Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Pilot Period for the Exchange's Retail Liquidity Program, 57642-57644 [2016-20061]
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57642
Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Notices
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–NASDAQ–2016–118. 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–
NASDAQ–2016–118 and should be
submitted on or before September 13,
2016.
[Release No. 34–78598; File No. SR–
NYSEMKT–2016–52]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Brent J. Fields,
Secretary.
[FR Doc. 2016–20065 Filed 8–22–16; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Designation of a
Longer Period for Commission Action
on Proposed Rule Change Amending
Rules 340, 341, and 359 To Extend the
Time Within Which a Member, Member
Organization, or an ATP Holder Must
File a Uniform Termination Notice for
Securities Industry Registration (‘‘U5’’)
[FR Doc. 2016–20060 Filed 8–22–16; 8:45 am]
On June 16, 2016, NYSE MKT LLC
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 Rules 340, 341, and
359 to extend the time within which a
member, member organization, or an
ATP Holder must file a U5. The
proposed rule change was published for
comment in the Federal Register on July
7, 2016.3 The Commission received one
comment letter on the proposal and a
response to the comments from NYSE
MKT LLC.4
Section 19(b)(2) of the Act 5 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding, or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is August 21,
2016. The Commission is extending this
45-day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the comment received and
the response to the comment regarding
BILLING CODE 8011–01–P
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 78198
(June 30, 2016), 81 FR 44363.
4 See letter from Judith Shaw, President, North
American Securities Administrators Association,
Inc., to Brent J. Fields, Secretary, Securities and
Exchange Commission, dated August 3, 2016 and
letter from Elizabeth K. King, General Counsel and
Corporate Secretary, New York Stock Exchange to
Brent J. Fields, Secretary, SEC, dated August 12,
2016.
5 15 U.S.C. 78s(b)(2).
sradovich on DSK3GMQ082PROD with NOTICES
2 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
18:56 Aug 22, 2016
Jkt 238001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Brent J. Fields,
Secretary.
August 17, 2016.
1 15
9 17
the proposed rule change. Accordingly,
the Commission, pursuant to Section
19(b)(2) of the Act,6 designates October
5, 2016, as the date by which the
Commission shall either approve or
disapprove, or institute proceedings to
determine whether to disapprove, the
proposed rule change (File No. SR–
NYSEMKT–2016–52).
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78600; File No. SR–NYSE–
2016–54]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Extending the
Pilot Period for the Exchange’s Retail
Liquidity Program
August 17, 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 August 8,
2016, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) 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 extend the
pilot period for the Exchange’s Retail
Liquidity Program (the ‘‘Retail Liquidity
Program’’ or the ‘‘Program’’), which is
currently scheduled to expire on August
31, 2016, until December 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.
6 Id.
7 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Notices
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 purpose of this filing is to extend
the pilot period of the Retail Liquidity
Program, currently scheduled to expire
on August 31, 2016,4 until December 31,
2016.
sradovich on DSK3GMQ082PROD with NOTICES
Background
In July 2012, the Commission
approved the Retail Liquidity Program
on a pilot basis.5 The Program is
designed to attract retail order flow to
the Exchange, and allows such order
flow to receive potential price
improvement. The Program is currently
limited to trades occurring at prices
equal to or greater than $1.00 per share.
Under the Program, Retail Liquidity
Providers (‘‘RLPs’’) are able to provide
potential price improvement in the form
of a non-displayed order that is priced
better than the Exchange’s best
protected bid or offer (‘‘PBBO’’), called
a Retail Price Improvement Order
(‘‘RPI’’). When there is an RPI in a
particular security, the Exchange
disseminates an indicator, known as the
Retail Liquidity Identifier, indicating
that such interest exists. Retail Member
Organizations (‘‘RMOs’’) can submit a
Retail Order to the Exchange, which
would interact, to the extent possible,
with available contra-side RPIs.
The Retail Liquidity Program was
approved by the Commission on a pilot
basis. Pursuant to NYSE Rule 107C(m),
the pilot period for the Program is
scheduled to end on August 31, 2016.
4 See Securities Exchange Act Release Nos. 77426
(March 23, 2016), 81 FR 17533 (March 29, 2016)
(SR–NYSE–2016–25).
5 See Securities Exchange Act Release No. 67347
(July 3, 2012), 77 FR 40673 (July 10, 2012) (‘‘RLP
Approval Order’’) (SR–NYSE–2011–55).
VerDate Sep<11>2014
18:56 Aug 22, 2016
Jkt 238001
Proposal To Extend the Operation of the
Program
The Exchange established the Retail
Liquidity Program in an attempt to
attract retail order flow to the Exchange
by potentially providing price
improvement to such order flow. The
Exchange believes that the Program
promotes competition for retail order
flow by allowing Exchange members to
submit RPIs to interact with Retail
Orders. Such competition has the ability
to promote efficiency by facilitating the
price discovery process and generating
additional investor interest in trading
securities, thereby promoting capital
formation. The Exchange believes that
extending the pilot is appropriate
because it will allow the Exchange and
the Commission additional time to
analyze data regarding the Program that
the Exchange has committed to
provide.6 As such, the Exchange
believes that it is appropriate to extend
the current operation of the Program.7
Through this filing, the Exchange seeks
to amend NYSE Rule 107C(m) and
extend the current pilot period of the
Program until December 31, 2016.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,8
in general, and furthers the objectives of
Section 6(b)(5),9 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. The Exchange believes
that extending the pilot period for the
Retail Liquidity Program is consistent
with these principles because the
Program is reasonably designed to
attract retail order flow to the exchange
environment, while helping to ensure
that retail investors benefit from the
better price that liquidity providers are
willing to give their orders.
Additionally, as previously stated, the
competition promoted by the Program
may facilitate the price discovery
process and potentially generate
additional investor interest in trading
securities. The extension of the pilot
period will allow the Commission and
the Exchange to continue to monitor the
Program for its potential effects on
public price discovery, and on the
broader market structure.
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 simply extends an
established pilot program for an
additional six months, thus allowing the
Retail Liquidity Program to enhance
competition for retail order flow and
contribute to the public price discovery
process.
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) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11 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 12 and Rule 19b–4(f)(6)
thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),15 the Commission
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
11 17
6 See
id. at 40681.
with this filing, the Exchange has
submitted a request for an extension of the
exemption under Regulation NMS Rule 612
previously granted by the Commission that permits
it to accept and rank the undisplayed RPIs. See
Letter from Martha Redding, Asst. Corporate
Secretary, NYSE Group, Inc. to Brent J. Fields,
Secretary, Securities and Exchange Commission,
dated August 8, 2016.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
7 Concurrently
PO 00000
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57643
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57644
Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Notices
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 proposed rule change may become
operative before the expiration of the
current pilot period. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest, because waiver would allow
the pilot period to continue
uninterrupted after its current
expiration date of August 31, 2016,
thereby avoiding any potential investor
confusion that could result from
temporary interruption in the pilot
program. For this reason, the
Commission hereby waives the 30-day
operative delay and designates the
proposal operative upon filing.16
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
sradovich on DSK3GMQ082PROD with NOTICES
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–NYSE–2016–54. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
16 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).
18:56 Aug 22, 2016
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Brent J. Fields,
Secretary.
[FR Doc. 2016–20061 Filed 8–22–16; 8:45 am]
BILLING CODE 8011–01–P
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–
NYSE–2016–54 on the subject line.
VerDate Sep<11>2014
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–NYSE–
2016–54 and should be submitted on or
before September 13, 2016.
Jkt 238001
Notice of Surrender of License of
Small Business Investment Company
Pursuant to the authority granted to
the United States Small Business
Administration (‘‘SBA’’) under Section
309 of the Small Business Investment
Act of 1958, as amended, and Section
107.1900 of the Small Business
Administration Rules and Regulations,
SBA by this notice declares null and
void the license to function as a small
business investment company under the
Small Business Investment Company
License No. 08/78–0166 issued to Vista
Ventures Advantage, LP
United States Small Business
Administration.
17 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00086
Fmt 4703
Sfmt 4703
Dated: August 16, 2016.
Mark Walsh,
Associate Administrator, Office of Investment
and Innovation.
[FR Doc. 2016–20032 Filed 8–22–16; 8:45 am]
BILLING CODE 8025–01–P
DEPARTMENT OF STATE
[Public Notice: 9670]
Notice of Receipt of Application for a
Presidential Permit To Operate and
Maintain the Brownsville West Rail
Bypass International Bridge on the
U.S.-Mexico Border West of
Brownsville, Texas
Department of State.
Notice.
AGENCY:
ACTION:
The Department of State
hereby gives notice that, on July 22,
2016, it received an application from the
Union Pacific Railroad Company
(UPRR) for a Presidential Permit to
operate and maintain the Brownsville
West Rail Bypass International Bridge.
The current Presidential Permit for the
Brownsville West Rail Bypass
International Bridge is held by Cameron
County, Texas. The Department of
State’s jurisdiction over this application
is based upon Executive Order 11423 of
August 16, 1968, as amended. As
provided in E.O. 11423, the Department
is circulating this application to relevant
federal agencies for review and
comment. Under E.O. 11423, the
Department has the responsibility to
determine, taking into account input
from these agencies and other
stakeholders, whether transferring the
Presidential Permit from Cameron
County to UPRR would serve the
national interest.
Interested members of the public are
invited to submit written comments
regarding this application on or before
September 22, 2016 to the U.S.-Mexico
Border Affairs Office, via email at WHABorderAffairs@state.gov or by mail at
WHA/MEX—Room 3924, Department of
State, 2201 C St. NW., Washington, DC
20520.
FOR FURTHER INFORMATION CONTACT:
U.S.-Mexico Border Affairs Office, via
email at WHA-BorderAffairs@state.gov;
by phone at 202–647–9894; or by mail
at WHA/MEX—Room 3924, Department
of State, 2201 C St. NW., Washington,
DC 20520.
SUPPLEMENTARY INFORMATION: The
application and supporting documents
are available online at https://
www.state.gov/p/wha/rt/permit/app/
upp/index.htm.
SUMMARY:
E:\FR\FM\23AUN1.SGM
23AUN1
Agencies
[Federal Register Volume 81, Number 163 (Tuesday, August 23, 2016)]
[Notices]
[Pages 57642-57644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20061]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78600; File No. SR-NYSE-2016-54]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Extending the Pilot Period for the Exchange's Retail Liquidity Program
August 17, 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 August 8, 2016, New York Stock Exchange LLC (``NYSE'' or
the ``Exchange'') 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 pilot period for the Exchange's
Retail Liquidity Program (the ``Retail Liquidity Program'' or the
``Program''), which is currently scheduled to expire on August 31,
2016, until December 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.
[[Page 57643]]
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 purpose of this filing is to extend the pilot period of the
Retail Liquidity Program, currently scheduled to expire on August 31,
2016,\4\ until December 31, 2016.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release Nos. 77426 (March 23,
2016), 81 FR 17533 (March 29, 2016) (SR-NYSE-2016-25).
---------------------------------------------------------------------------
Background
In July 2012, the Commission approved the Retail Liquidity Program
on a pilot basis.\5\ The Program is designed to attract retail order
flow to the Exchange, and allows such order flow to receive potential
price improvement. The Program is currently limited to trades occurring
at prices equal to or greater than $1.00 per share. Under the Program,
Retail Liquidity Providers (``RLPs'') are able to provide potential
price improvement in the form of a non-displayed order that is priced
better than the Exchange's best protected bid or offer (``PBBO''),
called a Retail Price Improvement Order (``RPI''). When there is an RPI
in a particular security, the Exchange disseminates an indicator, known
as the Retail Liquidity Identifier, indicating that such interest
exists. Retail Member Organizations (``RMOs'') can submit a Retail
Order to the Exchange, which would interact, to the extent possible,
with available contra-side RPIs.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 67347 (July 3,
2012), 77 FR 40673 (July 10, 2012) (``RLP Approval Order'') (SR-
NYSE-2011-55).
---------------------------------------------------------------------------
The Retail Liquidity Program was approved by the Commission on a
pilot basis. Pursuant to NYSE Rule 107C(m), the pilot period for the
Program is scheduled to end on August 31, 2016.
Proposal To Extend the Operation of the Program
The Exchange established the Retail Liquidity Program in an attempt
to attract retail order flow to the Exchange by potentially providing
price improvement to such order flow. The Exchange believes that the
Program promotes competition for retail order flow by allowing Exchange
members to submit RPIs to interact with Retail Orders. Such competition
has the ability to promote efficiency by facilitating the price
discovery process and generating additional investor interest in
trading securities, thereby promoting capital formation. The Exchange
believes that extending the pilot is appropriate because it will allow
the Exchange and the Commission additional time to analyze data
regarding the Program that the Exchange has committed to provide.\6\ As
such, the Exchange believes that it is appropriate to extend the
current operation of the Program.\7\ Through this filing, the Exchange
seeks to amend NYSE Rule 107C(m) and extend the current pilot period of
the Program until December 31, 2016.
---------------------------------------------------------------------------
\6\ See id. at 40681.
\7\ Concurrently with this filing, the Exchange has submitted a
request for an extension of the exemption under Regulation NMS Rule
612 previously granted by the Commission that permits it to accept
and rank the undisplayed RPIs. See Letter from Martha Redding, Asst.
Corporate Secretary, NYSE Group, Inc. to Brent J. Fields, Secretary,
Securities and Exchange Commission, dated August 8, 2016.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\8\ in general, and furthers the objectives of Section 6(b)(5),\9\
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. The Exchange
believes that extending the pilot period for the Retail Liquidity
Program is consistent with these principles because the Program is
reasonably designed to attract retail order flow to the exchange
environment, while helping to ensure that retail investors benefit from
the better price that liquidity providers are willing to give their
orders. Additionally, as previously stated, the competition promoted by
the Program may facilitate the price discovery process and potentially
generate additional investor interest in trading securities. The
extension of the pilot period will allow the Commission and the
Exchange to continue to monitor the Program for its potential effects
on public price discovery, and on the broader market structure.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
simply extends an established pilot program for an additional six
months, thus allowing the Retail Liquidity Program to enhance
competition for retail order flow and contribute to the public price
discovery process.
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) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\15\ the Commission
[[Page 57644]]
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 proposed
rule change may become operative before the expiration of the current
pilot period. The Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest, because waiver would allow the pilot period to continue
uninterrupted after its current expiration date of August 31, 2016,
thereby avoiding any potential investor confusion that could result
from temporary interruption in the pilot program. For this reason, the
Commission hereby waives the 30-day operative delay and designates the
proposal operative upon filing.\16\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSE-2016-54 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-NYSE-2016-54. 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-NYSE-2016-54 and should be
submitted on or before September 13, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-20061 Filed 8-22-16; 8:45 am]
BILLING CODE 8011-01-P