. Initially, at least 50% of the
Fund’s net assets that are invested in
preferred securities will be invested in
exchange-listed preferred securities,
although this percentage may decrease
in the future.
(14) Under normal market conditions,
at least 80% of the Sovereign Debt in
which the Fund invests will be issued
by issuers with outstanding debt of at
least $200 million (or the foreign
currency equivalent thereof).
(15) Not including the Option Overlay
Strategy, no more than 20% of the value
of the Fund’s net assets will be invested
in derivative instruments. The Fund
will only enter into transactions in
derivative instruments with
counterparties that the Adviser and/or
the applicable Management Team
reasonably believes are capable of
performing under the applicable
contract. The Fund’s investments in
derivative instruments will be
consistent with the Fund’s investment
objectives and the 1940 Act and will not
be used to seek to achieve a multiple or
inverse multiple of an index.
(16) A minimum of 100,000 Shares
will be outstanding at the
commencement of trading on the
Exchange.
This approval order is based on all of
the Exchange’s representations,
including those set forth above and in
the Notice, and the Exchange’s
description of the Fund.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act 55 and the rules and
regulations thereunder applicable to a
national securities exchange.
tkelley on DSK3SPTVN1PROD with NOTICES
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,56 that the
proposed rule change (SR–NASDAQ–
2014–050) be, and it hereby is,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.57
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014–15794 Filed 7–7–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72501; File No. SR–NYSE–
2014–31]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending Rule
86 To Extend the Hours for the Core
Bond Trading Session for NYSE
Bonds SM and Amending Rule 88 To
Make Corresponding Changes Related
to Bonds Liquidity Providers
July 1, 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 June 25,
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
Rule 86 to extend the hours for the Core
Bond Trading Session for NYSE
Bonds SM and to amend Rule 88 to make
corresponding changes related to Bonds
Liquidity Providers (‘‘BLPs’’). 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
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
38639
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 amend
Rule 86 to extend the hours for the Core
Bond Trading Session for NYSE Bonds
and to amend Rule 88 to make
corresponding changes related to BLPs.4
NYSE Bonds is the Exchange’s
electronic system for receiving,
processing, executing, and reporting
bids, offers, and executions in bonds.
Rule 86 prescribes how bonds are traded
through the NYSE Bonds trading
platform, including the receipt,
execution, and reporting of bond
transactions. Rule 88 provides for BLPs,
which are member organizations that
electronically enter orders from off the
Floor of the Exchange into NYSE Bonds.
NYSE Bonds has three Bond Trading
Sessions: (1) the Opening Bond Trading
Session, (2) the Core Bond Trading
Session, and (3) the Late Bond Trading
Session. The Opening Bond Trading
Session currently commences at 4:00
a.m. Eastern Time (‘‘ET’’) and concludes
at 9:30 a.m. ET. The Core Bond Trading
Session currently commences at 9:30
a.m. ET and concludes at 4:00 p.m. ET.
The Late Bond Trading Session
currently commences at 4:00 p.m. ET
and concludes at 8:00 p.m. ET.
The Exchange proposes to extend the
hours of the Core Bond Trading Session
so that it would commence at 8:00 a.m.
ET and end at 5:00 p.m. ET, adding a
total of 2.5 hours to the Core Bond
Trading Session and better aligning its
hours with those of other bond trading
venues. The Exchange proposes to
amend the references to the various time
periods throughout Rule 86 to effect this
change, including, for example, that the
Core Bond Auction would commence at
8:00 a.m. ET instead of the current 9:30
a.m. ET. The Exchange would announce
the date on which the expanded Core
Bond Trading Session hours would take
effect via Trader Update. The Exchange
notes, for example, that the proposed
extended Core Bond Trading Session
would also result in the ability for an
‘‘NYSE Bonds Good ‘Til Cancelled
57 17
1 15
55 15
U.S.C. 78f(b)(5).
56 15 U.S.C. 78s(b)(2).
VerDate Mar<15>2010
16:48 Jul 07, 2014
Jkt 232001
PO 00000
Frm 00158
Fmt 4703
Sfmt 4703
4 Terms not defined herein shall have the
meaning prescribed under Rule 86 or Rule 88, as
applicable.
E:\FR\FM\08JYN1.SGM
08JYN1
38640
Federal Register / Vol. 79, No. 130 / Tuesday, July 8, 2014 / Notices
tkelley on DSK3SPTVN1PROD with NOTICES
Order’’ or an ‘‘NYSE Bonds Day Order’’
to remain in effect for a longer period
of time.
Rule 88(a) and (f) specify BLP bid and
offer requirements to qualify for a
financial incentive for transactions on
NYSE Bonds, as set forth in Rule 88(b)
and in the Exchange’s Price List. The
requirements currently refer to ‘‘trading
day’’ or ‘‘normal trading day’’ when
describing the time period during which
they apply and are calculated, which, in
practice, refers to the Core Bond Trading
Session. The Exchange proposes to
replace these references to ‘‘trading
day’’ and ‘‘normal trading day’’ with
‘‘Core Bond Trading Session.’’ The
Exchange believes that this proposed
change would encourage BLPs to be
active for greater periods of time each
day, which would lead to increased
liquidity throughout the day and
contribute to the quality of NYSE Bonds
for all Users. The Exchange notes that
BLPs may already be active in bonds on
other marketplaces on which they trade
during the extended period of time and
because BLPs are also currently active
after the Core Bond Trading Session at
levels that would contribute to
satisfying the applicable requirements,
BLPs would not have any problems in
complying with the proposed change.
Moreover, while the time period during
with the requirements would apply
would increase, so would the ability for
BLPs to earn financial incentives for
transactions on NYSE Bonds, as set
forth in Rule 88(b) and in the
Exchange’s Price List, which are only
available during the Core Bond Trading
Session.
The proposed change is not otherwise
intended to address any other issues,
and the Exchange is not aware of any
problems Users, including BLPs, would
have in complying with the proposed
change.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,6 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to, and perfect the
mechanisms of, a free and open market
and a national market system and, in
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Mar<15>2010
16:48 Jul 07, 2014
Jkt 232001
general, to protect investors and the
public interest and because it is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange believes that the
proposed change would foster
cooperation and coordination with
persons engaged in bond transactions by
more closely aligning the hours of the
Core Bond Trading Session with the
hours of other marketplaces on which
bonds trade (e.g., various alternative
trading systems). The proposed change
would also remove impediments to, and
perfect the mechanisms of, a free and
open market and a national market
system by permitting Users to be active
in the Core Bond Trading Session for 2.5
additional hours each day. Expanding
the time period during which the Core
Bond Trading Session is active would
also increase the time period during
which BLP requirements would apply,
which may also increase the amount of
liquidity on NYSE Bonds, thereby
contributing to protecting investors and
the public interest. The Exchange
further believes that expanding the time
period during which BLP requirements
would apply would remove
impediments to and perfect the
mechanism of a free and open market
and national market system because it
would encourage BLPs to be active for
greater periods of time each day, which
would lead to increased liquidity
throughout the day and contribute to the
quality of NYSE Bonds for all Users.
The Exchange notes that because BLPs
may already be active in bonds on other
marketplaces on which they trade
during the extended period of time and
because BLPs are also currently active
after the Core Bond Trading Session at
levels that would contribute to
satisfying the applicable requirements,
BLPs would not have any problems in
complying with the proposed change.
Moreover, while the time period during
with the requirements would apply
would increase, so would the ability for
BLPs to earn financial incentives for
transactions on NYSE Bonds, as set
forth in Rule 88(b) and in the
Exchange’s Price List, which are only
available during the Core Bond Trading
Session. Likewise, replacing references
within Rule 88(a) and (f) to ‘‘trading
day’’ and ‘‘normal trading day’’ with
‘‘Core Bond Trading Session’’ would
foster cooperation and coordination
with persons engaged in bond
transactions by more precisely
specifying the period during which BLP
requirements would apply and be
calculated.
Finally, the Exchange believes that it
is subject to significant competitive
PO 00000
Frm 00159
Fmt 4703
Sfmt 4703
forces, as described below in the
Exchange’s statement regarding the
burden on competition.
For these reasons, the Exchange
believes that the proposal is consistent
with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,7 the Exchange believes that the
proposed rule change would not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Instead, the
Exchange believes that the proposed
change would contribute to competition
because it could lead to additional bond
transactions on NYSE Bonds, a public
market, which would contribute to
greater transparency regarding such
transactions. The Exchange also believes
that the proposed change would place
NYSE Bonds in a more competitive
position compared to other
marketplaces for bond transactions with
respect to the time period during which
bonds are traded.
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 8 and Rule
19b–4(f)(6) thereunder.9 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.
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),11 the Commission
may designate a shorter time if such
7 15
U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
8 15
E:\FR\FM\08JYN1.SGM
08JYN1
Federal Register / Vol. 79, No. 130 / Tuesday, July 8, 2014 / Notices
action is consistent with the protection
of investors and the public interest.
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) 12 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:
tkelley on DSK3SPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSE–2014–31 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–NYSE–2014–31. 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
12 15
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;
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–NYSE–
2014–31, and should be submitted on or
before July 29, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014–15813 Filed 7–7–14; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #13967 and #13968]
Alabama Disaster Number AL–00054
U.S. Small Business
Administration.
ACTION: Amendment 3.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for the State of Alabama
(FEMA–4176–DR), dated 05/02/2014.
Incident: Severe Storms, Tornadoes,
Straight-line Winds, and Flooding.
Incident Period: 04/28/2014 through
05/05/2014.
Effective Date: 06/30/2014.
Physical Loan Application Deadline
Date: 07/15/2014.
EIDL Loan Application Deadline Date:
02/02/2015.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for the State of Alabama,
dated 05/02/2014 is hereby amended to
extend the deadline for filing
applications for physical damages as a
result of this disaster to 07/15/2014.
All other information in the original
declaration remains unchanged.
SUMMARY:
U.S.C. 78s(b)(2)(B).
VerDate Mar<15>2010
16:48 Jul 07, 2014
13 17
Jkt 232001
PO 00000
CFR 200.30–3(a)(12).
Frm 00160
Fmt 4703
Sfmt 4703
38641
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2014–15821 Filed 7–7–14; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #13999 and #14000]
Texas Disaster #TX–00433
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
This is an amendment of the
Administrative disaster declaration for
the State of TEXAS dated 05/20/2014.
Incident: Wildfires.
Incident Period: 05/11/2014 and
continuing through 05/14/2014.
Effective Date: 06/30/2014.
Physical Loan Application Deadline
Date: 07/21/2014.
Economic Injury (EIDL) Loan
Application Deadline Date: 02/20/2015.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the Administrative disaster
declaration for the State of Texas, dated
05/20/2014 is hereby amended to
establish the incident period for this
disaster as beginning 05/11/2014 and
continuing through 05/14/2014.
All other information in the original
declaration remains unchanged.
SUMMARY:
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Dated: June 30, 2014.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2014–15820 Filed 7–7–14; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
Interest Rates
The Small Business Administration
publishes an interest rate called the
optional ‘‘peg’’ rate (13 CFR 120.214) on
a quarterly basis. This rate is a weighted
average cost of money to the
government for maturities similar to the
average SBA direct loan. This rate may
E:\FR\FM\08JYN1.SGM
08JYN1
]]>Agencies
[Federal Register Volume 79, Number 130 (Tuesday, July 8, 2014)]
[Notices]
[Pages 38639-38641]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15813]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72501; File No. SR-NYSE-2014-31]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending Rule 86 To Extend the Hours for the Core Bond Trading Session
for NYSE Bonds \SM\ and Amending Rule 88 To Make Corresponding Changes
Related to Bonds Liquidity Providers
July 1, 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 June 25, 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 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 86 to extend the hours for the
Core Bond Trading Session for NYSE Bonds \SM\ and to amend Rule 88 to
make corresponding changes related to Bonds Liquidity Providers
(``BLPs''). 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.
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 86 to extend the hours for the
Core Bond Trading Session for NYSE Bonds and to amend Rule 88 to make
corresponding changes related to BLPs.\4\
---------------------------------------------------------------------------
\4\ Terms not defined herein shall have the meaning prescribed
under Rule 86 or Rule 88, as applicable.
---------------------------------------------------------------------------
NYSE Bonds is the Exchange's electronic system for receiving,
processing, executing, and reporting bids, offers, and executions in
bonds. Rule 86 prescribes how bonds are traded through the NYSE Bonds
trading platform, including the receipt, execution, and reporting of
bond transactions. Rule 88 provides for BLPs, which are member
organizations that electronically enter orders from off the Floor of
the Exchange into NYSE Bonds.
NYSE Bonds has three Bond Trading Sessions: (1) the Opening Bond
Trading Session, (2) the Core Bond Trading Session, and (3) the Late
Bond Trading Session. The Opening Bond Trading Session currently
commences at 4:00 a.m. Eastern Time (``ET'') and concludes at 9:30 a.m.
ET. The Core Bond Trading Session currently commences at 9:30 a.m. ET
and concludes at 4:00 p.m. ET. The Late Bond Trading Session currently
commences at 4:00 p.m. ET and concludes at 8:00 p.m. ET.
The Exchange proposes to extend the hours of the Core Bond Trading
Session so that it would commence at 8:00 a.m. ET and end at 5:00 p.m.
ET, adding a total of 2.5 hours to the Core Bond Trading Session and
better aligning its hours with those of other bond trading venues. The
Exchange proposes to amend the references to the various time periods
throughout Rule 86 to effect this change, including, for example, that
the Core Bond Auction would commence at 8:00 a.m. ET instead of the
current 9:30 a.m. ET. The Exchange would announce the date on which the
expanded Core Bond Trading Session hours would take effect via Trader
Update. The Exchange notes, for example, that the proposed extended
Core Bond Trading Session would also result in the ability for an
``NYSE Bonds Good `Til Cancelled
[[Page 38640]]
Order'' or an ``NYSE Bonds Day Order'' to remain in effect for a longer
period of time.
Rule 88(a) and (f) specify BLP bid and offer requirements to
qualify for a financial incentive for transactions on NYSE Bonds, as
set forth in Rule 88(b) and in the Exchange's Price List. The
requirements currently refer to ``trading day'' or ``normal trading
day'' when describing the time period during which they apply and are
calculated, which, in practice, refers to the Core Bond Trading
Session. The Exchange proposes to replace these references to ``trading
day'' and ``normal trading day'' with ``Core Bond Trading Session.''
The Exchange believes that this proposed change would encourage BLPs to
be active for greater periods of time each day, which would lead to
increased liquidity throughout the day and contribute to the quality of
NYSE Bonds for all Users. The Exchange notes that BLPs may already be
active in bonds on other marketplaces on which they trade during the
extended period of time and because BLPs are also currently active
after the Core Bond Trading Session at levels that would contribute to
satisfying the applicable requirements, BLPs would not have any
problems in complying with the proposed change. Moreover, while the
time period during with the requirements would apply would increase, so
would the ability for BLPs to earn financial incentives for
transactions on NYSE Bonds, as set forth in Rule 88(b) and in the
Exchange's Price List, which are only available during the Core Bond
Trading Session.
The proposed change is not otherwise intended to address any other
issues, and the Exchange is not aware of any problems Users, including
BLPs, would have in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\6\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to, and
perfect the mechanisms of, a free and open market and a national market
system and, in general, to protect investors and the public interest
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed change would foster
cooperation and coordination with persons engaged in bond transactions
by more closely aligning the hours of the Core Bond Trading Session
with the hours of other marketplaces on which bonds trade (e.g.,
various alternative trading systems). The proposed change would also
remove impediments to, and perfect the mechanisms of, a free and open
market and a national market system by permitting Users to be active in
the Core Bond Trading Session for 2.5 additional hours each day.
Expanding the time period during which the Core Bond Trading Session is
active would also increase the time period during which BLP
requirements would apply, which may also increase the amount of
liquidity on NYSE Bonds, thereby contributing to protecting investors
and the public interest. The Exchange further believes that expanding
the time period during which BLP requirements would apply would remove
impediments to and perfect the mechanism of a free and open market and
national market system because it would encourage BLPs to be active for
greater periods of time each day, which would lead to increased
liquidity throughout the day and contribute to the quality of NYSE
Bonds for all Users. The Exchange notes that because BLPs may already
be active in bonds on other marketplaces on which they trade during the
extended period of time and because BLPs are also currently active
after the Core Bond Trading Session at levels that would contribute to
satisfying the applicable requirements, BLPs would not have any
problems in complying with the proposed change. Moreover, while the
time period during with the requirements would apply would increase, so
would the ability for BLPs to earn financial incentives for
transactions on NYSE Bonds, as set forth in Rule 88(b) and in the
Exchange's Price List, which are only available during the Core Bond
Trading Session. Likewise, replacing references within Rule 88(a) and
(f) to ``trading day'' and ``normal trading day'' with ``Core Bond
Trading Session'' would foster cooperation and coordination with
persons engaged in bond transactions by more precisely specifying the
period during which BLP requirements would apply and be calculated.
Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.
For these reasons, the Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\7\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, the Exchange believes that the proposed
change would contribute to competition because it could lead to
additional bond transactions on NYSE Bonds, a public market, which
would contribute to greater transparency regarding such transactions.
The Exchange also believes that the proposed change would place NYSE
Bonds in a more competitive position compared to other marketplaces for
bond transactions with respect to the time period during which bonds
are traded.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\11\ the Commission
may designate a shorter time if such
[[Page 38641]]
action is consistent with the protection of investors and the public
interest.
---------------------------------------------------------------------------
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 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) \12\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\12\ 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 Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSE-2014-31 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-NYSE-2014-31. 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 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-NYSE-2014-31, and should be
submitted on or before July 29, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014-15813 Filed 7-7-14; 8:45 am]
BILLING CODE 8011-01-P
