Advisory Committee on Small and Emerging Companies, 84628-84629 [2016-28257]
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Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Notices
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 13 and paragraph
(f)(6) of Rule 19b–4 thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) 15 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. In its
filing with the Commission, the
Exchange requests that the Commission
waive the 30-day operative delay. The
Exchange states that FINRA performs
services for it under a Regulatory
Services Agreement (‘‘RSA’’), including
the filing and prosecution of
disciplinary complaints on the
Exchange’s behalf. FINRA also files and
prosecutes disciplinary complaints on
its own behalf, sometimes on cases
involving identical or similar conduct to
the cases it brings on the Exchange’s
behalf. Without the waiver, the
Exchange is concerned that FINRA
might publish a complaint during the
30-day operative delay, and that the
Exchange would not be permitted to
publish its own complaint, prepared by
FINRA, regarding the same conduct.
According to the Exchange, this would
supply the public with an incomplete
picture of the disciplinary proceedings,
the full nature of which could not be
disclosed until much later when a final
disciplinary decision is issued. The
Exchange, therefore, believes that
waiver of the operative delay is
consistent with the protection of
investors and the public interest, as it
will allow the Exchange to immediately
publish any disciplinary complaints or
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
14 17
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decisions that are filed or issued after
the proposal is filed. The Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest because it will allow BZX to
publish disciplinary complaints or
decisions that have been filed or issued
without delay. Therefore, the
Commission designates the proposed
rule change to be 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: (1) Necessary or appropriate in
the public interest; (2) for the protection
of investors; or (3) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
BatsBZX–2016–73 and should be
submitted on or before December 14,
2016.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Brent J. Fields,
Secretary.
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–BatsBZX–2016–73 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR-BatsBZX–2016–73. 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
16 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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[FR Doc. 2016–28186 Filed 11–22–16; 8:45 am]
BILLING CODE 8011–01–P
[Release Nos. 33–10258; 34–79350; File No.
265–27]
Advisory Committee on Small and
Emerging Companies
Securities and Exchange
Commission.
ACTION: Notice of Meeting.
AGENCY:
The Securities and Exchange
Commission Advisory Committee on
Small and Emerging Companies is
providing notice that it will hold an
open, public telephone meeting on
Wednesday, December 7, 2016,
beginning at 11:00 a.m. ET. Members of
the public may attend the meeting by
listening to the audiocast accessible on
the Commission’s Web site at
www.sec.gov. Persons needing special
accommodations to access the meeting
because of a disability should notify the
contact person listed below. The agenda
for the meeting includes a continuation
of discussions started at the
Committee’s meeting on October 5,
2016, including outreach and board
diversity. The public is invited to
submit written statements to the
Committee.
SUMMARY:
17 17
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Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Notices
The public meeting will be held
on Wednesday, December 7, 2016.
Written statements should be received
on or before Monday, December 5, 2016.
DATES:
Written statements may be
submitted by any of the following
methods:
ADDRESSES:
Electronic Statements
• Use the Commission’s Internet
submission form (https://www.sec.gov/
info/smallbus/acsec.shtml); or
• Send an email message to rulecomments@sec.gov. Please include File
Number 265–27 on the subject line; or
Paper Statements
• Send paper statements to Brent J.
Fields, Federal Advisory Committee
Management Officer, Securities and
Exchange Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
265–27. This file number should be
included on the subject line if email is
used. To help us process and review
your statement more efficiently, please
use only one method. The Commission
will post all statements on the Advisory
Committee’s Web site at https://
www.sec.gov./info/smallbus/
acsec.shtml.
Statements also 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. All statements received will
be posted without change; we do not
edit personal identifying information
from submissions. You should submit
only information that you wish to make
available publicly.
Julie
Z. Davis, Senior Special Counsel, at
(202) 551–3460, Office of Small
Business Policy, Division of Corporation
Finance, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–3628.
FOR FURTHER INFORMATION CONTACT:
In
accordance with Section 10(a) of the
Federal Advisory Committee Act, 5
U.S.C.—App. 1, and the regulations
thereunder, Keith F. Higgins, Designated
Federal Officer of the Committee, has
ordered publication of this notice.
mstockstill on DSK3G9T082PROD with NOTICES
SUPPLEMENTARY INFORMATION:
[FR Doc. 2016–28257 Filed 11–22–16; 8:45 am]
BILLING CODE 8011–01–P
18:04 Nov 22, 2016
[Release No. 34–79345; File No. SR–Phlx–
2016–82]
Self-Regulatory Organizations;
NASDAQ PHLX LLC; Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove a Proposed
Rule Change To Adopt a New
Exception in Exchange Rule 1000(f) for
Sub-MPV Split-Price Orders
November 17, 2016.
I. Introduction
On August 3, 2016, NASDAQ PHLX
LLC (‘‘Exchange’’ or ‘‘Phlx’’) 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 provide an additional
exception to the mandatory use of the
Exchange’s Floor Broker Management
System (‘‘FBMS’’) pursuant to Rule
1000(f)(iii) to permit Floor Brokers to
execute certain sub-minimum price
increment (‘‘sub-MPV’’) split-price
orders in the trading crowd. The
proposed rule change was published for
comment in the Federal Register on
August 22, 2016.3 On October 3, 2016,
the Commission extended the time
period within which to approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether to
approve or disapprove the proposed
rule change to November 20, 2016.4 The
Commission received no comments on
the proposal. This order institutes
proceedings under Section 19(b)(2)(B) of
the Act 5 to determine whether to
disapprove the proposed rule change.
II. Description of the Proposed Rule
Change
Currently, Phlx Rule 1000(f) requires
that all Exchange options transactions
be executed in one of the following
three ways: ‘‘(i) [a]utomatically by the
Exchange Trading System pursuant to
Rule 1080 and other applicable options
rules; (ii) by and among members in the
Exchange’s options trading crowd none
of whom is a Floor Broker; or (iii)
through the Options [FBMS] for trades
involving at least one Floor Broker.’’ 6
Although a Floor Broker may represent
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 78593
(August 16, 2016), 81 FR 56724 (‘‘Notice’’).
4 See Securities Exchange Act Release No. 79023
(October 3, 2016), 81 FR 69877 (October 7, 2016).
5 15 U.S.C. 78s(b)(2)(B).
6 See Phlx Rule 1000(f).
2 17
Dated: November 18, 2016.
Brent J. Fields,
Committee Management Officer.
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COMMISSION
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84629
orders in the trading crowd, a Floor
Broker is not permitted to execute an
order in the trading crowd unless one of
three exceptions applies.7 The
exceptions to the mandatory use of
FBMS 8 are set forth in Phlx Rule
1000(f)(iii). These exceptions allow a
Floor Broker to execute a transaction in
the trading crowd (rather than through
FBMS) if: (i) there is a problem with
Exchange’s systems; (ii) the Floor Broker
is executing the trade pursuant to Phlx
Rule 1059 (‘‘Accommodation
Transactions’’) or Phlx Rule 1079 (‘‘Flex
Index, Equity and Currency Options’’);
or (iii) the transaction involves a multileg order with more than 15 legs.9
Phlx Rule 1014(g)(i)(B) provides a
priority rule regarding open outcry split
price transactions in equity options and
options overlying ETFs to permit a
member who is responding to an order
for at least 100 contracts who buys
(sells) at least 50 contracts at a
particular price to have priority over all
other orders in purchasing (selling) up
to an equivalent number of contracts of
the same order at the next lower (higher)
price without being required to yield to
existing customer interest in the limit
order book.10 Absent Phlx Rule
1014(g)(i)(B), such orders would be
required to yield priority. The Exchange
states that ‘‘the purpose behind the
split-price priority exception was ‘to
bring about the execution of large
orders, which by virtue of their size and
the need to execute them at multiple
prices may be difficult to execute
7 See
Phlx Rule 1000(f)(iii).
original FBMS (‘‘FBMS 1’’) began operating
in 2005. The Exchange retired FBMS 1 on March
31, 2016 after operating it concurrently with the
Exchange’s enhanced FBMS (‘‘FBMS 2’’), which
was made available on March 7, 2014. As of March
31, 2016, FBMS 2 is available to all Floor Brokers
in all options and is the only FBMS currently in
use. The Exchange represents that it has contracted
with a third-party to build an alternative system
(‘‘FBMS 3’’) to replace FBMS 2, and anticipates that
FBMS 3 will be ready by November 30, 2016. See
Notice, supra note 3, at 56725.
9 See Notice, supra note 3, at 56726; see also Phlx
Rule 1000(f)(iii)(A)–(C). According to the Exchange,
each time a Floor Broker uses one the current
exceptions to Phlx Rule 1000(f)(iii), the Floor
Broker is required by Phlx Rule 1063(e)(ii), to
record the information required by Phlx Rule
1063(e)(i) on paper trade tickets. The Exchange
further represents that a Floor Broker may only
represent an order for execution that has been time
stamped with the time of entry on the trading floor.
In addition, according to the Exchange, once an
execution occurs, the trade ticket must be stamped
with the time of execution of such order. See
Notice, supra note 3, at 56726.
10 See Notice, supra note 3, at 56726 (citing
Securities Exchange Act Release No. 51820 (June
10, 2005), 70 FR 35759 (June 21, 2005) (SR–Phlx–
2005–28)) (approving pilot). See also Securities
Exchange Act Release No. 55993 (June 29, 2007), 72
FR 37301 (July 9, 2007) (SR–Phlx–2007–44)
(permanent approval).
8 The
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]]>Agencies
[Federal Register Volume 81, Number 226 (Wednesday, November 23, 2016)]
[Notices]
[Pages 84628-84629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28257]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release Nos. 33-10258; 34-79350; File No. 265-27]
Advisory Committee on Small and Emerging Companies
AGENCY: Securities and Exchange Commission.
ACTION: Notice of Meeting.
-----------------------------------------------------------------------
SUMMARY: The Securities and Exchange Commission Advisory Committee on
Small and Emerging Companies is providing notice that it will hold an
open, public telephone meeting on Wednesday, December 7, 2016,
beginning at 11:00 a.m. ET. Members of the public may attend the
meeting by listening to the audiocast accessible on the Commission's
Web site at www.sec.gov. Persons needing special accommodations to
access the meeting because of a disability should notify the contact
person listed below. The agenda for the meeting includes a continuation
of discussions started at the Committee's meeting on October 5, 2016,
including outreach and board diversity. The public is invited to submit
written statements to the Committee.
[[Page 84629]]
DATES: The public meeting will be held on Wednesday, December 7, 2016.
Written statements should be received on or before Monday, December 5,
2016.
ADDRESSES: Written statements may be submitted by any of the following
methods:
Electronic Statements
Use the Commission's Internet submission form (https://www.sec.gov/info/smallbus/acsec.shtml); or
Send an email message to rule-comments@sec.gov. Please
include File Number 265-27 on the subject line; or
Paper Statements
Send paper statements to Brent J. Fields, Federal Advisory
Committee Management Officer, Securities and Exchange Commission, 100 F
Street NE., Washington, DC 20549-1090.
All submissions should refer to File No. 265-27. This file number
should be included on the subject line if email is used. To help us
process and review your statement more efficiently, please use only one
method. The Commission will post all statements on the Advisory
Committee's Web site at https://www.sec.gov./info/smallbus/acsec.shtml.
Statements also 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. All statements received will be posted without
change; we do not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly.
FOR FURTHER INFORMATION CONTACT: Julie Z. Davis, Senior Special
Counsel, at (202) 551-3460, Office of Small Business Policy, Division
of Corporation Finance, Securities and Exchange Commission, 100 F
Street NE., Washington, DC 20549-3628.
SUPPLEMENTARY INFORMATION: In accordance with Section 10(a) of the
Federal Advisory Committee Act, 5 U.S.C.--App. 1, and the regulations
thereunder, Keith F. Higgins, Designated Federal Officer of the
Committee, has ordered publication of this notice.
Dated: November 18, 2016.
Brent J. Fields,
Committee Management Officer.
[FR Doc. 2016-28257 Filed 11-22-16; 8:45 am]
BILLING CODE 8011-01-P
