Self-Regulatory Organizations; National Stock Exchange, Inc.; Order Approving a Proposed Rule Change To Modify and Eliminate Certain Rules and To Enable Trading Activity To Resume on the Exchange, 79122-79124 [2015-31790]
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79122
Federal Register / Vol. 80, No. 243 / Friday, December 18, 2015 / Notices
market by ensuring that persons subject
to the Exchange’s jurisdiction,
regulators, and the investing public can
more easily navigate and understand the
Exchange’s rulebook. The Exchange
believes that eliminating obsolete
references would not be inconsistent
with the public interest and the
protection of investors because investors
will not be harmed and in fact would
benefit from increased transparency,
thereby reducing potential confusion.
Removing such obsolete references will
also further the goal of transparency and
add clarity to the Exchange’s rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Exchange Act.
The proposed rule change is not
intended to address competitive issues
but rather is concerned solely with the
administration and functioning of the
Exchange and its board of directors.
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
Within 45 days of the date of
publication of this notice in the Federal
Register or up to 90 days (i) as the
Commission may designate if it finds
such longer period to be appropriate
and publishes its reasons for so finding
or (ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEMKT–2015–106 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEMKT–2015–106. 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 will also be available for
inspection and copying at the NYSE’s
principal office and on its Internet Web
site at www.nyse.com. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEMKT–2015–106 and should be
submitted on or before January 8, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–31788 Filed 12–17–15; 8:45 am]
BILLING CODE 8011–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76640; File No. SR–NSX–
2015–05]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Order
Approving a Proposed Rule Change To
Modify and Eliminate Certain Rules
and To Enable Trading Activity To
Resume on the Exchange
December 14, 2015.
I. Introduction
On November 3, 2015, the National
Stock Exchange (‘‘NSX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to the provisions of Section 19(b)(1) of
the Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change proposing
changes that would, among other things,
allow trading activity to resume on the
Exchange.3 The proposed rule change
was published for comment in the
Federal Register on November 13,
2015.4 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
II. Description of the Proposed Rule
Change
The Exchange proposes to amend
Rule 11.1 (Hours of Trading) to rescind
Interpretations and Policies .01
(Cessation of Trading Operations NSX)
to permit the Exchange to resume
trading activity. The Exchange also
proposes to (i) amend Rule 11.11
(Orders and Modifiers) to remove
descriptions of certain order types that
the Exchange will not offer when it
resumes trading and to correct the
numbering of certain subparagraphs of
the rule; (ii) delete Rule 11.12 (Cross
Message) and make conforming changes
to Rules 11.11(c) and 16.2; (iii) amend
Rule 11.13 and Interpretations and
Policies .01 to eliminate the order
delivery mode of order interaction with
the Exchange’s trading system (‘‘Order
Delivery’’); and (iv) adopt Rule 11.25
(Use of Market Data Feeds) to describe
the Exchange’s use of certain data feeds
for order handling and execution.5
1 15
U.S.C. 782(b)(1).
CFR 249.19b–4.
3 On May 1, 2014, NSX filed a proposed rule
change to halt all trading activity on the Exchange.
See Securities Exchange Act Release No. 72107
(May 6, 2014), 79 FR 27017 (May 12, 2014) (SR–
NSX–2014–14). There has been no trading activity
on the Exchange since the close of business on May
30, 2014 (‘‘Closing Date’’).
4 See Securities Exchange Act Release No. 76390
(November 9, 2015), 80 FR 70261 (‘‘Notice’’).
5 For a more detailed description of the proposed
changes, see Notice, supra note 4.
2 17
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In its filing, the Exchange represented
to the Commission that it is ready to
resume trading activity upon approval
of this filing. To that end, the Exchange
represents that, since the Closing Date,
it has continued to discharge its
responsibilities as a self-regulatory
organization (‘‘SRO’’) in anticipation of
resuming trading operations,6
specifically, by, among other things, (i)
remaining a party to certain multi-party
17d–2 Plans for the Allocation of
Regulatory Responsibilities pursuant to
Section 17(d)(1) of the Act 7 and Rules
17d–1 and 17d–2 thereunder 8 relating
to insider trading surveillance and
certain Regulation NMS requirements; 9
(ii) continuing to maintain the
operability of its trading system and not
modifying the system’s functionality,
except as necessary to comply with
regulatory requirements; 10 (iii)
implementing and executing a rigorous
testing program, including tests with
industry participants, to assure that its
trading system will function as designed
and consistent with all applicable rules
and regulations; 11 (iv) testing
connectivity to the securities
information processors (‘‘SIPs’’) and recertifying its connection to the
Depository Trust Clearing
Corporation; 12 and (v) amending certain
Exchange Rules to keep current with
industry regulatory initiatives.13 The
Exchange further represents that it has
the capacity to be able to carry out the
purposes of the Act and to comply with
and to enforce compliance by ETP
Holders and persons associated with
ETP Holders, with the provisions of the
Act, the rules and regulations
thereunder, and the rules of the
Exchange. The Exchange further states
that it has the financial, technological,
and personnel resources to effectively
conduct surveillance of its marketplace
and to regulate ETP Holders’ trading on
NSX upon the resumption of trading
operations.14
Furthermore, the Exchange represents
that it will provide timely written notice
of the date it will commence trading,
and other related information directly to
the following parties: (i) ETP Holders;
(ii) other national securities exchanges
that trade NMS securities; (iii) the SIPs;
and, (iv) the operating committees for
the various NMS plans (e.g., the
6 See
Notice, supra note 4, at 70262.
U.S.C. 78q(d)(1).
8 17 CFR 240.17d–1 and 17 CFR 240.17d–2.
9 See Notice, supra note 4, at 70264.
10 See id. at 70263.
11 See id.
12 See id.
13 See id. at 70263–64.
14 See id. at 70264–65.
7 15
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Consolidated Tape Association Plan/
Consolidated Quote Plan, the Plan
Governing the Collection, Consolidation
and Dissemination of Quotation and
Transaction Information for NasdaqListed Securities Traded on Exchanges
on an Unlisted Trading Privileges Basis,
the Plan to Address Extraordinary
Market Volatility).15 NSX further states
that it will provide timely notice to the
general public by way of widelydisseminated press releases, notification
through the Exchange’s Web site, and
communications with financial and
industry press.16
Finally, the Exchange represents that
upon receiving Commission approval to
resume trading, it will execute a staged
roll-out plan to reach full operational
capacity and provide notice to ETP
Holders with the precise details of the
roll-out plan before initiating the plan.17
III. Discussion and Commission
Findings
The Commission has carefully
reviewed the proposed rule change and
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.18 In particular, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,19 which requires that the rules of
the Exchange, among other things, be
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
Based on the Exchange’s
representations, the Commission
believes that the Exchange is positioned
to resume its status as a fully
operational national securities exchange
and to commence trading operations
consistent with the notice provisions set
forth in the proposed rule change.20 The
Commission notes that the Exchange
will resume operations using the same
trading system and rules (subject to the
changes proposed herein) that were in
effect on the Closing Date. The
Commission further notes that the
Exchange has committed to ‘‘regularly
assess its regulatory resources to assure
that they continue to be sufficient to
id. at 70263–64.
id. at 70264.
17 See id. at 70263.
18 In approving the proposed rule change, the
Commission has considered its impact on
efficiency, competition and capital formation. See
15 U.S.C. 78c(f).
19 15 U.S.C. 78f(b)(5).
20 See Notice, supra note 4, at 70263–64.
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discharge its SRO responsibilities.’’ 21
The Exchange’s proposed staged roll-out
plan should ensure that trading is
resumed in an orderly manner. The
Exchange’s decision to streamline its
trading operations by amending Rules
11.11, 11.12, 11.13, and 16.2, and
adopting Rule 11.25, is consistent with
the protection of investors and the
public interest. These changes, which
eliminate order-types that were not
being used before the Closing Date,
eliminate the order delivery mode of
order interaction with the Exchange’s
trading system, and adopt a rule to
describe the Exchange’s use of certain
data feeds for order handling and
execution, will allow the exchange to
resume trading, providing another
venue to which customer orders can be
routed. The Commission notes that it
received no comments on the proposed
rule change.
As noted above, NSX intends to
resume operations as an automated
trading center and have its best bid and
best offer be a Protected Quotation.22 To
meet their regulatory responsibilities
under Rule 611(a) of Regulation NMS,
market participants must have sufficient
notice of new Protected Quotations, as
well as all necessary information (such
as final technical specifications).23
Therefore, the Commission believes that
it would be a reasonable policy and
procedure under Rule 611(a) to require
that industry participants begin treating
NSX’s best bid and best offer as a
Protected Quotation as soon as possible
but no later than 60 days after the date
of this order, or such later date as NSX
resumes operations as a national
securities exchange.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to a national
securities exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 24 that the
proposed rule change (SR–NSX–2015–
05), be, and hereby is, approved.
15 See
16 See
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21 See
id. at 70264.
CFR 242.600(b)(58).
23 See Securities Exchange Act Release No. 53829
(May 18, 2006), 71 FR 30038, 30041 (May 24, 2006).
24 15 U.S.C. 78s(b)(2).
22 17
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79124
Federal Register / Vol. 80, No. 243 / Friday, December 18, 2015 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–31790 Filed 12–17–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76637: File No. SR–
NYSEMKT–2015–102]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Add to the Rules of
the Exchange the Ninth Amended and
Restated Operating Agreement of New
York Stock Exchange LLC
December 14, 2015.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on December
4, 2015, NYSE MKT LLC (the
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 4 and Rule 19b–4(f)(6)(iii)
thereunder,5 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to add to the
rules of the Exchange the Ninth
Amended and Restated Operating
Agreement of New York Stock Exchange
LLC (‘‘NYSE LLC’’). 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.
25 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(6)(iii).
1 15
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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 add to the
rules of the Exchange the Ninth
Amended and Restated Operating
Agreement of NYSE LLC (the ‘‘Ninth
NYSE Operating Agreement’’).
In September 2015, the Exchange filed
the Eighth Amended and Restated
Operating Agreement of NYSE LLC (the
‘‘Eighth NYSE Operating Agreement’’)
as a ‘‘rule of the exchange’’ under
Section 3(a)(27) of the Act because
NYSE LLC has a wholly-owned
subsidiary, NYSE Market (DE), Inc.,
which owns a majority interest in NYSE
Amex Options LLC (‘‘NYSE Amex
Options’’), a facility of the Exchange.6
On June 12, 2015, NYSE LLC filed to,
among other things, amend the Eighth
NYSE Operating Agreement to establish
a Regulatory Oversight Committee as a
committee of its board of directors and
to terminate a delegation agreement
between NYSE LLC, NYSE Market (DE),
Inc., and NYSE Regulation, Inc. (the
‘‘Delegation Agreement’’).7 In its filing,
NYSE LLC represented that the
proposed rule changes would be
operative simultaneously with the
termination of the Delegation
Agreement, no later than June 30, 2016,
on a date determined by the board of
directors of NYSE LLC.8 On September
28, 2015, NYSE LLC’s rule filing
amending the Eighth NYSE Operating
Agreement to effectuate certain changes
was approved.9
6 See 15 U.S.C. 78c(a)(27); Securities Exchange
Act Release Nos. 75984 (September 25, 2015), 80 FR
59213, 59214 (October 1, 2015) (SR–NYSEMKT–
2015–71).
7 See Securities Exchange Act Release No. 75288
(June 24, 2015), 80 FR 37316 (June 30, 2015) (SR–
NYSE–2015–27) (‘‘Notice’’).
8 Id.
9 See Securities Exchange Act Release No. 75991
(September 28, 2015), 80 FR 59837 (October 2,
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The Exchange is accordingly filing to
remove the obsolete Eighth NYSE
Operating Agreement as a ‘‘rule of the
exchange’’ under Section 3(a)(27) of the
Act, and replace it with the Ninth NYSE
Operating Agreement as a ‘‘rule of the
exchange’’ under Section 3(a)(27) of the
Act, once the Ninth NYSE Operating
Agreement is operative.10 Under the
NYSE Approval Order, the Ninth NYSE
Operating Agreement will be operative
simultaneously with the termination of
the Delegation Agreement, no later than
June 30, 2016, on a date determined by
the board of directors of NYSE LLC. The
Exchange proposes that the rule change
be operative on that same date. The
Eighth NYSE Operating Agreement
would remain the operative document
until that time.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 11 in general, and
with Section 6(b)(1) 12 in particular, in
that it enables the Exchange to be so
organized as to have the capacity to be
able to carry out the purposes of the Act
and to comply, and to enforce
compliance by its exchange members
and persons associated with its
exchange members, with the provisions
of the Act, the rules and regulations
thereunder, and the rules of the
Exchange.
The Exchange believes that the
proposed rule change would contribute
to the orderly operation of the Exchange
and would enable the Exchange to be so
organized as to have the capacity to
carry out the purposes of the Act and
comply and enforce compliance by its
members and persons associated with
its members, with the provisions of the
Act because, by removing the obsolete
Eighth NYSE LLC Operating Agreement
and making the Ninth NYSE LLC
Operating Agreement a rule of the
Exchange when it becomes operative for
NYSE LLC, the Exchange would be
ensuring that its rules remain consistent
with the NYSE LLC operating agreement
in effect.
The Exchange notes that, as with the
Eighth NYSE LLC Operating Agreement,
it would be required to file as a
proposed rule change any changes to the
Ninth NYSE LLC Operating Agreement
with the Commission.13 In addition, the
2015) (SR–NYSE–2015–27) (‘‘NYSE Approval
Order’’).
10 15 U.S.C. 78c(a)(27).
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(1).
13 The Exchange notes that any amendment to the
NYSE LLC Operating Agreement would also require
that NYSE LLC file a proposed rule change with the
Commission.
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]]>Agencies
[Federal Register Volume 80, Number 243 (Friday, December 18, 2015)]
[Notices]
[Pages 79122-79124]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31790]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76640; File No. SR-NSX-2015-05]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Order Approving a Proposed Rule Change To Modify and Eliminate Certain
Rules and To Enable Trading Activity To Resume on the Exchange
December 14, 2015.
I. Introduction
On November 3, 2015, the National Stock Exchange (``NSX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to the provisions of Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change proposing changes that would,
among other things, allow trading activity to resume on the
Exchange.\3\ The proposed rule change was published for comment in the
Federal Register on November 13, 2015.\4\ The Commission received no
comments on the proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 782(b)(1).
\2\ 17 CFR 249.19b-4.
\3\ On May 1, 2014, NSX filed a proposed rule change to halt all
trading activity on the Exchange. See Securities Exchange Act
Release No. 72107 (May 6, 2014), 79 FR 27017 (May 12, 2014) (SR-NSX-
2014-14). There has been no trading activity on the Exchange since
the close of business on May 30, 2014 (``Closing Date'').
\4\ See Securities Exchange Act Release No. 76390 (November 9,
2015), 80 FR 70261 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change
The Exchange proposes to amend Rule 11.1 (Hours of Trading) to
rescind Interpretations and Policies .01 (Cessation of Trading
Operations NSX) to permit the Exchange to resume trading activity. The
Exchange also proposes to (i) amend Rule 11.11 (Orders and Modifiers)
to remove descriptions of certain order types that the Exchange will
not offer when it resumes trading and to correct the numbering of
certain subparagraphs of the rule; (ii) delete Rule 11.12 (Cross
Message) and make conforming changes to Rules 11.11(c) and 16.2; (iii)
amend Rule 11.13 and Interpretations and Policies .01 to eliminate the
order delivery mode of order interaction with the Exchange's trading
system (``Order Delivery''); and (iv) adopt Rule 11.25 (Use of Market
Data Feeds) to describe the Exchange's use of certain data feeds for
order handling and execution.\5\
---------------------------------------------------------------------------
\5\ For a more detailed description of the proposed changes, see
Notice, supra note 4.
---------------------------------------------------------------------------
[[Page 79123]]
In its filing, the Exchange represented to the Commission that it
is ready to resume trading activity upon approval of this filing. To
that end, the Exchange represents that, since the Closing Date, it has
continued to discharge its responsibilities as a self-regulatory
organization (``SRO'') in anticipation of resuming trading
operations,\6\ specifically, by, among other things, (i) remaining a
party to certain multi-party 17d-2 Plans for the Allocation of
Regulatory Responsibilities pursuant to Section 17(d)(1) of the Act \7\
and Rules 17d-1 and 17d-2 thereunder \8\ relating to insider trading
surveillance and certain Regulation NMS requirements; \9\ (ii)
continuing to maintain the operability of its trading system and not
modifying the system's functionality, except as necessary to comply
with regulatory requirements; \10\ (iii) implementing and executing a
rigorous testing program, including tests with industry participants,
to assure that its trading system will function as designed and
consistent with all applicable rules and regulations; \11\ (iv) testing
connectivity to the securities information processors (``SIPs'') and
re-certifying its connection to the Depository Trust Clearing
Corporation; \12\ and (v) amending certain Exchange Rules to keep
current with industry regulatory initiatives.\13\ The Exchange further
represents that it has the capacity to be able to carry out the
purposes of the Act and to comply with and to enforce compliance by ETP
Holders and persons associated with ETP Holders, with the provisions of
the Act, the rules and regulations thereunder, and the rules of the
Exchange. The Exchange further states that it has the financial,
technological, and personnel resources to effectively conduct
surveillance of its marketplace and to regulate ETP Holders' trading on
NSX upon the resumption of trading operations.\14\
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\6\ See Notice, supra note 4, at 70262.
\7\ 15 U.S.C. 78q(d)(1).
\8\ 17 CFR 240.17d-1 and 17 CFR 240.17d-2.
\9\ See Notice, supra note 4, at 70264.
\10\ See id. at 70263.
\11\ See id.
\12\ See id.
\13\ See id. at 70263-64.
\14\ See id. at 70264-65.
---------------------------------------------------------------------------
Furthermore, the Exchange represents that it will provide timely
written notice of the date it will commence trading, and other related
information directly to the following parties: (i) ETP Holders; (ii)
other national securities exchanges that trade NMS securities; (iii)
the SIPs; and, (iv) the operating committees for the various NMS plans
(e.g., the Consolidated Tape Association Plan/Consolidated Quote Plan,
the Plan Governing the Collection, Consolidation and Dissemination of
Quotation and Transaction Information for Nasdaq-Listed Securities
Traded on Exchanges on an Unlisted Trading Privileges Basis, the Plan
to Address Extraordinary Market Volatility).\15\ NSX further states
that it will provide timely notice to the general public by way of
widely-disseminated press releases, notification through the Exchange's
Web site, and communications with financial and industry press.\16\
---------------------------------------------------------------------------
\15\ See id. at 70263-64.
\16\ See id. at 70264.
---------------------------------------------------------------------------
Finally, the Exchange represents that upon receiving Commission
approval to resume trading, it will execute a staged roll-out plan to
reach full operational capacity and provide notice to ETP Holders with
the precise details of the roll-out plan before initiating the
plan.\17\
---------------------------------------------------------------------------
\17\ See id. at 70263.
---------------------------------------------------------------------------
III. Discussion and Commission Findings
The Commission has carefully reviewed the proposed rule change and
finds that the proposed rule change is consistent with the requirements
of the Act and the rules and regulations thereunder applicable to a
national securities exchange.\18\ In particular, the Commission finds
that the proposal is consistent with Section 6(b)(5) of the Act,\19\
which requires that the rules of the Exchange, among other things, be
designed to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------
\18\ In approving the proposed rule change, the Commission has
considered its impact on efficiency, competition and capital
formation. See 15 U.S.C. 78c(f).
\19\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Based on the Exchange's representations, the Commission believes
that the Exchange is positioned to resume its status as a fully
operational national securities exchange and to commence trading
operations consistent with the notice provisions set forth in the
proposed rule change.\20\ The Commission notes that the Exchange will
resume operations using the same trading system and rules (subject to
the changes proposed herein) that were in effect on the Closing Date.
The Commission further notes that the Exchange has committed to
``regularly assess its regulatory resources to assure that they
continue to be sufficient to discharge its SRO responsibilities.'' \21\
The Exchange's proposed staged roll-out plan should ensure that trading
is resumed in an orderly manner. The Exchange's decision to streamline
its trading operations by amending Rules 11.11, 11.12, 11.13, and 16.2,
and adopting Rule 11.25, is consistent with the protection of investors
and the public interest. These changes, which eliminate order-types
that were not being used before the Closing Date, eliminate the order
delivery mode of order interaction with the Exchange's trading system,
and adopt a rule to describe the Exchange's use of certain data feeds
for order handling and execution, will allow the exchange to resume
trading, providing another venue to which customer orders can be
routed. The Commission notes that it received no comments on the
proposed rule change.
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\20\ See Notice, supra note 4, at 70263-64.
\21\ See id. at 70264.
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As noted above, NSX intends to resume operations as an automated
trading center and have its best bid and best offer be a Protected
Quotation.\22\ To meet their regulatory responsibilities under Rule
611(a) of Regulation NMS, market participants must have sufficient
notice of new Protected Quotations, as well as all necessary
information (such as final technical specifications).\23\ Therefore,
the Commission believes that it would be a reasonable policy and
procedure under Rule 611(a) to require that industry participants begin
treating NSX's best bid and best offer as a Protected Quotation as soon
as possible but no later than 60 days after the date of this order, or
such later date as NSX resumes operations as a national securities
exchange.
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\22\ 17 CFR 242.600(b)(58).
\23\ See Securities Exchange Act Release No. 53829 (May 18,
2006), 71 FR 30038, 30041 (May 24, 2006).
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For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with the Act and the rules and regulations
thereunder applicable to a national securities exchange.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\24\ that the proposed rule change (SR-NSX-2015-05), be, and hereby is,
approved.
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\24\ 15 U.S.C. 78s(b)(2).
[[Page 79124]]
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-31790 Filed 12-17-15; 8:45 am]
BILLING CODE 8011-01-P
