Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 67-Equities To Modify Certain Data Collection Requirements of the Regulation NMS Plan To Implement a Tick Size Pilot Program, 63811-63815 [2016-22256]
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Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Notices
1. Issue an Order requiring the Indian
Point licensee to inspect the reactor
vessel baffle-former bolts and to install
the downflow to upflow modification
on Unit 2 during its next refueling
outage;
2. Issue a Demand for Information
requiring the Indian Point licensee to
submit an operability determination to
the agency regarding continued
operation of Unit 3 until its reactor
vessel baffle-former bolts can be
inspected per Material Reliability
Project–227–A; and
3. Issue a Demand for Information
requiring the Indian Point licensee to
submit an evaluation of the
performance, role and operating
experience of the metal impact
monitoring system in detecting and
responding to indications of loose parts
(such as broken baffle bolts) within the
reactor coolant system.
As the basis for this request, the
petitioner cited Licensee Event Report
2016–004–00 ‘‘Unanalyzed Condition
due to Degraded Reactor Baffle-Former
Bolts,’’ submitted by the licensee on
May 31, 2016 (ADAMS Accession No.
ML16159A219) that describes an event
where there was an unanalyzed
condition due to degraded reactor vessel
baffle-former bolts at Indian Point Unit
2, which is reportable under
§ 50.73(a)(2)(ii)(B) of title 10 of the Code
of Federal Regulations (10 CFR).
Furthermore, the petitioner states that
(1) an order is the proper means for
ensuring that the bolts are inspected and
that the downflow to upflow
modification is installed during the next
refueling outage at Indian Point Unit 2;
(2) Indian Point Unit 3 is potentially
operating with degraded baffle-former
bolts and an operability determination
is the mechanism established by the
NRC to properly evaluate situations
such as this; and (3) the metal impact
monitoring system as described in the
Updated Final Safety Analysis Report,
has the potential to act as an alternate
monitoring system to identify degraded
baffle-former bolts, yet neither the NRC
nor the licensee have referred to this
system in publicly available documents
relating to this issue.
The request is being treated pursuant
to Section 2.206 of Title 10 of the Code
of Federal Regulations (10 CFR) of the
Commission’s regulations. The request
has been referred to the Director of the
Office of Nuclear Reactor Regulation. As
provided by 10 CFR 2.206, appropriate
action will be taken on this petition
within a reasonable time. The petitioner
met with the Petition Review Board on
July 28, 2016, to discuss the petition;
the transcript of that meeting is an
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17:55 Sep 15, 2016
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additional supplement to the petition
(ADAMS Accession No. ML16215A391).
Dated at Rockville, Maryland, this 7th day
of September 2016.
For the Nuclear Regulatory Commission.
William M. Dean,
Director, Office of Nuclear Reactor
Regulation.
[FR Doc. 2016–22380 Filed 9–15–16; 8:45 am]
BILLING CODE 7590–01–P
OFFICE OF PERSONNEL
MANAGEMENT
Submission for Review: 3206–0208,
Representative Payee Survey, RI 38–
115
U.S. Office of Personnel
Management.
ACTION: 60-Day Notice and request for
comments.
AGENCY:
The Retirement Services,
Office of Personnel Management (OPM)
offers the general public and other
Federal agencies the opportunity to
comment on an extension, without
change, of a currently approved
information collection request (ICR)
3206–0208, Representative Payee
Survey. As required by the Paperwork
Reduction Act of 1995 (Pub. L. 104–13,
44 U.S.C. chapter 35) as amended by the
Clinger-Cohen Act (Pub. L. 104–106),
OPM is soliciting comments for this
collection.
SUMMARY:
Comments are encouraged and
will be accepted until November 15,
2016. This process is conducted in
accordance with 5 CFR 1320.1.
ADDRESSES: Interested persons are
invited to submit written comments on
the proposed information collection to
the U.S. Office of Personnel
Management, Retirement Services, 1900
E Street NW., Room 2347E, Washington,
DC 20415, Attention: Alberta Butler, or
sent by email to Alberta.Butler@
opm.gov.
DATES:
A
copy of this ICR with applicable
supporting documentation, may be
obtained by contacting the Retirement
Services Publications Team, Office of
Personnel Management, 1900 E Street
NW., Room 3316–L, Washington, DC
20415, Attention: Cyrus S. Benson, or
sent by email to Cyrus.Benson@opm.gov
or faxed to (202) 606–0910.
SUPPLEMENTARY INFORMATION: The
Representative Payee Survey is used to
collect information about how the
benefits paid to a representative payee
have been used or conserved for the
benefit of the incompetent annuitant.
FOR FURTHER INFORMATION CONTACT:
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63811
The Office of Management and Budget
is particularly interested in comments
that:
1. Evaluate whether the proposed
collection of information is necessary
for the proper performance of functions
of OPM, including whether the
information will have practical utility;
2. Evaluate the accuracy of OPM’s
estimate of the burden of the proposed
collection of information, including the
validity of the methodology and
assumptions used;
3. Enhance the quality, utility, and
clarity of the information to be
collected; and
4. Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology,
e.g., permitting electronic submissions
of responses.
Analysis
Agency: Retirement Operations,
Retirement Services, Office of Personnel
Management.
Title: Representative Payee Survey.
OMB Number: 3206–0208.
Frequency: Annually.
Affected Public: Individuals or
Households.
Number of Respondents: 11,000.
Estimated Time per Respondent: 20
minutes.
Total Burden Hours: 3,667.
U.S. Office of Personnel Management.
Beth F. Cobert,
Acting Director.
[FR Doc. 2016–22329 Filed 9–15–16; 8:45 am]
BILLING CODE 6325–38–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78817; File No. SR–
NYSEMKT–2016–84]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 67—
Equities To Modify Certain Data
Collection Requirements of the
Regulation NMS Plan To Implement a
Tick Size Pilot Program
September 12, 2016.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Notices
notice is hereby given that on August
29, 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 Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 67—Equities to modify certain data
collection requirements of the
Regulation NMS Plan to Implement a
Tick Size Pilot Program. The proposed
rule change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
On August 25, 2014, NYSE MKT, and
several other self-regulatory
organizations (the ‘‘Participants’’) filed
with the Commission, pursuant to
Section 11A of the Act 4 and Rule 608
of Regulation NMS thereunder,5 the
Plan to Implement a Tick Size Pilot
Program (the ‘‘Plan’’).6 The Participants
filed the Plan to comply with an order
issued by the Commission on June 24,
2014.7 The Plan was published for
comment in the Federal Register on
4 15
U.S.C. 78k–1.
CFR 242.608.
6 See Letter from Brendon J. Weiss, Vice
President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014.
7 See Securities Exchange Act Release No. 72460
(June 24, 2014), 79 FR 36840 (June 30, 2014).
5 17
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November 7, 2014, and approved by the
Commission, as modified, on May 6,
2015.8
The Plan is designed to allow the
Commission, market participants, and
the public to study and assess the
impact of increment conventions on the
liquidity and trading of the common
stock of small-capitalization companies.
Each Participant is required to comply,
and to enforce compliance by its
member organizations, as applicable,
with the provisions of the Plan.
The Plan provides for the creation of
a group of Pilot Securities, which shall
be placed in a control group and three
separate test groups, with each subject
to varying quoting and trading
increments. Pilot Securities in the
control group will be quoted at the
current tick size increment of $0.01 per
share and will trade at the currently
permitted increments. Pilot Securities in
the first test group will be quoted in
$0.05 minimum increments but will
continue to trade at any price increment
that is currently permitted.9 Pilot
Securities in the second test group
(‘‘Test Group Two’’) will be quoted in
$0.05 minimum increments and will
trade at $0.05 minimum increments
subject to a midpoint exception, a retail
investor order exception, and a
negotiated trade exception.10 Pilot
Securities in the third test group (‘‘Test
Group Three’’) will be subject to the
same quoting and trading increments as
Test Group Two, and also will be
subject to the ‘‘Trade-at’’ requirement to
prevent price matching by a market
participant that is not displaying at the
price of a Trading Center’s ‘‘Best
Protected Bid’’ or ‘‘Best Protected
Offer,’’ unless an enumerated exception
applies.11 In addition to the exceptions
provided under Test Group Two, an
exception for Block Size orders and
exceptions that mirror those under Rule
611 of Regulation NMS 12 will apply to
the Trade-at requirement.
The Plan also requires a Trading
Center 13 or a Market Maker 14 to collect
8 See Securities Exchange Act Release No. 74892
(May 6, 2015), 80 FR 27513 (May 13, 2015)
(‘‘Approval Order’’).
9 See Section VI(B) of the Plan.
10 See Section VI(C) of the Plan.
11 See Section VI(D) of the Plan.
12 17 CFR 242.611.
13 The Plan incorporates the definition of a
‘‘Trading Center’’ from Rule 600(b)(78) of
Regulation NMS. Regulation NMS defines a
‘‘Trading Center’’ as ‘‘a national securities exchange
or national securities association that operates an
SRO trading facility, an alternative trading system,
an exchange market maker, an OTC market maker,
or any other broker or dealer that executes orders
internally by trading as principal or crossing orders
as agent.’’ See 17 CFR 242.600(b).
14 The Plan defines a Market Maker as ‘‘a dealer
registered with any self-regulatory organization, in
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and transmit certain data to its
designated examining authority
(‘‘DEA’’), and requires DEAs to transmit
this data to the Commission.
Participants that operate a Trading
Center also are required under the Plan
to collect certain data, which is then
transmitted directly to the Commission.
With respect to Trading Centers,
Appendix B.I to the Plan (Market
Quality Statistics) requires a Trading
Center to submit to the Participant that
is its DEA a variety of market quality
statistics. Appendix B.II to the Plan
(Market and Marketable Limit Order
Data) requires a Trading Center to
submit information to its DEA relating
to market orders and marketable limit
orders, including the time of order
receipt, order type, the order size, and
the National Best Bid and National Best
Offer quoted price.
With respect to Market Makers,
Appendix B.III requires a Participant
that is a national securities exchange to
collect daily Market Maker Registration
statistics. Appendix B.IV requires a
Participant to collect data related to
Market Maker participation with respect
to each Market Maker engaging in
trading activity on a Trading Center
operated by the Participant. Appendix
C.I requires a Participant to collect data
related to Market Maker profitability
from each Market Maker for which it is
the DEA. Appendix C.II requires the
Participant, as DEA, to aggregate the
Appendix C.I data, and to transmit this
data to the Commission.
The Commission approved the Pilot
on a two-year basis, with
implementation to begin no later than
May 6, 2016.15 On November 6, 2015,
the SEC exempted the Participants from
implementing the pilot until October 3,
2016.16 As set forth in Appendices B
and C to the Plan, data that is reported
pursuant to the appendices shall be
provided for dates starting six months
prior to the Pilot Period through six
months after the end of the Pilot Period.
Under the revised Pilot implementation
date, the Pre-Pilot data collection period
commenced on April 4, 2016.
On March 29, 2016, NYSE MKT filed
with the Commission a proposed rule
change to adopt NYSE MKT Rule
67(b)—Equities to implement the data
collection requirements of the Plan.17
accordance with the rules thereof, as (i) a market
maker or (ii) a liquidity provider with an obligation
to maintain continuous, two-sided trading interest.’’
15 See Approval Order at 27533 and 27545.
16 See Securities Exchange Act Release No. 76382
(November 6, 2015), 80 FR 70284 (November 13,
2015) (File No. 4–657).
17 See Securities Exchange Act Release No. 77478
(March 30, 2016), 81 FR 19665 (April 5, 2016)
(Immediate Effectiveness of Proposed Rule Change
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On December 9, 2015, NYSE MKT
submitted an exemptive request to the
Commission, seeking an exemption
from certain data collection and
reporting requirements set forth in the
Plan.18 On April 4, 2016, the
Commission granted exemptive relief
from complying with certain data
collection and reporting requirements in
the Plan.19
NYSE MKT now proposes to further
amend Rule 67—Equities to modify
additional data collection and reporting
requirements. First, Appendix B.I.a(21)
through B.I.a(27) currently requires that
Trading Centers report the cumulative
number of shares of cancelled orders
during a specified duration of time after
receipt of the order that was cancelled.
NYSE MKT and the other Participants
believe that, for purposes of reporting
cancelled orders, it is appropriate to
categorize unexecuted Immediate or
Cancel orders separately as one bucket
irrespective of the duration of time after
order receipt, i.e., without a time
increment, to better differentiate orders
cancelled subsequent to entry from
those where the customer’s intent prior
to order entry was to cancel the order
if no execution could be immediately
obtained. NYSE MKT, therefore,
proposes to modify Supplementary
Material .30 to provide that unexecuted
Immediate or Cancel orders shall be
categorized separately for purposes of
Appendix B.I.a(21) through B.I.a(27).
The second change relates to the
reporting of daily market quality
statistics pursuant to Appendix B.I.
Currently, Appendix B.I sets forth
categories of orders, including market
orders, marketable limit orders, and
inside-the-quote resting limit orders, for
which daily market quality statistics
must be reported. NYSE MKT and the
other Participants have determined that
it is appropriate to include an order type
for limit orders priced more than $0.10
away from the NBBO for purposes of
Appendix B reporting. NYSE MKT
Adopting Requirements for the Collection and
Transmission of Data Pursuant to Appendices B and
C of the Regulation NMS Plan to Implement a Tick
Size Pilot Program) (SR–NYSEMKT–2016–40).
NYSE MKT also submitted a proposed rule
change to implement the quoting and trading
requirements of the Plan. See Securities Exchange
Act Release No. 77949 (May 31, 2016), 81 FR 36367
(June 6, 2016) (Immediate Effectiveness of Proposed
Rule Change Implementing the Quoting and
Trading Provisions of the Plan to Implement a Tick
Size Pilot Program) (SR–NYSEMKT–2016–56).
18 See Letter from Marcia E. Asquith, Senior Vice
President and Corporate Secretary, FINRA, to
Robert W. Errett, Deputy Secretary, Commission,
dated December 9, 2015 (‘‘Exemptive Request’’).
19 See letter from John C. Roeser, Associate
Director, Division of Trading and Markets,
Commission, to Sherry Sandler, Associate General
Counsel, NYSE MKT, dated April 4, 2016.
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therefore proposes to amend
Supplementary Material .50 to provide
that limit orders priced more than $0.10
away from the NBBO shall be included
as an order type for purposes of
Appendix B reporting, and shall be
assigned the number (22). These orders
are not currently required to be reported
pursuant to Appendix B, and NYSE
MKT and the other Participants believe
that requiring the reporting of such
orders will produce a more
comprehensive data set.
The third change relates to the
reporting of market quality statistics
pursuant to Appendix B.I for a variety
of order types, including inside-thequote resting limit orders (12), at-thequote resting limit orders (13), and nearthe-quote resting limit orders (within
$0.10 of the NBBO) (14). NYSE MKT
and the other Participants believe that it
is appropriate to require Trading
Centers to report all orders that fall
within these categories, and not just
those orders that are ‘‘resting.’’ NYSE
MKT, therefore, proposes to amend
Supplementary Material .50 to make
this change.
In the fourth change, NYSE MKT
proposes to add new Supplementary
Material .100 to modify the manner in
which market maker participation
statistics are calculated. Currently,
Appendix B.IV provides that market
maker participation statistics shall be
calculated based on share participation,
trade participation, cross-quote share
(trade) participation, inside-the-quote
share (trade) participation, at-the-quote
share (trade) participation, and outsidethe-quote share (trade) participation.
NYSE MKT and the other Participants
have determined that it is appropriate to
add the count of the number of Market
Makers used in the calculation of share
(trade) participation to each category.
NYSE MKT is therefore proposing this
change as part of Supplementary
Material .100. In addition, Appendix
B.IV(b) and (c) currently require that,
when aggregating across Market Makers,
share participation and trade
participation shall be calculated using
the share-weighted average and tradeweighted average, respectively. NYSE
MKT and the other Participants believe
that it is more appropriate to calculate
share and trade participation by
providing the total count of shares or
trades, as applicable, rather than
weighted averages, and NYSE MKT is
therefore proposing this change as part
of Supplementary Material .100.
The fifth change relates to the NBBO
that a Trading Center is required to use
when performing certain quote-related
calculations. When calculating crossquote share (trade) participation
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63813
pursuant to Appendix B.IV(d) and
inside-the-quote share (trade)
participation pursuant to Appendix
B.IV(e), the Plan requires the Trading
Center to utilize the NBBO at the time
of the trade for both share and trade
participation calculations. When
calculating at-the-quote share (trade)
participation and outside-the-quote
share (trade) participation pursuant to
Appendix B.IV(f) and (g), the Plan
allows the Trading Center to utilize the
National Best Bid or National Best Offer
(NBBO) at the time of or immediately
before the trade for both share and trade
participation calculations. NYSE MKT
and the other Participants believe that it
is appropriate to calculate all quote
participation (cross-quote share (trade)
participation, inside-the-quote share
(trade) participation, at-the-quote share
(trade) participation and outside-thequote share (trade) participation) solely
by reference to the NBBO in effect
immediately prior to the trade. NYSE
MKT therefore proposes to make this
change as part of Supplementary
Material .100.
Finally, NYSE MKT proposes to
change the end date until which the PrePilot Data Collection Securities shall be
used to fulfill the Plan’s data collection
requirements. Currently, Supplementary
Material .90 provides that Pre-Pilot Data
Collection Securities are the securities
designated by the Participants for
purposes of the data collection
requirements described in Items I, II and
IV of Appendix B and Item I of
Appendix C to the Plan for the period
beginning six months prior to the Pilot
Period and ending on the trading day
immediately preceding the Pilot Period.
NYSE MKT and the other Participants
believe that it is appropriate to use the
Pilot Securities to satisfy the Plan’s data
collection requirements prior to the
commencement of the Pilot.
Accordingly, NYSE MKT is revising
Supplementary Material .90 to provide
that the Pre-Pilot Data Collection
Securities shall be used to satisfy the
Plan’s data collection requirements
through thirty-one days prior to the
Pilot Period, after which time the Pilot
Securities shall be used for purposes of
the data collection requirements.20
20 After regular trading hours on September 2,
2016, the national securities exchanges will
establish which securities will be included as Pilot
Securities for purposes of the Plan. NYSE MKT and
the other Participants have determined that
members should use the Pilot Securities list for data
collection purposes once it becomes available.
Thus, the proposed rule change requires that,
beginning thirty days prior to the first day of the
Pilot Period—i.e., September 3, 2016—NYSE MKT
and NYSE MKT members will comply with the data
collection obligations of the Plan by collecting data
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As noted in Item 2 of this filing, NYSE
MKT has filed the proposed rule change
for immediate effectiveness. NYSE MKT
has requested that the SEC waive the 30day operative period so that the
proposed rule change can become
operative on August 30, 2016.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 21 in general, and furthers the
objectives of Section 6(b)(5) of the Act 22
in particular, in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, 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.
NYSE MKT believes that this proposal
is consistent with the Act because it
implements and clarifies the provisions
of the Plan, and is designed to assist
NYSE MKT in meeting its regulatory
obligations pursuant to the Plan. In
approving the Plan, the SEC noted that
the Pilot was an appropriate, datadriven test that was designed to evaluate
the impact of a wider tick size on
trading, liquidity, and the market
quality of securities of smaller
capitalization companies, and was
therefore in furtherance of the purposes
of the Act. NYSE MKT believes that this
proposal is in furtherance of the
objectives of the Plan, as identified by
the SEC, and is therefore consistent with
the Act because the proposal
implements and clarifies the
requirements of the Plan.
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
NYSE MKT notes that the proposed
rule change implements the provisions
of the Plan, and is designed to assist
NYSE MKT in meeting its regulatory
obligations pursuant to the Plan. NYSE
MKT also notes that, other than the
change to require use of the Pilot
Securities beginning thirty days prior to
the beginning of the Pilot Period, the
proposed changes will only affect how
NYSE MKT and Participants that
operate Trading Centers collect and
report data. NYSE MKT notes that, with
on the Pilot Securities. As a result, beginning on
September 3, 2016, members must migrate from
using NYSE MKT’s published Pre-Pilot Data
Collection Security list and begin using the Pilot
Securities list. September 2, 2016 will be the last
day that members use the Pre-Pilot Data Collection
Security list.
21 15 U.S.C. 78f(b).
22 15 U.S.C. 78f(b)(5).
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17:55 Sep 15, 2016
Jkt 238001
respect to the change to require the use
of the Pilot Securities beginning thirty
days prior to the start of the Pilot
Period, the proposed change reduces the
number of securities on which affected
members otherwise would have been
required to collect data pursuant to the
Plan and NYSE MKT Rule 67—Equities.
In addition, the proposed rule change
applies equally to all similarly situated
members. Therefore, NYSE MKT does
not believe that the proposed rule
change will result in any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
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 23 and Rule
19b–4(f)(6) thereunder.24 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) by its terms,
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.
A proposed rule change filed under
Rule 19b–4(f)(6) 25 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),26 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing.
The Commission believes that
waiving the 30 day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the Exchange to
implement the proposed rules
immediately thereby preventing delays
in the implementation of the Plan. The
Commission notes that the Plan is
23 15
U.S.C. 78s(b)(3)(A)(iii).
24 17 CFR 240.19b–4(f)(6).
25 17 CFR 240.19b–4(f)(6).
26 17 CFR 240.19b–4(f)(6)(iii).
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scheduled to start on October 3, 2016.
Therefore, the Commission hereby
waives the 30 day operative delay and
designates the proposed rule change to
be operative upon filing with the
Commission.27
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) 28 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–2016–84 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–2016–84. 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
27 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
28 15 U.S.C. 78s(b)(2)(B).
E:\FR\FM\16SEN1.SGM
16SEN1
Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Notices
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–NYSEMKT–2016–84 and
should be submitted on or before
October 7, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–22256 Filed 9–15–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78816; File No. SR–
NASDAQ–2016–123]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
4770
September 12, 2016.
mstockstill on DSK3G9T082PROD with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
29, 2016, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by the Exchange.
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 amend
Rule 4770 to modify certain data
collection requirements of the
29 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
17:55 Sep 15, 2016
Jkt 238001
Regulation NMS Plan to Implement a
Tick Size Pilot Program.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaq.cchwallstreet.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
Exchange 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 these
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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On August 25, 2014, Nasdaq and
several other self-regulatory
organizations (the ‘‘Participants’’) filed
with the Commission, pursuant to
Section 11A of the Act 3 and Rule 608
of Regulation NMS thereunder,4 the
Plan to Implement a Tick Size Pilot
Program (the ‘‘Plan’’).5 The Participants
filed the Plan to comply with an order
issued by the Commission on June 24,
2014.6 The Plan was published for
comment in the Federal Register on
November 7, 2014, and approved by the
Commission, as modified, on May 6,
2015.7
The Plan is designed to allow the
Commission, market participants, and
the public to study and assess the
impact of increment conventions on the
liquidity and trading of the common
stock of small-capitalization companies.
Each Participant is required to comply,
and to enforce compliance by its
member organizations, as applicable,
with the provisions of the Plan.
The Plan provides for the creation of
a group of Pilot Securities, which shall
be placed in a control group and three
3 15
U.S.C. 78k–1.
CFR 242.608.
5 See Letter from Brendon J. Weiss, Vice
President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014.
6 See Securities Exchange Act Release No. 72460
(June 24, 2014), 79 FR 36840 (June 30, 2014).
7 See Securities Exchange Act Release No. 74892
(May 6, 2015), 80 FR 27513 (May 13, 2015)
(‘‘Approval Order’’).
4 17
PO 00000
Frm 00081
Fmt 4703
Sfmt 4703
63815
separate test groups, with each subject
to varying quoting and trading
increments. Pilot Securities in the
control group will be quoted at the
current tick size increment of $0.01 per
share and will trade at the currently
permitted increments. Pilot Securities in
the first test group will be quoted in
$0.05 minimum increments but will
continue to trade at any price increment
that is currently permitted.8 Pilot
Securities in the second test group
(‘‘Test Group Two’’) will be quoted in
$0.05 minimum increments and will
trade at $0.05 minimum increments
subject to a midpoint exception, a retail
investor order exception, and a
negotiated trade exception.9 Pilot
Securities in the third test group (‘‘Test
Group Three’’) will be subject to the
same quoting and trading increments as
Test Group Two, and also will be
subject to the ‘‘Trade-at’’ requirement to
prevent price matching by a market
participant that is not displaying at the
price of a Trading Center’s ‘‘Best
Protected Bid’’ or ‘‘Best Protected
Offer,’’ unless an enumerated exception
applies.10 In addition to the exceptions
provided under Test Group Two, an
exception for Block Size orders and
exceptions that mirror those under Rule
611 of Regulation NMS 11 will apply to
the Trade-at requirement.
The Plan also requires a Trading
Center 12 or a Market Maker 13 to collect
and transmit certain data to its
designated examining authority
(‘‘DEA’’), and requires DEAs to transmit
this data to the Commission.
Participants that operate a Trading
Center also are required under the Plan
to collect certain data, which is then
transmitted directly to the Commission.
With respect to Trading Centers,
Appendix B.I to the Plan (Market
Quality Statistics) requires a Trading
Center to submit to the Participant that
is its DEA a variety of market quality
statistics. Appendix B.II to the Plan
(Market and Marketable Limit Order
Data) requires a Trading Center to
8 See
Section VI(B) of the Plan.
Section VI(C) of the Plan.
10 See Section VI(D) of the Plan.
11 17 CFR 242.611.
12 The Plan incorporates the definition of a
‘‘Trading Center’’ from Rule 600(b)(78) of
Regulation NMS. Regulation NMS defines a
‘‘Trading Center’’ as ‘‘a national securities exchange
or national securities association that operates an
SRO trading facility, an alternative trading system,
an exchange market maker, an OTC market maker,
or any other broker or dealer that executes orders
internally by trading as principal or crossing orders
as agent.’’ See 17 CFR 242.600(b).
13 The Plan defines a Market Maker as ‘‘a dealer
registered with any self-regulatory organization, in
accordance with the rules thereof, as (i) a market
maker or (ii) a liquidity provider with an obligation
to maintain continuous, two-sided trading interest.’’
9 See
E:\FR\FM\16SEN1.SGM
16SEN1
]]>Agencies
[Federal Register Volume 81, Number 180 (Friday, September 16, 2016)]
[Notices]
[Pages 63811-63815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22256]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78817; File No. SR-NYSEMKT-2016-84]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Amend Rule 67--
Equities To Modify Certain Data Collection Requirements of the
Regulation NMS Plan To Implement a Tick Size Pilot Program
September 12, 2016.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\
[[Page 63812]]
notice is hereby given that on August 29, 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 Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 67--Equities to modify certain
data collection requirements of the Regulation NMS Plan to Implement a
Tick Size Pilot Program. The proposed rule change is available on the
Exchange's Web site at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
On August 25, 2014, NYSE MKT, and several other self-regulatory
organizations (the ``Participants'') filed with the Commission,
pursuant to Section 11A of the Act \4\ and Rule 608 of Regulation NMS
thereunder,\5\ the Plan to Implement a Tick Size Pilot Program (the
``Plan'').\6\ The Participants filed the Plan to comply with an order
issued by the Commission on June 24, 2014.\7\ The Plan was published
for comment in the Federal Register on November 7, 2014, and approved
by the Commission, as modified, on May 6, 2015.\8\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78k-1.
\5\ 17 CFR 242.608.
\6\ See Letter from Brendon J. Weiss, Vice President,
Intercontinental Exchange, Inc., to Secretary, Commission, dated
August 25, 2014.
\7\ See Securities Exchange Act Release No. 72460 (June 24,
2014), 79 FR 36840 (June 30, 2014).
\8\ See Securities Exchange Act Release No. 74892 (May 6, 2015),
80 FR 27513 (May 13, 2015) (``Approval Order'').
---------------------------------------------------------------------------
The Plan is designed to allow the Commission, market participants,
and the public to study and assess the impact of increment conventions
on the liquidity and trading of the common stock of small-
capitalization companies. Each Participant is required to comply, and
to enforce compliance by its member organizations, as applicable, with
the provisions of the Plan.
The Plan provides for the creation of a group of Pilot Securities,
which shall be placed in a control group and three separate test
groups, with each subject to varying quoting and trading increments.
Pilot Securities in the control group will be quoted at the current
tick size increment of $0.01 per share and will trade at the currently
permitted increments. Pilot Securities in the first test group will be
quoted in $0.05 minimum increments but will continue to trade at any
price increment that is currently permitted.\9\ Pilot Securities in the
second test group (``Test Group Two'') will be quoted in $0.05 minimum
increments and will trade at $0.05 minimum increments subject to a
midpoint exception, a retail investor order exception, and a negotiated
trade exception.\10\ Pilot Securities in the third test group (``Test
Group Three'') will be subject to the same quoting and trading
increments as Test Group Two, and also will be subject to the ``Trade-
at'' requirement to prevent price matching by a market participant that
is not displaying at the price of a Trading Center's ``Best Protected
Bid'' or ``Best Protected Offer,'' unless an enumerated exception
applies.\11\ In addition to the exceptions provided under Test Group
Two, an exception for Block Size orders and exceptions that mirror
those under Rule 611 of Regulation NMS \12\ will apply to the Trade-at
requirement.
---------------------------------------------------------------------------
\9\ See Section VI(B) of the Plan.
\10\ See Section VI(C) of the Plan.
\11\ See Section VI(D) of the Plan.
\12\ 17 CFR 242.611.
---------------------------------------------------------------------------
The Plan also requires a Trading Center \13\ or a Market Maker \14\
to collect and transmit certain data to its designated examining
authority (``DEA''), and requires DEAs to transmit this data to the
Commission. Participants that operate a Trading Center also are
required under the Plan to collect certain data, which is then
transmitted directly to the Commission. With respect to Trading
Centers, Appendix B.I to the Plan (Market Quality Statistics) requires
a Trading Center to submit to the Participant that is its DEA a variety
of market quality statistics. Appendix B.II to the Plan (Market and
Marketable Limit Order Data) requires a Trading Center to submit
information to its DEA relating to market orders and marketable limit
orders, including the time of order receipt, order type, the order
size, and the National Best Bid and National Best Offer quoted price.
---------------------------------------------------------------------------
\13\ The Plan incorporates the definition of a ``Trading
Center'' from Rule 600(b)(78) of Regulation NMS. Regulation NMS
defines a ``Trading Center'' as ``a national securities exchange or
national securities association that operates an SRO trading
facility, an alternative trading system, an exchange market maker,
an OTC market maker, or any other broker or dealer that executes
orders internally by trading as principal or crossing orders as
agent.'' See 17 CFR 242.600(b).
\14\ The Plan defines a Market Maker as ``a dealer registered
with any self-regulatory organization, in accordance with the rules
thereof, as (i) a market maker or (ii) a liquidity provider with an
obligation to maintain continuous, two-sided trading interest.''
---------------------------------------------------------------------------
With respect to Market Makers, Appendix B.III requires a
Participant that is a national securities exchange to collect daily
Market Maker Registration statistics. Appendix B.IV requires a
Participant to collect data related to Market Maker participation with
respect to each Market Maker engaging in trading activity on a Trading
Center operated by the Participant. Appendix C.I requires a Participant
to collect data related to Market Maker profitability from each Market
Maker for which it is the DEA. Appendix C.II requires the Participant,
as DEA, to aggregate the Appendix C.I data, and to transmit this data
to the Commission.
The Commission approved the Pilot on a two-year basis, with
implementation to begin no later than May 6, 2016.\15\ On November 6,
2015, the SEC exempted the Participants from implementing the pilot
until October 3, 2016.\16\ As set forth in Appendices B and C to the
Plan, data that is reported pursuant to the appendices shall be
provided for dates starting six months prior to the Pilot Period
through six months after the end of the Pilot Period. Under the revised
Pilot implementation date, the Pre-Pilot data collection period
commenced on April 4, 2016.
---------------------------------------------------------------------------
\15\ See Approval Order at 27533 and 27545.
\16\ See Securities Exchange Act Release No. 76382 (November 6,
2015), 80 FR 70284 (November 13, 2015) (File No. 4-657).
---------------------------------------------------------------------------
On March 29, 2016, NYSE MKT filed with the Commission a proposed
rule change to adopt NYSE MKT Rule 67(b)--Equities to implement the
data collection requirements of the Plan.\17\
[[Page 63813]]
On December 9, 2015, NYSE MKT submitted an exemptive request to the
Commission, seeking an exemption from certain data collection and
reporting requirements set forth in the Plan.\18\ On April 4, 2016, the
Commission granted exemptive relief from complying with certain data
collection and reporting requirements in the Plan.\19\
---------------------------------------------------------------------------
\17\ See Securities Exchange Act Release No. 77478 (March 30,
2016), 81 FR 19665 (April 5, 2016) (Immediate Effectiveness of
Proposed Rule Change Adopting Requirements for the Collection and
Transmission of Data Pursuant to Appendices B and C of the
Regulation NMS Plan to Implement a Tick Size Pilot Program) (SR-
NYSEMKT-2016-40).
NYSE MKT also submitted a proposed rule change to implement the
quoting and trading requirements of the Plan. See Securities
Exchange Act Release No. 77949 (May 31, 2016), 81 FR 36367 (June 6,
2016) (Immediate Effectiveness of Proposed Rule Change Implementing
the Quoting and Trading Provisions of the Plan to Implement a Tick
Size Pilot Program) (SR-NYSEMKT-2016-56).
\18\ See Letter from Marcia E. Asquith, Senior Vice President
and Corporate Secretary, FINRA, to Robert W. Errett, Deputy
Secretary, Commission, dated December 9, 2015 (``Exemptive
Request'').
\19\ See letter from John C. Roeser, Associate Director,
Division of Trading and Markets, Commission, to Sherry Sandler,
Associate General Counsel, NYSE MKT, dated April 4, 2016.
---------------------------------------------------------------------------
NYSE MKT now proposes to further amend Rule 67--Equities to modify
additional data collection and reporting requirements. First, Appendix
B.I.a(21) through B.I.a(27) currently requires that Trading Centers
report the cumulative number of shares of cancelled orders during a
specified duration of time after receipt of the order that was
cancelled. NYSE MKT and the other Participants believe that, for
purposes of reporting cancelled orders, it is appropriate to categorize
unexecuted Immediate or Cancel orders separately as one bucket
irrespective of the duration of time after order receipt, i.e., without
a time increment, to better differentiate orders cancelled subsequent
to entry from those where the customer's intent prior to order entry
was to cancel the order if no execution could be immediately obtained.
NYSE MKT, therefore, proposes to modify Supplementary Material .30 to
provide that unexecuted Immediate or Cancel orders shall be categorized
separately for purposes of Appendix B.I.a(21) through B.I.a(27).
The second change relates to the reporting of daily market quality
statistics pursuant to Appendix B.I. Currently, Appendix B.I sets forth
categories of orders, including market orders, marketable limit orders,
and inside-the-quote resting limit orders, for which daily market
quality statistics must be reported. NYSE MKT and the other
Participants have determined that it is appropriate to include an order
type for limit orders priced more than $0.10 away from the NBBO for
purposes of Appendix B reporting. NYSE MKT therefore proposes to amend
Supplementary Material .50 to provide that limit orders priced more
than $0.10 away from the NBBO shall be included as an order type for
purposes of Appendix B reporting, and shall be assigned the number
(22). These orders are not currently required to be reported pursuant
to Appendix B, and NYSE MKT and the other Participants believe that
requiring the reporting of such orders will produce a more
comprehensive data set.
The third change relates to the reporting of market quality
statistics pursuant to Appendix B.I for a variety of order types,
including inside-the-quote resting limit orders (12), at-the-quote
resting limit orders (13), and near-the-quote resting limit orders
(within $0.10 of the NBBO) (14). NYSE MKT and the other Participants
believe that it is appropriate to require Trading Centers to report all
orders that fall within these categories, and not just those orders
that are ``resting.'' NYSE MKT, therefore, proposes to amend
Supplementary Material .50 to make this change.
In the fourth change, NYSE MKT proposes to add new Supplementary
Material .100 to modify the manner in which market maker participation
statistics are calculated. Currently, Appendix B.IV provides that
market maker participation statistics shall be calculated based on
share participation, trade participation, cross-quote share (trade)
participation, inside-the-quote share (trade) participation, at-the-
quote share (trade) participation, and outside-the-quote share (trade)
participation. NYSE MKT and the other Participants have determined that
it is appropriate to add the count of the number of Market Makers used
in the calculation of share (trade) participation to each category.
NYSE MKT is therefore proposing this change as part of Supplementary
Material .100. In addition, Appendix B.IV(b) and (c) currently require
that, when aggregating across Market Makers, share participation and
trade participation shall be calculated using the share-weighted
average and trade-weighted average, respectively. NYSE MKT and the
other Participants believe that it is more appropriate to calculate
share and trade participation by providing the total count of shares or
trades, as applicable, rather than weighted averages, and NYSE MKT is
therefore proposing this change as part of Supplementary Material .100.
The fifth change relates to the NBBO that a Trading Center is
required to use when performing certain quote-related calculations.
When calculating cross-quote share (trade) participation pursuant to
Appendix B.IV(d) and inside-the-quote share (trade) participation
pursuant to Appendix B.IV(e), the Plan requires the Trading Center to
utilize the NBBO at the time of the trade for both share and trade
participation calculations. When calculating at-the-quote share (trade)
participation and outside-the-quote share (trade) participation
pursuant to Appendix B.IV(f) and (g), the Plan allows the Trading
Center to utilize the National Best Bid or National Best Offer (NBBO)
at the time of or immediately before the trade for both share and trade
participation calculations. NYSE MKT and the other Participants believe
that it is appropriate to calculate all quote participation (cross-
quote share (trade) participation, inside-the-quote share (trade)
participation, at-the-quote share (trade) participation and outside-
the-quote share (trade) participation) solely by reference to the NBBO
in effect immediately prior to the trade. NYSE MKT therefore proposes
to make this change as part of Supplementary Material .100.
Finally, NYSE MKT proposes to change the end date until which the
Pre-Pilot Data Collection Securities shall be used to fulfill the
Plan's data collection requirements. Currently, Supplementary Material
.90 provides that Pre-Pilot Data Collection Securities are the
securities designated by the Participants for purposes of the data
collection requirements described in Items I, II and IV of Appendix B
and Item I of Appendix C to the Plan for the period beginning six
months prior to the Pilot Period and ending on the trading day
immediately preceding the Pilot Period. NYSE MKT and the other
Participants believe that it is appropriate to use the Pilot Securities
to satisfy the Plan's data collection requirements prior to the
commencement of the Pilot. Accordingly, NYSE MKT is revising
Supplementary Material .90 to provide that the Pre-Pilot Data
Collection Securities shall be used to satisfy the Plan's data
collection requirements through thirty-one days prior to the Pilot
Period, after which time the Pilot Securities shall be used for
purposes of the data collection requirements.\20\
---------------------------------------------------------------------------
\20\ After regular trading hours on September 2, 2016, the
national securities exchanges will establish which securities will
be included as Pilot Securities for purposes of the Plan. NYSE MKT
and the other Participants have determined that members should use
the Pilot Securities list for data collection purposes once it
becomes available. Thus, the proposed rule change requires that,
beginning thirty days prior to the first day of the Pilot Period--
i.e., September 3, 2016--NYSE MKT and NYSE MKT members will comply
with the data collection obligations of the Plan by collecting data
on the Pilot Securities. As a result, beginning on September 3,
2016, members must migrate from using NYSE MKT's published Pre-Pilot
Data Collection Security list and begin using the Pilot Securities
list. September 2, 2016 will be the last day that members use the
Pre-Pilot Data Collection Security list.
---------------------------------------------------------------------------
[[Page 63814]]
As noted in Item 2 of this filing, NYSE MKT has filed the proposed
rule change for immediate effectiveness. NYSE MKT has requested that
the SEC waive the 30-day operative period so that the proposed rule
change can become operative on August 30, 2016.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \21\ in general, and furthers the objectives of Section
6(b)(5) of the Act \22\ in particular, in that it is designed to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, 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.
---------------------------------------------------------------------------
\21\ 15 U.S.C. 78f(b).
\22\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
NYSE MKT believes that this proposal is consistent with the Act
because it implements and clarifies the provisions of the Plan, and is
designed to assist NYSE MKT in meeting its regulatory obligations
pursuant to the Plan. In approving the Plan, the SEC noted that the
Pilot was an appropriate, data-driven test that was designed to
evaluate the impact of a wider tick size on trading, liquidity, and the
market quality of securities of smaller capitalization companies, and
was therefore in furtherance of the purposes of the Act. NYSE MKT
believes that this proposal is in furtherance of the objectives of the
Plan, as identified by the SEC, and is therefore consistent with the
Act because the proposal implements and clarifies the requirements of
the Plan.
B. Self-Regulatory Organization's Statement on Burden on Competition
NYSE MKT notes that the proposed rule change implements the
provisions of the Plan, and is designed to assist NYSE MKT in meeting
its regulatory obligations pursuant to the Plan. NYSE MKT also notes
that, other than the change to require use of the Pilot Securities
beginning thirty days prior to the beginning of the Pilot Period, the
proposed changes will only affect how NYSE MKT and Participants that
operate Trading Centers collect and report data. NYSE MKT notes that,
with respect to the change to require the use of the Pilot Securities
beginning thirty days prior to the start of the Pilot Period, the
proposed change reduces the number of securities on which affected
members otherwise would have been required to collect data pursuant to
the Plan and NYSE MKT Rule 67--Equities. In addition, the proposed rule
change applies equally to all similarly situated members. Therefore,
NYSE MKT does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
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 \23\ and Rule 19b-4(f)(6) thereunder.\24\
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) by its terms, 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.
---------------------------------------------------------------------------
\23\ 15 U.S.C. 78s(b)(3)(A)(iii).
\24\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \25\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\26\ 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.
---------------------------------------------------------------------------
\25\ 17 CFR 240.19b-4(f)(6).
\26\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The Commission believes that waiving the 30 day operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to implement the proposed rules
immediately thereby preventing delays in the implementation of the
Plan. The Commission notes that the Plan is scheduled to start on
October 3, 2016. Therefore, the Commission hereby waives the 30 day
operative delay and designates the proposed rule change to be operative
upon filing with the Commission.\27\
---------------------------------------------------------------------------
\27\ For purposes only of waiving the operative delay for this
proposal, 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 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) \28\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\28\ 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-2016-84 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-2016-84. 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
[[Page 63815]]
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-NYSEMKT-2016-
84 and should be submitted on or before October 7, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
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\29\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-22256 Filed 9-15-16; 8:45 am]
BILLING CODE 8011-01-P
