Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Deadline for Implementing Rule 6.61(a)(2) and (3), 14912-14914 [2016-06097]

Download as PDF 14912 Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / Notices participants at other exchanges, such market participants are welcome to become CBOE market participants. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Other The Exchange neither solicited nor received comments on the proposed rule change. II. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 11 and paragraph (f) of Rule 19b–4 12 thereunder. 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 will 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: asabaliauskas on DSK3SPTVN1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– CBOE–2016–018 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–CBOE–2016–018. 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 such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CBOE– 2016–018, and should be submitted on or before April 8, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–06092 Filed 3–17–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–77357; File No. SR– NYSEARCA–2016–41] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Deadline for Implementing Rule 6.61(a)(2) and (3) March 14, 2016. 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 March 4, 2016, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to 13 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. 1 15 11 15 12 17 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f). VerDate Sep<11>2014 19:50 Mar 17, 2016 Jkt 238001 PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 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 extend the deadline for implementing Rule 6.61(a)(2) and (3) until July 31, 2016. The proposed rule change is available on the Exchange’s Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is proposing to extend the deadline for implementing Rule 6.61(a)(2) and (3) until July 31, 2016. The current implementation deadline is March 4, 2016. In March 2015, the Commission approved Rule 6.61, which provides a price protection risk mechanism for Market Maker quotes.4 Rule 6.61 provides two layers of price protection to incoming Market Maker quotes, rejecting those Market Maker quotes that exceed certain parameters, as a risk mitigation tool.5 The Exchange has 4 See Securities Exchange Act Release No. 74441 (March 4, 2015), 80 FR 12664 (March 10, 2015) (SR– NYSEArca–2014–150) (Approval Order); see also Securities Exchange Act Release No. 74018 (January 8, 2015), 80 FR 1982 (January 14, 2015) (SR– NYSEArca–2014–150) (Notice). 5 The first layer of price protection assesses incoming sell quotes against the NBB and incoming buy quotes against the NBO (the ‘‘NBBO Price Reasonability Check’’). Specifically, per Rule 6.61(a)(1), provided that an NBBO is available, a Market Maker quote would be rejected if it is priced a specified dollar amount or percentage through the contra-side NBBO. The second layer of price protection assesses the price of call or put bids against a specified benchmark (the ‘‘Underlying Stock Price/Strike Price Check’’), per Rule 6.61(a)(2) and (3). This second layer of protection applies to bids in call options or put options when (1) there is no NBBO available, for example, during pre- E:\FR\FM\18MRN1.SGM 18MRN1 Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / Notices asabaliauskas on DSK3SPTVN1PROD with NOTICES implemented the first layer of price protection (the NBBO Reasonability Check) and has until one year from the date of the Approval Order to implement the second layer of protection (the Underlying Stock Price/ Strike Price Check) pursuant to Commentary .01 to Rule 6.61, which is March 4, 2016 (the ‘‘March 4th Deadline’’).6 Because the Exchange has not yet implemented the Underlying Stock Price/Strike Price Check, the Exchange proposes to modify Commentary .01 to Rule 6.61 to extend the March 4th Deadline to implement Rule 6.61(a)(2) and (3) until July 31, 2016. The Exchange has finalized the technology related to this aspect of the Rule and will be filing with the Commission a separate proposed rule change to modify the Rule as it relates to the Underlying Stock Price/Strike Price Check. The Exchange believes the proposed extension would provide the Exchange with sufficient time to review the proposed modifications with the Commission prior to implementing the rule, as modified. Finally, the Exchange believes that because the Underlying Stock Price/ Strike Price Check is an approved rule of the Exchange, providing the Exchange with additional time to implement the Rule would ensure that Market Makers and investors are afforded the opportunity to benefit from this price protection feature once it is implemented. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,7 in general, and furthers the objectives of Section 6(b)(5),8 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and in general, to protect investors and the public interest. Specifically, the Exchange believes the proposal promotes just and equitable principles of trade and removes impediments to, and perfects the mechanism of, a free and open market and a national market system because an extension of the March 4th Deadline would enable the Exchange to opening or prior to conducting a re-opening after a trading halt, or (2) if the NBBO is so wide as to not reflect an appropriate price for the respective options series. 6 See Securities Exchange Act Release No. 75156 (June 11, 2015), 80 FR 34756 (June 17, 2015) (SR– NYSEArca–2015–45). 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 19:50 Mar 17, 2016 Jkt 238001 implement the finalized technology related to the Underlying Stock Price/ Strike Price Check. Moreover, the proposed extension would assist with the maintenance of a fair and orderly market and protect investors and the public interest because it would afford the Exchange additional time to file, and review, with the Commission a proposed modification of the Rule as it relates to the Underlying Stock Price/ Strike Price Check prior to implementing the rule, as modified. Finally, the Exchange believes that because the Underlying Stock Price/ Strike Price Check is an approved rule of the Exchange, providing the Exchange with additional time to implement the Rule would ensure that Market Makers and investors are afforded the opportunity to benefit from this price protection feature once it is implemented—even if in modified form. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not designed to address any competitive issues, but rather, to extend the deadline for implementing the Underlying Stock Price/Strike Price Check pending finalization of the technology associated with that feature. 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 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 for 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 9 and Rule 19b–4(f)(6) thereunder.10 9 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 10 17 PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 14913 A proposed rule change filed under Rule 19b–4(f)(6) 11 normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b–4(f)(6)(iii),12 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 so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest as it will allow the Exchange to immediately extend the implementation deadline for the Underlying Stock Price/Strike Price Check without delay and provide the Exchange additional time to implement the technology associated with such price protection. Accordingly, the Commission hereby waives the 30-day operative delay requirement and designates the proposed rule change as operative upon filing.13 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 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– NYSEARCA–2016–41 on the subject line. 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 Commission has waived this requirement in this case. 11 17 CFR 240.19b–4(f)(6). 12 17 CFR 240.19b–4(f)(6)(iii). 13 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). E:\FR\FM\18MRN1.SGM 18MRN1 14914 Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / 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–NYSEARCA–2016–41. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– NYSEARCA–2016–41, and should be submitted on or before April 8, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–06097 Filed 3–17–16; 8:45 am] asabaliauskas on DSK3SPTVN1PROD with NOTICES BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–77361; File No. SR–ICC– 2016–002] Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change To Provide for the Clearance of Certain Asia-Pacific Credit Default Swap Contracts March 14, 2016. I. Introduction On January 27, 2016, ICE Clear Credit LLC (‘‘ICC’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change (SR–ICC–2016–002) to provide the basis for ICC to clear certain Asia-Pacific credit default swap (‘‘CDS’’) contracts. On January 29, 2016, ICC filed Amendment No. 1 to the proposal.3 The proposed rule change, as amended, was published for comment in the Federal Register on February 12, 2016.4 The Commission did not receive comments on the proposed rule change. For the reasons discussed below, the Commission is approving the proposed rule change. II. Description of the Proposed Rule Change The purpose of the proposed rule change is to adopt new rules that will provide the basis for ICC to clear certain Asia-Pacific CDS contracts. Specifically, ICC has proposed to amend Chapter 26 of the ICC Rulebook (‘‘ICC Rules’’) to add Subchapters 26J and 26L to provide for the clearance of iTraxx Asia/Pacific CDS contracts (‘‘iTraxx Asia/Pacific Contracts’’) and Standard Asia/Pacific Sovereign CDS contracts (‘‘SAS Contracts’’, collectively with iTraxx Asia/Pacific Contracts ‘‘Asia-Pacific CDS Contracts’’). The SAS Contracts will reference the Commonwealth of Australia, the Malaysian Federation, the People’s Republic of China, the Republic of Indonesia, the Republic of Korea and the Republic of the Philippines. Additionally, ICC has proposed to amend the ICC End-of-Day Price 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 In Amendment No. 1, ICC deleted a factual error in the originally filed proposal that stated that no changes would be made to ICC’s Risk Management Framework. Amendment No. 1 amended and replaced the original filing in its entirety. 4 Securities Exchange Act Release No. 34–77079 (February 8, 2016), 81 FR 7613 (February 12, 2016) (SR–ICC–2016–002). 2 17 14 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 19:50 Mar 17, 2016 Jkt 238001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 Discovery Policies and Procedures to add two additional pricing windows to accommodate the submission of end-ofday prices relating to such Asia-Pacific CDS Contracts. Finally, ICC has proposed to amend the ICC Risk Management Framework to include the risk horizon utilized for instruments traded during Asia-Pacific hours and to amend the ICC Risk Management Model Description document to add AsiaPacific to the list of regions to be considered in General Wrong Way Risk calculations. ICC has represented that the iTraxx Asia/Pacific Contracts have similar terms to the CDX North American IG/ HY/XO CDS contracts (‘‘CDX NA Contracts’’) currently cleared by ICC and governed by Subchapter 26A of the ICC Rules, the CDX Emerging Markets CDS contracts (‘‘CDX EM Contracts’’) currently cleared by ICC and governed by Subchapter 26C of the ICC Rules, and the iTraxx Europe CDS contracts (‘‘iTraxx Europe Contracts’’) currently cleared by ICC and governed by Subchapter 26F of the ICC Rules. ICC asserts that the proposed rules found in Subchapter 26J largely mirror the ICC Rules for CDX NA Contracts in Subchapter 26A, CDX EM Contracts in Subchapter 26C, and iTraxx Europe Contracts in Subchapter 26F, with certain modifications that reflect differences in terms and market conventions between those contracts and iTraxx Asia/Pacific Contracts. Additionally, iTraxx Asia/Pacific Contracts will be denominated in United States Dollars. ICC Rule 26J–102 (Definitions) will set forth the definitions used for the iTraxx Asia/Pacific Contracts. ICC has represented that the definitions are substantially the same as the definitions found in Subchapters 26A, 26C, and 26F of the ICC Rules, other than certain conforming changes. ICC Rules 26J–309 (Acceptance of iTraxx Asia/Pacific Untranched Contracts by ICE Clear Credit), 26J–315 (Terms of the Cleared iTraxx Asia/ Pacific Untranched Contract), 26J–316 (Updating Index Version of Fungible Contracts After a Credit Event or a Succession Event; Updating Relevant Untranched Standard Terms Supplement), and 26J–317 (Terms of iTraxx Asia/Pacific Untranched Contracts) will reflect or incorporate the basic contract specifications for iTraxx Asia/Pacific Contracts and, according to ICC, are substantially the same as under Subchapters 26A, 26C, and 26F of the ICC Rules. ICC has represented that SAS Contracts have similar terms to the Standard North American Corporate E:\FR\FM\18MRN1.SGM 18MRN1

Agencies

[Federal Register Volume 81, Number 53 (Friday, March 18, 2016)]
[Notices]
[Pages 14912-14914]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-06097]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77357; File No. SR-NYSEARCA-2016-41]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Extending the 
Deadline for Implementing Rule 6.61(a)(2) and (3)

March 14, 2016.
    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 March 4, 2016, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the deadline for implementing Rule 
6.61(a)(2) and (3) until July 31, 2016. The proposed rule change is 
available on the Exchange's Web site at www.nyse.com, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to extend the deadline for implementing 
Rule 6.61(a)(2) and (3) until July 31, 2016. The current implementation 
deadline is March 4, 2016.
    In March 2015, the Commission approved Rule 6.61, which provides a 
price protection risk mechanism for Market Maker quotes.\4\ Rule 6.61 
provides two layers of price protection to incoming Market Maker 
quotes, rejecting those Market Maker quotes that exceed certain 
parameters, as a risk mitigation tool.\5\ The Exchange has

[[Page 14913]]

implemented the first layer of price protection (the NBBO Reasonability 
Check) and has until one year from the date of the Approval Order to 
implement the second layer of protection (the Underlying Stock Price/
Strike Price Check) pursuant to Commentary .01 to Rule 6.61, which is 
March 4, 2016 (the ``March 4th Deadline'').\6\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 74441 (March 4, 
2015), 80 FR 12664 (March 10, 2015) (SR-NYSEArca-2014-150) (Approval 
Order); see also Securities Exchange Act Release No. 74018 (January 
8, 2015), 80 FR 1982 (January 14, 2015) (SR-NYSEArca-2014-150) 
(Notice).
    \5\ The first layer of price protection assesses incoming sell 
quotes against the NBB and incoming buy quotes against the NBO (the 
``NBBO Price Reasonability Check''). Specifically, per Rule 
6.61(a)(1), provided that an NBBO is available, a Market Maker quote 
would be rejected if it is priced a specified dollar amount or 
percentage through the contra-side NBBO. The second layer of price 
protection assesses the price of call or put bids against a 
specified benchmark (the ``Underlying Stock Price/Strike Price 
Check''), per Rule 6.61(a)(2) and (3). This second layer of 
protection applies to bids in call options or put options when (1) 
there is no NBBO available, for example, during pre-opening or prior 
to conducting a re-opening after a trading halt, or (2) if the NBBO 
is so wide as to not reflect an appropriate price for the respective 
options series.
    \6\ See Securities Exchange Act Release No. 75156 (June 11, 
2015), 80 FR 34756 (June 17, 2015) (SR-NYSEArca-2015-45).
---------------------------------------------------------------------------

    Because the Exchange has not yet implemented the Underlying Stock 
Price/Strike Price Check, the Exchange proposes to modify Commentary 
.01 to Rule 6.61 to extend the March 4th Deadline to implement Rule 
6.61(a)(2) and (3) until July 31, 2016. The Exchange has finalized the 
technology related to this aspect of the Rule and will be filing with 
the Commission a separate proposed rule change to modify the Rule as it 
relates to the Underlying Stock Price/Strike Price Check. The Exchange 
believes the proposed extension would provide the Exchange with 
sufficient time to review the proposed modifications with the 
Commission prior to implementing the rule, as modified.
    Finally, the Exchange believes that because the Underlying Stock 
Price/Strike Price Check is an approved rule of the Exchange, providing 
the Exchange with additional time to implement the Rule would ensure 
that Market Makers and investors are afforded the opportunity to 
benefit from this price protection feature once it is implemented.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\7\ in general, and furthers the objectives of Section 6(b)(5),\8\ 
in particular, in that it is designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and in general, 
to protect investors and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Specifically, the Exchange believes the proposal promotes just and 
equitable principles of trade and removes impediments to, and perfects 
the mechanism of, a free and open market and a national market system 
because an extension of the March 4th Deadline would enable the 
Exchange to implement the finalized technology related to the 
Underlying Stock Price/Strike Price Check. Moreover, the proposed 
extension would assist with the maintenance of a fair and orderly 
market and protect investors and the public interest because it would 
afford the Exchange additional time to file, and review, with the 
Commission a proposed modification of the Rule as it relates to the 
Underlying Stock Price/Strike Price Check prior to implementing the 
rule, as modified.
    Finally, the Exchange believes that because the Underlying Stock 
Price/Strike Price Check is an approved rule of the Exchange, providing 
the Exchange with additional time to implement the Rule would ensure 
that Market Makers and investors are afforded the opportunity to 
benefit from this price protection feature once it is implemented--even 
if in modified form.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change is 
not designed to address any competitive issues, but rather, to extend 
the deadline for implementing the Underlying Stock Price/Strike Price 
Check pending finalization of the technology associated with that 
feature.

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

    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 for 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 \9\ and Rule 19b-4(f)(6) 
thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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 
Commission has waived this requirement in this case.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative for 30 days after the date of filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\12\ 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 so that the proposal 
may become operative immediately upon filing. The Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest as it will allow the 
Exchange to immediately extend the implementation deadline for the 
Underlying Stock Price/Strike Price Check without delay and provide the 
Exchange additional time to implement the technology associated with 
such price protection. Accordingly, the Commission hereby waives the 
30-day operative delay requirement and designates the proposed rule 
change as operative upon filing.\13\
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 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-NYSEARCA-2016-41 on the subject line.

[[Page 14914]]

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEARCA-2016-41. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEARCA-2016-41, and should 
be submitted on or before April 8, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-06097 Filed 3-17-16; 8:45 am]
 BILLING CODE 8011-01-P
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