Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rules 6.62, 6.73 and Make a Conforming Change to Rule 6.47A, 11674-11676 [2017-03572]
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11674
Federal Register / Vol. 82, No. 36 / Friday, February 24, 2017 / Notices
of P.M.-settled S&P 500 Index options
with expirations every Friday of the
month.20 The Commission believes that
the proposal can thus benefit investors
by providing them with additional
trading flexibility for both simple and
complex orders.
Further, the Exchange represents that
there are minimal differences in the
trading parameters of the two options
classes.21 Although the appointment
costs for SPXPM and SPX are different,
the Exchange represents that market
makers should not be adversely
impacted by this proposal because all
market-makers currently appointed in
SPXPM also are appointed in SPX,
which confers the right to trade SPXW
options.22 The Commission believes
that, to the extent the trading parameters
of the two classes are substantively
similar, the Exchange’s proposal to
move SPXPM options into the SPX
options class does not raise novel
issues.
Finally, SPXPM options currently are
listed on a pilot basis. As part of the
pilot, the Exchange has been required to
submit to the Commission quarterly
reports and annual reports that analyze
the market impact and trading patterns
of third-Friday P.M.-settled S&P 500
options. The Exchange represents that it
will continue to provide this data in
exactly the same scope and format.23
The Commission believes that the
continued pilot and reports will allow
the Exchange and the Commission to
monitor for and assess any potential
adverse market impact caused by these
P.M.-settled options.
Based on the Exchange’s
representations discussed above, and for
the reasons noted above, the
Commission believes that the proposal
to move SPXPM options into the SPX
options class is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 24, that the
proposed rule change (SR–CBOE–2016–
091) be, and hereby is, approved.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–03573 Filed 2–23–17; 8:45 am]
BILLING CODE 8011–01–P
20 See
Notice, supra note 3, at 1386.
id. at 1384–85.
22 See id. at 1385.
23 See id.
24 15 U.S.C. 78s(b)(2).
25 17 CFR 200.30–3(a)(12).
21 See
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80059; File No. SR–
NYSEArca–2017–16]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rules 6.62,
6.73 and Make a Conforming Change
to Rule 6.47A
February 17, 2017.
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 February
10, 2017, NYSE Arca, Inc. (‘‘Exchange’’
or ‘‘NYSE Arca’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 6.62 to eliminate Price Improving
Orders and Quotes, and amend Rule
6.73 to eliminate the electronic and
open outcry bidding and offering
requirements associated with a Price
Improving Order or Quote, and make a
conforming change to Rule 6.47A. 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Fmt 4703
Sfmt 4703
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
Rule 6.62 to eliminate Price Improving
Orders and Quotes, and amend Rule
6.73 to eliminate the electronic and
open outcry bidding and offering
requirements associated with a Price
Improving Order or Quote, and make a
conforming change to Rule 6.47A. The
Exchange proposes to eliminate these
order types in order to streamline its
rules and reduce complexity among its
order type offerings.4
Elimination of Price Improving Orders
and Quotes
The Exchange proposes to eliminate,
and thus delete from its rules, Price
Improving Orders and Quotes, as
defined in Rule 6.62(s).
A Price Improving Order or Price
Improving Quote is an order or quote to
buy or sell an option at a specified price
at an increment smaller than the
minimum price variation in the
security. Price Improving Orders and
Quotes may be entered in increments as
small as one cent. Because the Exchange
has not implemented this functionality,
the Exchange believes it is appropriate
to delete the functionality from its
rules.5
To reflect this elimination, the
Exchange proposes to delete all
references to Price Improving Orders
and Quotes in Rule 6.62(s), and to the
electronic and open outcry bidding and
offering requirements associated with a
Price Improving Order or Quote in the
second introductory paragraph of Rule
6.73 and Rules 6.73(a), 6.73(b) and
6.73(c), and to delete in the
Commentary to Rule 6.47A references to
Rule 6.62(s) and 6.73, as follows: 6
4 See e.g., Mary Jo White, Chair, Securities and
Exchange Commission, Speech at the Sandler
O’Neill & Partners, L.P. Global Exchange and
Brokerage Conference (June 5, 2014) (available at
www.sec.gov/News/Speech/Detail/Speech/
1370542004312#.U5HI-fmwJiw) (‘‘I am asking the
exchanges to conduct a comprehensive review of
their order types and how they operate in practice.
As part of this review, I expect that the exchanges
will consider appropriate rule changes to help
clarify the nature of their order types and how they
interact with each other, and how they support fair,
orderly, and efficient markets.’’ Id.)
5 Though originally adopted as a competitive
response to another options market introducing
price improving orders, the Exchange never
implemented this functionality for a variety of
reasons, including technology and because most
options volume was concentrated in Penny Pilot
issues where price improving orders would be of
little or no value.
6 See Securities Exchange Act Release No. 58079
(July 2, 2008), 73 FR 39365 (July 9, 2009) (SR–
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Federal Register / Vol. 82, No. 36 / Friday, February 24, 2017 / Notices
• Delete Rule 6.62(s), which defines
Price Improving Orders and Quotes;
• delete the second introductory
paragraph of Rule 6.73, which describes
which options may be designated for
penny price improvement;
• delete Rule 6.73(a), which describes
the electronic submission process in
connection with a Price Improving
Order or Quote;
• delete Rule 6.73(b), which describes
the open outcry submission process in
connection with a Price Improving
Order or Quote;
• delete Rule 6.73(c), which describes
the requirement to electronically
‘‘sweep’’ any penny pricing interest in
the Exchange’s System; and
• delete in the Commentary to Rule
6.47A references to Rules 6.62(s) and
6.73.7
asabaliauskas on DSK3SPTVN1PROD with NOTICES
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 8 of the Act,
in general, and furthers the objectives of
Section 6(b)(5),9 in particular, in that it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
Specifically, the Exchange believes
that eliminating Price Improving Orders
and Quotes would remove impediments
to and perfect a national market system
by simplifying the functionality and
complexity of its order types. The
Exchange believes that eliminating these
order types would be consistent with
the public interest and the protection of
investors because investors will not be
harmed and in fact would benefit from
the removal of complex functionality.
The Exchange also believes that
eliminating Price Improving Orders and
Quotes would benefit investors and add
transparency and clarity to the
Exchange’s rules because the
functionality of those order types was
not implemented and therefore is not
available. The Exchange further believes
NYSEArca–2008–69) (notice of filing and
immediate effectiveness of proposed rule change to
permit use of a new order type known as Price
Improving Orders and Quotes).
7 An affiliated Exchange recently eliminated Price
Improving Orders and Quotes. See Securities
Exchange Act Release No. 34–79875 (January 30,
2017), 82 FR 9256 (February 3, 2017) (SR–
NYSEMKT–2017–03) (notice of filing and
immediate effectiveness of proposed rule change
amending rules).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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17:20 Feb 23, 2017
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that deleting a corresponding reference
in Exchange rules to deleted order
types, and the associated bidding and
offering process in connection with a
deleted order type, also removes
impediments to and perfects the
mechanism of a free and open market by
ensuring that members, regulators and
the public can more easily navigate the
Exchange’s rulebook and better
understand the order types available for
trading on the Exchange. Removing an
obsolete cross reference also furthers the
goal of transparency and adds clarity to
the Exchange’s rules.
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
would rather eliminate complex
functionality and references to
functionality that is not available,
thereby reducing confusion and making
the Exchange’s rules easier to
understand and navigate.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 10 and Rule
19b–4(f)(6) thereunder.11 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6).
to Rule 19b–4(f)(6)(iii),13 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 14 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–2017–16 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2017–16. 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
10 15
11 17
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Sfmt 4703
11675
13 17
14 15
E:\FR\FM\24FEN1.SGM
CFR 240.19b–4(f)(6)(iii).
U.S.C. 78s(b)(2)(B).
24FEN1
11676
Federal Register / Vol. 82, No. 36 / Friday, February 24, 2017 / Notices
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–2017–16 and should be
submitted on or before March 17, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–03572 Filed 2–23–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80061; File No. SR–
PEARL–2017–10]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Establish the MIAX
PEARL Fee Schedule
February 17, 2017.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Pursuant to the provisions of Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on February 13, 2017, MIAX PEARL,
LLC (‘‘MIAX PEARL’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
establish the MIAX PEARL Fee
Schedule (the ‘‘Fee Schedule’’) by
adopting rebates and fees applicable to
participants trading options on and/or
using services provided by MIAX
PEARL.
MIAX PEARL commenced operations
as a national securities exchange
15 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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17:20 Feb 23, 2017
Jkt 241001
registered under Section 6 of the Act 3
on February 6, 2017.4 The Exchange
proposes to establish its Fee Schedule.
The Exchange initially filed the
proposal on February 3, 2017 (SR–
PEARL–2017–08). That filing has been
withdrawn and replaced with the
current filing (SR–PEARL–2017–10).
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/rulefilings/pearl, at MIAX PEARL’s
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to establish transaction rebates
and fees, regulatory fees, and certain
non-transaction fees applicable to
market participants trading options on
and/or using services provided by the
Exchange. These rebates and fees will
apply to all market participants trading
options on and/or using services
provided by MIAX PEARL.
Definitions
The Exchange has included a
Definitions section at the beginning of
the Fee Schedule. The purpose of the
Definitions section is to streamline the
Fee Schedule by placing many of the
defined terms used in the Fee Schedule
in one location at the beginning of the
Fee Schedule. Many of the defined
terms are also defined in Exchange
Rules, particularly in Exchange Rule
100. Any defined terms that are also
defined or otherwise explained in
Exchange Rules contain a cross
3 15
U.S.C. 78f.
Securities Exchange Act Release No. 79543
(December 13, 2016), 81 FR 92901 (December 20,
2016) (File No. 10–227) (order approving
application of MIAX PEARL, LLC for registration as
a national securities exchange).
4 See
PO 00000
Frm 00154
Fmt 4703
Sfmt 4703
reference to the relevant Exchange Rule.
The Exchange notes that other
exchanges have Definitions sections in
their respective fee schedule,5 and the
Exchange believes that including a
Definitions section in the front of the
Exchange’s Fee Schedule makes the Fee
Schedule more user-friendly.
i. Transaction Rebates/Fees
The proposed Fee Schedule sets forth
transaction rebates and fees for all
options traded on the Exchange in
amounts that vary depending upon
certain factors, including the type of
market participant for whom the
transaction is executed (e.g. Market
Maker or Priority Customer) and the
amount of volume executed by the
Member, as described more fully below.
Exchange Add/Remove Tiered Rebates/
Fees
In general, the Exchange proposes that
Add/Remove Tiered Rebates/Fees
applicable to all market participants
will be based upon the total monthly
volume executed by the Member 6 on
MIAX PEARL in the relevant origin type
(not including Excluded Contracts) 7
expressed as a percentage of total
consolidated volume (‘‘TCV’’). TCV,
which is defined in the Definitions
section of the Fee Schedule, means total
consolidated volume calculated as the
total national volume in those classes
listed on MIAX PEARL for the month
for which the fees apply, excluding
consolidated volume executed during
the period time in which the Exchange
experiences an ‘‘Exchange System
Disruption’’ (solely in the option classes
of the affected Matching Engine (as
defined below)). The term Exchange
System Disruption, which is defined in
the Definitions section of the Fee
Schedule, means an outage of a
Matching Engine or collective Matching
Engines for a period of two consecutive
hours or more, during trading hours.
The term Matching Engine, which is
also defined in the Definitions section of
the Fee Schedule, is a part of the MIAX
PEARL electronic system that processes
options orders and trades on a symbolby-symbol basis. Some Matching
Engines will process option classes with
5 See Exchange Act Release Nos. 70200 (August
14, 2013), 78 FR 51242 (August 20, 2013) (SR–
Topaz–2013–10); 76453 (November 17, 2015), 80 FR
72999 (November 23, 2015) (SR–EDGX–2015–56).
6 ‘‘Member’’ means an individual or organization
that is registered with the Exchange pursuant to
Chapter II of the Exchange Rules for purposes of
trading on the Exchange as an ‘‘Electronic Exchange
Member’’ or ‘‘Market Maker.’’ Members are deemed
‘‘members’’ under the Exchange Act. See Exchange
Rule 100.
7 ‘‘Excluded Contracts’’ means any contracts
routed to an away market for execution.
E:\FR\FM\24FEN1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 36 (Friday, February 24, 2017)]
[Notices]
[Pages 11674-11676]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03572]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80059; File No. SR-NYSEArca-2017-16]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Rules
6.62, 6.73 and Make a Conforming Change to Rule 6.47A
February 17, 2017.
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 February 10, 2017, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') 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 self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 6.62 to eliminate Price
Improving Orders and Quotes, and amend Rule 6.73 to eliminate the
electronic and open outcry bidding and offering requirements associated
with a Price Improving Order or Quote, and make a conforming change to
Rule 6.47A. 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 Rule 6.62 to eliminate Price
Improving Orders and Quotes, and amend Rule 6.73 to eliminate the
electronic and open outcry bidding and offering requirements associated
with a Price Improving Order or Quote, and make a conforming change to
Rule 6.47A. The Exchange proposes to eliminate these order types in
order to streamline its rules and reduce complexity among its order
type offerings.\4\
---------------------------------------------------------------------------
\4\ See e.g., Mary Jo White, Chair, Securities and Exchange
Commission, Speech at the Sandler O'Neill & Partners, L.P. Global
Exchange and Brokerage Conference (June 5, 2014) (available at
www.sec.gov/News/Speech/Detail/Speech/1370542004312#.U5HI-fmwJiw)
(``I am asking the exchanges to conduct a comprehensive review of
their order types and how they operate in practice. As part of this
review, I expect that the exchanges will consider appropriate rule
changes to help clarify the nature of their order types and how they
interact with each other, and how they support fair, orderly, and
efficient markets.'' Id.)
---------------------------------------------------------------------------
Elimination of Price Improving Orders and Quotes
The Exchange proposes to eliminate, and thus delete from its rules,
Price Improving Orders and Quotes, as defined in Rule 6.62(s).
A Price Improving Order or Price Improving Quote is an order or
quote to buy or sell an option at a specified price at an increment
smaller than the minimum price variation in the security. Price
Improving Orders and Quotes may be entered in increments as small as
one cent. Because the Exchange has not implemented this functionality,
the Exchange believes it is appropriate to delete the functionality
from its rules.\5\
---------------------------------------------------------------------------
\5\ Though originally adopted as a competitive response to
another options market introducing price improving orders, the
Exchange never implemented this functionality for a variety of
reasons, including technology and because most options volume was
concentrated in Penny Pilot issues where price improving orders
would be of little or no value.
---------------------------------------------------------------------------
To reflect this elimination, the Exchange proposes to delete all
references to Price Improving Orders and Quotes in Rule 6.62(s), and to
the electronic and open outcry bidding and offering requirements
associated with a Price Improving Order or Quote in the second
introductory paragraph of Rule 6.73 and Rules 6.73(a), 6.73(b) and
6.73(c), and to delete in the Commentary to Rule 6.47A references to
Rule 6.62(s) and 6.73, as follows: \6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 58079 (July 2,
2008), 73 FR 39365 (July 9, 2009) (SR-NYSEArca-2008-69) (notice of
filing and immediate effectiveness of proposed rule change to permit
use of a new order type known as Price Improving Orders and Quotes).
---------------------------------------------------------------------------
[[Page 11675]]
Delete Rule 6.62(s), which defines Price Improving Orders
and Quotes;
delete the second introductory paragraph of Rule 6.73,
which describes which options may be designated for penny price
improvement;
delete Rule 6.73(a), which describes the electronic
submission process in connection with a Price Improving Order or Quote;
delete Rule 6.73(b), which describes the open outcry
submission process in connection with a Price Improving Order or Quote;
delete Rule 6.73(c), which describes the requirement to
electronically ``sweep'' any penny pricing interest in the Exchange's
System; and
delete in the Commentary to Rule 6.47A references to Rules
6.62(s) and 6.73.\7\
---------------------------------------------------------------------------
\7\ An affiliated Exchange recently eliminated Price Improving
Orders and Quotes. See Securities Exchange Act Release No. 34-79875
(January 30, 2017), 82 FR 9256 (February 3, 2017) (SR-NYSEMKT-2017-
03) (notice of filing and immediate effectiveness of proposed rule
change amending rules).
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \8\ of the
Act, in general, and furthers the objectives of Section 6(b)(5),\9\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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Specifically, the Exchange believes that eliminating Price
Improving Orders and Quotes would remove impediments to and perfect a
national market system by simplifying the functionality and complexity
of its order types. The Exchange believes that eliminating these order
types would be consistent with the public interest and the protection
of investors because investors will not be harmed and in fact would
benefit from the removal of complex functionality. The Exchange also
believes that eliminating Price Improving Orders and Quotes would
benefit investors and add transparency and clarity to the Exchange's
rules because the functionality of those order types was not
implemented and therefore is not available. The Exchange further
believes that deleting a corresponding reference in Exchange rules to
deleted order types, and the associated bidding and offering process in
connection with a deleted order type, also removes impediments to and
perfects the mechanism of a free and open market by ensuring that
members, regulators and the public can more easily navigate the
Exchange's rulebook and better understand the order types available for
trading on the Exchange. Removing an obsolete cross reference also
furthers the goal of transparency and adds clarity to the Exchange's
rules.
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 would rather eliminate
complex functionality and references to functionality that is not
available, thereby reducing confusion and making the Exchange's rules
easier to understand and navigate.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2017-16 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2017-16. 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
[[Page 11676]]
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-2017-16 and should be submitted on or before
March 17, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03572 Filed 2-23-17; 8:45 am]
BILLING CODE 8011-01-P
