Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Rules Governing Business Continuity and Disaster Recovery Planning, 88304-88306 [2016-29288]
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88304
Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices
the proposed rule change to be operative
upon filing.12
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)13 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:
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEArca–2016–152 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2016–152. 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
12 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).
13 15 U.S.C. 78s(b)(2)(B).
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17:54 Dec 06, 2016
Jkt 241001
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–
NYSEArca–2016–152 and should be
submitted on or December 28, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Brent J. Fields,
Secretary.
[FR Doc. 2016–29290 Filed 12–6–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79443; File No. SR–
NYSEMKT–2016–109]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Its Rules
Governing Business Continuity and
Disaster Recovery Planning
December 1, 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 November
22, 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 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 its
rules governing business continuity and
disaster recovery to delete Rule 49—
Equities (Emergency Powers) and set an
operative date for Rule 49—Equities
(Exchange Business Continuity and
Disaster Recovery Plans and Mandatory
Testing). The proposed rule change is
14 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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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
The Exchange proposes to amend its
rules governing business continuity and
disaster recovery to delete Rule 49—
Equities (Emergency Powers) (‘‘Print as
P Rule’’) and set an operative date for
Rule 49—Equities (Exchange Business
Continuity and Disaster Recovery Plans
and Mandatory Testing) (‘‘Rule 49’’).
The Exchange proposes to make these
changes because the Exchange has
completed testing of the operation of
Rule 49 in its Disaster Recovery ‘‘DR’’
facility and therefore plans to
implement it. Accordingly, the
Exchange proposes to delete its Print as
P Rule as obsolete, with an operative
date of November 23, 2016.
On September 29, 2016, the
Commission approved amendments to
the Exchange’s business continuity and
disaster recovery plans.4 In that filing,
the Exchange added the following
preamble to the Print as P Rule:
This version of Rule 49—Equities will
remain operative until the proposed rule
changes described in SR–NYSEMKT–
2016–68 are approved and the Exchange
files a separate proposed rule change to
delete this version of Rule 49—Equities
and preamble and to establish the
operative date of paragraph (a) of ‘‘Rule
49—Equities. Exchange Business
Continuity and Disaster Recovery Plans
and Mandatory Testing.’’ Subject to
such separate proposed rule change, the
Exchange will announce via Trader
4 See Securities Exchange Act Release No. 78917
(September 23, 2016), 81 FR 67036 (September 29,
2016) (SR–NYSEMKT–2016–68) (order granting
approval of proposed rule change, as modified by
Amendment No. 1 and Partial Amendment No. 2).
E:\FR\FM\07DEN1.SGM
07DEN1
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices
Update the operative date of the
deletion of this Rule and
implementation of paragraph (a) of Rule
49—Equities. Exchange Business
Continuity and Disaster Recovery Plans
and Mandatory Testing.
In addition, the Exchange added the
following preamble to Rule 49 and
added an ‘‘N’’ modifier to Rule 49(b), to
distinguish it from paragraph (b) of the
Print as P Rule.
The Exchange will file a separate
proposed rule change to establish the
operative date of paragraph (a) of this
version of Rule 49—Equities and to
delete ‘‘Rule 49—Equities. Emergency
Powers’’ and this preamble. Until such
time, ‘‘Rule 49—Equities. Emergency
Powers’’ will remain operative. Subject
to such separate proposed rule change,
the Exchange will announce via Trader
Update the operative date of paragraph
(a) of this Rule and deletion of ‘‘Rule
49—Equities. Emergency Powers.’’
Member organizations required to test
Exchange Backup Systems under
paragraph (b)(N) of this Rule will be
required to test trading on the
Exchange’s Disaster Recovery Facility
under paragraph (a) of this Rule on
date(s) to be determined by the
Exchange. Such mandatory testing dates
will be announced by Trader Update.
On November 5 and 19, 2016, the
Exchange held the mandatory testing
sessions for the operation of Rule 49 in
the DR facility.5 The Exchange has
determined that these tests were
successful because all member
organizations required to test trading on
the Exchange’s DR facility, as specified
in the second paragraph of the preamble
to Rule 49, participated in the tests and
the DR facility operated as provided for
in Rule 49. Accordingly, the Exchange
proposes to retire its Print as P Rule and
implement Rule 49 operative November
23, 2016.
The Exchange therefore proposes to:
• Delete the Print as P Rule, including
the preamble;
• Delete the explanatory preamble to
Rule 49; and
• Delete the ‘‘N’’ modifier to new
Rule 49(b), which distinguished new
Rule 49(b) from the Print as P Rule
49(b).
In addition to this proposed rule
change, the Exchange proposes to
5 The Exchange announced by Trader Update that
industry tests would be held on November 5, 2016
and November 19, 2016. See NYSE Trader Updates,
dated September 9 and 16, 2016, available at
https://www.nyse.com/publicdocs/nyse/markets/
nyse/NYSE_and_NYSE_MKT_DR_Trader_Update_
Final.pdf and https://www.nyse.com/publicdocs/
nyse/markets/nyse/DR_Testing.pdf.
VerDate Sep<11>2014
17:54 Dec 06, 2016
Jkt 241001
announce the operative date of
November 23, 2016 via Trader Update.6
2. Statutory Basis
The proposed rule changes are
consistent with Section 6(b) of the Act,7
in general, and further the objectives of
Section 6(b)(5) of the Act,8 in particular,
in that they are designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and in general, to protect
investors and the public interest.
In particular, the Exchange believes
that amending its rules to delete the
Print as P Rule, which is no longer
operative after the successful
completion of mandatory testing by the
Exchange’s member organizations of the
operation of Rule 49, would promote the
protection of investors and the public
interest because it would promote
clarity and transparency on the
Exchange rules governing the
Exchange’s business continuity and
disaster recovery planning. The
Exchange further believes that deleting
the superseded rule that was applicable
only to the prior disaster recovery plan,
deleting the preamble to Rule 49, and
deleting the ‘‘N’’ modifier that
distinguished the new rule from the
now obsolete rule would remove
impediments to and perfect the
mechanism of a national market system
because these proposed changes would
add greater clarity to the Exchange’s
rules and promote market transparency
and efficiency.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not designed to
address competitive issues but rather is
designed to facilitate trading in
Exchange-listed securities on its DR
facility. As such, the Exchange believes
6 New York Stock Exchange LLC, the Exchange’s
affiliate, has also submitted substantially the same
proposed rule change to propose the same changes
as described herein. See SR–NYSE–2016–81. In
addition, NYSE Arca, Inc., the Exchange’s affiliate,
has submitted a proposed rule change to delete
NYSE Arca Equities Rule 2.100, which allowed it
to act on behalf of and at the direction of the
Exchange if the Exchange invoked its Print as P
Rule. See SR–NYSEArca–2016–154.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
PO 00000
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Fmt 4703
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88305
that the proposed rule change would
promote competition for the benefit of
market participants and investors
generally because it provides
transparency on the Exchange rules
which would govern trading in
Exchange traded securities if they trade
on the Exchange’s DR facility and
greater efficiency and transparency
concerning trading on the Exchange in
the event of a disaster.
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 9 and Rule
19b–4(f)(6) thereunder.10 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),12 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 doing so would allow the
Exchange to more quickly implement a
business continuity and disaster
recovery plan under which the
Exchange no longer relies on the
facilities of an affiliated exchange.
Therefore, the Commission hereby
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
10 17
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07DEN1
88306
Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices
waives the 30-day operative delay and
designates the proposed rule change to
be operative upon filing with the
Commission.13
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) 14 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:
asabaliauskas on DSK3SPTVN1PROD with NOTICES
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–2016–109 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–2016–109. 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
13 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).
14 15 U.S.C. 78s(b)(2)(B).
VerDate Sep<11>2014
17:54 Dec 06, 2016
Jkt 241001
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–2016–109 and should be
submitted on or before December 28,
2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Brent J. Fields,
Secretary.
[FR Doc. 2016–29288 Filed 12–6–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79444; File No. SR–NYSE–
2016–81]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending Its
Rules Governing Business Continuity
and Disaster Recovery
December 1, 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 November
22, 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 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 its
rules governing business continuity and
disaster recovery to delete Rule 49
(Emergency Powers) and set an
15 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
operative date for Rule 49 (Exchange
Business Continuity and Disaster
Recovery Plans and Mandatory Testing).
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
The Exchange proposes to amend its
rules governing business continuity and
disaster recovery to delete Rule 49
(Emergency Powers) (‘‘Print as P Rule’’)
and set an operative date for Rule 49
(Exchange Business Continuity and
Disaster Recovery Plans and Mandatory
Testing) (‘‘Rule 49’’). The Exchange
proposes to make these changes because
the Exchange has completed testing of
the operation of Rule 49 in its Disaster
Recovery ‘‘DR’’ facility and therefore
plans to implement it. Accordingly, the
Exchange proposes to delete its Print as
P Rule as obsolete, with an operative
date of November 23, 2016.
On September 29, 2016, the
Commission approved amendments to
the Exchange’s business continuity and
disaster recovery plans.4 In that filing,
the Exchange added the following
preamble to the Print as P Rule:
This version of Rule 49 will remain
operative until the proposed rule
changes described in SR–NYSE–2016–
48 are approved and the Exchange files
a separate proposed rule change to
delete this version of Rule 49 and
preamble and to establish the operative
date of paragraph (a) of ‘‘Rule 49.
Exchange Business Continuity and
Disaster Recovery Plans and Mandatory
4 See Securities Exchange Act Release No. 78916
(September 23, 2016), 81 FR 67029 (September 29,
2016) (SR–NYSE–2016–48) (order granting approval
of proposed rule change, as modified by
Amendment No. 1 and Partial Amendment No. 2).
E:\FR\FM\07DEN1.SGM
07DEN1
Agencies
[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Notices]
[Pages 88304-88306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29288]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79443; File No. SR-NYSEMKT-2016-109]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending Its Rules
Governing Business Continuity and Disaster Recovery Planning
December 1, 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 November 22, 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 Exchange. 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 its rules governing business
continuity and disaster recovery to delete Rule 49--Equities (Emergency
Powers) and set an operative date for Rule 49--Equities (Exchange
Business Continuity and Disaster Recovery Plans and Mandatory Testing).
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
The Exchange proposes to amend its rules governing business
continuity and disaster recovery to delete Rule 49--Equities (Emergency
Powers) (``Print as P Rule'') and set an operative date for Rule 49--
Equities (Exchange Business Continuity and Disaster Recovery Plans and
Mandatory Testing) (``Rule 49''). The Exchange proposes to make these
changes because the Exchange has completed testing of the operation of
Rule 49 in its Disaster Recovery ``DR'' facility and therefore plans to
implement it. Accordingly, the Exchange proposes to delete its Print as
P Rule as obsolete, with an operative date of November 23, 2016.
On September 29, 2016, the Commission approved amendments to the
Exchange's business continuity and disaster recovery plans.\4\ In that
filing, the Exchange added the following preamble to the Print as P
Rule:
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 78917 (September 23,
2016), 81 FR 67036 (September 29, 2016) (SR-NYSEMKT-2016-68) (order
granting approval of proposed rule change, as modified by Amendment
No. 1 and Partial Amendment No. 2).
---------------------------------------------------------------------------
This version of Rule 49--Equities will remain operative until the
proposed rule changes described in SR-NYSEMKT-2016-68 are approved and
the Exchange files a separate proposed rule change to delete this
version of Rule 49--Equities and preamble and to establish the
operative date of paragraph (a) of ``Rule 49--Equities. Exchange
Business Continuity and Disaster Recovery Plans and Mandatory
Testing.'' Subject to such separate proposed rule change, the Exchange
will announce via Trader
[[Page 88305]]
Update the operative date of the deletion of this Rule and
implementation of paragraph (a) of Rule 49--Equities. Exchange Business
Continuity and Disaster Recovery Plans and Mandatory Testing.
In addition, the Exchange added the following preamble to Rule 49
and added an ``N'' modifier to Rule 49(b), to distinguish it from
paragraph (b) of the Print as P Rule.
The Exchange will file a separate proposed rule change to establish
the operative date of paragraph (a) of this version of Rule 49--
Equities and to delete ``Rule 49--Equities. Emergency Powers'' and this
preamble. Until such time, ``Rule 49--Equities. Emergency Powers'' will
remain operative. Subject to such separate proposed rule change, the
Exchange will announce via Trader Update the operative date of
paragraph (a) of this Rule and deletion of ``Rule 49--Equities.
Emergency Powers.''
Member organizations required to test Exchange Backup Systems under
paragraph (b)(N) of this Rule will be required to test trading on the
Exchange's Disaster Recovery Facility under paragraph (a) of this Rule
on date(s) to be determined by the Exchange. Such mandatory testing
dates will be announced by Trader Update.
On November 5 and 19, 2016, the Exchange held the mandatory testing
sessions for the operation of Rule 49 in the DR facility.\5\ The
Exchange has determined that these tests were successful because all
member organizations required to test trading on the Exchange's DR
facility, as specified in the second paragraph of the preamble to Rule
49, participated in the tests and the DR facility operated as provided
for in Rule 49. Accordingly, the Exchange proposes to retire its Print
as P Rule and implement Rule 49 operative November 23, 2016.
---------------------------------------------------------------------------
\5\ The Exchange announced by Trader Update that industry tests
would be held on November 5, 2016 and November 19, 2016. See NYSE
Trader Updates, dated September 9 and 16, 2016, available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_and_NYSE_MKT_DR_Trader_Update_Final.pdf and https://www.nyse.com/publicdocs/nyse/markets/nyse/DR_Testing.pdf.
---------------------------------------------------------------------------
The Exchange therefore proposes to:
Delete the Print as P Rule, including the preamble;
Delete the explanatory preamble to Rule 49; and
Delete the ``N'' modifier to new Rule 49(b), which
distinguished new Rule 49(b) from the Print as P Rule 49(b).
In addition to this proposed rule change, the Exchange proposes to
announce the operative date of November 23, 2016 via Trader Update.\6\
---------------------------------------------------------------------------
\6\ New York Stock Exchange LLC, the Exchange's affiliate, has
also submitted substantially the same proposed rule change to
propose the same changes as described herein. See SR-NYSE-2016-81.
In addition, NYSE Arca, Inc., the Exchange's affiliate, has
submitted a proposed rule change to delete NYSE Arca Equities Rule
2.100, which allowed it to act on behalf of and at the direction of
the Exchange if the Exchange invoked its Print as P Rule. See SR-
NYSEArca-2016-154.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule changes are consistent with Section 6(b) of the
Act,\7\ in general, and further the objectives of Section 6(b)(5) of
the Act,\8\ in particular, in that they are designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and in general, to protect
investors and the public interest.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes that amending its rules to
delete the Print as P Rule, which is no longer operative after the
successful completion of mandatory testing by the Exchange's member
organizations of the operation of Rule 49, would promote the protection
of investors and the public interest because it would promote clarity
and transparency on the Exchange rules governing the Exchange's
business continuity and disaster recovery planning. The Exchange
further believes that deleting the superseded rule that was applicable
only to the prior disaster recovery plan, deleting the preamble to Rule
49, and deleting the ``N'' modifier that distinguished the new rule
from the now obsolete rule would remove impediments to and perfect the
mechanism of a national market system because these proposed changes
would add greater clarity to the Exchange's rules and promote market
transparency and efficiency.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not designed to address competitive issues but rather is designed to
facilitate trading in Exchange-listed securities on its DR facility. As
such, the Exchange believes that the proposed rule change would promote
competition for the benefit of market participants and investors
generally because it provides transparency on the Exchange rules which
would govern trading in Exchange traded securities if they trade on the
Exchange's DR facility and greater efficiency and transparency
concerning trading on the Exchange in the event of a disaster.
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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\12\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
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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 doing so would allow the Exchange to more quickly implement a
business continuity and disaster recovery plan under which the Exchange
no longer relies on the facilities of an affiliated exchange.
Therefore, the Commission hereby
[[Page 88306]]
waives the 30-day operative delay and designates the proposed rule
change to be operative upon filing with the Commission.\13\
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\13\ 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) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 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-2016-109 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-2016-109. 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-NYSEMKT-2016-109 and should
be submitted on or before December 28, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-29288 Filed 12-6-16; 8:45 am]
BILLING CODE 8011-01-P