Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Temporarily Widen Price Collar Thresholds for the Core Open Auction and Trading Halt Auctions, 42781-42783 [2016-15456]

Download as PDF Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Notices 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 9 and Rule 19b–4(f)(6) thereunder.10 Because the proposed rule change does not: (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(6)(iii) thereunder.11 A proposed rule change filed under Rule 19b–4(f)(6) under the Act 12 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b– 4(f)(6)(iii),13 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. In support of the request, the Exchange states that waiver the 30-day operative delay will allow the Exchange to invoke the relief immediately upon filing, which is necessary so that Floor brokers may be able to communicate with their customers on a day with significantly increased volumes of trading due both to the United Kingdom referendum vote to leave the European Union and the rebalancing of the Russell Investment Group indices after the close of trading on June 24, 2016. Based on the above, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest because it will permit Floor brokers to remain in communication with customers while wired phone lines are unavailable. Accordingly, the Commission designates the proposed rule change as 9 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 11 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, 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 determined to waive the five-day prefiling period in this case. 12 17 CFR 240.19b–4(f)(6). 13 17 CFR 240.19b–4(f)(6)(iii). mstockstill on DSK3G9T082PROD with NOTICES 10 17 VerDate Sep<11>2014 20:01 Jun 29, 2016 Jkt 238001 operative upon filing with the Commission.14 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) 15 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 • Send an email to rule-comments@ sec.gov. Please include File Number SR– NYSEMKT–2016–64 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–2016–64. 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., 14 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 15 15 U.S.C. 78s(b)(2)(B). PO 00000 Frm 00153 Fmt 4703 Sfmt 4703 42781 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– NYSEMKT–2016–64, and should be submitted on or before July 21, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Jill M. Peterson, Assistant Secretary. [FR Doc. 2016–15500 Filed 6–29–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78152; File No. SR– NYSEArca–2016–90] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Temporarily Widen Price Collar Thresholds for the Core Open Auction and Trading Halt Auctions June 24, 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 June 24, 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to temporarily widen price collar thresholds for the Core Open Auction and Trading Halt Auctions, which would be operative on June 24, 2016 only. 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 16 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 E:\FR\FM\30JNN1.SGM 30JNN1 42782 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Notices 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 mstockstill on DSK3G9T082PROD with NOTICES 1. Purpose The Exchange proposes to temporarily widen price collar thresholds for the Core Open Auction and Trading Halt Auctions, which would be operative for June 24, 2016 only. On June 23, 2016, the United Kingdom (‘‘UK’’) held a referendum vote to decide whether the UK should leave or remain in the European Union. The results of this vote were not made public until after the U.S. markets closed on June 23, 2016. Based on this referendum, the UK has voted to leave the European Union. As expected, this vote has resulted in an extraordinary level of global market activity on June 24, 2016, as the markets assess what the impact of the UK leaving the European Union will mean. This spike in market volatility has also impacted the U.S. equities markets, including pricing of Exchange Traded Products (‘‘ETP’’), the majority of which are listed on the Exchange. Because of the extraordinary level of market volatility following the UK referendum vote, including in the U.S. ETP market, the Exchange believes that widening the Auction Collars for the Core Open Auction and Trading Halt Auctions for June 24, 2016 only would assist the Exchange in conducting fair and orderly auctions. As set forth in Rule 7.35P(a)(10), the price collar thresholds for the Core Open Auction and Trading Halt Auctions are currently set at 10% for securities with an Auction Reference Price of $25.00 or less, 5% for securities with an Auction Reference Price greater than $25.00 but less than or equal to $50.00, and 3% for securities with an VerDate Sep<11>2014 20:01 Jun 29, 2016 Jkt 238001 Auction Reference Price greater than $50.00.4 The Exchange proposes to apply Auction Collars of 10% for all AuctionEligible Securities,5 regardless of the Auction Reference Price. The Exchange believes that for securities priced greater than $25.00, the proposed wider price collar threshold will allow for additional price movements that is expected because of the extraordinary volatility in the market, while continuing to prevent auctions from occurring at prices significantly away from the applicable Auction Reference Price. The proposed 10% price collar threshold for the Core Open Auction is the same as currently used by the Nasdaq Stock Market LLC (‘‘Nasdaq’’) for its opening crosses.6 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) of the Act,8 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and 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. In particular, the Exchange believes that the impact of the UK vote to leave the European Union has resulted in extraordinary global market volatility, not seen in scale since August 24, 2015, and the U.S. ETP market is not immune. In response to this extraordinary market volatility, the Exchange believes that it would promote the protection of investors and the public interest to temporarily widen the price collar thresholds for the Core Open Auction and Trading Halt Auctions on June 24, 4 The Auction Reference Price for the Core Open Auction is the midpoint of the Auction NBBO or, if the Auction NBBO is locked, the locked price. If there is no Auction NBBO, the prior trading day’s Official Closing Price. The Auction Reference Price for the Trading Halt Auction is the last consolidated round-lot price of that trading day, and if none, the prior trading day’s Official Closing Price. See NYSE Arca Equities Rule 7.35P(a)(8). 5 For the Core Open Auction, Auction-Eligible Securities are all securities for which the Exchange is the primary listing market and UTP Securities designated by the Exchange. For the Trading Halt Auction, Auction-Eligible Securities are securities for which the Exchange is the primary listing market. See NYSE Arca Equities Rule 7.35P(a)(1)(A) and (B). 6 See Nasdaq Rule 4752(d)(2)(E) and https:// www.nasdaqtrader.com/content/productsservices/ trading/crosses/openclose_faqs.pdf. 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). PO 00000 Frm 00154 Fmt 4703 Sfmt 4703 2016 only because it would promote fair and orderly auctions. The Exchange further believes that widening the price collar thresholds would remove impediments to and perfect the mechanism of a national market system because it is designed to allow for greater price movement, while at the same time preventing auction trades from occurring at prices significantly away from the applicable Auction Reference Price. Accordingly, investors would be protected from executions significantly away from the last sale in a security or other applicable reference price, but natural price fluctuations resulting from the market volatility would be permitted. In addition, the Exchange believes that widening the Auction Collars could reduce the possibility of securities triggering multiple trading pauses under the Regulation NMS Plan to Address Market Volatility. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change would 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 is designed to ensure a fair and orderly market by temporarily widening the price collar thresholds for the Core Open Auction and Trading Halt Auctions on a trading day with extraordinary market volatility due to the UK vote to leave the European Union, In addition, the proposed rule change is intended to be in effect for June 24, 2016 only to respond to unique events relating to UK referendum and therefore will not create a burden on competition. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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, it has become effective pursuant to Section E:\FR\FM\30JNN1.SGM 30JNN1 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Notices 19(b)(3)(A) of the Act 9 and Rule 19b– 4(f)(6) thereunder.10 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 11 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6)(iii) 12 permits the Commission to 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 Exchange stated that waiver of the operative delay would allow the Exchange to immediately implement the proposed rule change, thereby promoting the operation of a fair and orderly market on a day with extraordinary market volatility due to the UK referendum to leave the European Union. The Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal 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 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: mstockstill on DSK3G9T082PROD with NOTICES 9 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 240.19b–4(f)(6). The Exchange has requested that the Commission waive the requirement that the Exchange provide the Commission written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date on which the Exchange filed the proposed rule change pursuant to Rule 19b–4(f)(6)(iii). The Commission hereby grants this request. 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). VerDate Sep<11>2014 20:01 Jun 29, 2016 Jkt 238001 Electronic Comments 42783 SMALL BUSINESS ADMINISTRATION • 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–2016–90 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–NYSEArca–2016–90. 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– NYSEArca–2016–90, and should be submitted on or before July 21, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Brent J. Fields, Secretary. [FR Doc. 2016–15456 Filed 6–29–16; 8:45 am] [Disaster Declaration #14748] Florida Disaster #FL–00117 Declaration of Economic Injury U.S. Small Business Administration. ACTION: Notice. AGENCY: This is a notice of an Economic Injury Disaster Loan (EIDL) declaration for the State of Florida, dated 06/23/2016. Incident: Violent Attack and Related Investigation. Incident Period: 06/12/2016 and continuing. Effective Date: 06/23/2016. EIDL Loan Application Deadline Date: 03/23/2017. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the Administrator’s EIDL declaration, applications for economic injury disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Counties: Orange. Contiguous Counties: Florida: Brevard, Lake, Osceola, Polk, Seminole, Volusia. The Interest Rates are: SUMMARY: Percent Businesses and Small Agricultural Cooperatives Without Credit Available Elsewhere .................. Non-Profit Organizations Without Credit Available Elsewhere ....... (Catalog of Federal Domestic Assistance Number 59002) [FR Doc. 2016–15530 Filed 6–29–16; 8:45 am] 14 17 PO 00000 CFR 200.30–3(a)(12). Frm 00155 Fmt 4703 Sfmt 9990 2.625 The number assigned to this disaster for economic injury is 14748 The States which received an EIDL Declaration # are Florida. Dated: June 23, 2016. Maria Contreras-Sweet, Administrator. BILLING CODE 8011–01–P 4.000 BILLING CODE 8025–01–P E:\FR\FM\30JNN1.SGM 30JNN1

Agencies

[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Notices]
[Pages 42781-42783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15456]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78152; File No. SR-NYSEArca-2016-90]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change to Temporarily 
Widen Price Collar Thresholds for the Core Open Auction and Trading 
Halt Auctions

June 24, 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 June 24, 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 temporarily widen price collar thresholds 
for the Core Open Auction and Trading Halt Auctions, which would be 
operative on June 24, 2016 only. 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

[[Page 42782]]

the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to temporarily widen price collar thresholds 
for the Core Open Auction and Trading Halt Auctions, which would be 
operative for June 24, 2016 only.
    On June 23, 2016, the United Kingdom (``UK'') held a referendum 
vote to decide whether the UK should leave or remain in the European 
Union. The results of this vote were not made public until after the 
U.S. markets closed on June 23, 2016. Based on this referendum, the UK 
has voted to leave the European Union. As expected, this vote has 
resulted in an extraordinary level of global market activity on June 
24, 2016, as the markets assess what the impact of the UK leaving the 
European Union will mean. This spike in market volatility has also 
impacted the U.S. equities markets, including pricing of Exchange 
Traded Products (``ETP''), the majority of which are listed on the 
Exchange.
    Because of the extraordinary level of market volatility following 
the UK referendum vote, including in the U.S. ETP market, the Exchange 
believes that widening the Auction Collars for the Core Open Auction 
and Trading Halt Auctions for June 24, 2016 only would assist the 
Exchange in conducting fair and orderly auctions.
    As set forth in Rule 7.35P(a)(10), the price collar thresholds for 
the Core Open Auction and Trading Halt Auctions are currently set at 
10% for securities with an Auction Reference Price of $25.00 or less, 
5% for securities with an Auction Reference Price greater than $25.00 
but less than or equal to $50.00, and 3% for securities with an Auction 
Reference Price greater than $50.00.\4\
---------------------------------------------------------------------------

    \4\ The Auction Reference Price for the Core Open Auction is the 
midpoint of the Auction NBBO or, if the Auction NBBO is locked, the 
locked price. If there is no Auction NBBO, the prior trading day's 
Official Closing Price. The Auction Reference Price for the Trading 
Halt Auction is the last consolidated round-lot price of that 
trading day, and if none, the prior trading day's Official Closing 
Price. See NYSE Arca Equities Rule 7.35P(a)(8).
---------------------------------------------------------------------------

    The Exchange proposes to apply Auction Collars of 10% for all 
Auction-Eligible Securities,\5\ regardless of the Auction Reference 
Price. The Exchange believes that for securities priced greater than 
$25.00, the proposed wider price collar threshold will allow for 
additional price movements that is expected because of the 
extraordinary volatility in the market, while continuing to prevent 
auctions from occurring at prices significantly away from the 
applicable Auction Reference Price. The proposed 10% price collar 
threshold for the Core Open Auction is the same as currently used by 
the Nasdaq Stock Market LLC (``Nasdaq'') for its opening crosses.\6\
---------------------------------------------------------------------------

    \5\ For the Core Open Auction, Auction-Eligible Securities are 
all securities for which the Exchange is the primary listing market 
and UTP Securities designated by the Exchange. For the Trading Halt 
Auction, Auction-Eligible Securities are securities for which the 
Exchange is the primary listing market. See NYSE Arca Equities Rule 
7.35P(a)(1)(A) and (B).
    \6\ See Nasdaq Rule 4752(d)(2)(E) and https://www.nasdaqtrader.com/content/productsservices/trading/crosses/openclose_faqs.pdf.
---------------------------------------------------------------------------

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) of 
the Act,\8\ in particular, in that it is designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and 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).
---------------------------------------------------------------------------

    In particular, the Exchange believes that the impact of the UK vote 
to leave the European Union has resulted in extraordinary global market 
volatility, not seen in scale since August 24, 2015, and the U.S. ETP 
market is not immune. In response to this extraordinary market 
volatility, the Exchange believes that it would promote the protection 
of investors and the public interest to temporarily widen the price 
collar thresholds for the Core Open Auction and Trading Halt Auctions 
on June 24, 2016 only because it would promote fair and orderly 
auctions. The Exchange further believes that widening the price collar 
thresholds would remove impediments to and perfect the mechanism of a 
national market system because it is designed to allow for greater 
price movement, while at the same time preventing auction trades from 
occurring at prices significantly away from the applicable Auction 
Reference Price. Accordingly, investors would be protected from 
executions significantly away from the last sale in a security or other 
applicable reference price, but natural price fluctuations resulting 
from the market volatility would be permitted. In addition, the 
Exchange believes that widening the Auction Collars could reduce the 
possibility of securities triggering multiple trading pauses under the 
Regulation NMS Plan to Address Market Volatility.

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

    The Exchange does not believe that the proposed rule change would 
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 is designed 
to ensure a fair and orderly market by temporarily widening the price 
collar thresholds for the Core Open Auction and Trading Halt Auctions 
on a trading day with extraordinary market volatility due to the UK 
vote to leave the European Union, In addition, the proposed rule change 
is intended to be in effect for June 24, 2016 only to respond to unique 
events relating to UK referendum and therefore will not create a burden 
on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    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, it has become effective pursuant to Section

[[Page 42783]]

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). The Exchange has requested that the 
Commission waive the requirement that the Exchange provide the 
Commission written notice of its intent to file the proposed rule 
change, along with a brief description and the text of the proposed 
rule change, at least five business days prior to the date on which 
the Exchange filed the proposed rule change pursuant to Rule 19b-
4(f)(6)(iii). The Commission hereby grants this request.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \11\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the 
Commission to 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 Exchange 
stated that waiver of the operative delay would allow the Exchange to 
immediately implement the proposed rule change, thereby promoting the 
operation of a fair and orderly market on a day with extraordinary 
market volatility due to the UK referendum to leave the European Union. 
The Commission believes the waiver of the operative delay is consistent 
with the protection of investors and the public interest. Therefore, 
the Commission hereby waives the operative delay and designates the 
proposal 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 change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2016-90 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-NYSEArca-2016-90. 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-NYSEArca-2016-90, and should 
be submitted on or before July 21, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-15456 Filed 6-29-16; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.