Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add a Price Protection Mechanism To Prevent the Automatic Execution of Incoming Market Orders and Marketable Limit Orders Outside a Specified Parameter and Eliminate Liquidity Replenishment Points and the Gap Quote Policy, 3273-3278 [2015-00967]
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Federal Register / Vol. 80, No. 14 / Thursday, January 22, 2015 / Notices
would meet the Commission’s
previously stated expectation that the
Exchange discontinue its LRPs.39
Furthermore, the Exchange states its
belief that meeting this expectation as
soon as the technology becomes
available, which the Exchange
represents would be before the end of
the operative-delay period, is consistent
with the protection of investors and the
public interest because it would
implement the discontinuation of its
LRPs as expeditiously as possible.
Finally, the Exchange asserts that the
proposed rule change would also add
market collars that are similar to
existing mechanisms on other markets
and would reduce the potential of a
clearly erroneous execution occurring
on the Exchange. The Exchange,
therefore, concludes that waiver of the
operative delay so that it can implement
market collars as soon as the technology
is available is not only consistent with
the protection of investors and the
public interest, but would also benefit
investors and the public interest.
Because the proposed rule change
would eliminate the Exchange’s LRPs,
consistent with the adoption of the Plan,
and because the proposed rule change is
designed to prevent clearly erroneous
order executions, the Commission
believes that waiver of the operative
delay is consistent with investor
protection and the public interest.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.40
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is 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
to determine whether the proposed rule
change should be approved or
disapproved.
tkelley on DSK3SPTVN1PROD with NOTICES
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 S
SR–NYSE–2015–01 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–2015–01. 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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal offices 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–
2015–01, and should be submitted on or
before February 12, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.41
Brent J. Fields,
Secretary.
[FR Doc. 2015–00966 Filed 1–21–15; 8:45 am]
BILLING CODE 8011–01–P
39 See
supra n. 4.
40 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74064; File No. SR–
NYSEMKT–2015–02]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Add a Price Protection
Mechanism To Prevent the Automatic
Execution of Incoming Market Orders
and Marketable Limit Orders Outside a
Specified Parameter and Eliminate
Liquidity Replenishment Points and
the Gap Quote Policy
January 15, 2015.
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 January 8,
2015, NYSE MKT LLC (the ‘‘Exchange’’
or ‘‘NYSE MKT’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by the Exchange. 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 (i) amend
Rule 1000 to add a price protection
mechanism to prevent the automatic
execution of incoming market orders
and marketable limit orders outside a
specified parameter and (ii) eliminate its
Exchange-specific volatility
mechanisms—Liquidity Replenishment
Points (‘‘LRPs’’) and its Gap Quote
Policy—and to delete any references
thereto from the Exchange rules. 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,
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
41 17
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 80, No. 14 / Thursday, January 22, 2015 / Notices
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 1000—Equities to add a price
protection mechanism to prevent the
automatic execution of incoming market
orders and marketable limit orders
outside a specified parameter (referred
to as a ‘‘Trading Collar’’). The Exchange
also proposes to eliminate its Exchangespecific volatility mechanisms—LRPs
and Gap Quote Policy—and to delete
any references thereto from the
Exchange rules. The Exchange believes
that the proposed Trading Collars would
assist with the maintenance of fair and
orderly markets by mitigating the risks
associated with orders sweeping
through multiple price points, resulting
in executions at prices that are away
from the best bid or offer and potentially
erroneous. As discussed further below,
the discontinuation of the Exchangespecific volatility mechanisms were
anticipated changes following
implementation of the Regulation NMS
Plan to Address Extraordinary Market
Volatility (the ‘‘Plan’’).4
Background: Liquidity Replenishment
Points and Gapping the Quote
tkelley on DSK3SPTVN1PROD with NOTICES
Rule 1000—Equities provides for the
basic operative principles regarding the
immediate, automatic execution of
market orders and marketable limit
orders against the Exchange’s published
quotation.5 The Rule also lists instances
in which automatic execution would
not be available due to certain market
conditions, including when Exchangespecific volatility mechanisms,
specifically LRPs and gapping the quote,
have been triggered.
4 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498, 33510, n. 182 (June
6, 2012) (File No. 4–631) (Order Approving, on a
Pilot Basis, the Plan) (The Commission ‘‘expects,
that upon implementation of the Plan, such
exchange-specific volatility mechanisms would be
discontinued by the respective exchanges.’’) See
also Securities Exchange Act Release No 71649
(March 5, 2014), 79 FR 13696 (March 11, 2014) (File
No. 4–631) (the Seventh Amendment to the Plan).
5 Automatic executions may also be against orders
on the Display Book®, Floor broker agency file
interest, Floor broker proprietary file interest,
Designated Market Maker (‘‘DMM’’) interest, and
interest placed in the Exchange’s systems by DMMs
pursuant to a Capital Commitment Schedule in
accordance with, and to the extent provided by,
Exchange rules and shall be immediately reported
as Exchange transactions. See Rule 1000(a).
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Liquidity Replenishment Points
In March 2006, the Exchange
implemented the LRP mechanism to
address market volatility on the New
York Stock Exchange, LLC (‘‘NYSE’’)
and, in 2008, adopted LRPs for use on
the Exchange.6 The Exchange has
utilized LRPs, which are triggered by
rapid price movements over a short
period of time, to moderate volatility in
a security by temporarily converting the
electronic market for the security into
an auction market to afford new trading
interests the opportunity to add
liquidity.7 The Exchange believes that
LRPs were effective in moderating some
of the impact from the events of May 6,
2010 for Exchange trading customers, as
evidenced by the lack of erroneous
trades on the Exchange.8 In 2012, in
approving the Plan, the Commission
noted the ‘‘potential for unnecessary
complexity that could result if the Plan
were adopted, and exchange-specific
volatility mechanisms were retained’’;
thus, the Commission stated its
‘‘expect[ation], that upon
implementation of the Plan, such
exchange-specific volatility mechanisms
would be discontinued by the respective
exchanges.’’ 9
In 2013, to coincide with the
implementation of the Plan, the
Exchange filed amendments to Rule
1000 that provided for the phasing out
of the functionality associated with
LRPs as the Plan was phased in across
all NMS Stocks.10 The Plan was fully
implemented across all NMS Stocks on
February 24, 2014, and as such,
pursuant to Rule 1000(a)(iv)(A), the
Exchange has discontinued the use of
LRPs for all NMS Stocks that are subject
to the Plan.11
Gapping the Quote
When an imbalance in a particular
security exists, the manual process
6 See Securities Exchange Act Release No. 53539
(March 22, 2006), 71 FR 16353 (March 31, 2006)
(SR–NYSE–2004–05); see also Securities Exchange
Act Release Nos. 58265 (July 30, 2008), 73 FR 46075
(Aug. 7, 2008) (notice); 58705 (October 1, 2008), 73
FR 58995 (October 8, 2008) (SR–Amex–2008–63)
(approval order for the adoption of NYSE Rules 1–
1004 on the Exchange).
7 See Securities Exchange Act Release No. 69294
(April 4, 2013), 78 FR 21441 (April 10, 2013) (SR–
NYSEMKT–2013–33).
8 Id.
9 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498, 33510, n. 182 (June
6, 2012).
10 See supra n. 7; See Securities Exchange Act
Release No. 69696 (June 4, 2013) 78 FR 34687 (June
10, 2013) (SR–NYSEMKT–2013–46).
11 See Securities and Exchange Act Release No.
71649 (March 5, 2014), 79 FR 13696 (March 11,
2014) (File No. 4–631) (the Seventh Amendment to
the Plan). The Exchange notes that rights and
warrants are not subject to the Plan, and therefore
continue to be subject to LRPs.
PO 00000
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known as ‘‘gapping the quote’’ occurs—
specifically, the DMM for the security
widens the spread between the bid and
offer and publishes a new gapped quote.
Order imbalances may occur when the
Exchange receives a sudden influx of
orders for a particular security on the
same side of the market within a short
time interval, or when one or more
large-size orders for a security are
entered, and there is insufficient
offsetting interest. The Exchange first
implemented its policies and
procedures for gapping the quote in
1994 and updated the Gap Quote Policy
in 2010.12 As stated in the Policy, a
DMM gaps a quote to ‘‘provide public
notice of order imbalances for securities,
facilitate price discovery, and minimize
short-term price dislocation, by
allowing for the entry of offsetting
orders or the cancellation of orders on
the side.’’ 13 A DMM may gap a quote
after an LRP has been reached. A
gapped quote is not available for
automatic execution.
Proposed Trading Collar
The Exchange proposes to amend
Rule 1000—Equities to add a price
protection mechanism to prevent the
automatic execution or routing of
incoming market orders, including
elected stop orders, and marketable
limit orders 14 outside a specified
parameter (referred to as a ‘‘Trading
Collar’’). As proposed, an incoming
market order or marketable limit order
to buy (sell) would not execute or route
to another market center at a price above
(below) the Trading Collar. Trading
Collars would be applicable only when
automatic executions are in effect.15 As
12 See Information Memo 94–32 (August 9, 1994),
filed as SR–NYSE–93–48. See Securities Exchange
Act Release No. 34303 (July 1, 1994), 59 FR 35157
(July 8, 1994). See also Information Memorandum
10–3 (January 7, 2010), filed as NYSEAmex–2010–
05. See Securities and Exchange Act Release No.
61402 (January 22, 2010), 75 FR 4602 (January 28,
2010) (changing the minimum size and value
requirements for use of gap quotes).
13 See Securities Exchange Act Release No. 61049
(November 23, 2009), 74 FR 62851 (SR–
NYSEAmex–2009–82) (December 1, 2009).
14 A market order is an ‘‘order to buy or sell a
stated amount of a security at the most
advantageous price obtainable after the order is
represented in the Trading Crowd or routed to the
Display Book®.’’ See Rule 13—Equities. A
marketable limit order is defined as ‘‘a limit order
to buy (sell) priced at or above (below) the
Exchange best offer (bid) at the time such order is
routed to the Display Book®.’’ Id. Because a stop
order becomes a market order when elected, the
Exchange believes it is appropriate to provide that
elected stop orders would be subject to the
proposed Trading Collar.
15 See proposed Rule 1000(c)(ii)—Equities. Both
market orders and marketable limit orders are ‘‘auto
ex orders’’ that initiate automatic executions
immediately upon entry into the Exchange systems.
See Rule 13—Equities. Trading Collars would not
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discussed below, on arrival, a buy/sell
order would be automatically executed
up/down to (and including, but not
beyond) the Trading Collar and any
remaining interest shall be cancelled.
Unless it is a non-routable order, the
order would route to all markets at or
better than the Trading Collar.16
Pursuant to proposed Rule 1000(c)(i),
a Trading Collar would be a specified
percentage away from the National Best
Bid or Offer (‘‘NBBO’’), depending on
whether it is a buy or sell order, and the
specified percentage would vary
depending on the NBBO at the time the
order arrives and/or is executed. For
buy orders, the Trading Collar would be
a specified percentage above the
National Best Offer (‘‘NBO’’). For sell
orders, the Trading Collar would be a
specified percentage below the National
Best Bid (‘‘NBB’’). The proposed
Trading Collars are set forth in the table
below.
NBB/NBO
Greater than $0.00, up to and
including $25.00 ....................
Greater than $25.00, up to and
including $50.00 ....................
Greater than $50.00 .................
Percentage
away from
the NBB/
NBO
10
5
3
tkelley on DSK3SPTVN1PROD with NOTICES
The Exchange notes that these
proposed percentages are based on the
current numerical guidelines for
determining whether a clearly erroneous
execution has occurred.17 The Exchange
further notes that the proposed
percentages are the same as the
percentages applicable to similar trading
collar functionality on NYSE Arca
Equities, Inc. (‘‘NYSE Arca Equities’’).18
The Exchange believes that the
proposed specified percentages are
appropriate because the Trading Collar
is designed to reduce the risk of, and to
potentially prevent, the automatic
execution of orders at prices that may be
considered clearly erroneous. Because
the specified percentage may extend
multiple decimal points, the Exchange
proposes to truncate Trading Collars to
be applicable to Set Slow Stocks, or to pre-opening,
opening, closing or manual transactions, and are
not in effect during a halt, suspension, or pause in
trading. Trading Collars would apply, and be
determined, when discretionary pricing
instructions are triggered. Trading Collars would
not be displayed.
16 If, however, an order that routed to an away
market returns to the Exchange unexecuted, the
Trading Collar based on the NBBO in place at the
time of execution would be used for that incoming
(now returning) order, not the Trading Collar based
on the NBBO in place at the time of the original
arrival of the order.
17 See Rule 128(c)(1)—Equities.
18 See NYSE Arca Equities Rule 7.31(a)(2).
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the nearest minimum price variation
(‘‘MPV’’) for the security.19
Consider an example where the NBBO
is $24.95 × 25.01. In such scenario, the
Trading Collar for buy orders would be
$26.26 (i.e., $25.01 + 5% = $26.2605,
truncated to $26.26) and the Trading
Collar for sell orders would be $22.44
[sic] (i.e., $24.95 ¥ 10% = $22.455,
truncated to $22.45).
The Exchange proposes that if the
NBBO is crossed, the Exchange would
use the Exchange Best Offer (‘‘BO’’)
instead of the NBO for buy orders, and
the Exchange Best Bid (‘‘BB’’) instead of
the NBB for sell orders.
The Exchange believes it is
appropriate to use the BB/BO when the
NBBO is crossed as a crossed NBBO is
generally indicative of an erroneously
priced or stale bid and/or offer, and may
not be appropriate reference prices for
calculating Trading Collars. The
Exchange believes that this practice will
help ensure that market participants
obtain timely executions of their market
orders and marketable limit orders
while still being afforded the price
protection benefit of the Trading
Collars. As proposed, in the event there
is no NBB or BB, the lower boundary of
the Trading Collar would be zero
because there would be no reference
price against which to determine the
appropriate Trading Collar. Similarly, in
the event there is no NBO or BO, the
upper boundary of the Trading Collar
would be set to the maximum price that
the System could handle.
Notwithstanding the Trading Collar, any
incoming market orders or marketable
limit orders would still be subject to the
Plan and could not execute outside of
the Upper (Lower) Price Band, as
defined in Rule 80C—Equities.
Pursuant to proposed Rule 1000(c)(ii),
an incoming market order, including an
elected stop order, or marketable limit
order would execute and/or route up or
down to (and including) the Trading
Collar and any remaining interest would
be cancelled. The Exchange believes
that Trading Collars, working in
conjunction with the Plan, could help
limit potential harm from extreme price
volatility by preventing executions that
could occur at a price significantly away
from the contra side. As proposed, if the
Trading Collar for incoming buy (sell)
interest is lower (higher) than or equals
the Upper (Lower) Price Band 20, the
Exchange would cancel any remaining
interest. The Plan, however, would take
priority over the Trading Collars where
the Plan affords more price protection to
incoming orders. Specifically, if the
19 See
20 See
PO 00000
Rule 62—Equities.
Rule 80C—Equities.
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3275
Upper (Lower) Price Band is lower
(higher) than the Trading Collar, the
order would execute at the more
restrictive Upper (Lower) Price Band
and not beyond and any remaining
interest would be displayed or repriced
to the Price Band, consistent with Rule
80C(a)(5)—Equities.
The Exchange notes that if there is no
execution opportunity at the Exchange
for an incoming buy (sell) order at a
price above (below) the NBO (NBB), the
Exchange would not be obligated to
route the order to an away market
protected offer (bid) because the
incoming order would not be trading
through such protected quotation. The
Exchange therefore proposes that if
there is no execution opportunity at the
Exchange for an incoming buy (sell)
order at a price above (below) the NBO
(NBB) and at or below (above) the
Trading Collar, a buy (sell) order that is
priced at or above (below) the Trading
Collar would be cancelled. The
Exchange further proposes that a
similarly-priced, partially-executed
order would also be cancelled.
For example, assume the NBO is
10.00, based on a quote from an away
market, and therefore the proposed
Trading Collar is 11.00. Assume further
that the Exchange’s best offer is 11.05
and with these conditions, the Exchange
receives an incoming buy order priced
at 11.02. Because there is no execution
opportunity for the incoming buy order
above the NBO and at or below the
Trading Collar, and because the order’s
limit price exceeds the Trading Collar,
the incoming buy order would be
cancelled. The buy order would cancel
rather than route because the Exchange
would not trade through another
market. Similarly, assuming the same
facts, but the Exchange has nondisplayed interest to sell priced at 9.99.
An incoming buy order priced at 11.02
would execute against that 9.99 nondisplayed sell interest, and then any
remainder of the buy order would
similarly be cancelled because there is
no execution opportunity priced above
the NBO of 10.00 or at or below the
Trading Collar of 11.00.
Finally, pursuant to proposed Rule
1000(c)(iii), during a Short Sale Price
Test,21 if the NBBO is crossed, short sale
orders that would be re-priced to a
Trading Collar would be cancelled.
Under Rule 201 of Regulation SHO,22
when the NBBO is crossed, a short sale
order in a covered security may be
displayed or executed at a price that is
less than or equal to the current national
21 See
22 17
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Rule 440B(b)—Equities.
CFR part 242.201.
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best bid.23 Accordingly, if the NBBO is
crossed, a short sale order priced at or
below the Trading Collar could be repriced to the Trading Collar, which is by
definition a price below the NBB. In the
spirit of Rule 201 of Regulation SHO,
which is to prevent the display or
execution of short sale orders at prices
equal to or below the NBB, the
Exchange believes that it is appropriate
during a crossed market to cancel a
short sale order that would be re-priced
to a Trading Collar rather than display
the order at that price.
The Exchange also proposes to amend
Rule 70.25(b)(i)—Equities, regarding
price discretion or ‘‘d-Quotes,’’ which
states that ‘‘[a] Floor broker may set a
discretionary price range that specifies
the prices at which the Floor broker is
willing to trade.’’ Specifically, the
Exchange proposes to amend this Rule
to provide that d-Quotes are subject to
the Trading Collar and/or the Price
Bands and, thus, pursuant to the
amended rule, Floor Brokers may use
discretion to initiate or participate in a
trade with interest capable of trading at
a price within the discretionary price
range ‘‘unless the interest reaches a
Trading Collar or Price Band, whichever
is reached first.’’ 24 The Exchange
believes it is appropriate to similarly
afford Trading Collar price protection to
d-Quotes to prevent the execution of
orders with discretionary price
instructions at prices outside the
prevailing market price from causing
significant price dislocation in the
market.25
The Exchange also proposes to amend
Rule 512—Equities to state that Trading
Collars would apply to UTP
Securities.26 Although LRPs do not
apply to UTP Securities, the Exchange
believes it is appropriate to afford these
tkelley on DSK3SPTVN1PROD with NOTICES
23 See
SEC Division of Trading and Markets:
Responses to Frequently Asked Questions
Concerning Rule 201 of Regulation Show, FAQ 6.1,
available at: https://www.sec.gov/divisions/
marketreg/rule201faq.htm.
24 See proposed Rule 70.25(b)(i).
25 The Trading Collar applies to d-Quotes in the
same manner as other order types. See supra n. 15
(Trading Collars apply when discretionary pricing
instructions are triggered, but do not apply to
openings, re-openings, or closing trades).
26 Current Rule 512—Equities states that LRPs
will not apply to UTP Securities. See Information
Memo 10–34 (July 12, 2010) (explaining that the
Nasdaq Securities newly-listed on the Exchange
would ‘‘be more thinly traded on the Exchange,
with lower volume and less liquidity than its listed
securities, and that prices for Nasdaq Securities will
therefore be more volatile’’ and thus ‘‘in order to
avoid triggering too many ‘slow’ trading situations,
the Exchange removed the application of LRP
parameters for trading Nasdaq Securities.’’). In
2014, the Exchange expanded the UTP Program
beyond Nasdaq securities. See Securities Exchange
Act Release No. 71952 (April 16, 2014) 79 FR 22558
(April 22, 2014) (SR–NYSEMKT–2014–32).
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securities Trading Collar protection
because application of the Trading
Collar is a straightforward and objective
process that does not raise the same
issue as was at issue for UTP Securities,
i.e., identifying appropriate LRP values
for actively-traded symbols that have
low volume on the Exchange.
Proposed Elimination of LRPs and Gap
Quote Policy
As noted above, by rule, the Exchange
has already discontinued the use of
LRPs for any security subject to the
Plan. However, LRPs continue to be
available for rights and warrants, which
are not subject to the Plan. The
Exchange believes that with the
introduction of Trading Collars it will
have in place appropriate price
protections for rights and warrants and
the Exchange will no longer need LRPs
for those securities. Accordingly, the
Exchange proposes to complete the
Exchange’s discontinuation of LRPs in
their entirety by deleting references to
LRPs in the following Equities Rules:
60, 79A, 104, 128, 501, 508, 512, and
1000.
For similar reasons, the Exchange
believes it appropriate to discontinue
the Gap Quote Policy. Accordingly, the
Exchange proposes to eliminate its Gap
Quote Policy in its entirety and to delete
references thereto in the following
Equities Rules: 60, 79A, 104, 501, 508,
and 1000.
Relatedly, the Exchange also proposes
to amend Rule 1000(e) (Executions at
and Outside the Exchange Best Bid or
Offer) to add references to Trading
Collars and/or Price Bands, in certain
cases to replace deleted references to
LRPs. The Exchange believes these
proposed changes will add transparency
and clarity to the Exchange’s rules.
Other Proposed Amendments
In connection with the addition of the
Trading Collar, the Exchange also
proposes to amend the definition of
market order, in Rule 13—Equities, to
state that if a market order to sell has
exhausted all eligible buy interest, any
unfilled balance of the market order to
sell will be cancelled. The Exchange
believes that this is appropriate because
it assures that a market order to sell will
not be held at a price that it is not
executable, i.e., $0.00.
Finally, unrelated to issues raised in
present filing, the Exchange is also
proposing technical, non-substantive
edits to delete from the Exchange rules
the outdated/obsolete references to
securities operating in ‘‘Non-Firm
Mode,’’ including in Rule 60(c)(ii)(A)
and Rule 1000(a)(i), or the block
template, referred to in Rule 60(ii)(B),
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which is the ‘‘manual reporting of a
block-sized transaction.’’ The Exchange
also proposes to delete the reference to
‘‘S-quotes’’ in Rule 60(d), 1000(a) and
1000(e)(iii)(A), as DMM interest is no
longer solely referred to in this manner
and the Exchange believes the proposed
amendment will remove this outmoded
and narrow reference. The Exchange
also proposes to amend the last sentence
of Rule 60(d), regarding ‘‘[a]utoquoting
of highest bid/lowest offer,’’ to account
for the impact of the Trading Collars.27
In addition, the Exchange proposes to
amend Rule 1000(e)(iii)(A)(4) to replace
an incorrect reference to NYSE with a
reference to the Exchange. The
Exchange proposes to delete Rule
79A.15(ii)(C)(6), which is an outmoded
reference to bonds that does not
conform to how bonds currently operate
on the Exchange or the NYSE, and to
renumber the remaining subparts of this
rule accordingly. Finally, the Exchange
proposes to delete an erroneous
reference in Rule 1000(e)(iv) to
paragraph (d)(iii), as there is no such
paragraph in the Rule.
Implementation
The Exchange will announce the
implementation date of the proposed
rule change by Trader Update.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(5) 28 that an
Exchange have rules that are designed to
promote the 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.
As an initial matter, the Exchange
notes that the proposed Trading Collar,
which is designed to designed to
promote the 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, is similar
to the price protection features offered
on other markets, including NYSE Arca
Equities.29 As noted above, the specified
27 As proposed, the final sentence of Rule 60(d)
would state the following: ‘‘When the Exchange’s
highest bid or lowest offer has been executed or
cancelled in its entirety, the Exchange will
autoquote a new bid or offer reflecting the total size
of displayable orders at the next highest (in the case
of a bid) or lowest (in the case of an offer) price.’’
28 15 U.S.C. 78f(b)(5).
29 See e.g., NYSE Arca Equities Rule 7.31(a)(2).
See also BATS Exchange, Inc. (‘‘BATS) Rule
11.9(a)(2); BATS Y-Exchange, Inc. (‘‘BATS–Y’’)
Rule 11.9(a)(2); EDGA Exchange, Inc. (‘‘EDGA’’)
Rule 11.8(a)(7); EDGX Exchange, Inc. (‘‘EDGX’’)
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Federal Register / Vol. 80, No. 14 / Thursday, January 22, 2015 / Notices
percentages relating to the Trading
Collar are based on the current
numerical guidelines for determining
whether a clearly erroneous execution
has occurred and are the same as the
approved specified percentages
applicable to similar trading collar
functionality on NYSE Arca Equities.30
Moreover, the Exchange believes that
the proposed Trading Collar assists with
the maintenance of fair and orderly
markets by helping to mitigate the risks
associated with orders sweeping
through multiple price points, thereby
resulting in executions that are
potentially erroneous, which, in turn,
protects investors from potentially
receiving executions away from the
prevailing prices at any given time.
Specifically, the Exchange believes the
Trading Collars will remove
impediments to and perfect the
mechanisms of a free and open market
because the Trading Collars will operate
in tandem with the Plan and will only
execute/route incoming market orders
or marketable limit orders priced within
the Trading Collars or within the Upper
(Lower) Band set forth in the Plan, if the
latter is more conservative. The
Exchange believes this mechanism will
mitigate the risk of potentially
erroneous executions, which protects
investors and the public interest.
The Exchange also believes its use of
the BB/BO when the NBBO is crossed
assists with the maintenance of fair and
orderly markets as a crossed NBBO is
generally indicative of an erroneously
priced bid and/or offer, and should not
be considered reliable for the purposes
of determining the specified percentages
for a Trading Collar. The Exchange
believes that this practice will help
ensure that market participants obtain
timely executions of their market orders
and marketable limit orders while still
being afforded the price protection
benefit of Trading Collar functionality,
which protects investors and the public
interest.
Similarly, the Exchange believes that
affording Trading Collar price
protection to d-Quotes as well as to UTP
Securities would remove impediments
to and perfect the mechanism of a free
and open market as the Trading Collar
would prevent the execution of dQuotes and UTP Securities that are
priced far away from the prevailing
market price from causing significant
price dislocation in the market, which,
in turn, benefits investors and is in the
public interest.
Rule 11.8(a)(7); Nasdaq Stock Market LLC
(‘‘Nasdaq’’) Rule 4751(f)(13).
30 See supra nn. 17–18.
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The Exchange believes that the
technical, non-substantive proposed
amendments and/or deletions related to
the Trading Collar in rules other than
Rule 1000—Equities, as described
above, remove impediments to and
perfect the mechanism of a free and
open market and a national market
system and, in general, protect investors
and the public interest. Specifically, the
Exchange believes that the proposed
changes add transparency and clarity to
the Exchange’s rules and will enhance
the understanding of market
participants by reducing potential
confusion that the obsolete references
would otherwise create.
Finally, the Exchange previously
committed to discontinue the Exchangespecific volatility mechanisms; thus, the
elimination of LRPs and the Exchange’s
Gap Quote Policy are expected
changes.31 Moreover, the
implementation of the Plan, together
with the proposed Trading Collars
eliminates the necessity for these
Exchange-specific volatility
mechanisms, as the Exchange will have
in place appropriate price protections
for all securities traded on the
Exchange, including for rights and
warrants.
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 not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes the adding of Trading
Collar protection will provide market
participants with additional protection
from anomalous executions. Thus, the
Exchange does not believe the proposal
creates any significant impact on
competition.
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 32 and Rule
19b–4(f)(6) thereunder.33 Because the
proposed rule change does not: (i)
Significantly affect the protection of
31 See
supra nn. 4, 7–9.
U.S.C. 78s(b)(3)(A)(iii).
33 17 CFR 240.19b–4(f)(6).
32 15
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3277
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 34 and Rule 19b–4(f)(6)(iii)
thereunder.35
A proposed rule change filed under
Rule 19b–4(f)(6) 36 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),37 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. The Exchange asserts
that the rule change proposed herein
would meet the Commission’s
previously stated expectation that the
Exchange discontinue its LRPs.38
Furthermore, the Exchange states its
belief that meeting this expectation as
soon as the technology becomes
available, which the Exchange
represents would be before the end of
the operative-delay period, is consistent
with the protection of investors and the
public interest because it would
implement the discontinuation of its
LRPs as expeditiously as possible.
Finally, the Exchange asserts that the
proposed rule change would also add
market collars that are similar to
existing mechanisms on other markets
and would reduce the potential of a
clearly erroneous execution occurring
on the Exchange. The Exchange,
therefore, concludes that waiver of the
operative delay so that it can market
collars as soon as the technology is
available is not only consistent with the
protection of investors and the public
interest, but would also benefit
investors and the public interest.
Because the proposed rule change
would eliminate the Exchange’s LRPs,
consistent with the adoption of the Plan,
and because the proposed rule change is
designed to prevent clearly erroneous
order executions, the Commission
34 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
36 17 CFR 240.19b–4(f)(6).
37 17 CFR 240.19b–4(f)(6)(iii).
38 See supra n. 4.
35 17
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Federal Register / Vol. 80, No. 14 / Thursday, January 22, 2015 / Notices
believes that waiver of the operative
delay is consistent with investor
protection and the public interest.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.39
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is 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
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
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEMKT–2015–02 on the subject line.
tkelley on DSK3SPTVN1PROD with NOTICES
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–NYSEMKT–2015–02. 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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal offices 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–2015–02, and should be
submitted on or before February 12,
2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.40
Brent J. Fields,
Secretary.
[FR Doc. 2015–00967 Filed 1–21–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74062; File No. SR–Phlx–
2015–06]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Amendments to Sections II and IV of
the Pricing Schedule
January 15, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that, on January
13, 2015, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III, below, which Items have been
prepared by the Exchange. 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 the
Monthly Market Maker Cap 3 and
40 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Specialists and Market Makers are subject to a
‘‘Monthly Market Maker Cap’’ of $550,000 for: (i)
Electronic and floor Option Transaction Charges;
1 15
39 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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certain transaction fees applicable to
Specialists 4 and Market Makers 5 that
have reached the Monthly Market Maker
Cap, which are located in the
Exchange’s Pricing Schedule at Section
II, entitled ‘‘Multiply Listed Options.’’ 6
The Exchange also proposes to make
conforming and clarifying amendments
to Section IV, Part A of the Pricing
Schedule entitled ‘‘PIXL Pricing.’’
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.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
Exchange 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 these
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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
certain Specialist and Market Maker
pricing located in the Exchange’s
Pricing Schedule in Section II, entitled
‘‘Multiply Listed Options’’ in order to
(ii) QCC Transaction Fees (as defined in Exchange
Rule 1080(o) and Floor QCC Orders, as defined in
1064(e)); and (iii) fees related to an order or quote
that is contra to a PIXL Order or specifically
responding to a PIXL auction. The trading activity
of separate Specialist and Market Maker member
organizations is aggregated in calculating the
Monthly Market Maker Cap if there is Common
Ownership between the member organizations. All
dividend, merger, short stock interest, reversal and
conversion, jelly roll and box spread strategy
executions (as defined in Section II) are excluded
from the Monthly Market Maker Cap.
4 A Specialist is an Exchange member who is
registered as an options specialist pursuant to Rule
1020(a). An options Specialist includes a Remote
Specialist which is defined as an options specialist
in one or more classes that does not have a physical
presence on an Exchange floor and is approved by
the Exchange pursuant to Rule 501.
5 A ‘‘market maker’’ includes Registered Options
Traders (Rule 1014(b)(i) and (ii)), which includes
Streaming Quote Traders (see Rule 1014(b)(ii)(A))
and Remote Streaming Quote Traders (see Rule
1014(b)(ii)(B)). Directed Participants are also market
makers.
6 This includes options overlying equities, ETFs,
ETNs and indexes which are Multiply Listed.
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]]>Agencies
[Federal Register Volume 80, Number 14 (Thursday, January 22, 2015)]
[Notices]
[Pages 3273-3278]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-00967]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74064; File No. SR-NYSEMKT-2015-02]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Add a Price
Protection Mechanism To Prevent the Automatic Execution of Incoming
Market Orders and Marketable Limit Orders Outside a Specified Parameter
and Eliminate Liquidity Replenishment Points and the Gap Quote Policy
January 15, 2015.
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 January 8, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. 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 (i) amend Rule 1000 to add a price
protection mechanism to prevent the automatic execution of incoming
market orders and marketable limit orders outside a specified parameter
and (ii) eliminate its Exchange-specific volatility mechanisms--
Liquidity Replenishment Points (``LRPs'') and its Gap Quote Policy--and
to delete any references thereto from the Exchange rules. 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,
[[Page 3274]]
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 1000--Equities to add a price
protection mechanism to prevent the automatic execution of incoming
market orders and marketable limit orders outside a specified parameter
(referred to as a ``Trading Collar''). The Exchange also proposes to
eliminate its Exchange-specific volatility mechanisms--LRPs and Gap
Quote Policy--and to delete any references thereto from the Exchange
rules. The Exchange believes that the proposed Trading Collars would
assist with the maintenance of fair and orderly markets by mitigating
the risks associated with orders sweeping through multiple price
points, resulting in executions at prices that are away from the best
bid or offer and potentially erroneous. As discussed further below, the
discontinuation of the Exchange-specific volatility mechanisms were
anticipated changes following implementation of the Regulation NMS Plan
to Address Extraordinary Market Volatility (the ``Plan'').\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498, 33510, n. 182 (June 6, 2012) (File No. 4-631)
(Order Approving, on a Pilot Basis, the Plan) (The Commission
``expects, that upon implementation of the Plan, such exchange-
specific volatility mechanisms would be discontinued by the
respective exchanges.'') See also Securities Exchange Act Release No
71649 (March 5, 2014), 79 FR 13696 (March 11, 2014) (File No. 4-631)
(the Seventh Amendment to the Plan).
---------------------------------------------------------------------------
Background: Liquidity Replenishment Points and Gapping the Quote
Rule 1000--Equities provides for the basic operative principles
regarding the immediate, automatic execution of market orders and
marketable limit orders against the Exchange's published quotation.\5\
The Rule also lists instances in which automatic execution would not be
available due to certain market conditions, including when Exchange-
specific volatility mechanisms, specifically LRPs and gapping the
quote, have been triggered.
---------------------------------------------------------------------------
\5\ Automatic executions may also be against orders on the
Display Book[supreg], Floor broker agency file interest, Floor
broker proprietary file interest, Designated Market Maker (``DMM'')
interest, and interest placed in the Exchange's systems by DMMs
pursuant to a Capital Commitment Schedule in accordance with, and to
the extent provided by, Exchange rules and shall be immediately
reported as Exchange transactions. See Rule 1000(a).
---------------------------------------------------------------------------
Liquidity Replenishment Points
In March 2006, the Exchange implemented the LRP mechanism to
address market volatility on the New York Stock Exchange, LLC
(``NYSE'') and, in 2008, adopted LRPs for use on the Exchange.\6\ The
Exchange has utilized LRPs, which are triggered by rapid price
movements over a short period of time, to moderate volatility in a
security by temporarily converting the electronic market for the
security into an auction market to afford new trading interests the
opportunity to add liquidity.\7\ The Exchange believes that LRPs were
effective in moderating some of the impact from the events of May 6,
2010 for Exchange trading customers, as evidenced by the lack of
erroneous trades on the Exchange.\8\ In 2012, in approving the Plan,
the Commission noted the ``potential for unnecessary complexity that
could result if the Plan were adopted, and exchange-specific volatility
mechanisms were retained''; thus, the Commission stated its
``expect[ation], that upon implementation of the Plan, such exchange-
specific volatility mechanisms would be discontinued by the respective
exchanges.'' \9\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 53539 (March 22,
2006), 71 FR 16353 (March 31, 2006) (SR-NYSE-2004-05); see also
Securities Exchange Act Release Nos. 58265 (July 30, 2008), 73 FR
46075 (Aug. 7, 2008) (notice); 58705 (October 1, 2008), 73 FR 58995
(October 8, 2008) (SR-Amex-2008-63) (approval order for the adoption
of NYSE Rules 1-1004 on the Exchange).
\7\ See Securities Exchange Act Release No. 69294 (April 4,
2013), 78 FR 21441 (April 10, 2013) (SR-NYSEMKT-2013-33).
\8\ Id.
\9\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498, 33510, n. 182 (June 6, 2012).
---------------------------------------------------------------------------
In 2013, to coincide with the implementation of the Plan, the
Exchange filed amendments to Rule 1000 that provided for the phasing
out of the functionality associated with LRPs as the Plan was phased in
across all NMS Stocks.\10\ The Plan was fully implemented across all
NMS Stocks on February 24, 2014, and as such, pursuant to Rule
1000(a)(iv)(A), the Exchange has discontinued the use of LRPs for all
NMS Stocks that are subject to the Plan.\11\
---------------------------------------------------------------------------
\10\ See supra n. 7; See Securities Exchange Act Release No.
69696 (June 4, 2013) 78 FR 34687 (June 10, 2013) (SR-NYSEMKT-2013-
46).
\11\ See Securities and Exchange Act Release No. 71649 (March 5,
2014), 79 FR 13696 (March 11, 2014) (File No. 4-631) (the Seventh
Amendment to the Plan). The Exchange notes that rights and warrants
are not subject to the Plan, and therefore continue to be subject to
LRPs.
---------------------------------------------------------------------------
Gapping the Quote
When an imbalance in a particular security exists, the manual
process known as ``gapping the quote'' occurs--specifically, the DMM
for the security widens the spread between the bid and offer and
publishes a new gapped quote. Order imbalances may occur when the
Exchange receives a sudden influx of orders for a particular security
on the same side of the market within a short time interval, or when
one or more large-size orders for a security are entered, and there is
insufficient offsetting interest. The Exchange first implemented its
policies and procedures for gapping the quote in 1994 and updated the
Gap Quote Policy in 2010.\12\ As stated in the Policy, a DMM gaps a
quote to ``provide public notice of order imbalances for securities,
facilitate price discovery, and minimize short-term price dislocation,
by allowing for the entry of offsetting orders or the cancellation of
orders on the side.'' \13\ A DMM may gap a quote after an LRP has been
reached. A gapped quote is not available for automatic execution.
---------------------------------------------------------------------------
\12\ See Information Memo 94-32 (August 9, 1994), filed as SR-
NYSE-93-48. See Securities Exchange Act Release No. 34303 (July 1,
1994), 59 FR 35157 (July 8, 1994). See also Information Memorandum
10-3 (January 7, 2010), filed as NYSEAmex-2010-05. See Securities
and Exchange Act Release No. 61402 (January 22, 2010), 75 FR 4602
(January 28, 2010) (changing the minimum size and value requirements
for use of gap quotes).
\13\ See Securities Exchange Act Release No. 61049 (November 23,
2009), 74 FR 62851 (SR-NYSEAmex-2009-82) (December 1, 2009).
---------------------------------------------------------------------------
Proposed Trading Collar
The Exchange proposes to amend Rule 1000--Equities to add a price
protection mechanism to prevent the automatic execution or routing of
incoming market orders, including elected stop orders, and marketable
limit orders \14\ outside a specified parameter (referred to as a
``Trading Collar''). As proposed, an incoming market order or
marketable limit order to buy (sell) would not execute or route to
another market center at a price above (below) the Trading Collar.
Trading Collars would be applicable only when automatic executions are
in effect.\15\ As
[[Page 3275]]
discussed below, on arrival, a buy/sell order would be automatically
executed up/down to (and including, but not beyond) the Trading Collar
and any remaining interest shall be cancelled. Unless it is a non-
routable order, the order would route to all markets at or better than
the Trading Collar.\16\
---------------------------------------------------------------------------
\14\ A market order is an ``order to buy or sell a stated amount
of a security at the most advantageous price obtainable after the
order is represented in the Trading Crowd or routed to the Display
Book[supreg].'' See Rule 13--Equities. A marketable limit order is
defined as ``a limit order to buy (sell) priced at or above (below)
the Exchange best offer (bid) at the time such order is routed to
the Display Book[supreg].'' Id. Because a stop order becomes a
market order when elected, the Exchange believes it is appropriate
to provide that elected stop orders would be subject to the proposed
Trading Collar.
\15\ See proposed Rule 1000(c)(ii)--Equities. Both market orders
and marketable limit orders are ``auto ex orders'' that initiate
automatic executions immediately upon entry into the Exchange
systems. See Rule 13--Equities. Trading Collars would not be
applicable to Set Slow Stocks, or to pre-opening, opening, closing
or manual transactions, and are not in effect during a halt,
suspension, or pause in trading. Trading Collars would apply, and be
determined, when discretionary pricing instructions are triggered.
Trading Collars would not be displayed.
\16\ If, however, an order that routed to an away market returns
to the Exchange unexecuted, the Trading Collar based on the NBBO in
place at the time of execution would be used for that incoming (now
returning) order, not the Trading Collar based on the NBBO in place
at the time of the original arrival of the order.
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Pursuant to proposed Rule 1000(c)(i), a Trading Collar would be a
specified percentage away from the National Best Bid or Offer
(``NBBO''), depending on whether it is a buy or sell order, and the
specified percentage would vary depending on the NBBO at the time the
order arrives and/or is executed. For buy orders, the Trading Collar
would be a specified percentage above the National Best Offer
(``NBO''). For sell orders, the Trading Collar would be a specified
percentage below the National Best Bid (``NBB''). The proposed Trading
Collars are set forth in the table below.
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Percentage
NBB/NBO away from
the NBB/NBO
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Greater than $0.00, up to and including $25.00............ 10
Greater than $25.00, up to and including $50.00........... 5
Greater than $50.00....................................... 3
------------------------------------------------------------------------
The Exchange notes that these proposed percentages are based on the
current numerical guidelines for determining whether a clearly
erroneous execution has occurred.\17\ The Exchange further notes that
the proposed percentages are the same as the percentages applicable to
similar trading collar functionality on NYSE Arca Equities, Inc.
(``NYSE Arca Equities'').\18\ The Exchange believes that the proposed
specified percentages are appropriate because the Trading Collar is
designed to reduce the risk of, and to potentially prevent, the
automatic execution of orders at prices that may be considered clearly
erroneous. Because the specified percentage may extend multiple decimal
points, the Exchange proposes to truncate Trading Collars to the
nearest minimum price variation (``MPV'') for the security.\19\
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\17\ See Rule 128(c)(1)--Equities.
\18\ See NYSE Arca Equities Rule 7.31(a)(2).
\19\ See Rule 62--Equities.
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Consider an example where the NBBO is $24.95 x 25.01. In such
scenario, the Trading Collar for buy orders would be $26.26 (i.e.,
$25.01 + 5% = $26.2605, truncated to $26.26) and the Trading Collar for
sell orders would be $22.44 [sic] (i.e., $24.95 - 10% = $22.455,
truncated to $22.45).
The Exchange proposes that if the NBBO is crossed, the Exchange
would use the Exchange Best Offer (``BO'') instead of the NBO for buy
orders, and the Exchange Best Bid (``BB'') instead of the NBB for sell
orders.
The Exchange believes it is appropriate to use the BB/BO when the
NBBO is crossed as a crossed NBBO is generally indicative of an
erroneously priced or stale bid and/or offer, and may not be
appropriate reference prices for calculating Trading Collars. The
Exchange believes that this practice will help ensure that market
participants obtain timely executions of their market orders and
marketable limit orders while still being afforded the price protection
benefit of the Trading Collars. As proposed, in the event there is no
NBB or BB, the lower boundary of the Trading Collar would be zero
because there would be no reference price against which to determine
the appropriate Trading Collar. Similarly, in the event there is no NBO
or BO, the upper boundary of the Trading Collar would be set to the
maximum price that the System could handle. Notwithstanding the Trading
Collar, any incoming market orders or marketable limit orders would
still be subject to the Plan and could not execute outside of the Upper
(Lower) Price Band, as defined in Rule 80C--Equities.
Pursuant to proposed Rule 1000(c)(ii), an incoming market order,
including an elected stop order, or marketable limit order would
execute and/or route up or down to (and including) the Trading Collar
and any remaining interest would be cancelled. The Exchange believes
that Trading Collars, working in conjunction with the Plan, could help
limit potential harm from extreme price volatility by preventing
executions that could occur at a price significantly away from the
contra side. As proposed, if the Trading Collar for incoming buy (sell)
interest is lower (higher) than or equals the Upper (Lower) Price Band
\20\, the Exchange would cancel any remaining interest. The Plan,
however, would take priority over the Trading Collars where the Plan
affords more price protection to incoming orders. Specifically, if the
Upper (Lower) Price Band is lower (higher) than the Trading Collar, the
order would execute at the more restrictive Upper (Lower) Price Band
and not beyond and any remaining interest would be displayed or
repriced to the Price Band, consistent with Rule 80C(a)(5)--Equities.
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\20\ See Rule 80C--Equities.
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The Exchange notes that if there is no execution opportunity at the
Exchange for an incoming buy (sell) order at a price above (below) the
NBO (NBB), the Exchange would not be obligated to route the order to an
away market protected offer (bid) because the incoming order would not
be trading through such protected quotation. The Exchange therefore
proposes that if there is no execution opportunity at the Exchange for
an incoming buy (sell) order at a price above (below) the NBO (NBB) and
at or below (above) the Trading Collar, a buy (sell) order that is
priced at or above (below) the Trading Collar would be cancelled. The
Exchange further proposes that a similarly-priced, partially-executed
order would also be cancelled.
For example, assume the NBO is 10.00, based on a quote from an away
market, and therefore the proposed Trading Collar is 11.00. Assume
further that the Exchange's best offer is 11.05 and with these
conditions, the Exchange receives an incoming buy order priced at
11.02. Because there is no execution opportunity for the incoming buy
order above the NBO and at or below the Trading Collar, and because the
order's limit price exceeds the Trading Collar, the incoming buy order
would be cancelled. The buy order would cancel rather than route
because the Exchange would not trade through another market. Similarly,
assuming the same facts, but the Exchange has non-displayed interest to
sell priced at 9.99. An incoming buy order priced at 11.02 would
execute against that 9.99 non-displayed sell interest, and then any
remainder of the buy order would similarly be cancelled because there
is no execution opportunity priced above the NBO of 10.00 or at or
below the Trading Collar of 11.00.
Finally, pursuant to proposed Rule 1000(c)(iii), during a Short
Sale Price Test,\21\ if the NBBO is crossed, short sale orders that
would be re-priced to a Trading Collar would be cancelled. Under Rule
201 of Regulation SHO,\22\ when the NBBO is crossed, a short sale order
in a covered security may be displayed or executed at a price that is
less than or equal to the current national
[[Page 3276]]
best bid.\23\ Accordingly, if the NBBO is crossed, a short sale order
priced at or below the Trading Collar could be re-priced to the Trading
Collar, which is by definition a price below the NBB. In the spirit of
Rule 201 of Regulation SHO, which is to prevent the display or
execution of short sale orders at prices equal to or below the NBB, the
Exchange believes that it is appropriate during a crossed market to
cancel a short sale order that would be re-priced to a Trading Collar
rather than display the order at that price.
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\21\ See Rule 440B(b)--Equities.
\22\ 17 CFR part 242.201.
\23\ See SEC Division of Trading and Markets: Responses to
Frequently Asked Questions Concerning Rule 201 of Regulation Show,
FAQ 6.1, available at: https://www.sec.gov/divisions/marketreg/rule201faq.htm.
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The Exchange also proposes to amend Rule 70.25(b)(i)--Equities,
regarding price discretion or ``d-Quotes,'' which states that ``[a]
Floor broker may set a discretionary price range that specifies the
prices at which the Floor broker is willing to trade.'' Specifically,
the Exchange proposes to amend this Rule to provide that d-Quotes are
subject to the Trading Collar and/or the Price Bands and, thus,
pursuant to the amended rule, Floor Brokers may use discretion to
initiate or participate in a trade with interest capable of trading at
a price within the discretionary price range ``unless the interest
reaches a Trading Collar or Price Band, whichever is reached first.''
\24\ The Exchange believes it is appropriate to similarly afford
Trading Collar price protection to d-Quotes to prevent the execution of
orders with discretionary price instructions at prices outside the
prevailing market price from causing significant price dislocation in
the market.\25\
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\24\ See proposed Rule 70.25(b)(i).
\25\ The Trading Collar applies to d-Quotes in the same manner
as other order types. See supra n. 15 (Trading Collars apply when
discretionary pricing instructions are triggered, but do not apply
to openings, re-openings, or closing trades).
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The Exchange also proposes to amend Rule 512--Equities to state
that Trading Collars would apply to UTP Securities.\26\ Although LRPs
do not apply to UTP Securities, the Exchange believes it is appropriate
to afford these securities Trading Collar protection because
application of the Trading Collar is a straightforward and objective
process that does not raise the same issue as was at issue for UTP
Securities, i.e., identifying appropriate LRP values for actively-
traded symbols that have low volume on the Exchange.
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\26\ Current Rule 512--Equities states that LRPs will not apply
to UTP Securities. See Information Memo 10-34 (July 12, 2010)
(explaining that the Nasdaq Securities newly-listed on the Exchange
would ``be more thinly traded on the Exchange, with lower volume and
less liquidity than its listed securities, and that prices for
Nasdaq Securities will therefore be more volatile'' and thus ``in
order to avoid triggering too many `slow' trading situations, the
Exchange removed the application of LRP parameters for trading
Nasdaq Securities.''). In 2014, the Exchange expanded the UTP
Program beyond Nasdaq securities. See Securities Exchange Act
Release No. 71952 (April 16, 2014) 79 FR 22558 (April 22, 2014) (SR-
NYSEMKT-2014-32).
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Proposed Elimination of LRPs and Gap Quote Policy
As noted above, by rule, the Exchange has already discontinued the
use of LRPs for any security subject to the Plan. However, LRPs
continue to be available for rights and warrants, which are not subject
to the Plan. The Exchange believes that with the introduction of
Trading Collars it will have in place appropriate price protections for
rights and warrants and the Exchange will no longer need LRPs for those
securities. Accordingly, the Exchange proposes to complete the
Exchange's discontinuation of LRPs in their entirety by deleting
references to LRPs in the following Equities Rules: 60, 79A, 104, 128,
501, 508, 512, and 1000.
For similar reasons, the Exchange believes it appropriate to
discontinue the Gap Quote Policy. Accordingly, the Exchange proposes to
eliminate its Gap Quote Policy in its entirety and to delete references
thereto in the following Equities Rules: 60, 79A, 104, 501, 508, and
1000.
Relatedly, the Exchange also proposes to amend Rule 1000(e)
(Executions at and Outside the Exchange Best Bid or Offer) to add
references to Trading Collars and/or Price Bands, in certain cases to
replace deleted references to LRPs. The Exchange believes these
proposed changes will add transparency and clarity to the Exchange's
rules.
Other Proposed Amendments
In connection with the addition of the Trading Collar, the Exchange
also proposes to amend the definition of market order, in Rule 13--
Equities, to state that if a market order to sell has exhausted all
eligible buy interest, any unfilled balance of the market order to sell
will be cancelled. The Exchange believes that this is appropriate
because it assures that a market order to sell will not be held at a
price that it is not executable, i.e., $0.00.
Finally, unrelated to issues raised in present filing, the Exchange
is also proposing technical, non-substantive edits to delete from the
Exchange rules the outdated/obsolete references to securities operating
in ``Non-Firm Mode,'' including in Rule 60(c)(ii)(A) and Rule
1000(a)(i), or the block template, referred to in Rule 60(ii)(B), which
is the ``manual reporting of a block-sized transaction.'' The Exchange
also proposes to delete the reference to ``S-quotes'' in Rule 60(d),
1000(a) and 1000(e)(iii)(A), as DMM interest is no longer solely
referred to in this manner and the Exchange believes the proposed
amendment will remove this outmoded and narrow reference. The Exchange
also proposes to amend the last sentence of Rule 60(d), regarding
``[a]utoquoting of highest bid/lowest offer,'' to account for the
impact of the Trading Collars.\27\ In addition, the Exchange proposes
to amend Rule 1000(e)(iii)(A)(4) to replace an incorrect reference to
NYSE with a reference to the Exchange. The Exchange proposes to delete
Rule 79A.15(ii)(C)(6), which is an outmoded reference to bonds that
does not conform to how bonds currently operate on the Exchange or the
NYSE, and to renumber the remaining subparts of this rule accordingly.
Finally, the Exchange proposes to delete an erroneous reference in Rule
1000(e)(iv) to paragraph (d)(iii), as there is no such paragraph in the
Rule.
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\27\ As proposed, the final sentence of Rule 60(d) would state
the following: ``When the Exchange's highest bid or lowest offer has
been executed or cancelled in its entirety, the Exchange will
autoquote a new bid or offer reflecting the total size of
displayable orders at the next highest (in the case of a bid) or
lowest (in the case of an offer) price.''
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Implementation
The Exchange will announce the implementation date of the proposed
rule change by Trader Update.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \28\ that an Exchange have rules that
are designed to promote the 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.
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\28\ 15 U.S.C. 78f(b)(5).
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As an initial matter, the Exchange notes that the proposed Trading
Collar, which is designed to designed to promote the 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, is similar to
the price protection features offered on other markets, including NYSE
Arca Equities.\29\ As noted above, the specified
[[Page 3277]]
percentages relating to the Trading Collar are based on the current
numerical guidelines for determining whether a clearly erroneous
execution has occurred and are the same as the approved specified
percentages applicable to similar trading collar functionality on NYSE
Arca Equities.\30\
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\29\ See e.g., NYSE Arca Equities Rule 7.31(a)(2). See also BATS
Exchange, Inc. (``BATS) Rule 11.9(a)(2); BATS Y-Exchange, Inc.
(``BATS-Y'') Rule 11.9(a)(2); EDGA Exchange, Inc. (``EDGA'') Rule
11.8(a)(7); EDGX Exchange, Inc. (``EDGX'') Rule 11.8(a)(7); Nasdaq
Stock Market LLC (``Nasdaq'') Rule 4751(f)(13).
\30\ See supra nn. 17-18.
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Moreover, the Exchange believes that the proposed Trading Collar
assists with the maintenance of fair and orderly markets by helping to
mitigate the risks associated with orders sweeping through multiple
price points, thereby resulting in executions that are potentially
erroneous, which, in turn, protects investors from potentially
receiving executions away from the prevailing prices at any given time.
Specifically, the Exchange believes the Trading Collars will remove
impediments to and perfect the mechanisms of a free and open market
because the Trading Collars will operate in tandem with the Plan and
will only execute/route incoming market orders or marketable limit
orders priced within the Trading Collars or within the Upper (Lower)
Band set forth in the Plan, if the latter is more conservative. The
Exchange believes this mechanism will mitigate the risk of potentially
erroneous executions, which protects investors and the public interest.
The Exchange also believes its use of the BB/BO when the NBBO is
crossed assists with the maintenance of fair and orderly markets as a
crossed NBBO is generally indicative of an erroneously priced bid and/
or offer, and should not be considered reliable for the purposes of
determining the specified percentages for a Trading Collar. The
Exchange believes that this practice will help ensure that market
participants obtain timely executions of their market orders and
marketable limit orders while still being afforded the price protection
benefit of Trading Collar functionality, which protects investors and
the public interest.
Similarly, the Exchange believes that affording Trading Collar
price protection to d-Quotes as well as to UTP Securities would remove
impediments to and perfect the mechanism of a free and open market as
the Trading Collar would prevent the execution of d-Quotes and UTP
Securities that are priced far away from the prevailing market price
from causing significant price dislocation in the market, which, in
turn, benefits investors and is in the public interest.
The Exchange believes that the technical, non-substantive proposed
amendments and/or deletions related to the Trading Collar in rules
other than Rule 1000--Equities, as described above, remove impediments
to and perfect the mechanism of a free and open market and a national
market system and, in general, protect investors and the public
interest. Specifically, the Exchange believes that the proposed changes
add transparency and clarity to the Exchange's rules and will enhance
the understanding of market participants by reducing potential
confusion that the obsolete references would otherwise create.
Finally, the Exchange previously committed to discontinue the
Exchange-specific volatility mechanisms; thus, the elimination of LRPs
and the Exchange's Gap Quote Policy are expected changes.\31\ Moreover,
the implementation of the Plan, together with the proposed Trading
Collars eliminates the necessity for these Exchange-specific volatility
mechanisms, as the Exchange will have in place appropriate price
protections for all securities traded on the Exchange, including for
rights and warrants.
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\31\ See supra nn. 4, 7-9.
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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 not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes the
adding of Trading Collar protection will provide market participants
with additional protection from anomalous executions. Thus, the
Exchange does not believe the proposal creates any significant impact
on competition.
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 \32\ and Rule 19b-4(f)(6) thereunder.\33\
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 \34\ and Rule 19b-
4(f)(6)(iii) thereunder.\35\
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\32\ 15 U.S.C. 78s(b)(3)(A)(iii).
\33\ 17 CFR 240.19b-4(f)(6).
\34\ 15 U.S.C. 78s(b)(3)(A).
\35\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \36\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\37\ 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. The Exchange
asserts that the rule change proposed herein would meet the
Commission's previously stated expectation that the Exchange
discontinue its LRPs.\38\ Furthermore, the Exchange states its belief
that meeting this expectation as soon as the technology becomes
available, which the Exchange represents would be before the end of the
operative-delay period, is consistent with the protection of investors
and the public interest because it would implement the discontinuation
of its LRPs as expeditiously as possible. Finally, the Exchange asserts
that the proposed rule change would also add market collars that are
similar to existing mechanisms on other markets and would reduce the
potential of a clearly erroneous execution occurring on the Exchange.
The Exchange, therefore, concludes that waiver of the operative delay
so that it can market collars as soon as the technology is available is
not only consistent with the protection of investors and the public
interest, but would also benefit investors and the public interest.
Because the proposed rule change would eliminate the Exchange's LRPs,
consistent with the adoption of the Plan, and because the proposed rule
change is designed to prevent clearly erroneous order executions, the
Commission
[[Page 3278]]
believes that waiver of the operative delay is consistent with investor
protection and the public interest. Accordingly, the Commission hereby
waives the 30-day operative delay and designates the proposal operative
upon filing.\39\
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\36\ 17 CFR 240.19b-4(f)(6).
\37\ 17 CFR 240.19b-4(f)(6)(iii).
\38\ See supra n. 4.
\39\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is 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 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
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEMKT-2015-02 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-NYSEMKT-2015-02. 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
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal offices 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-2015-02, and should
be submitted on or before February 12, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\40\
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\40\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-00967 Filed 1-21-15; 8:45 am]
BILLING CODE 8011-01-P
