Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change To Conform to Proposed Amendments to Securities Exchange Act Rule 15c6-1(a) To Shorten the Standard Settlement Cycle From Three Business Days After the Trade Date (“T+3”) to Two Business Days After the Trade Date (“T+2”), 96143-96146 [2016-31473]
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Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Notices
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79658; File No. SR–
NYSEMKT–2016–119]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing of Proposed
Rule Change To Conform to Proposed
Amendments to Securities Exchange
Act Rule 15c6–1(a) To Shorten the
Standard Settlement Cycle From Three
Business Days After the Trade Date
(‘‘T+3’’) to Two Business Days After the
Trade Date (‘‘T+2’’)
December 22, 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 December
15, 2016, NYSE MKT LLC (the
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt new
Rules 14T—Equities, 64T—Equities,
235T—Equities, 236T—Equities, 257T—
Equities and 282.65T—Equities, and
Sections 510T and 512T of the NYSE
MKT Company Guide to conform to
proposed amendments to Securities
Exchange Act Rule 15c6–1(a) to shorten
the standard settlement cycle from three
business days after the trade date to two
business days after the trade date. 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,
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
18:41 Dec 28, 2016
1. Purpose
The Exchange proposes to adopt the
following new rules to conform to
proposed amendments to Securities
Exchange Act Rule 15c6–1(a) 4 to
shorten the standard settlement cycle
from T+3 to T+2:
• Rule 14T—Equities (Non-Regular
Way Settlement Instructions for Orders);
• Rule 64T—Equities (Bonds, Rights
and 100-Share-Unit Stocks);
• Rule 235T—Equities (Ex-Dividend,
Ex-Rights);
• Rule 236T—Equities (Ex-Warrants);
• Rule 257T—Equities (Deliveries
After ‘‘Ex’’ Date);
• Rule 282.65T—Equities (Failure to
Deliver and Liability Notice
Procedures); and
• Sec. 510T (Two Day Delivery Plan)
and Sec. 512T (Ex-Dividend Procedure)
of the NYSE MKT Company Guide (the
‘‘Company Guide’’).
The proposed new rules would have
the same numbering as the current
rules, but with the modifier ‘‘T’’
appended to the rule number. For
example, Rule 14—Equities, governing
non-regular way settlement instructions
for orders, would remain unchanged
and continue to apply to non-regular
way settlements on the Exchange.
Proposed Rule 14T—Equities would
reflect that a regular way settlement
would be two days and not the current
three days. As discussed below, because
the Exchange would not implement the
proposed rules until after the final
implementation of T+2, the Exchange
proposes to retain the current versions
of each rule on its books and not delete
it until after the proposed rules are
approved. The Exchange also proposes
to file separate proposed rule changes to
establish the operative date of the
proposed rules and to delete the current
version of each rule.
Background
In 1993, the Securities and Exchange
Commission (the ‘‘SEC’’ or
‘‘Commission’’) adopted Rule 15c6–
1(a) 5 under the Act, which established
three business days after trade date
instead of five business days (‘‘T+5’’), as
the standard trade settlement cycle for
most securities transactions. The rule
4 See 17 CFR 240.15c6–1(a); see also notes 8–9,
infra.
5 17 CFR 240.15c6–1(a).
2 15
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
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96143
became effective in June 1995.6 In
November 1994, the Exchange amended
its rules to be consistent with the T+3
settlement cycle for securities
transactions.7
On September 28, 2016, the SEC
proposed amendments to Rule 15c6–
1(a) to shorten the standard settlement
cycle from T+3 to T+2 on the basis that
the shorter settlement cycle would
reduce the risks that arise from the
value and number of unsettled
securities transactions prior to
completion of settlement, including
credit, market and liquidity risk faced
by U.S. market participants.8 The
proposed rule amendment was
published for comment in the Federal
Register on October 5, 2016.9 In light of
this action by the SEC, the Exchange
proposes new rules to reflect ‘‘regular
way’’ settlement as occurring on T+2.10
Proposed Rule Change
The Exchange proposes the following
new rules identified with the modifier
‘‘T’’ in order to reflect a T+2 settlement
cycle. Except for changes reflecting the
shortened settlement period, the
proposed rules are the same as their
current counterparts:
• Current Rule 14(a)(i)—Equities
defines non-regular way settlement
instructions as instructions that allow
for settlement other than regular way,
that is, ‘‘settlement on the third business
day following trade date for securities
other than U.S. Government Securities’’.
The Exchange proposes a new Rule
14T—Equities that replaces ‘‘third’’
business day with ‘‘second’’;
• Current Rule 64(a)—Equities
defines ‘‘regular way’’ as ‘‘for delivery
on the third business day following the
day of the contract.’’ The Exchange
proposes new Rule 64T(a)—Equities
6 See Securities Exchange Act Release Nos. 33023
(October 6, 1993), 58 FR 52891 (order adopting Rule
15c6–1) and 34952 (November 9, 1994), 59 FR
59137 (order changing the effective date from June
1, 1995, to June 7, 1995).
7 See Securities Exchange Act Release Nos. 35110
(December 16, 1994), 59 FR 0 (December 23, 1994)
(SR–NYSE–94–40) (Notice) and 35506 (March 17,
1995), 60 FR 15618 (March 24, 1995) (SR–NYSE–
94–40) (Approval Order).
8 See SEC Press Release 2016–200: ‘‘SEC Proposes
Rule Amendment to Expedite Process for Settling
Securities Transactions’’ (September 28, 2016).
9 See Securities Exchange Act Release No. 78962
(September 28, 2016), 81 FR 69240 (October 5,
2016) (File No. S7–22–16) (‘‘SEC Proposing
Release’’).
10 Earlier this year the MSRB also filed a rule
change to reflect ‘‘regular way’’ settlement as
occurring on T+2. See Securities Exchange Act
Release Nos. 77744 68678 [sic] (April 29, 2016), 81
FR 14906 (March 18, 2016) (SR–MSRB–2016–04)
(approving proposed amendments to MSRB Rules
G–12 and G–15 to define regular-way settlement for
municipal securities transactions as occurring on a
two-day settlement cycle and technical conforming
amendments).
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asabaliauskas on DSK3SPTVN1PROD with NOTICES
that changes ‘‘third’’ business day to
‘‘second.’’ Current Rule 64—Equities
(a)(ii) provides that on the second and
third business days preceding the final
day for subscription, bids and offers in
rights to subscribe shall be made only
‘‘next day.’’ To conform with the move
to a T+2 settlement cycle, proposed
Rule 64T(a)(ii)—Equities would not
contain a clause referring to the second
and third business days preceding the
final day for subscription because the
third business day preceding the final
day for subscription in a T+2 settlement
cycle would simply be a regular way
settlement. Finally, current Rule 64(c)—
Equities requires ‘‘seller’s option’’
trades, defined as trades for delivery
between two and 60 business days, to be
reported to the tape only in calendar
day. Proposed Rule 64T(c)—Equities
would define ‘‘seller’s option’’ trades as
trades for delivery between three and 60
business days to reflect the shortened
settlement period. Further, the final
sentence of the current Rule provides
that the settlement date of a ‘‘seller’s
option’’ transaction printed as calendar
days cannot coincide with the normal
three business day ‘‘regular way’’
settlement. In proposed Rule 64T—
Equities, the Exchange would change
the reference to ‘‘regular way’’
settlements to two business day.11
• Rule 235—Equities provides that
transactions in stocks, except those
made for ‘‘cash’’ as prescribed in Rule
14—Equities, shall be ex-dividend or exrights on the second business day
preceding the record date fixed by the
corporation or the date of the closing of
transfer books. The Exchange proposes
to adopt proposed Rule 235T—Equities
that would delete the word ‘‘second’’ so
the reference would be to the ‘‘business
day’’ preceding the record date. The
current Rule further provides that if the
record date or closing of transfer books
occurs upon a day other than a business
day, Rule 235—Equities shall apply for
the third preceding business day. The
Exchange proposes to change ‘‘third
preceding business day’’ to ‘‘second
preceding business day’’ in proposed
Rule 235T—Equities; 12
11 The Exchange also proposes to make several
non-substantive changes. As reflected in proposed
Rule 64T(a)(i)—Equities, italics would be removed
from the single quote before the words ‘‘issued’’ and
‘‘regular’’ and a missing parenthesis added before
the word ‘‘See’’ in the second sentence of the
second paragraph. Italics would also be removed
from the single quote before the word ‘‘seller’s’’ in
five places in proposed Rule 64T(c)—Equities as
well as before the word ‘‘regular’’ in the last
sentence. Finally, as reflected in proposed Rule
64T(a)(1), (a)(ii) and (b)—Equities, bold would be
removed from ‘‘(a)(i),’’ ‘‘(ii)’’ and ‘‘(b).’’
12 The Exchange also proposes to make nonsubstantive changes to correct punctuation in
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18:41 Dec 28, 2016
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• Current Rule 236—Equities
prescribes that ex-warrant trading will
begin on the second business day
preceding the date of expiration of the
warrants, except that when expiration
occurs on a non-business day, in which
case it will begin on the third business
day preceding date of expiration. The
Exchange proposes to adopt proposed
Rule 236T—Equities and change the
warrant period to the business day
preceding expiration of the warrants
instead of the second business day.
Under the proposed Rule, when warrant
expiration occurs on other than a
business day, the ex-warrant period will
begin on the second business day
preceding the expiration date instead of
on the third business day; 13
• Current Rule 257—Equities
prescribes the time frame for delivery of
dividends or rights for securities sold
before the ‘‘ex’’ date but delivered after
the record date. The current time frame
is within three days after the record
date. Consistent with the T+2 initiative,
proposed Rule 257T—Equities the time
frame is being shortened to two days; 14
• Subdivision (1)(A) of
Supplementary Material .65 to current
Rule 282—Equities sets forth the fail-todeliver and liability notice procedures
where a securities contract is for
warrants, rights, convertible securities
or other securities which have been
called for redemption; are due to expire
by their terms; are the subject of a
tender or exchange offer; or are subject
to other expiring events such as a record
date for the underlying security and the
last day on which the securities must be
delivered or surrendered is the
settlement date of the contract or later.
Under current Rule 282.65(1)(A)—
Equities, the receiving member
organization delivers a liability notice to
the delivering member organization as
an alternative to the close-out
procedures set forth in the Rule. The
liability notice sets a cutoff date for the
delivery or surrender of the securities
and provides notice to the delivering
member organization of the liability
attendant to its failure to deliver or
surrender the securities in time. If the
delivering member organization delivers
or surrenders the securities in response
proposed Rule 235T—Equities by removing italics
from the single quote before the word ‘‘cash’’ in two
places.
13 The Exchange also proposes to make nonsubstantive changes to correct punctuation in
proposed Rule 236T—Equities by removing italics
from the single quote before the word ‘‘cash’’ in two
places.
14 The Exchange also proposes to make nonsubstantive changes to correct punctuation in
proposed Rule 257T—Equities by removing italics
from the single quote before the word ‘‘Ex’’ in the
heading and the word ‘‘cash’’ in the rule text.
PO 00000
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to the liability notice, it has met its
delivery obligation. If the delivering
member organization fails to deliver or
surrender the securities on the
expiration date, it will be liable for any
damages that may accrue thereby.
Current Rule 282.65(1)(A)—Equities
further provides that when the parties to
a contract are both participants in a
Qualified Clearing Agency that has an
automated service for notifying a failing
party of the liability that will be
attendant to a failure to deliver, the
transmission of the liability notice must
be accomplished through such
automated notification service. When
the parties to a contract are not both
participants in a Qualified Clearing
Agency 15 that has an automated service
for notifying a failing party of the
liability that will be attendant to a
failure to deliver, such notice must be
issued using written or comparable
electronic media having immediate
receipt capabilities no later than one
business day prior to the latest time and
the date of the offer or other event in
order to obtain the protection provided
by this Rule.16
Given the proposed shortened
settlement cycle, and in order to address
concerns that the requirement for the
delivering member organization to
deliver a liability notice to the receiving
member no later than one business day
prior to the latest time and the date of
the offer or other event in order to
obtain the protection provided by the
Rule may no longer be appropriate in a
T+2 environment,17 the Exchange
15 Rule 180—Equities governs failure to deliver
and provides in part that ‘‘[w]hen the parties to a
contract are both participants in a registered
clearing agency which has an automated service for
notifying a failing party of the liability that will be
attendant to a failure to deliver and that contract
was to be settled through the facilities of said
registered clearing agency, the transmission of the
liability notification must be accomplished through
use of said automated notification service.’’ Rule
180—Equities does not address the transmission of
the liability notification for parties to a contract that
are not both participants in a registered clearing
agency, which is governed by Rule 282.65—
Equities.
16 The one-day time frame also appears in
comparable provisions of other SROs. See, e.g.,
FINRA Rule 11810(j)(1)(A); NSCC Rules &
Procedures, Procedure X (Execution of Buy-Ins)
(Effective August 10, 2016); and Nasdaq Rule IM–
11810 (Buying-in).
17 See, e.g., Letter from Thomas F. Price,
Managing Director, Operations, Technology & BCP,
Securities Industry and Financial Markets
Association, to Marcia E. Asquith, Corporate
Secretary, FINRA, dated April 4, 2016 (‘‘SIFMA’’)
(April 4, 2016), noting in connection with FINRA
Rule 11810(j), the comparable provision to Rule
282.65(1)(A)—Equities, that the ‘‘industry has
identified a number of situations where one-day
notice may no longer be appropriate in a T+2
environment, including (1) where the delivery
obligation is transferred to another party as a result
of continuous net settlement, (2) settlements
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Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Notices
proposes to amend Rule 282.65(1)(A)—
Equities in situations where both parties
to a contract are not participants of a
registered clearing agency with an
automated notification service by
extending the time frame for delivery of
the liability notice. Rule 282.65(1)(A)—
Equities would accordingly be amended
to provide that in such cases, the
receiving member organization must
send the liability notice to the
delivering member organization as soon
as practicable but not later than two
hours prior to the cutoff time set forth
in the instructions on a specific offer or
other event to obtain the protection
provided by the Rule. The proposed
change would be the only change to the
text of current Supplementary Material
.65;
• Current Sec. 510 of the Company
Guide provides that all transactions
effected on the Exchange (unless
otherwise specified) will be settled in
three business days and that a ‘‘regular
way’’ transaction is due for settlement
by delivery of the securities against
payment on the third business day after
the transaction date. To reflect the
change to a two day delivery rule,
proposed Sec. 510T would change both
references from three business days to
two business days. Additionally, current
Sec. 510 provides an example of the
delivery plan for ex-dividend and exrights, and states that a ‘‘regular way’’
transaction made on a Friday is due for
settlement on Wednesday of the
following week and that a transaction
on Monday is due for settlement on
Thursday. To reflect the change to a two
day delivery rule, proposed Sec. 510T
would change the Wednesday to
Tuesday and Thursday to Wednesday in
the example; and
• Current Sec. 512 of the Company
Guide provides that transactions in
stocks (except those made for ‘‘cash’’)
are ex-dividend on the second business
day preceding the record date unless the
record date selected is not a business
day, in which case the stock will be
quoted ex-dividend on the third
preceding business day. Consistent with
the T+2 initiative, proposed Sec. 512
would shorten the time frames to the
business day preceding the record date
and in cases where the record date is
not a business day, the second
preceding business day.
Operative Date Preambles
As noted above, because the Exchange
would not implement the proposed
rules until after the final
outside of National Securities Clearing Corporation
(the ‘‘NSCC’’) and (3) settlements where the third
party is not a[n NYSE MKT] member.’’
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18:41 Dec 28, 2016
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implementation of T+2, the Exchange
proposes to retain the current versions
of each rule on its books and not delete
them until after the proposed rules are
approved. The Exchange also proposes
to file separate proposed rule changes as
necessary to establish the operative date
of the proposed rules and to delete the
current version of each rule.
To reduce the potential for confusion
regarding which version of a given rule
governs, the Exchange proposes to add
a preamble to each current rule
providing that: (1) The rule will remain
operative until the Exchange files
separate proposed rule changes as
necessary to establish the operative date
of the revised rule, to delete the current
rule and proposed preamble, and to
remove the preamble text from the
revised rule; and (2) in addition to filing
the necessary proposed rule changes,
the Exchange will announce via
Information Memo the operative date of
the deletion of the current rule and
implementation of the proposed rule
designated with a T.
The Exchange also proposes to add a
preamble to each proposed rule that
would provide that: (1) The Exchange
will file a separate rule change to
establish the operative date of the
proposed rule, delete the current
version and the proposed preamble, and
remove the preamble text from the
revised rule; and (2) until such time, the
current version of the rule will remain
operative and that, in addition to filing
the necessary proposed rule changes,
the Exchange will announce via
Information Memo the implementation
of the proposed rule and the operative
date of the deletion of the current rule.
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, because it is
designed to prevent fraudulent and
manipulative acts and practices,
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and 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 the proposed rule change supports
the industry-led initiative to shorten the
settlement cycle to two business days.
18 15
19 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00190
Fmt 4703
Moreover, the proposed rule change is
consistent with the SEC’s proposed
amendment to SEA Rule 15c6–1(a) to
require standard settlement no later
than T+2. The Exchange believes that
the proposed rule change will provide
the regulatory certainty to facilitate the
industry-led move to a T+2 settlement
cycle. Further, the Exchange believes
that, by shortening the time period for
settlement of most securities
transactions, the proposed rule change
would protect investors and the public
interest by reducing the number of
unsettled trades in the clearance and
settlement system at any given time,
thereby reducing the risk inherent in
settling securities transactions to
clearing corporations, their members
and public investors. The Exchange also
believes that adding a preamble to each
current rule and to each proposed rule
clarifying the operative dates of the
respective versions would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system by adding
clarity and transparency to the
Exchange’s rules, reducing potential
confusion, and making the Exchange’s
rules easier to navigate.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed change is not designed to
address any competitive issue but rather
facilitate the industry’s transition to a
T+2 regular-way settlement cycle. The
Exchange also believes that the
proposed rule change will serve to
promote clarity and consistency,
thereby reducing burdens on the
marketplace and facilitating investor
protection. Moreover, the proposed rule
changes are consistent with the SEC’s
proposed amendment to SEA Rule
15c6–1(a) to require standard settlement
no later than T+2. Accordingly, the
Exchange believes that the proposed
changes do not impose any burdens on
the industry in addition to those
necessary to implement amendments to
SEA Rule 15c6–1(a) as described and
enumerated in the SEC Proposing
Release.20
20 See
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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
Within 45 days of the date of
publication of this notice in the Federal
Register or such longer period up to 90
days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
BILLING CODE 2011–01–P
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–2016–119 on the subject
line.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEMKT–2016–119. 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
18:41 Dec 28, 2016
Jkt 241001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016–31473 Filed 12–28–16; 8:45 am]
IV. Solicitation of Comments
VerDate Sep<11>2014
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–2016–119, and should be
submitted on or before January 19, 2017.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79655; File No. SR–NSCC–
2016–008]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing of
Proposed Rule Change To Reflect
Updates to the Consolidated Trade
Summary, Eliminate Re-Pricing in the
Foreign Security Accounting Operation
and Make Other Changes
December 22, 2016.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934, as
amended (‘‘Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on December 15, 2016, National
Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II and III below, which Items
have been prepared by the clearing
agency. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change consists of
amendments to NSCC’s Rules &
21 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Procedures (‘‘Rules’’) 3 in order to (i)
reflect updates that NSCC would make
to the Consolidated Trade Summary
(referred to herein as the ‘‘CTS’’ and as
the ‘‘CTSs’’ for more than one CTS),
which is provided to Members and
contains summarized trade obligation
information, and (ii) eliminate the
practice of re-pricing in the Foreign
Security Accounting Operation. The
proposed rule change would amend the
following Rules: (i) Procedure II, Section
H (Consolidated Trade Summaries), (ii)
Procedure V, Section C (Net Balance
Orders) and Section E (Consolidated
Trade Summaries), (iii) Procedure VI,
Section A (Introduction), Section B
(Trade-for-Trade Foreign Security
Receive and Deliver Instructions), and
Section C (Netted Member-to-Member
Receive and Deliver Instructions) and
(iv) Procedure VII, Section B
(Consolidated Trade Summary), as
described in more detail below. In
addition, the proposed rule change
would make technical changes to clarify
and correct certain provisions of the
foregoing Rules, as described in greater
detail below.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
The current CTS 4 output consists of
a main file and two supplemental files
as well as an additional file that reflects
transactions in Foreign Securities.5 The
3 Capitalized terms not defined herein are defined
in the Rules, available at https://dtcc.com/∼/media/
Files/Downloads/legal/rules/nscc_rules.pdf.
4 The CTS is described in Procedure II (Trade
Comparison and Recording Service), Procedure V
(Balance Order Accounting Operation) and
Procedure VII (CNS Accounting Operation).
5 The Foreign Securities file is a transaction file
reporting Foreign Securities trades as received. The
transactions are netted in the foreign netting
process to become balance orders, which are
reported on the CTS. The current CTS reports the
netted summary records and balance orders on T+1.
The revised CTS would report Foreign Securities
trades on trade date. The revised CTS will report
both foreign and domestic netted transactions and
E:\FR\FM\29DEN1.SGM
29DEN1
]]>Agencies
[Federal Register Volume 81, Number 250 (Thursday, December 29, 2016)]
[Notices]
[Pages 96143-96146]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31473]
[[Page 96143]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79658; File No. SR-NYSEMKT-2016-119]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of
Proposed Rule Change To Conform to Proposed Amendments to Securities
Exchange Act Rule 15c6-1(a) To Shorten the Standard Settlement Cycle
From Three Business Days After the Trade Date (``T+3'') to Two Business
Days After the Trade Date (``T+2'')
December 22, 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 December 15, 2016, NYSE MKT LLC (the ``Exchange'' or
``NYSE MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to adopt new Rules 14T--Equities, 64T--
Equities, 235T--Equities, 236T--Equities, 257T--Equities and 282.65T--
Equities, and Sections 510T and 512T of the NYSE MKT Company Guide to
conform to proposed amendments to Securities Exchange Act Rule 15c6-
1(a) to shorten the standard settlement cycle from three business days
after the trade date to two business days after the trade date. 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 adopt the following new rules to conform
to proposed amendments to Securities Exchange Act Rule 15c6-1(a) \4\ to
shorten the standard settlement cycle from T+3 to T+2:
---------------------------------------------------------------------------
\4\ See 17 CFR 240.15c6-1(a); see also notes 8-9, infra.
---------------------------------------------------------------------------
Rule 14T--Equities (Non-Regular Way Settlement
Instructions for Orders);
Rule 64T--Equities (Bonds, Rights and 100-Share-Unit
Stocks);
Rule 235T--Equities (Ex-Dividend, Ex-Rights);
Rule 236T--Equities (Ex-Warrants);
Rule 257T--Equities (Deliveries After ``Ex'' Date);
Rule 282.65T--Equities (Failure to Deliver and Liability
Notice Procedures); and
Sec. 510T (Two Day Delivery Plan) and Sec. 512T (Ex-
Dividend Procedure) of the NYSE MKT Company Guide (the ``Company
Guide'').
The proposed new rules would have the same numbering as the current
rules, but with the modifier ``T'' appended to the rule number. For
example, Rule 14--Equities, governing non-regular way settlement
instructions for orders, would remain unchanged and continue to apply
to non-regular way settlements on the Exchange. Proposed Rule 14T--
Equities would reflect that a regular way settlement would be two days
and not the current three days. As discussed below, because the
Exchange would not implement the proposed rules until after the final
implementation of T+2, the Exchange proposes to retain the current
versions of each rule on its books and not delete it until after the
proposed rules are approved. The Exchange also proposes to file
separate proposed rule changes to establish the operative date of the
proposed rules and to delete the current version of each rule.
Background
In 1993, the Securities and Exchange Commission (the ``SEC'' or
``Commission'') adopted Rule 15c6-1(a) \5\ under the Act, which
established three business days after trade date instead of five
business days (``T+5''), as the standard trade settlement cycle for
most securities transactions. The rule became effective in June
1995.\6\ In November 1994, the Exchange amended its rules to be
consistent with the T+3 settlement cycle for securities
transactions.\7\
---------------------------------------------------------------------------
\5\ 17 CFR 240.15c6-1(a).
\6\ See Securities Exchange Act Release Nos. 33023 (October 6,
1993), 58 FR 52891 (order adopting Rule 15c6-1) and 34952 (November
9, 1994), 59 FR 59137 (order changing the effective date from June
1, 1995, to June 7, 1995).
\7\ See Securities Exchange Act Release Nos. 35110 (December 16,
1994), 59 FR 0 (December 23, 1994) (SR-NYSE-94-40) (Notice) and
35506 (March 17, 1995), 60 FR 15618 (March 24, 1995) (SR-NYSE-94-40)
(Approval Order).
---------------------------------------------------------------------------
On September 28, 2016, the SEC proposed amendments to Rule 15c6-
1(a) to shorten the standard settlement cycle from T+3 to T+2 on the
basis that the shorter settlement cycle would reduce the risks that
arise from the value and number of unsettled securities transactions
prior to completion of settlement, including credit, market and
liquidity risk faced by U.S. market participants.\8\ The proposed rule
amendment was published for comment in the Federal Register on October
5, 2016.\9\ In light of this action by the SEC, the Exchange proposes
new rules to reflect ``regular way'' settlement as occurring on
T+2.\10\
---------------------------------------------------------------------------
\8\ See SEC Press Release 2016-200: ``SEC Proposes Rule
Amendment to Expedite Process for Settling Securities Transactions''
(September 28, 2016).
\9\ See Securities Exchange Act Release No. 78962 (September 28,
2016), 81 FR 69240 (October 5, 2016) (File No. S7-22-16) (``SEC
Proposing Release'').
\10\ Earlier this year the MSRB also filed a rule change to
reflect ``regular way'' settlement as occurring on T+2. See
Securities Exchange Act Release Nos. 77744 68678 [sic] (April 29,
2016), 81 FR 14906 (March 18, 2016) (SR-MSRB-2016-04) (approving
proposed amendments to MSRB Rules G-12 and G-15 to define regular-
way settlement for municipal securities transactions as occurring on
a two-day settlement cycle and technical conforming amendments).
---------------------------------------------------------------------------
Proposed Rule Change
The Exchange proposes the following new rules identified with the
modifier ``T'' in order to reflect a T+2 settlement cycle. Except for
changes reflecting the shortened settlement period, the proposed rules
are the same as their current counterparts:
Current Rule 14(a)(i)--Equities defines non-regular way
settlement instructions as instructions that allow for settlement other
than regular way, that is, ``settlement on the third business day
following trade date for securities other than U.S. Government
Securities''. The Exchange proposes a new Rule 14T--Equities that
replaces ``third'' business day with ``second'';
Current Rule 64(a)--Equities defines ``regular way'' as
``for delivery on the third business day following the day of the
contract.'' The Exchange proposes new Rule 64T(a)--Equities
[[Page 96144]]
that changes ``third'' business day to ``second.'' Current Rule 64--
Equities (a)(ii) provides that on the second and third business days
preceding the final day for subscription, bids and offers in rights to
subscribe shall be made only ``next day.'' To conform with the move to
a T+2 settlement cycle, proposed Rule 64T(a)(ii)--Equities would not
contain a clause referring to the second and third business days
preceding the final day for subscription because the third business day
preceding the final day for subscription in a T+2 settlement cycle
would simply be a regular way settlement. Finally, current Rule 64(c)--
Equities requires ``seller's option'' trades, defined as trades for
delivery between two and 60 business days, to be reported to the tape
only in calendar day. Proposed Rule 64T(c)--Equities would define
``seller's option'' trades as trades for delivery between three and 60
business days to reflect the shortened settlement period. Further, the
final sentence of the current Rule provides that the settlement date of
a ``seller's option'' transaction printed as calendar days cannot
coincide with the normal three business day ``regular way'' settlement.
In proposed Rule 64T--Equities, the Exchange would change the reference
to ``regular way'' settlements to two business day.\11\
---------------------------------------------------------------------------
\11\ The Exchange also proposes to make several non-substantive
changes. As reflected in proposed Rule 64T(a)(i)--Equities, italics
would be removed from the single quote before the words ``issued''
and ``regular'' and a missing parenthesis added before the word
``See'' in the second sentence of the second paragraph. Italics
would also be removed from the single quote before the word
``seller's'' in five places in proposed Rule 64T(c)--Equities as
well as before the word ``regular'' in the last sentence. Finally,
as reflected in proposed Rule 64T(a)(1), (a)(ii) and (b)--Equities,
bold would be removed from ``(a)(i),'' ``(ii)'' and ``(b).''
---------------------------------------------------------------------------
Rule 235--Equities provides that transactions in stocks,
except those made for ``cash'' as prescribed in Rule 14--Equities,
shall be ex-dividend or ex-rights on the second business day preceding
the record date fixed by the corporation or the date of the closing of
transfer books. The Exchange proposes to adopt proposed Rule 235T--
Equities that would delete the word ``second'' so the reference would
be to the ``business day'' preceding the record date. The current Rule
further provides that if the record date or closing of transfer books
occurs upon a day other than a business day, Rule 235--Equities shall
apply for the third preceding business day. The Exchange proposes to
change ``third preceding business day'' to ``second preceding business
day'' in proposed Rule 235T--Equities; \12\
---------------------------------------------------------------------------
\12\ The Exchange also proposes to make non-substantive changes
to correct punctuation in proposed Rule 235T--Equities by removing
italics from the single quote before the word ``cash'' in two
places.
---------------------------------------------------------------------------
Current Rule 236--Equities prescribes that ex-warrant
trading will begin on the second business day preceding the date of
expiration of the warrants, except that when expiration occurs on a
non-business day, in which case it will begin on the third business day
preceding date of expiration. The Exchange proposes to adopt proposed
Rule 236T--Equities and change the warrant period to the business day
preceding expiration of the warrants instead of the second business
day. Under the proposed Rule, when warrant expiration occurs on other
than a business day, the ex-warrant period will begin on the second
business day preceding the expiration date instead of on the third
business day; \13\
---------------------------------------------------------------------------
\13\ The Exchange also proposes to make non-substantive changes
to correct punctuation in proposed Rule 236T--Equities by removing
italics from the single quote before the word ``cash'' in two
places.
---------------------------------------------------------------------------
Current Rule 257--Equities prescribes the time frame for
delivery of dividends or rights for securities sold before the ``ex''
date but delivered after the record date. The current time frame is
within three days after the record date. Consistent with the T+2
initiative, proposed Rule 257T--Equities the time frame is being
shortened to two days; \14\
---------------------------------------------------------------------------
\14\ The Exchange also proposes to make non-substantive changes
to correct punctuation in proposed Rule 257T--Equities by removing
italics from the single quote before the word ``Ex'' in the heading
and the word ``cash'' in the rule text.
---------------------------------------------------------------------------
Subdivision (1)(A) of Supplementary Material .65 to
current Rule 282--Equities sets forth the fail-to-deliver and liability
notice procedures where a securities contract is for warrants, rights,
convertible securities or other securities which have been called for
redemption; are due to expire by their terms; are the subject of a
tender or exchange offer; or are subject to other expiring events such
as a record date for the underlying security and the last day on which
the securities must be delivered or surrendered is the settlement date
of the contract or later.
Under current Rule 282.65(1)(A)--Equities, the receiving member
organization delivers a liability notice to the delivering member
organization as an alternative to the close-out procedures set forth in
the Rule. The liability notice sets a cutoff date for the delivery or
surrender of the securities and provides notice to the delivering
member organization of the liability attendant to its failure to
deliver or surrender the securities in time. If the delivering member
organization delivers or surrenders the securities in response to the
liability notice, it has met its delivery obligation. If the delivering
member organization fails to deliver or surrender the securities on the
expiration date, it will be liable for any damages that may accrue
thereby.
Current Rule 282.65(1)(A)--Equities further provides that when the
parties to a contract are both participants in a Qualified Clearing
Agency that has an automated service for notifying a failing party of
the liability that will be attendant to a failure to deliver, the
transmission of the liability notice must be accomplished through such
automated notification service. When the parties to a contract are not
both participants in a Qualified Clearing Agency \15\ that has an
automated service for notifying a failing party of the liability that
will be attendant to a failure to deliver, such notice must be issued
using written or comparable electronic media having immediate receipt
capabilities no later than one business day prior to the latest time
and the date of the offer or other event in order to obtain the
protection provided by this Rule.\16\
---------------------------------------------------------------------------
\15\ Rule 180--Equities governs failure to deliver and provides
in part that ``[w]hen the parties to a contract are both
participants in a registered clearing agency which has an automated
service for notifying a failing party of the liability that will be
attendant to a failure to deliver and that contract was to be
settled through the facilities of said registered clearing agency,
the transmission of the liability notification must be accomplished
through use of said automated notification service.'' Rule 180--
Equities does not address the transmission of the liability
notification for parties to a contract that are not both
participants in a registered clearing agency, which is governed by
Rule 282.65--Equities.
\16\ The one-day time frame also appears in comparable
provisions of other SROs. See, e.g., FINRA Rule 11810(j)(1)(A); NSCC
Rules & Procedures, Procedure X (Execution of Buy-Ins) (Effective
August 10, 2016); and Nasdaq Rule IM-11810 (Buying-in).
---------------------------------------------------------------------------
Given the proposed shortened settlement cycle, and in order to
address concerns that the requirement for the delivering member
organization to deliver a liability notice to the receiving member no
later than one business day prior to the latest time and the date of
the offer or other event in order to obtain the protection provided by
the Rule may no longer be appropriate in a T+2 environment,\17\ the
Exchange
[[Page 96145]]
proposes to amend Rule 282.65(1)(A)--Equities in situations where both
parties to a contract are not participants of a registered clearing
agency with an automated notification service by extending the time
frame for delivery of the liability notice. Rule 282.65(1)(A)--Equities
would accordingly be amended to provide that in such cases, the
receiving member organization must send the liability notice to the
delivering member organization as soon as practicable but not later
than two hours prior to the cutoff time set forth in the instructions
on a specific offer or other event to obtain the protection provided by
the Rule. The proposed change would be the only change to the text of
current Supplementary Material .65;
---------------------------------------------------------------------------
\17\ See, e.g., Letter from Thomas F. Price, Managing Director,
Operations, Technology & BCP, Securities Industry and Financial
Markets Association, to Marcia E. Asquith, Corporate Secretary,
FINRA, dated April 4, 2016 (``SIFMA'') (April 4, 2016), noting in
connection with FINRA Rule 11810(j), the comparable provision to
Rule 282.65(1)(A)--Equities, that the ``industry has identified a
number of situations where one-day notice may no longer be
appropriate in a T+2 environment, including (1) where the delivery
obligation is transferred to another party as a result of continuous
net settlement, (2) settlements outside of National Securities
Clearing Corporation (the ``NSCC'') and (3) settlements where the
third party is not a[n NYSE MKT] member.''
---------------------------------------------------------------------------
Current Sec. 510 of the Company Guide provides that all
transactions effected on the Exchange (unless otherwise specified) will
be settled in three business days and that a ``regular way''
transaction is due for settlement by delivery of the securities against
payment on the third business day after the transaction date. To
reflect the change to a two day delivery rule, proposed Sec. 510T would
change both references from three business days to two business days.
Additionally, current Sec. 510 provides an example of the delivery plan
for ex-dividend and ex-rights, and states that a ``regular way''
transaction made on a Friday is due for settlement on Wednesday of the
following week and that a transaction on Monday is due for settlement
on Thursday. To reflect the change to a two day delivery rule, proposed
Sec. 510T would change the Wednesday to Tuesday and Thursday to
Wednesday in the example; and
Current Sec. 512 of the Company Guide provides that
transactions in stocks (except those made for ``cash'') are ex-dividend
on the second business day preceding the record date unless the record
date selected is not a business day, in which case the stock will be
quoted ex-dividend on the third preceding business day. Consistent with
the T+2 initiative, proposed Sec. 512 would shorten the time frames to
the business day preceding the record date and in cases where the
record date is not a business day, the second preceding business day.
Operative Date Preambles
As noted above, because the Exchange would not implement the
proposed rules until after the final implementation of T+2, the
Exchange proposes to retain the current versions of each rule on its
books and not delete them until after the proposed rules are approved.
The Exchange also proposes to file separate proposed rule changes as
necessary to establish the operative date of the proposed rules and to
delete the current version of each rule.
To reduce the potential for confusion regarding which version of a
given rule governs, the Exchange proposes to add a preamble to each
current rule providing that: (1) The rule will remain operative until
the Exchange files separate proposed rule changes as necessary to
establish the operative date of the revised rule, to delete the current
rule and proposed preamble, and to remove the preamble text from the
revised rule; and (2) in addition to filing the necessary proposed rule
changes, the Exchange will announce via Information Memo the operative
date of the deletion of the current rule and implementation of the
proposed rule designated with a T.
The Exchange also proposes to add a preamble to each proposed rule
that would provide that: (1) The Exchange will file a separate rule
change to establish the operative date of the proposed rule, delete the
current version and the proposed preamble, and remove the preamble text
from the revised rule; and (2) until such time, the current version of
the rule will remain operative and that, in addition to filing the
necessary proposed rule changes, the Exchange will announce via
Information Memo the implementation of the proposed rule and the
operative date of the deletion of the current rule.
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, because it
is designed to prevent fraudulent and manipulative acts and practices,
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and 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.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the Exchange believes that the proposed rule change
supports the industry-led initiative to shorten the settlement cycle to
two business days. Moreover, the proposed rule change is consistent
with the SEC's proposed amendment to SEA Rule 15c6-1(a) to require
standard settlement no later than T+2. The Exchange believes that the
proposed rule change will provide the regulatory certainty to
facilitate the industry-led move to a T+2 settlement cycle. Further,
the Exchange believes that, by shortening the time period for
settlement of most securities transactions, the proposed rule change
would protect investors and the public interest by reducing the number
of unsettled trades in the clearance and settlement system at any given
time, thereby reducing the risk inherent in settling securities
transactions to clearing corporations, their members and public
investors. The Exchange also believes that adding a preamble to each
current rule and to each proposed rule clarifying the operative dates
of the respective versions would remove impediments to and perfect the
mechanism of a free and open market and a national market system by
adding clarity and transparency to the Exchange's rules, reducing
potential confusion, and making the Exchange's rules easier to
navigate.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed change is not
designed to address any competitive issue but rather facilitate the
industry's transition to a T+2 regular-way settlement cycle. The
Exchange also believes that the proposed rule change will serve to
promote clarity and consistency, thereby reducing burdens on the
marketplace and facilitating investor protection. Moreover, the
proposed rule changes are consistent with the SEC's proposed amendment
to SEA Rule 15c6-1(a) to require standard settlement no later than T+2.
Accordingly, the Exchange believes that the proposed changes do not
impose any burdens on the industry in addition to those necessary to
implement amendments to SEA Rule 15c6-1(a) as described and enumerated
in the SEC Proposing Release.\20\
---------------------------------------------------------------------------
\20\ See note 9, supra.
---------------------------------------------------------------------------
[[Page 96146]]
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
Within 45 days of the date of publication of this notice in the
Federal Register or such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEMKT-2016-119 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-2016-119. 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-2016-119, and should
be submitted on or before January 19, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
---------------------------------------------------------------------------
\21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-31473 Filed 12-28-16; 8:45 am]
BILLING CODE 2011-01-P
