Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Rule 10.17 and NYSE Arca Equities Rule 10.15, 92892-92897 [2016-30553]
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For the Commission, by the Division of
Investment Management, under delegated
authority.
Brent J. Fields,
Secretary.
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change. Accordingly, the
Commission, pursuant to Section
19(b)(2) of the Act,5 designates February
2, 2017, as the date by which the
Commission shall either approve or
disapprove or institute proceedings to
determine whether to disapprove the
proposed rule change (File Number SR–
NYSEArca–2016–120).
[FR Doc. 2016–30540 Filed 12–19–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79550; File No. SR–
NYSEArca-2016–120]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on a Proposed Rule Change To List
and Trade Shares of the ForceShares
Daily 4X US Market Futures Long Fund
and ForceShares Daily 4X US Market
Futures Short Fund Under
Commentary .02 to NYSE Arca Equities
Rule 8.200
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December 14, 2016.
On October 17, 2016, NYSE Arca, Inc.
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 list and trade shares of the
ForceShares Daily 4X US Market
Futures Long Fund and ForceShares
Daily 4X US Market Futures Short Fund
under Commentary .02 to NYSE Arca
Equities Rule 8.200. The proposed rule
change was published for comment in
the Federal Register on November 4,
2016.3 The Commission received no
comments on the proposed rule change.
Section 19(b)(2) of the Act 4 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is December 19,
2016. The Commission is extending this
45-day time period.
The Commission finds that it is
appropriate to designate a longer period
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–30556 Filed 12–19–16; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–79547; File No. SR–
NYSEARCA–2016–161]
1. Purpose
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Arca
Rule 10.17 and NYSE Arca Equities
Rule 10.15
December 14, 2016.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
8, 2016, NYSE Arca, Inc. (‘‘Exchange’’ or
‘‘NYSE Arca’’) filed with the Securities
and Exchange Commission
(‘‘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
NYSE Arca Rule 10.17 and NYSE Arca
Equities Rule 10.15 governing the
release of disciplinary information
based on rules of the Exchange’s
affiliates New York Stock Exchange,
LLC and NYSE MKT LLC. The proposed
rule change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
5 Id.
6 17
19:36 Dec 19, 2016
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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
2 17
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 79201
(October 31, 2016), 81 FR 76977.
4 15 U.S.C. 78s(b)(2).
and at the Commission’s Public
Reference Room.
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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The Exchange proposes to amend
NYSE Arca Rule 10.17 (Release of
Disciplinary Information through the
Public Disclosure Program) and NYSE
Arca Equities Rule 10.15 (Release of
Disciplinary Information through the
Public Disclosure Program) based on
Rule 8313 (Release of Disciplinary
Complaints, Decisions and Other
Information) of the Exchange’s affiliates
New York Stock Exchange, LLC
(‘‘NYSE’’) and NYSE MKT LLC (‘‘NYSE
MKT’’).
Background
In 2013, the NYSE adopted
disciplinary rules that are, with certain
exceptions, substantially the same as the
Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) Rule 8000
Series and Rule 9000 Series, and which
set forth rules for conducting
investigations and enforcement actions.4
The NYSE disciplinary rules were
implemented on July 1, 2013.5 In 2016,
NYSE MKT also adopted the Rule 8000
Series and Rule 9000 Series, which
rules are, with certain exceptions,
substantially the same as those of NYSE
and FINRA.6 The NYSE MKT
4 See Securities Exchange Act Release Nos. 68678
(January 16, 2013), 78 FR 5213 (January 24, 2013)
(SR–NYSE–2013–02) (‘‘2013 Notice’’), 69045
(March 5, 2013), 78 FR 15394 (March 11, 2013) (SR–
NYSE–2013–02) (‘‘2013 NYSE Approval Order’’),
and 69963 (July 10, 2013), 78 FR 42573 (July 16,
2013) (SR–NYSE–2013–49).
5 See NYSE Information Memorandum 13–8 (May
24, 2013).
6 See Securities Exchange Act Release Nos. 77241
(February 26, 2016), 81 FR 11311 (March 3, 2016)
(SR–NYSEMKT–2016–30) (‘‘2016 MKT Notice’’).
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disciplinary rules were implemented on
April 15, 2016.7
In August 2016, the NYSE amended
its Rule 8313 based on the text of FINRA
Rule 8313, which provides that
disciplinary complaints and decisions
that meet certain criteria will be either
published or made available upon
request.8 In September 2016, NYSE
MKT also amended its version of Rule
8313 to adopt the text of FINRA Rule
8313.9
Current NYSE Arca Rule 10.17 and
NYSE Arca Equities Rule 10.15 provide
for the release to the public of certain
disciplinary information concerning
OTP Holders and ETP Holders and
associated persons, respectively.
Specifically, current NYSE Arca Rule
10.17 and NYSE Arca Equities Rule
10.15 provide for release of any
identified disciplinary decision in
response to a request. Rule 10.17(b)(1)
provides for release of information to
the public with respect to disciplinary
decisions that: (i) Impose a suspension,
cancellation or expulsion upon an OTP
Holder or OTP Firm; (ii) impose the
suspension or revocation of the
registration of an associated person of
an OTP Holder or OTP Firm; (iii)
impose the suspension or barring of an
OTP Holder, OTP Firm, or associated
person from association with all OTP
Holders or OTP Firms; (iv) impose
monetary sanctions of $10,000 or more
upon an OTP Holder, OTP Firm, or
associated person; or (v) contain an
allegation of a violation of a Designated
Rule, defined as (i) Commission Rule
10b–5 under the Act, (ii) NYSE Arca
Rule 11.5 (Manipulation), or (iii) NYSE
Arca Rule 11.2 (Prohibited Acts). See
NYSE Arca Rule 10.17(b)(1).
Similarly, under NYSE Arca Equities
Rule 10.15, NYSE Arca Equities releases
information to the public with respect to
disciplinary decisions that: (i) Impose a
suspension, cancellation or expulsion
upon an ETP Holder; (ii) impose the
suspension or revocation of the
registration of an associated person of
an ETP Holder; (iii) impose the
suspension or barring of an ETP Holder
7 See NYSE MKT Information Memorandum 16–
02 (March 14, 2016).
8 See Securities Exchange Act Release Nos. 78664
(August 24, 2016), 81 FR 59678 (August 30, 2016)
(SR–NYSE–2016–40). In adopting the FINRA
disciplinary rules in 2013, the NYSE retained its
long-standing practice of publishing all final
disciplinary decisions, other than minor rule
violations, on its Web site and did not adopt the
text of FINRA Rule 8313. See 2013 NYSE Approval
Order, 78 FR at 15395.
9 See Securities Exchange Act Release Nos. 78959
(September 28, 2016), 81 FR 68481 (October 4,
2016) (SR–NYSEMKT–2016–71). In adopting its
disciplinary rules in 2016, NYSE MKT also did not
adopt the text of FINRA Rule 8313. See 2016 MKT
Notice, 81 FR at 11321.
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or associated person from association
with all ETP Holders; (iv) impose
monetary sanctions of $10,000 or more
upon an ETP Holder or associated
person; or (v) contain an allegation of a
violation of a Designated Rule, defined
as (i) Commission Rule 10b–5 under the
Act, (ii) NYSE Arca Equities Rule 6.5
(Manipulation), or (iii) NYSE Arca
Equities Rule 6.2 (Prohibited Acts). See
NYSE Arca Equities Rule 10.15(b)(1).
Current NYSE Arca and NYSE Arca
Equities Rules also permit release of
information to the public concerning
disciplinary decisions that involve
significant policy or enforcement
determinations where the release of
such information is deemed by the
President of the Exchange to be in the
public interest.10 Further, the current
Rules permit waiving the requirement to
release information with respect to a
disciplinary decision under
extraordinary circumstances where the
release of the information would violate
fundamental notions of fairness or work
as an injustice. Finally, the current
Rules permit release to the public of
information concerning any disciplinary
or other decision issued pursuant to
NYSE Arca Rule 10 and NYSE Arca
Equities Rule 10 that is not specifically
enumerated in NYSE Arca Rule
10.17(b)(1) or NYSE Arca Equities Rule
10.15(b)(1), respectively, regardless of
the sanctions imposed, so long as the
names of the parties and other
identifying information is redacted.11
NYSE Arca Rule 10.17 and NYSE
Arca Equities Rule 10.15 seek to further
the same goals of transparency and
disclosure as NYSE and NYSE MKT
Rule 8313 (‘‘Rule 8313’’).12
As described below, the Exchange
proposes to adopt Rule 8313 in
substantially the same form as approved
by the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
for NYSE and as published for
immediate effectiveness by NYSE MKT.
By adopting the proposed amendments
to NYSE Arca Rule 10.17 and NYSE
Arca Equities Rule 10.15, the Exchange
would have uniform options and
equities rules that require public release
of disciplinary complaints as well as
disciplinary decisions, and that are
otherwise consistent with the
counterpart rules of its NYSE and NYSE
MKT affiliates.
10 See NYSE Arca Rule 10.17(b)(1); NYSE Arca
Equities Rule 10.15(b)(1).
11 See id.
12 See Securities Exchange Act Release No. 53878
(May 26, 2006), 71 FR 32622, 32624 (June 6, 2006)
(SR–NYSEArca–2006–02).
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92893
Proposed Rule Change
Amendments to NYSE Arca Rule 10.17
Governing Release of Disciplinary
Complaints, Decisions and Other
Information Based on Rule 8313
The Exchange proposes to delete
subsections (a) through (h) of current
NYSE Arca Rule 10.17 in order to adopt
the requirements of Rule 8313 as
proposed new subsections (a) through
(e).
The Exchange proposes to amend the
heading to delete the clause
‘‘Information Through the Public
Disclosure Program’’ and replace it with
‘‘Complaints, Decisions and Other
Information.’’ As proposed, NYSE Arca
Rule 10.17 would have the same title as
Rule 8313.
General Standards
The Exchange proposes to add the
title ‘‘General Standards’’ to subsection
(a) of NYSE Arca Rule 10.17 and delete
the current text of subsection (a). The
text of subsections (a)(1)–(3) would also
be deleted and replaced as follows.
First, proposed NYSE Arca Rule
10.17(a)(1) would provide that the
Exchange shall release to the public a
copy of and, at the Exchange’s
discretion, information with respect to,
any disciplinary complaint or
disciplinary decision issued by the
Exchange, as defined in subsection (e) of
the proposed Rule, other than minor
rule violations, on its Web site.
Proposed NYSE Arca Rule 10.17(a)(1)
would also provide that, in response to
a request, the Exchange shall release to
the requesting party a copy of any
identified disciplinary complaint or
disciplinary decision issued by the
Exchange, as defined in proposed NYSE
Arca Rule 10.17(e). These proposed
amendments are modeled on Rule
8313(a)(1) and, except for an
inapplicable reference to the Rule 9000
Series, would be the same as the NYSE
and NYSE MKT Rule.
Second, proposed NYSE Arca Rule
10.17(a)(2) would provide that the
Exchange shall release to the public a
copy of, and at the Exchange’s
discretion information with respect to,
any statutory disqualification decision,
notification, or notice issued by the
Exchange pursuant to NYSE Arca Rules
10 or 13 that will be filed with the SEC.
Proposed NYSE Arca Rule 10.17(a)(2) is
modeled on Rule 8313(a)(2) but
substitutes references to NYSE Arca
Rules 10 and 13 for references to the
NYSE and NYSE MKT Rule 9520 Series,
and omits reference to the NYSE and
NYSE MKT Rule 9800 Series. NYSE
Arca does not have rules governing
temporary cease and desist proceedings
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comparable to the Rule 9800 Series. The
proposed Rule is otherwise the same as
the NYSE and NYSE MKT Rule.
Third, proposed NYSE Arca Rule
10.17(a)(3) would provide that the
Exchange shall release to the public
information with respect to any
suspension, cancellation, expulsion, or
bar that constitutes final Exchange
action imposed pursuant to NYSE Arca
Rule 13, which governs cancellation,
suspension and reinstatement and is the
Exchange’s analogue to the various
provisions of the NYSE and NYSE MKT
Rule 9550 Series referenced in Rule
8313(a)(3) governing suspensions,
cancellations, expulsions and bars, with
the exception of NYSE and NYSE MKT
Rule 9556, which governs failure to
comply with a temporary or permanent
cease and desist order issued under the
Rule 9200, 9300 or 9800 Series. NYSE
Arca does not have rules governing
temporary cease and desist proceedings
comparable to Rule 9200, 9300 or 9800
Series. Like Rule 8313(a)(3), proposed
NYSE Arca Rule 10.17(a)(3) would also
encompass proceedings for failure to
pay fines, other monetary sanctions, or
costs.13 The proposed Rule is otherwise
the same as Rule 8313(a)(3).
To further conform proposed NYSE
Arca Rule 10.17 to Rule 8313, the
Exchange proposes to add a new
subsection (a)(4) modeled on Rule
8313(a)(4) that provides that the
Exchange may release to the public a
copy of, and information with respect
to, any decision or notice appealable to
the SEC under Exchange Act Section
19(d). The proposed Rule is the same as
Rule 8313(a)(4) but omits reference to
any decision or notice issued pursuant
to the NYSE and NYSE MKT Rule 9600
Series, which NYSE Arca has not
adopted.14
Release Specifications
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The Exchange proposes to add the
title ‘‘Release Specifications’’ to
subsection (b) of NYSE Arca Rule 10.17
and delete the current text of subsection
(b).
The Exchange also proposes to delete
the entire text of current Rule
10.17(b)(1) and 10.17(b)(2). The
Exchange proposes new subsections
(b)(1) and (b)(2) modeled on Rule
8313(b)(1) and (b)(2), as follows.
13 In that regard, Rule 8313(a)(3) references
summary proceedings under NYSE and NYSE MKT
Rule 8320. Unlike a proceeding under NYSE or
NYSE MKT Rule 8320, a proceeding under NYSE
Arca Rule 13 for failure to pay fines, other monetary
sanctions, or costs could not be a summary
proceeding.
14 The NYSE and NYSE MKT Rule 9600 Series set
forth procedures for seeking exemptive relief from
the requirements of certain enumerated rules.
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Proposed NYSE Arca Rule 10.17(b)(1)
would provide that copies of, and
information with respect to, any
disciplinary complaint released to the
public pursuant to paragraph (a) of the
proposed Rule shall indicate that a
disciplinary complaint represents the
initiation of a formal proceeding by the
Exchange in which findings as to the
allegations in the complaint have not
been made and does not represent a
decision as to any of the allegations
contained in the complaint. The
proposed Rule would be the same as
Rule 8313(b)(1).
Proposed NYSE Arca Rule 10.17(b)(2)
provides that copies of, and information
with respect to, any disciplinary
decision or other decision, order,
notification, or notice released to the
public pursuant to paragraph (a) of the
proposed Rule prior to the expiration of
the time period provided for an appeal
or call for review as permitted under
Exchange rules or the Exchange Act, or
while such an appeal or call for review
is pending, shall indicate that the
findings and sanctions imposed therein
are subject to review and modification
by the Exchange or the SEC. The
proposed Rule would be the same as
Rule 8313(b)(2).
Discretion To Redact Certain
Information or Waive Publication
The Exchange has determined that,
subject to limited exceptions,
disciplinary information should be
released to the public in unredacted
form. The Exchange proposes to add a
new subsection (c) to NYSE Arca Rule
10.17 entitled ‘‘Discretion to Redact
Certain Information or Waive
Publication,’’ modeled on Rule
8313(c)(1) and (2). With respect to the
limited exceptions, proposed NYSE
Arca Rule 10.17(c)(1) would provide
that the Exchange reserves the right to
redact, on a case-by-case basis,
information that contains confidential
customer information, including
customer identities, or information that
raises significant identity theft, personal
safety, or privacy concerns that are not
outweighed by investor protection
concerns. The proposed Rule would be
the same as Rule 8313(c)(1).
Similarly, proposed NYSE Arca Rule
10.17(c)(2) provides that,
notwithstanding paragraph (a) of the
proposed rule, the Exchange may
determine, in its discretion, to waive the
requirement to release a copy of, or
information with respect to, any
disciplinary complaint, disciplinary
decision or other decision, order,
notification, or notice under those
extraordinary circumstances where the
release of such information would
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violate fundamental notions of fairness
or work an injustice. The proposed Rule
would be the same as Rule 8313(c)(2).
Notice of Appeals of Exchange
Decisions
The Exchange proposes to add a new
subsection (d) to NYSE Arca Rule 10.17
entitled ‘‘Notice of Appeals of Exchange
Decisions to the SEC’’ modeled on Rule
8313(d). Proposed NYSE Arca Rule
10.17(d) provides that the Exchange
must provide notice to the public when
a disciplinary decision of the Exchange
is appealed to the SEC and that the
notice shall state whether the
effectiveness of the decision has been
stayed pending the outcome of
proceedings before the Commission.
The proposed Rule would be the same
as Rule 8313(d).
Definitions
Finally, the Exchange proposes to add
a new subsection (e) to Rule 10.17
entitled ‘‘Definitions.’’ Proposed NYSE
Arca Rule 10.17(e) would set forth
definitions of the terms ‘‘disciplinary
complaint’’ and ‘‘disciplinary decision’’
as used in the Rule, modeled on the
definitions contained in Rule 8313(e).
First, Rule 10.17(e)(1) would define
the term ‘‘disciplinary complaint’’ to
mean any complaint issued pursuant to
NYSE Arca Rule 10.4, which governs
complaints. The proposed text is
identical to Rule 8313(e)(1) except that
the proposed Rule would substitute
‘‘Rule 10.4’’ for ‘‘the Rule 9200 Series.’’
Second, proposed NYSE Arca Rule
10.17(e)(2) would define the term
‘‘disciplinary decision’’ to mean any
decision issued pursuant to NYSE Arca
Rules 10.4(c) (Summary
Determinations), 10.6 (Offers of
Settlement), 10.7 (Decision) or 10.8
(Review), including, decisions issued by
the Ethics and Business Conduct
Committee (‘‘EBCC’’), a Conduct Panel,
the Committee for Review (‘‘CFR’’) or
the Board of Directors, and orders
accepting offers of settlement. Under
proposed subsection (e)(2), the term
would not include decisions,
notifications, or notices issued pursuant
to paragraphs (a)(2), (a)(3) and (a)(4) of
the proposed Rule. Proposed NYSE Arca
Rule 10.17(e)(2) provides that minor
rule violation plan letters issued
pursuant to NYSE Arca Rule 10.12 are
not subject to the proposed Rule. The
proposed Rule would be the same as
Rule 8313(e)(2) except that the proposed
Rule would substitute references to the
relevant NYSE Arca Rules for references
to the NYSE and NYSE MKT Rule 9000
Series, Rule 9550 Series, Rule 9600
Series, Rule 9800 Series, Rule 9520
Series, and Rules 9216 and 9217.
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Amendments to NYSE Arca Equities
Rule 10.15 Governing Release of
Disciplinary Complaints, Decisions and
Other Information Based on Rule 8313
The Exchange proposes parallel
changes to NYSE Arca Equities Rule
10.15, which has the same structure as
NYSE Arca Rule 10.17, in order to adopt
the requirements of Rule 8313.
The Exchange proposes to amend the
heading to delete the clause
‘‘Information Through the Public
Disclosure Program’’ and replace it with
‘‘Complaints, Decisions and Other
Information.’’ As proposed, NYSE Arca
Equities Rule 10.15 would have the
same title as Rule 8313.
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General Standards
The Exchange proposes to add the
title ‘‘General Standards’’ to subsection
(a) of NYSE Arca Equities Rule 10.15
and delete the current text of subsection
(a). The text of subsections (a)(1)–(3)
would also be deleted and replaced as
follows.
First, proposed NYSE Arca Equities
Rule 10.15(a)(1) would provide that the
Exchange shall release to the public a
copy of and, at the Exchange’s
discretion, information with respect to,
any disciplinary complaint or
disciplinary decision issued by the
Exchange, as defined in subsection (e) of
the proposed Rule, other than minor
rule violations, on its Web site.
Proposed NYSE Arca Equities Rule
10.15(a)(1) would also provide that, in
response to a request, the Exchange
shall release to the requesting party a
copy of any identified disciplinary
complaint or disciplinary decision
issued by the Exchange, as defined in
proposed NYSE Arca Equities Rule
10.15(e). These proposed amendments
are modeled on Rule 8313(a)(1) and,
except for an inapplicable reference to
the Rule 9000 Series, would be the same
as the NYSE and NYSE MKT Rule.
Second, proposed NYSE Arca Equities
Rule 10.15(a)(2) would provide that the
Exchange shall release to the public a
copy of, and at the Exchange’s
discretion information with respect to,
any statutory disqualification decision,
notification, or notice issued by the
Exchange pursuant to NYSE Arca
Equities Rules 10 or 11 that will be filed
with the SEC. Proposed NYSE Arca
Equities Rule 10.15(a)(2) is modeled on
Rule 8313(a)(2) but substitutes
references to NYSE Arca Equities Rules
10 and 11 for references to the NYSE
and NYSE MKT Rule 9520 Series, and
omits reference to the NYSE and NYSE
MKT Rule 9800 Series. NYSE Arca
Equities does not have rules governing
temporary cease and desist proceedings
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19:36 Dec 19, 2016
Jkt 241001
comparable to the Rule 9800 Series. The
proposed Rule is otherwise the same as
the NYSE and NYSE MKT Rule.
Third, proposed NYSE Arca Equities
Rule 10.15(a)(3) would provide that the
Exchange shall release to the public
information with respect to any
suspension, cancellation, expulsion, or
bar that constitutes final Exchange
action imposed pursuant to NYSE Arca
Equities Rule 11, which governs
cancellation, suspension and
reinstatement and is the Exchange’s
analogue to the various provisions of the
NYSE and NYSE MKT Rule 9550 Series
referenced in Rule 8313(a)(3) governing
suspensions, cancellations, expulsions
and bars, with the exception of NYSE
and NYSE MKT Rule 9556, which
governs failure to comply with a
temporary or permanent cease and
desist order issued under the Rule 9200,
9300 or 9800 Series. NYSE Arca
Equities does not have rules governing
temporary cease and desist proceedings
comparable to Rule 9200, 9300 or 9800
Series. Like Rule 8313(a), proposed
NYSE Arca Equities Rule 10.15(a)(3)
would also encompass proceedings for
failure to pay fines, other monetary
sanctions, or costs.15 The proposed Rule
is otherwise the same as Rule 8313(a)(3).
To further conform proposed NYSE
Arca Equities Rule 10.15 to Rule 8313,
the Exchange proposes to add a new
subsection (a)(4) modeled on Rule
8313(a)(4) that provides that the
Exchange may release to the public a
copy of, and information with respect
to, any decision or notice appealable to
the SEC under Exchange Act Section
19(d). The proposed Rule is the same as
Rule 8313(a)(4) but omits reference to
any decision or notice issued pursuant
to the NYSE and NYSE MKT Rule 9600
Series, which NYSE Arca Equities has
not adopted.16
Release Specifications
The Exchange proposes to add the
title ‘‘Release Specifications’’ to
subsection (b) of NYSE Arca Equities
Rule 10.15 and delete the current text of
subsection (b).
The Exchange also proposes to delete
the entire text of current Rule
10.15(b)(1) and 10.15(b)(2). The
Exchange proposes new subsections
(b)(1) and (b)(2) modeled on Rule
8313(b)(1) and (b)(2), as follows.
15 In that regard, Rule 8313(a) references summary
proceedings under NYSE and NYSE MKT Rule
8320. Unlike a proceeding under NYSE or NYSE
MKT Rule 8320, a proceeding under NYSE Arca
Equities Rule 11 for failure to pay fines, other
monetary sanctions, or costs could not be a
summary proceeding.
16 See note 14, supra.
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92895
Proposed NYSE Arca Equities Rule
10.15(b)(1) would provide that copies
of, and information with respect to, any
disciplinary complaint released to the
public pursuant to paragraph (a) of the
proposed Rule shall indicate that a
disciplinary complaint represents the
initiation of a formal proceeding by the
Exchange in which findings as to the
allegations in the complaint have not
been made and does not represent a
decision as to any of the allegations
contained in the complaint. The
proposed Rule would be the same as
Rule 8313(b)(1).
Proposed NYSE Arca Equities Rule
10.15(b)(2) provides that copies of, and
information with respect to, any
disciplinary decision or other decision,
order, notification, or notice released to
the public pursuant to paragraph (a) of
the proposed Rule prior to the
expiration of the time period provided
for an appeal or call for review as
permitted under Exchange rules or the
Exchange Act, or while such an appeal
or call for review is pending, shall
indicate that the findings and sanctions
imposed therein are subject to review
and modification by the Exchange or the
SEC. The proposed Rule would be the
same as Rule 8313(b)(2).
Discretion To Redact Certain
Information or Waive Publication
The Exchange has determined that,
subject to limited exceptions,
disciplinary information should be
released to the public in unredacted
form. The Exchange proposes to add a
new subsection (c) to NYSE Arca
Equities Rule 10.15 entitled ‘‘Discretion
to Redact Certain Information or Waive
Publication,’’ modeled on Rule
8313(c)(1) and (2). With respect to the
limited exceptions, proposed NYSE
Arca Equities Rule 10.15(c)(1) would
provide that the Exchange reserves the
right to redact, on a case-by-case basis,
information that contains confidential
customer information, including
customer identities, or information that
raises significant identity theft, personal
safety, or privacy concerns that are not
outweighed by investor protection
concerns. The proposed Rule would be
the same as Rule 8313(c)(1).
Similarly, proposed NYSE Arca
Equities Rule 10.15(c)(2) provides that,
notwithstanding paragraph (a) of the
proposed rule, the Exchange may
determine, in its discretion, to waive the
requirement to release a copy of, or
information with respect to, any
disciplinary complaint, disciplinary
decision or other decision, order,
notification, or notice under those
extraordinary circumstances where the
release of such information would
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violate fundamental notions of fairness
or work an injustice. The proposed Rule
would be the same as Rule 8313(c)(2).
mstockstill on DSK3G9T082PROD with NOTICES
Notice of Appeals of Corporation
Decisions
The Exchange proposes to add a new
subsection (d) to NYSE Arca Equities
Rule 10.15 entitled ‘‘Notice of Appeals
of Corporation Decisions to the SEC’’
modeled on Rule 8313(d). Proposed
NYSE Arca Equities Rule 10.15(d)
provides that the Exchange must
provide notice to the public when a
disciplinary decision of the Exchange is
appealed to the SEC and that the notice
shall state whether the effectiveness of
the decision has been stayed pending
the outcome of proceedings before the
Commission. The proposed Rule would
be the same as Rule 8313(d).
Definitions
Finally, the Exchange proposes to add
a new subsection (e) to NYSE Arca
Equities Rule 10.15 entitled
‘‘Definitions.’’ Proposed NYSE Arca
Equities Rule 10.15(e) would set forth
definitions of the terms ‘‘disciplinary
complaint’’ and ‘‘disciplinary decision’’
as used in the Rule, modeled on the
definitions contained in Rule 8313(e).
First, Rule NYSE Arca Equities
10.15(e)(1) would define the term
‘‘disciplinary complaint’’ to mean any
complaint issued pursuant to NYSE
Arca Rule 10.4, which governs
complaints. The proposed text is
identical to Rule 8313(e)(1) except that
the proposed Rule would substitute
‘‘Rule 10.4’’ for ‘‘the Rule 9200 Series.’’
Second, proposed NYSE Arca Equities
Rule 10.15(e)(2) would define the term
‘‘disciplinary decision’’ to mean any
decision issued pursuant to NYSE Arca
Equities Rules 10.4 (c) (Summary
Proceedings), 10.6 (Offers of
Settlement), 10.7 (Decision), or 10.8
(Review), including, decisions issued by
the Business Conduct Committee
(‘‘BCC’’), a Conduct Panel, the CFR or
the Board of Directors,17 and orders
accepting offers of settlement. Under
proposed subsection (e)(2), the term
would not include decisions,
notifications, or notices issued pursuant
to paragraphs (a)(2), (a)(3) and (a)(4) of
the proposed Rule. Finally, proposed
NYSE Arca Equities Rule 10.15(e)(2)
provides that minor rule violation plan
letters issued pursuant to NYSE Arca
Equities Rule 10.12 are not subject to
17 NYSE Arca Equities Rule 10.8(c) and (d) refer
to the ‘‘NYSE Arca Board of Governors,’’ an
outdated reference that has been changed to ‘‘NYSE
Arca Board of Directors’’ elsewhere in the rules. See
Securities Exchange Act Release No. 77898 (May
24, 2016), 81 FR 34404 (May 31, 2016) (SR–
NYSEArca–2016–11).
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19:36 Dec 19, 2016
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the proposed Rule. The proposed Rule
would be the same as Rule 8313(e)(2)
except that the proposed Rule would
substitute references to the relevant
NYSE Arca Equities Rules for references
to the NYSE and NYSE MKT Rule 9000
Series, Rule 9550 Series, Rule 9600
Series, Rule 9800 Series, Rule 9520
Series, and Rules 9216 and 9217.
*
*
*
*
*
The Exchange believes that greater
access to information regarding
disciplinary actions provides valuable
guidance and information to permit
holders, associated persons, other
regulators, and investors. Further,
releasing detailed disciplinary
information to the public can serve to
deter and prevent future misconduct
and improve overall business standards
in the securities industry as well as
allowing investors to consider firms’
and representatives’ disciplinary
histories when considering whether to
engage in business with them.
Publishing more detailed information
than the Exchange currently does would
also allow permit holders to utilize that
information to educate associated
persons as to compliance matters,
highlight potential violations and
related sanctions, as well as inform the
firms’ compliance procedures involving
similar business lines, products, or
industry practices. Finally, the
Exchange believes that any member
organization or individual facing
allegations of rule violations would also
have access to more information to gain
greater insight on related facts and
sanctions.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,18 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,19 in particular, in that it
enables the Exchange to be so organized
as to have the capacity to be able to
carry out the purposes of the Exchange
Act and to comply, and to enforce
compliance by its exchange members
and persons associated with its
exchange members, with the provisions
of the Exchange Act, the rules and
regulations thereunder, and the rules of
NYSE Arc [sic] and NYSE Arca Equities.
In particular, the Exchange believes that
the proposed changes to NYSE Arca
Rule 10.17 and NYSE Arca Equities
Rule 10.15 regarding release of
disciplinary complaints, decisions and
other information are consistent with
Section 6(b) of the Act because they
would establish general standards for
18 15
19 15
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U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00127
Fmt 4703
the release of disciplinary information
to the public in line with those in effect
with its affiliates and would provide
greater access to information regarding
the Exchange’s disciplinary actions by
enabling the Exchange to also release
disciplinary complaints, which current
NYSE Arca Rule 10.17 and NYSE Arca
Equities Rule 10.15 do not provide for.
For the same reasons, the Exchange
believes that the proposed changes to
NYSE Arca Rule 10.17 and NYSE Arca
Equities Rule 10.15 further the
objectives of Section 6(b)(5) of the Act 20
because the changes are designed 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.
In particular, the proposed
amendments to NYSE Arca Rule 10.17
and NYSE Arca Equities Rule 10.15
further the objectives of Section 6(b)(5)
of the Act by providing greater clarity,
consistency, and transparency regarding
the release of disciplinary complaints,
decisions and other information to the
public. By adopting the proposed
amendments to NYSE Arca Rule 10.17
and NYSE Arca Equities Rule 10.15
modeled on the NYSE’s and NYSE
MKT’s rules, the Exchange would
establish standards for the release of
disciplinary information to the public in
line with those in effect with its
affiliates that provide greater access to
information regarding the Exchange’s
disciplinary actions. The Exchange
would also describe the scope of
information subject to proposed NYSE
Arca Rule 10.17 and NYSE Arca
Equities Rule 10.15. The Exchange
believes that this proposed rule change
promotes greater transparency with
respect to the Exchange’s disciplinary
process, and that the proposed rule
change provides greater access to
information regarding its disciplinary
actions because, as noted, it would
require the Exchange to release copies of
disciplinary complaints, and also
provides valuable guidance and
information to permit holders,
associated persons, other regulators, and
the investing public.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change is not
intended to address competitive issues,
but rather it is designed to (1) enhance
the Exchange’s rules governing the
release of disciplinary complaints,
20 15
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U.S.C. 78f(b)(5).
20DEN1
Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Notices
decisions and other information to the
public, thereby providing greater clarity
and consistency and resulting in less
burdensome and more efficient
regulatory compliance and facilitating
performance of regulatory functions,
and (2) provide greater harmonization
among NYSE Arca, NYSE Arca Equities,
NYSE and NYSE MKT rules of similar
purpose.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 21 and Rule 19b–
4(f)(6) thereunder.22
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
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
mstockstill on DSK3G9T082PROD with NOTICES
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–2016–161 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549.
All submissions should refer to File
Number SR–NYSEARCA–2016–161.
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–
NYSEARCA–2016–161 and should be
submitted on or before January 10, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–30553 Filed 12–19–16; 8:45 am]
BILLING CODE 8011–01–P
21 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
22 17
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19:36 Dec 19, 2016
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23 17
PO 00000
CFR 200.30–3(a)(12).
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92897
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
32392; 812–14653]
Equus Total Return, Inc.; Notice of
Application
December 14, 2016.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application for an
order under section 6(c) of the
Investment Company Act of 1940 (the
‘‘Act’’) for an exemption from sections
23(a), 23(b) and 63 of the Act; under
section 61(a)(3)(B) of the Act permitting
awards of common stock purchase
options to non-employee directors;
under section 57(i) of the Act and rule
17d–1 under the Act permitting certain
joint transactions otherwise prohibited
by section 57(a)(4) of the Act; and under
section 23(c)(3) of the Act for an
exemption from section 23(c) of the Act.
AGENCY:
Summary of the Application: Equus
Total Return, Inc. (‘‘Applicant’’ or the
‘‘Fund’’) requests an order that would
permit Applicant to (a) issue restricted
shares of its common stock from
treasury (‘‘Restricted Stock’’) or
common stock purchase options
(‘‘Options’’) as part of the compensation
package for certain participants in its
2016 Equity Incentive Plan (the ‘‘Plan’’),
(b) grant Options to directors who are
not also employees or officers of the
Applicant (‘‘Non-Employee Directors’’)
under the Plan, (c) withhold shares of
the Applicant’s common stock or
purchase shares of Applicant’s common
stock from participants to satisfy tax
withholding obligations relating to the
vesting of Restricted Stock or the
exercise of Options that will be granted
pursuant to the Plan, and (d) permit
participants to pay the exercise price of
Options with shares of Applicant’s
common stock.
Filing Dates: The application was filed
on May 26, 2016, and amended on
August 25, 2016, September 29, 2016
and November 23, 2016.
Hearing or Notification of Hearing: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicant with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on January 9, 2017, and
should be accompanied by proof of
service on applicant, in the form of an
affidavit or, for lawyers, a certificate of
service. Pursuant to rule 0–5 under the
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]]>Agencies
[Federal Register Volume 81, Number 244 (Tuesday, December 20, 2016)]
[Notices]
[Pages 92892-92897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30553]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79547; File No. SR-NYSEARCA-2016-161]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Rule 10.17 and NYSE Arca Equities Rule 10.15
December 14, 2016.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on December 8, 2016, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``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 NYSE Arca Rule 10.17 and NYSE Arca
Equities Rule 10.15 governing the release of disciplinary information
based on rules of the Exchange's affiliates New York Stock Exchange,
LLC and NYSE MKT LLC. 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 NYSE Arca Rule 10.17 (Release of
Disciplinary Information through the Public Disclosure Program) and
NYSE Arca Equities Rule 10.15 (Release of Disciplinary Information
through the Public Disclosure Program) based on Rule 8313 (Release of
Disciplinary Complaints, Decisions and Other Information) of the
Exchange's affiliates New York Stock Exchange, LLC (``NYSE'') and NYSE
MKT LLC (``NYSE MKT'').
Background
In 2013, the NYSE adopted disciplinary rules that are, with certain
exceptions, substantially the same as the Financial Industry Regulatory
Authority, Inc. (``FINRA'') Rule 8000 Series and Rule 9000 Series, and
which set forth rules for conducting investigations and enforcement
actions.\4\ The NYSE disciplinary rules were implemented on July 1,
2013.\5\ In 2016, NYSE MKT also adopted the Rule 8000 Series and Rule
9000 Series, which rules are, with certain exceptions, substantially
the same as those of NYSE and FINRA.\6\ The NYSE MKT
[[Page 92893]]
disciplinary rules were implemented on April 15, 2016.\7\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release Nos. 68678 (January 16,
2013), 78 FR 5213 (January 24, 2013) (SR-NYSE-2013-02) (``2013
Notice''), 69045 (March 5, 2013), 78 FR 15394 (March 11, 2013) (SR-
NYSE-2013-02) (``2013 NYSE Approval Order''), and 69963 (July 10,
2013), 78 FR 42573 (July 16, 2013) (SR-NYSE-2013-49).
\5\ See NYSE Information Memorandum 13-8 (May 24, 2013).
\6\ See Securities Exchange Act Release Nos. 77241 (February 26,
2016), 81 FR 11311 (March 3, 2016) (SR-NYSEMKT-2016-30) (``2016 MKT
Notice'').
\7\ See NYSE MKT Information Memorandum 16-02 (March 14, 2016).
---------------------------------------------------------------------------
In August 2016, the NYSE amended its Rule 8313 based on the text of
FINRA Rule 8313, which provides that disciplinary complaints and
decisions that meet certain criteria will be either published or made
available upon request.\8\ In September 2016, NYSE MKT also amended its
version of Rule 8313 to adopt the text of FINRA Rule 8313.\9\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release Nos. 78664 (August 24,
2016), 81 FR 59678 (August 30, 2016) (SR-NYSE-2016-40). In adopting
the FINRA disciplinary rules in 2013, the NYSE retained its long-
standing practice of publishing all final disciplinary decisions,
other than minor rule violations, on its Web site and did not adopt
the text of FINRA Rule 8313. See 2013 NYSE Approval Order, 78 FR at
15395.
\9\ See Securities Exchange Act Release Nos. 78959 (September
28, 2016), 81 FR 68481 (October 4, 2016) (SR-NYSEMKT-2016-71). In
adopting its disciplinary rules in 2016, NYSE MKT also did not adopt
the text of FINRA Rule 8313. See 2016 MKT Notice, 81 FR at 11321.
---------------------------------------------------------------------------
Current NYSE Arca Rule 10.17 and NYSE Arca Equities Rule 10.15
provide for the release to the public of certain disciplinary
information concerning OTP Holders and ETP Holders and associated
persons, respectively. Specifically, current NYSE Arca Rule 10.17 and
NYSE Arca Equities Rule 10.15 provide for release of any identified
disciplinary decision in response to a request. Rule 10.17(b)(1)
provides for release of information to the public with respect to
disciplinary decisions that: (i) Impose a suspension, cancellation or
expulsion upon an OTP Holder or OTP Firm; (ii) impose the suspension or
revocation of the registration of an associated person of an OTP Holder
or OTP Firm; (iii) impose the suspension or barring of an OTP Holder,
OTP Firm, or associated person from association with all OTP Holders or
OTP Firms; (iv) impose monetary sanctions of $10,000 or more upon an
OTP Holder, OTP Firm, or associated person; or (v) contain an
allegation of a violation of a Designated Rule, defined as (i)
Commission Rule 10b-5 under the Act, (ii) NYSE Arca Rule 11.5
(Manipulation), or (iii) NYSE Arca Rule 11.2 (Prohibited Acts). See
NYSE Arca Rule 10.17(b)(1).
Similarly, under NYSE Arca Equities Rule 10.15, NYSE Arca Equities
releases information to the public with respect to disciplinary
decisions that: (i) Impose a suspension, cancellation or expulsion upon
an ETP Holder; (ii) impose the suspension or revocation of the
registration of an associated person of an ETP Holder; (iii) impose the
suspension or barring of an ETP Holder or associated person from
association with all ETP Holders; (iv) impose monetary sanctions of
$10,000 or more upon an ETP Holder or associated person; or (v) contain
an allegation of a violation of a Designated Rule, defined as (i)
Commission Rule 10b-5 under the Act, (ii) NYSE Arca Equities Rule 6.5
(Manipulation), or (iii) NYSE Arca Equities Rule 6.2 (Prohibited Acts).
See NYSE Arca Equities Rule 10.15(b)(1).
Current NYSE Arca and NYSE Arca Equities Rules also permit release
of information to the public concerning disciplinary decisions that
involve significant policy or enforcement determinations where the
release of such information is deemed by the President of the Exchange
to be in the public interest.\10\ Further, the current Rules permit
waiving the requirement to release information with respect to a
disciplinary decision under extraordinary circumstances where the
release of the information would violate fundamental notions of
fairness or work as an injustice. Finally, the current Rules permit
release to the public of information concerning any disciplinary or
other decision issued pursuant to NYSE Arca Rule 10 and NYSE Arca
Equities Rule 10 that is not specifically enumerated in NYSE Arca Rule
10.17(b)(1) or NYSE Arca Equities Rule 10.15(b)(1), respectively,
regardless of the sanctions imposed, so long as the names of the
parties and other identifying information is redacted.\11\
---------------------------------------------------------------------------
\10\ See NYSE Arca Rule 10.17(b)(1); NYSE Arca Equities Rule
10.15(b)(1).
\11\ See id.
---------------------------------------------------------------------------
NYSE Arca Rule 10.17 and NYSE Arca Equities Rule 10.15 seek to
further the same goals of transparency and disclosure as NYSE and NYSE
MKT Rule 8313 (``Rule 8313'').\12\
---------------------------------------------------------------------------
\12\ See Securities Exchange Act Release No. 53878 (May 26,
2006), 71 FR 32622, 32624 (June 6, 2006) (SR-NYSEArca-2006-02).
---------------------------------------------------------------------------
As described below, the Exchange proposes to adopt Rule 8313 in
substantially the same form as approved by the Securities and Exchange
Commission (``SEC'' or ``Commission'') for NYSE and as published for
immediate effectiveness by NYSE MKT. By adopting the proposed
amendments to NYSE Arca Rule 10.17 and NYSE Arca Equities Rule 10.15,
the Exchange would have uniform options and equities rules that require
public release of disciplinary complaints as well as disciplinary
decisions, and that are otherwise consistent with the counterpart rules
of its NYSE and NYSE MKT affiliates.
Proposed Rule Change
Amendments to NYSE Arca Rule 10.17 Governing Release of Disciplinary
Complaints, Decisions and Other Information Based on Rule 8313
The Exchange proposes to delete subsections (a) through (h) of
current NYSE Arca Rule 10.17 in order to adopt the requirements of Rule
8313 as proposed new subsections (a) through (e).
The Exchange proposes to amend the heading to delete the clause
``Information Through the Public Disclosure Program'' and replace it
with ``Complaints, Decisions and Other Information.'' As proposed, NYSE
Arca Rule 10.17 would have the same title as Rule 8313.
General Standards
The Exchange proposes to add the title ``General Standards'' to
subsection (a) of NYSE Arca Rule 10.17 and delete the current text of
subsection (a). The text of subsections (a)(1)-(3) would also be
deleted and replaced as follows.
First, proposed NYSE Arca Rule 10.17(a)(1) would provide that the
Exchange shall release to the public a copy of and, at the Exchange's
discretion, information with respect to, any disciplinary complaint or
disciplinary decision issued by the Exchange, as defined in subsection
(e) of the proposed Rule, other than minor rule violations, on its Web
site. Proposed NYSE Arca Rule 10.17(a)(1) would also provide that, in
response to a request, the Exchange shall release to the requesting
party a copy of any identified disciplinary complaint or disciplinary
decision issued by the Exchange, as defined in proposed NYSE Arca Rule
10.17(e). These proposed amendments are modeled on Rule 8313(a)(1) and,
except for an inapplicable reference to the Rule 9000 Series, would be
the same as the NYSE and NYSE MKT Rule.
Second, proposed NYSE Arca Rule 10.17(a)(2) would provide that the
Exchange shall release to the public a copy of, and at the Exchange's
discretion information with respect to, any statutory disqualification
decision, notification, or notice issued by the Exchange pursuant to
NYSE Arca Rules 10 or 13 that will be filed with the SEC. Proposed NYSE
Arca Rule 10.17(a)(2) is modeled on Rule 8313(a)(2) but substitutes
references to NYSE Arca Rules 10 and 13 for references to the NYSE and
NYSE MKT Rule 9520 Series, and omits reference to the NYSE and NYSE MKT
Rule 9800 Series. NYSE Arca does not have rules governing temporary
cease and desist proceedings
[[Page 92894]]
comparable to the Rule 9800 Series. The proposed Rule is otherwise the
same as the NYSE and NYSE MKT Rule.
Third, proposed NYSE Arca Rule 10.17(a)(3) would provide that the
Exchange shall release to the public information with respect to any
suspension, cancellation, expulsion, or bar that constitutes final
Exchange action imposed pursuant to NYSE Arca Rule 13, which governs
cancellation, suspension and reinstatement and is the Exchange's
analogue to the various provisions of the NYSE and NYSE MKT Rule 9550
Series referenced in Rule 8313(a)(3) governing suspensions,
cancellations, expulsions and bars, with the exception of NYSE and NYSE
MKT Rule 9556, which governs failure to comply with a temporary or
permanent cease and desist order issued under the Rule 9200, 9300 or
9800 Series. NYSE Arca does not have rules governing temporary cease
and desist proceedings comparable to Rule 9200, 9300 or 9800 Series.
Like Rule 8313(a)(3), proposed NYSE Arca Rule 10.17(a)(3) would also
encompass proceedings for failure to pay fines, other monetary
sanctions, or costs.\13\ The proposed Rule is otherwise the same as
Rule 8313(a)(3).
---------------------------------------------------------------------------
\13\ In that regard, Rule 8313(a)(3) references summary
proceedings under NYSE and NYSE MKT Rule 8320. Unlike a proceeding
under NYSE or NYSE MKT Rule 8320, a proceeding under NYSE Arca Rule
13 for failure to pay fines, other monetary sanctions, or costs
could not be a summary proceeding.
---------------------------------------------------------------------------
To further conform proposed NYSE Arca Rule 10.17 to Rule 8313, the
Exchange proposes to add a new subsection (a)(4) modeled on Rule
8313(a)(4) that provides that the Exchange may release to the public a
copy of, and information with respect to, any decision or notice
appealable to the SEC under Exchange Act Section 19(d). The proposed
Rule is the same as Rule 8313(a)(4) but omits reference to any decision
or notice issued pursuant to the NYSE and NYSE MKT Rule 9600 Series,
which NYSE Arca has not adopted.\14\
---------------------------------------------------------------------------
\14\ The NYSE and NYSE MKT Rule 9600 Series set forth procedures
for seeking exemptive relief from the requirements of certain
enumerated rules.
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Release Specifications
The Exchange proposes to add the title ``Release Specifications''
to subsection (b) of NYSE Arca Rule 10.17 and delete the current text
of subsection (b).
The Exchange also proposes to delete the entire text of current
Rule 10.17(b)(1) and 10.17(b)(2). The Exchange proposes new subsections
(b)(1) and (b)(2) modeled on Rule 8313(b)(1) and (b)(2), as follows.
Proposed NYSE Arca Rule 10.17(b)(1) would provide that copies of,
and information with respect to, any disciplinary complaint released to
the public pursuant to paragraph (a) of the proposed Rule shall
indicate that a disciplinary complaint represents the initiation of a
formal proceeding by the Exchange in which findings as to the
allegations in the complaint have not been made and does not represent
a decision as to any of the allegations contained in the complaint. The
proposed Rule would be the same as Rule 8313(b)(1).
Proposed NYSE Arca Rule 10.17(b)(2) provides that copies of, and
information with respect to, any disciplinary decision or other
decision, order, notification, or notice released to the public
pursuant to paragraph (a) of the proposed Rule prior to the expiration
of the time period provided for an appeal or call for review as
permitted under Exchange rules or the Exchange Act, or while such an
appeal or call for review is pending, shall indicate that the findings
and sanctions imposed therein are subject to review and modification by
the Exchange or the SEC. The proposed Rule would be the same as Rule
8313(b)(2).
Discretion To Redact Certain Information or Waive Publication
The Exchange has determined that, subject to limited exceptions,
disciplinary information should be released to the public in unredacted
form. The Exchange proposes to add a new subsection (c) to NYSE Arca
Rule 10.17 entitled ``Discretion to Redact Certain Information or Waive
Publication,'' modeled on Rule 8313(c)(1) and (2). With respect to the
limited exceptions, proposed NYSE Arca Rule 10.17(c)(1) would provide
that the Exchange reserves the right to redact, on a case-by-case
basis, information that contains confidential customer information,
including customer identities, or information that raises significant
identity theft, personal safety, or privacy concerns that are not
outweighed by investor protection concerns. The proposed Rule would be
the same as Rule 8313(c)(1).
Similarly, proposed NYSE Arca Rule 10.17(c)(2) provides that,
notwithstanding paragraph (a) of the proposed rule, the Exchange may
determine, in its discretion, to waive the requirement to release a
copy of, or information with respect to, any disciplinary complaint,
disciplinary decision or other decision, order, notification, or notice
under those extraordinary circumstances where the release of such
information would violate fundamental notions of fairness or work an
injustice. The proposed Rule would be the same as Rule 8313(c)(2).
Notice of Appeals of Exchange Decisions
The Exchange proposes to add a new subsection (d) to NYSE Arca Rule
10.17 entitled ``Notice of Appeals of Exchange Decisions to the SEC''
modeled on Rule 8313(d). Proposed NYSE Arca Rule 10.17(d) provides that
the Exchange must provide notice to the public when a disciplinary
decision of the Exchange is appealed to the SEC and that the notice
shall state whether the effectiveness of the decision has been stayed
pending the outcome of proceedings before the Commission. The proposed
Rule would be the same as Rule 8313(d).
Definitions
Finally, the Exchange proposes to add a new subsection (e) to Rule
10.17 entitled ``Definitions.'' Proposed NYSE Arca Rule 10.17(e) would
set forth definitions of the terms ``disciplinary complaint'' and
``disciplinary decision'' as used in the Rule, modeled on the
definitions contained in Rule 8313(e).
First, Rule 10.17(e)(1) would define the term ``disciplinary
complaint'' to mean any complaint issued pursuant to NYSE Arca Rule
10.4, which governs complaints. The proposed text is identical to Rule
8313(e)(1) except that the proposed Rule would substitute ``Rule 10.4''
for ``the Rule 9200 Series.''
Second, proposed NYSE Arca Rule 10.17(e)(2) would define the term
``disciplinary decision'' to mean any decision issued pursuant to NYSE
Arca Rules 10.4(c) (Summary Determinations), 10.6 (Offers of
Settlement), 10.7 (Decision) or 10.8 (Review), including, decisions
issued by the Ethics and Business Conduct Committee (``EBCC''), a
Conduct Panel, the Committee for Review (``CFR'') or the Board of
Directors, and orders accepting offers of settlement. Under proposed
subsection (e)(2), the term would not include decisions, notifications,
or notices issued pursuant to paragraphs (a)(2), (a)(3) and (a)(4) of
the proposed Rule. Proposed NYSE Arca Rule 10.17(e)(2) provides that
minor rule violation plan letters issued pursuant to NYSE Arca Rule
10.12 are not subject to the proposed Rule. The proposed Rule would be
the same as Rule 8313(e)(2) except that the proposed Rule would
substitute references to the relevant NYSE Arca Rules for references to
the NYSE and NYSE MKT Rule 9000 Series, Rule 9550 Series, Rule 9600
Series, Rule 9800 Series, Rule 9520 Series, and Rules 9216 and 9217.
[[Page 92895]]
Amendments to NYSE Arca Equities Rule 10.15 Governing Release of
Disciplinary Complaints, Decisions and Other Information Based on Rule
8313
The Exchange proposes parallel changes to NYSE Arca Equities Rule
10.15, which has the same structure as NYSE Arca Rule 10.17, in order
to adopt the requirements of Rule 8313.
The Exchange proposes to amend the heading to delete the clause
``Information Through the Public Disclosure Program'' and replace it
with ``Complaints, Decisions and Other Information.'' As proposed, NYSE
Arca Equities Rule 10.15 would have the same title as Rule 8313.
General Standards
The Exchange proposes to add the title ``General Standards'' to
subsection (a) of NYSE Arca Equities Rule 10.15 and delete the current
text of subsection (a). The text of subsections (a)(1)-(3) would also
be deleted and replaced as follows.
First, proposed NYSE Arca Equities Rule 10.15(a)(1) would provide
that the Exchange shall release to the public a copy of and, at the
Exchange's discretion, information with respect to, any disciplinary
complaint or disciplinary decision issued by the Exchange, as defined
in subsection (e) of the proposed Rule, other than minor rule
violations, on its Web site. Proposed NYSE Arca Equities Rule
10.15(a)(1) would also provide that, in response to a request, the
Exchange shall release to the requesting party a copy of any identified
disciplinary complaint or disciplinary decision issued by the Exchange,
as defined in proposed NYSE Arca Equities Rule 10.15(e). These proposed
amendments are modeled on Rule 8313(a)(1) and, except for an
inapplicable reference to the Rule 9000 Series, would be the same as
the NYSE and NYSE MKT Rule.
Second, proposed NYSE Arca Equities Rule 10.15(a)(2) would provide
that the Exchange shall release to the public a copy of, and at the
Exchange's discretion information with respect to, any statutory
disqualification decision, notification, or notice issued by the
Exchange pursuant to NYSE Arca Equities Rules 10 or 11 that will be
filed with the SEC. Proposed NYSE Arca Equities Rule 10.15(a)(2) is
modeled on Rule 8313(a)(2) but substitutes references to NYSE Arca
Equities Rules 10 and 11 for references to the NYSE and NYSE MKT Rule
9520 Series, and omits reference to the NYSE and NYSE MKT Rule 9800
Series. NYSE Arca Equities does not have rules governing temporary
cease and desist proceedings comparable to the Rule 9800 Series. The
proposed Rule is otherwise the same as the NYSE and NYSE MKT Rule.
Third, proposed NYSE Arca Equities Rule 10.15(a)(3) would provide
that the Exchange shall release to the public information with respect
to any suspension, cancellation, expulsion, or bar that constitutes
final Exchange action imposed pursuant to NYSE Arca Equities Rule 11,
which governs cancellation, suspension and reinstatement and is the
Exchange's analogue to the various provisions of the NYSE and NYSE MKT
Rule 9550 Series referenced in Rule 8313(a)(3) governing suspensions,
cancellations, expulsions and bars, with the exception of NYSE and NYSE
MKT Rule 9556, which governs failure to comply with a temporary or
permanent cease and desist order issued under the Rule 9200, 9300 or
9800 Series. NYSE Arca Equities does not have rules governing temporary
cease and desist proceedings comparable to Rule 9200, 9300 or 9800
Series. Like Rule 8313(a), proposed NYSE Arca Equities Rule 10.15(a)(3)
would also encompass proceedings for failure to pay fines, other
monetary sanctions, or costs.\15\ The proposed Rule is otherwise the
same as Rule 8313(a)(3).
---------------------------------------------------------------------------
\15\ In that regard, Rule 8313(a) references summary proceedings
under NYSE and NYSE MKT Rule 8320. Unlike a proceeding under NYSE or
NYSE MKT Rule 8320, a proceeding under NYSE Arca Equities Rule 11
for failure to pay fines, other monetary sanctions, or costs could
not be a summary proceeding.
---------------------------------------------------------------------------
To further conform proposed NYSE Arca Equities Rule 10.15 to Rule
8313, the Exchange proposes to add a new subsection (a)(4) modeled on
Rule 8313(a)(4) that provides that the Exchange may release to the
public a copy of, and information with respect to, any decision or
notice appealable to the SEC under Exchange Act Section 19(d). The
proposed Rule is the same as Rule 8313(a)(4) but omits reference to any
decision or notice issued pursuant to the NYSE and NYSE MKT Rule 9600
Series, which NYSE Arca Equities has not adopted.\16\
---------------------------------------------------------------------------
\16\ See note 14, supra.
---------------------------------------------------------------------------
Release Specifications
The Exchange proposes to add the title ``Release Specifications''
to subsection (b) of NYSE Arca Equities Rule 10.15 and delete the
current text of subsection (b).
The Exchange also proposes to delete the entire text of current
Rule 10.15(b)(1) and 10.15(b)(2). The Exchange proposes new subsections
(b)(1) and (b)(2) modeled on Rule 8313(b)(1) and (b)(2), as follows.
Proposed NYSE Arca Equities Rule 10.15(b)(1) would provide that
copies of, and information with respect to, any disciplinary complaint
released to the public pursuant to paragraph (a) of the proposed Rule
shall indicate that a disciplinary complaint represents the initiation
of a formal proceeding by the Exchange in which findings as to the
allegations in the complaint have not been made and does not represent
a decision as to any of the allegations contained in the complaint. The
proposed Rule would be the same as Rule 8313(b)(1).
Proposed NYSE Arca Equities Rule 10.15(b)(2) provides that copies
of, and information with respect to, any disciplinary decision or other
decision, order, notification, or notice released to the public
pursuant to paragraph (a) of the proposed Rule prior to the expiration
of the time period provided for an appeal or call for review as
permitted under Exchange rules or the Exchange Act, or while such an
appeal or call for review is pending, shall indicate that the findings
and sanctions imposed therein are subject to review and modification by
the Exchange or the SEC. The proposed Rule would be the same as Rule
8313(b)(2).
Discretion To Redact Certain Information or Waive Publication
The Exchange has determined that, subject to limited exceptions,
disciplinary information should be released to the public in unredacted
form. The Exchange proposes to add a new subsection (c) to NYSE Arca
Equities Rule 10.15 entitled ``Discretion to Redact Certain Information
or Waive Publication,'' modeled on Rule 8313(c)(1) and (2). With
respect to the limited exceptions, proposed NYSE Arca Equities Rule
10.15(c)(1) would provide that the Exchange reserves the right to
redact, on a case-by-case basis, information that contains confidential
customer information, including customer identities, or information
that raises significant identity theft, personal safety, or privacy
concerns that are not outweighed by investor protection concerns. The
proposed Rule would be the same as Rule 8313(c)(1).
Similarly, proposed NYSE Arca Equities Rule 10.15(c)(2) provides
that, notwithstanding paragraph (a) of the proposed rule, the Exchange
may determine, in its discretion, to waive the requirement to release a
copy of, or information with respect to, any disciplinary complaint,
disciplinary decision or other decision, order, notification, or notice
under those extraordinary circumstances where the release of such
information would
[[Page 92896]]
violate fundamental notions of fairness or work an injustice. The
proposed Rule would be the same as Rule 8313(c)(2).
Notice of Appeals of Corporation Decisions
The Exchange proposes to add a new subsection (d) to NYSE Arca
Equities Rule 10.15 entitled ``Notice of Appeals of Corporation
Decisions to the SEC'' modeled on Rule 8313(d). Proposed NYSE Arca
Equities Rule 10.15(d) provides that the Exchange must provide notice
to the public when a disciplinary decision of the Exchange is appealed
to the SEC and that the notice shall state whether the effectiveness of
the decision has been stayed pending the outcome of proceedings before
the Commission. The proposed Rule would be the same as Rule 8313(d).
Definitions
Finally, the Exchange proposes to add a new subsection (e) to NYSE
Arca Equities Rule 10.15 entitled ``Definitions.'' Proposed NYSE Arca
Equities Rule 10.15(e) would set forth definitions of the terms
``disciplinary complaint'' and ``disciplinary decision'' as used in the
Rule, modeled on the definitions contained in Rule 8313(e).
First, Rule NYSE Arca Equities 10.15(e)(1) would define the term
``disciplinary complaint'' to mean any complaint issued pursuant to
NYSE Arca Rule 10.4, which governs complaints. The proposed text is
identical to Rule 8313(e)(1) except that the proposed Rule would
substitute ``Rule 10.4'' for ``the Rule 9200 Series.''
Second, proposed NYSE Arca Equities Rule 10.15(e)(2) would define
the term ``disciplinary decision'' to mean any decision issued pursuant
to NYSE Arca Equities Rules 10.4 (c) (Summary Proceedings), 10.6
(Offers of Settlement), 10.7 (Decision), or 10.8 (Review), including,
decisions issued by the Business Conduct Committee (``BCC''), a Conduct
Panel, the CFR or the Board of Directors,\17\ and orders accepting
offers of settlement. Under proposed subsection (e)(2), the term would
not include decisions, notifications, or notices issued pursuant to
paragraphs (a)(2), (a)(3) and (a)(4) of the proposed Rule. Finally,
proposed NYSE Arca Equities Rule 10.15(e)(2) provides that minor rule
violation plan letters issued pursuant to NYSE Arca Equities Rule 10.12
are not subject to the proposed Rule. The proposed Rule would be the
same as Rule 8313(e)(2) except that the proposed Rule would substitute
references to the relevant NYSE Arca Equities Rules for references to
the NYSE and NYSE MKT Rule 9000 Series, Rule 9550 Series, Rule 9600
Series, Rule 9800 Series, Rule 9520 Series, and Rules 9216 and 9217.
---------------------------------------------------------------------------
\17\ NYSE Arca Equities Rule 10.8(c) and (d) refer to the ``NYSE
Arca Board of Governors,'' an outdated reference that has been
changed to ``NYSE Arca Board of Directors'' elsewhere in the rules.
See Securities Exchange Act Release No. 77898 (May 24, 2016), 81 FR
34404 (May 31, 2016) (SR-NYSEArca-2016-11).
---------------------------------------------------------------------------
* * * * *
The Exchange believes that greater access to information regarding
disciplinary actions provides valuable guidance and information to
permit holders, associated persons, other regulators, and investors.
Further, releasing detailed disciplinary information to the public can
serve to deter and prevent future misconduct and improve overall
business standards in the securities industry as well as allowing
investors to consider firms' and representatives' disciplinary
histories when considering whether to engage in business with them.
Publishing more detailed information than the Exchange currently
does would also allow permit holders to utilize that information to
educate associated persons as to compliance matters, highlight
potential violations and related sanctions, as well as inform the
firms' compliance procedures involving similar business lines,
products, or industry practices. Finally, the Exchange believes that
any member organization or individual facing allegations of rule
violations would also have access to more information to gain greater
insight on related facts and sanctions.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\18\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\19\ in particular, in that it
enables the Exchange to be so organized as to have the capacity to be
able to carry out the purposes of the Exchange Act and to comply, and
to enforce compliance by its exchange members and persons associated
with its exchange members, with the provisions of the Exchange Act, the
rules and regulations thereunder, and the rules of NYSE Arc [sic] and
NYSE Arca Equities. In particular, the Exchange believes that the
proposed changes to NYSE Arca Rule 10.17 and NYSE Arca Equities Rule
10.15 regarding release of disciplinary complaints, decisions and other
information are consistent with Section 6(b) of the Act because they
would establish general standards for the release of disciplinary
information to the public in line with those in effect with its
affiliates and would provide greater access to information regarding
the Exchange's disciplinary actions by enabling the Exchange to also
release disciplinary complaints, which current NYSE Arca Rule 10.17 and
NYSE Arca Equities Rule 10.15 do not provide for.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
For the same reasons, the Exchange believes that the proposed
changes to NYSE Arca Rule 10.17 and NYSE Arca Equities Rule 10.15
further the objectives of Section 6(b)(5) of the Act \20\ because the
changes are designed 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.
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the proposed amendments to NYSE Arca Rule 10.17 and
NYSE Arca Equities Rule 10.15 further the objectives of Section 6(b)(5)
of the Act by providing greater clarity, consistency, and transparency
regarding the release of disciplinary complaints, decisions and other
information to the public. By adopting the proposed amendments to NYSE
Arca Rule 10.17 and NYSE Arca Equities Rule 10.15 modeled on the NYSE's
and NYSE MKT's rules, the Exchange would establish standards for the
release of disciplinary information to the public in line with those in
effect with its affiliates that provide greater access to information
regarding the Exchange's disciplinary actions. The Exchange would also
describe the scope of information subject to proposed NYSE Arca Rule
10.17 and NYSE Arca Equities Rule 10.15. The Exchange believes that
this proposed rule change promotes greater transparency with respect to
the Exchange's disciplinary process, and that the proposed rule change
provides greater access to information regarding its disciplinary
actions because, as noted, it would require the Exchange to release
copies of disciplinary complaints, and also provides valuable guidance
and information to permit holders, associated persons, other
regulators, and the investing public.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change is not intended to address competitive
issues, but rather it is designed to (1) enhance the Exchange's rules
governing the release of disciplinary complaints,
[[Page 92897]]
decisions and other information to the public, thereby providing
greater clarity and consistency and resulting in less burdensome and
more efficient regulatory compliance and facilitating performance of
regulatory functions, and (2) provide greater harmonization among NYSE
Arca, NYSE Arca Equities, NYSE and NYSE MKT rules of similar purpose.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \21\ and Rule 19b-4(f)(6) thereunder.\22\
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\21\ 15 U.S.C. 78s(b)(3)(A)(iii).
\22\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------
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 to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEARCA-2016-161 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549.
All submissions should refer to File Number SR-NYSEARCA-2016-161. 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-NYSEARCA-2016-161 and should
be submitted on or before January 10, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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\23\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-30553 Filed 12-19-16; 8:45 am]
BILLING CODE 8011-01-P
