Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 930NY Regarding Definition of Floor Broker, 35090-35092 [2016-12788]
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sradovich on DSK3TPTVN1PROD with NOTICES
35090
Federal Register / Vol. 81, No. 105 / Wednesday, June 1, 2016 / Notices
(8) The Fund may hold up to an
aggregate amount of 15% of its net
assets in illiquid assets. The Fund will
monitor its portfolio liquidity on an
ongoing basis to determine whether, in
light of current circumstances, an
adequate level of liquidity is being
maintained, and will consider taking
appropriate steps in order to maintain
adequate liquidity if, through a change
in values, net assets, or other
circumstances, more than 15% of the
Fund’s net assets are held in illiquid
assets.
(9) For initial and continued listing,
the Fund must be in compliance with
Rule 10A–3 under the Exchange Act.28
(10) The Fund’s investments will be
consistent with its investment objective
and will not be used to provide multiple
returns of a benchmark or to produce
leveraged returns. The Fund’s
investments will not be used to seek
performance that is the multiple or
inverse multiple of the Fund’s primary
broad-based securities benchmark index
(as defined in Form N–1A).
(11) A minimum of 100,000 Shares
will be outstanding at the
commencement of trading on the
Exchange.
(12) Prior to the commencement of
trading, the Exchange will inform its
Equity Trading Permit Holders in an
Information Bulletin of the special
characteristics and risks associated with
trading the Shares. Specifically, the
Information Bulletin will discuss the
following: (1) The procedures for
purchases and redemptions of Shares in
Creation Unit aggregations (and that
Shares are not individually redeemable);
(2) NYSE Arca Equities Rule 9.2(a),
which imposes a duty of due diligence
on its Equity Trading Permit Holders to
learn the essential facts relating to every
customer prior to trading the Shares; (3)
the risks involved in trading the Shares
during the Opening and Late Trading
Sessions when an updated Portfolio
Indicative Value will not be calculated
or publicly disseminated; (4) how
information regarding the Portfolio
Indicative Value and the Disclosed
Portfolio is disseminated; (5) the
requirement that Equity Trading Permit
Holders deliver a prospectus to
investors purchasing newly issued
Shares prior to or concurrently with the
confirmation of a transaction; and (6)
trading information.
The Exchange represents that all
statements and representations made in
this filing regarding (a) the description
of the portfolio, (b) limitations on
portfolio holdings or reference assets, or
(c) the applicability of Exchange rules
28 See
17 CFR 240.10A–3.
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and surveillance procedures shall
constitute continued listing
requirements for listing the Shares on
the Exchange. The issuer has
represented to the Exchange that it will
advise the Exchange of any failure by
the Fund to comply with the continued
listing requirements, and, pursuant to
its obligations under Section 19(g)(1) of
the Act, the Exchange will monitor 29 for
compliance with the continued listing
requirements. If the Fund is not in
compliance with the applicable listing
requirements, the Exchange will
commence delisting procedures under
NYSE Arca Equities Rule 5.5(m). This
approval order is based on all of the
Exchange’s representations, including
those set forth above and in Amendment
No. 2. The Commission notes that the
Fund and the Shares must comply with
the requirements of NYSE Arca Equities
Rule 8.600 to be initially and
continuously listed and traded on the
Exchange.
For the foregoing reasons, the
Commission finds that the proposed
rule change, as modified by Amendment
No. 2, is consistent with Section 6(b)(5)
of the Exchange Act 30 and Section
11A(a)(1)(C)(iii) of the Exchange Act 31
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 Exchange Act,32
that the proposed rule change (SR–
NYSEArca–2016–46), as modified by
Amendment No. 2, be, and it hereby is,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.33
Brent J. Fields,
Secretary.
[FR Doc. 2016–12782 Filed 5–31–16; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, June 2, 2016 at 2:00 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Stein, as duty officer,
voted to consider the items listed for the
Closed Meeting in closed session.
The subject matter of the Closed
Meeting will be:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Adjudicatory matters; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact Brent J. Fields from the Office of
the Secretary at (202) 551–5400.
Dated: May 26, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016–12948 Filed 5–27–16; 11:15 am]
BILLING CODE 8011–01–P
BILLING CODE 8011–01–P
29 The Commission notes that certain other
proposals for the listing and trading of managed
fund shares include a representation that the
exchange will ‘‘surveil’’ for compliance with the
continued listing requirements. See, e.g.,
Amendment No. 2 to SR–BATS–2016–04, available
at: https://www.sec.gov/comments/sr-bats-2016-04/
bats201604-2.pdf. In the context of this
representation, it is the Commission’s view that
‘‘monitor’’ and ‘‘surveil’’ both mean ongoing
oversight of the Fund’s compliance with the
continued listing requirements. Therefore, the
Commission does not view ‘‘monitor’’ as a more or
less stringent obligation than ‘‘surveil’’ with respect
to the continued listing requirements.
30 15 U.S.C. 78f(b)(5).
31 15 U.S.C. 78k–1(a)(1)(C)(iii).
32 15 U.S.C. 78s(b)(2).
33 17 CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77902; File No. SR–
NYSEMKT–2016–55]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 930NY
Regarding Definition of Floor Broker
May 25, 2016.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
1 15
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U.S.C. 78s(b)(1).
01JNN1
Federal Register / Vol. 81, No. 105 / Wednesday, June 1, 2016 / Notices
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on May 17,
2016, 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
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 the Substance
of the Proposed Rule Change
The Exchange proposes to amend
Rule 930NY (Floor Broker Defined). 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 930NY to update the definition of
Floor Broker.4 The proposed rule
change would harmonize the Floor
Broker definition with the recently
updated rule of another competing
2 15
U.S.C. 78a.
CFR 240.19b–4.
4 The Exchange notes that, other than adding
reference to Professional Customers, the definition
of Floor Broker has remained unchanged since its
adoption in 2009, as part of the Exchange’s
adoption of the Rule 900NY series. See Securities
Exchange Act Release No. 59472 (February 27,
2009) 74 FR 9843 (March 6, 2009) (NYSEALTR–
2008–14), which established rules for the trading of
listed options. The Rule 900NY suite of rules was
substantially based on the existing Rules of NYSE
Arca LLC. See also Securities Exchange Act Release
No. 61818 (March 31, 2010) 75 FR 17457 (April 6,
2010) (SR–NYSE Amex-2010–18) (relating to
accepting orders from Professional Customers).
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options exchange—specifically
NASDAQ OMX PHLX LLC (‘‘PHLX’’).5
Rule 930NY(a) defines a Floor Broker
as ‘‘a sole proprietor ATP Holder or a
representative of an ATP Holder who is
registered with the Exchange for the
purpose, while on the Exchange Floor,
of accepting and executing option
orders received from ATP Holders.’’ The
Rule further provides that ‘‘[a] Floor
Broker shall not accept an order from
any other source unless he is a sole
proprietor ATP Holder or a
representative of an ATP Holder
approved to transact business with the
public in accordance with Rule 441, in
which event he may accept orders for
customers of the ATP Holder.’’
The Exchange notes that Floor
Brokers, as registered Broker/Dealers,6
have long handled orders from Broker/
Dealers who may not be ATP Holders.
In addition, Floor Brokers may accept
orders from non-Broker/Dealers (i.e.,
public customers).7 Thus, the Exchange
proposes to clarify Rule 930NY(a) by
removing the language regarding the
types of market participants from whom
a Floor Broker may accept an order.8
The updated rule would provide that a
Floor Broker is an individual who is
registered with the Exchange for the
purpose, while on the Options Floor, of
accepting and handling options orders.9
Further, as proposed, a Floor Broker
may accept orders from ATP Holders,
Broker Dealers that are non-ATP
Holders, Professional Customers,
pursuant to Rule 930NY(b), as well as
from public customers provided the
Floor Broker is properly qualified to do
business with the public.10
This proposed rule change would
reflect current practice on the Exchange,
specifically that a Floor Broker may
accept orders from Broker Dealers that
are not ATP Holders. The proposed
modification would not alter a Floor
Broker’s responsibilities. Further, the
5 See Securities Exchange Act Release No. 76800
(December 30, 2015), 81 FR 549, (January 6, 2016)
(SR–Phlx–2015–114) (adopting updated definition
of Floor Broker in PHLX Rule 1060 on immediately
effective basis).
6 See Rule 930NY(a).
7 To handle the orders of public customers, Floor
Brokers must be properly qualified to do business
with the public, per Section 3 (Conduct of Accounts
for Options Trading), generally, and Rule 920
(Registration and Examination of Options
Personnel), specifically.
8 See proposed Rule 930NY(a). This practice is
consistent with the rules of other exchanges. See,
e.g., supra n. 5 (PHLX Rule 1060) and CBOE Rule
6.70 (permitting CBOE Floor Brokers to accept
orders from non-member broker-dealers).
9 Consistent with the proposed changes to Rule
930NY(a), the Exchange proposes to delete the cross
reference to this section from Rule 930NY(b)(1). See
proposed Rule 930NY(b)(1).
10 See supra n. 7.
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35091
proposal would have no impact on a
Floor Broker’s ability to accept orders
from the public.11
2. Statutory Basis
The Exchange believes that the
proposed change is consistent with
Section 6(b) of the Act,12 in general, and
furthers the objectives of Section
6(b)(5),13 in particular, in that it is
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitation transactions in
securities, to remove impediments to,
and perfect the mechanism of a free and
open market and, in general, to protect
investors and the public interest.
Specifically, the Exchange believes
that the proposal is designed to remove
language that could be interpreted as a
limitation on orders that may be
accepted by Floor Brokers to reflect
current practice on the Exchange, which
would promote just and equitable
principles of trade, and remove
impediments to, and perfect the
mechanism of a free and open market.
The proposed change would make clear
to market participants that a Floor
Broker may accept an order from a nonATP Holder that is a Broker Dealer,
which adds clarity and transparency to
Exchange rules to the benefit of all
market participants. Thus, the Exchange
believes that the proposal would help
prevent confusion and help ensure that
floor brokerage services are widely
available to various types of market
participants, which should, in turn,
promote just and equitable principles of
trade.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
this proposed rule change would
impose any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. With respect
to inter-market competition, the
proposed rule change is a competitive
change that is substantially similar to
rules in place at another competing
options exchange.14 With respect to
intra-market competition, the proposal
applies to all NYSE MKT Floor Brokers.
11 See
id.
U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
14 See supra n. 5.
12 15
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Federal Register / Vol. 81, No. 105 / Wednesday, June 1, 2016 / Notices
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEMKT–2016–55 on the subject line.
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 15 and Rule
19b–4(f)(6) thereunder.16 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)
thereunder.17
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 18 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
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–2016–55. 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–
NYSEMKT–2016–55, and should be
submitted on or before June 22, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Brent J. Fields,
Secretary.
[FR Doc. 2016–12788 Filed 5–31–16; 8:45 am]
BILLING CODE 8011–01–P
sradovich on DSK3TPTVN1PROD with NOTICES
15 15
U.S.C. 78s(b)(3)(A)(iii).
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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.
18 15 U.S.C. 78s(b)(2)(B).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77901; File No. SR–
NYSEMKT–2016–26]
Self-Regulatory Organizations; NYSE
MKT LLC; Order Approving a
Proposed Rule Change, as Modified by
Amendment No.1 Thereto, To Amend
the Eighth Amended and Restated
Operating Agreement of the Exchange
May 25, 2016.
I. Introduction
On March 29, 2016, NYSE MKT LLC
(‘‘Exchange’’ or ‘‘NYSE MKT’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend the Eighth Amended
and Restated Operating Agreement of
the Exchange (‘‘Operating Agreement’’).
The proposed rule change was
published for comment in the Federal
Register on April 12, 2016.3 The
Commission received no comments in
response to the Notice. On May 19,
2016, the Exchange filed Amendment
No. 1 to the proposal.4 This order
approves the proposed rule change, as
modified by Amendment No. 1 thereto.
II. Description of the Proposal
The Exchange proposes to amend the
Operating Agreement to (1) change the
process for nominating non-affiliated
directors; (2) remove a reference to an
obsolete category of member; and (3)
add references to Designated Market
Makers (‘‘DMMs’’).
A. Process for Nominating NonAffiliated Directors
Pursuant to the Operating Agreement,
at least 20 percent of the Exchange’s
Board of Directors (‘‘Board’’) is made up
of ‘‘Non-Affiliated Directors’’
(commonly referred to as ‘‘fair
representation directors’’).5 Pursuant to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Securities Exchange Act Release No. 77536
(April 6, 2016), 81 FR 21636 (‘‘Notice’’).
4 Amendment No. 1 is a technical amendment to
retain the initial reference to ‘‘DCRC Candidates’’ in
Section 2.03(a)(iii) of the Operating Agreement
rather than to delete it. Because Amendment No. 1
to the proposed rule change does not materially
alter the substance of the proposed rule change or
raise unique or novel regulatory issues, Amendment
No. 1 is not subject to notice and comment.
5 Pursuant to Section 2.03(a) of the Operating
Agreement, Non-Affiliated Directors are persons
who are not members of the Board of Directors of
Intercontinental Exchange, Inc. (‘‘ICE’’). A person
may not be a Non-Affiliated Director unless he or
she is free of any statutory disqualification, as
defined in Section 3(a)(39) of the Act, 15 U.S.C.
2 17
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Agencies
[Federal Register Volume 81, Number 105 (Wednesday, June 1, 2016)]
[Notices]
[Pages 35090-35092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12788]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77902; File No. SR-NYSEMKT-2016-55]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending Rule 930NY
Regarding Definition of Floor Broker
May 25, 2016.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the
[[Page 35091]]
``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that
on May 17, 2016, 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 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 the
Substance of the Proposed Rule Change
The Exchange proposes to amend Rule 930NY (Floor Broker Defined).
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 930NY to update the definition
of Floor Broker.\4\ The proposed rule change would harmonize the Floor
Broker definition with the recently updated rule of another competing
options exchange--specifically NASDAQ OMX PHLX LLC (``PHLX'').\5\
---------------------------------------------------------------------------
\4\ The Exchange notes that, other than adding reference to
Professional Customers, the definition of Floor Broker has remained
unchanged since its adoption in 2009, as part of the Exchange's
adoption of the Rule 900NY series. See Securities Exchange Act
Release No. 59472 (February 27, 2009) 74 FR 9843 (March 6, 2009)
(NYSEALTR-2008-14), which established rules for the trading of
listed options. The Rule 900NY suite of rules was substantially
based on the existing Rules of NYSE Arca LLC. See also Securities
Exchange Act Release No. 61818 (March 31, 2010) 75 FR 17457 (April
6, 2010) (SR-NYSE Amex-2010-18) (relating to accepting orders from
Professional Customers).
\5\ See Securities Exchange Act Release No. 76800 (December 30,
2015), 81 FR 549, (January 6, 2016) (SR-Phlx-2015-114) (adopting
updated definition of Floor Broker in PHLX Rule 1060 on immediately
effective basis).
---------------------------------------------------------------------------
Rule 930NY(a) defines a Floor Broker as ``a sole proprietor ATP
Holder or a representative of an ATP Holder who is registered with the
Exchange for the purpose, while on the Exchange Floor, of accepting and
executing option orders received from ATP Holders.'' The Rule further
provides that ``[a] Floor Broker shall not accept an order from any
other source unless he is a sole proprietor ATP Holder or a
representative of an ATP Holder approved to transact business with the
public in accordance with Rule 441, in which event he may accept orders
for customers of the ATP Holder.''
The Exchange notes that Floor Brokers, as registered Broker/
Dealers,\6\ have long handled orders from Broker/Dealers who may not be
ATP Holders. In addition, Floor Brokers may accept orders from non-
Broker/Dealers (i.e., public customers).\7\ Thus, the Exchange proposes
to clarify Rule 930NY(a) by removing the language regarding the types
of market participants from whom a Floor Broker may accept an order.\8\
The updated rule would provide that a Floor Broker is an individual who
is registered with the Exchange for the purpose, while on the Options
Floor, of accepting and handling options orders.\9\ Further, as
proposed, a Floor Broker may accept orders from ATP Holders, Broker
Dealers that are non-ATP Holders, Professional Customers, pursuant to
Rule 930NY(b), as well as from public customers provided the Floor
Broker is properly qualified to do business with the public.\10\
---------------------------------------------------------------------------
\6\ See Rule 930NY(a).
\7\ To handle the orders of public customers, Floor Brokers must
be properly qualified to do business with the public, per Section 3
(Conduct of Accounts for Options Trading), generally, and Rule 920
(Registration and Examination of Options Personnel), specifically.
\8\ See proposed Rule 930NY(a). This practice is consistent with
the rules of other exchanges. See, e.g., supra n. 5 (PHLX Rule 1060)
and CBOE Rule 6.70 (permitting CBOE Floor Brokers to accept orders
from non-member broker-dealers).
\9\ Consistent with the proposed changes to Rule 930NY(a), the
Exchange proposes to delete the cross reference to this section from
Rule 930NY(b)(1). See proposed Rule 930NY(b)(1).
\10\ See supra n. 7.
---------------------------------------------------------------------------
This proposed rule change would reflect current practice on the
Exchange, specifically that a Floor Broker may accept orders from
Broker Dealers that are not ATP Holders. The proposed modification
would not alter a Floor Broker's responsibilities. Further, the
proposal would have no impact on a Floor Broker's ability to accept
orders from the public.\11\
---------------------------------------------------------------------------
\11\ See id.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed change is consistent with
Section 6(b) of the Act,\12\ in general, and furthers the objectives of
Section 6(b)(5),\13\ in particular, in that it is designed to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitation transactions
in securities, to remove impediments to, and perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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Specifically, the Exchange believes that the proposal is designed
to remove language that could be interpreted as a limitation on orders
that may be accepted by Floor Brokers to reflect current practice on
the Exchange, which would promote just and equitable principles of
trade, and remove impediments to, and perfect the mechanism of a free
and open market. The proposed change would make clear to market
participants that a Floor Broker may accept an order from a non-ATP
Holder that is a Broker Dealer, which adds clarity and transparency to
Exchange rules to the benefit of all market participants. Thus, the
Exchange believes that the proposal would help prevent confusion and
help ensure that floor brokerage services are widely available to
various types of market participants, which should, in turn, promote
just and equitable principles of trade.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that this proposed rule change would
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. With respect to inter-market
competition, the proposed rule change is a competitive change that is
substantially similar to rules in place at another competing options
exchange.\14\ With respect to intra-market competition, the proposal
applies to all NYSE MKT Floor Brokers.
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\14\ See supra n. 5.
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[[Page 35092]]
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 \15\ and Rule 19b-4(f)(6) thereunder.\16\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\17\
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\15\ 15 U.S.C. 78s(b)(3)(A)(iii).
\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \18\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\18\ 15 U.S.C. 78s(b)(2)(B).
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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:
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-2016-55 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-2016-55. 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-NYSEMKT-2016-55, and should
be submitted on or before June 22, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-12788 Filed 5-31-16; 8:45 am]
BILLING CODE 8011-01-P