Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 67 To Modify the Date of Appendix B Web Site Data Publication Pursuant to the Regulation NMS Plan To Implement a Tick Size Pilot Program, 13685-13687 [2017-04922]

Download as PDF Federal Register / Vol. 82, No. 48 / Tuesday, March 14, 2017 / Notices spread market would be a better measure to use for purposes of preventing executions of complex orders at erroneous prices, which ultimately protects investors. The proposed parameter will apply to complex orders that do not COA (and would execute against orders in the COB) in addition to those that do, which may prevent additional erroneous trades at prices that are extreme or ‘‘too far away’’ from the market.33 The Exchange believes the methodology to determine the acceptable price range is reasonable because using a percentage amount provides Trading Permit Holders with precise protection, while the pre-set minimum and maximum ensures that the acceptable price range cannot be too wide or narrow to the point that the parameter would become ineffective. The Exchange also believes the proposed rule change regarding how the acceptable percentage range parameter will apply to AIM and SAM orders is reasonable, as the proposed rule change is consistent with the contingencies attached to those types of orders. The proposed rule change to apply a single limit order price parameter and acceptable price range to all complex orders, including stock-option orders (subject to certain exceptions consistent with the current rules), will protect investors, as it simplifies the rules. asabaliauskas on DSK3SPTVN1PROD with NOTICES CBOE 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 rule change will apply to all complex orders submitted to CBOE in the same manner. The enhancements to the price protection mechanisms applicable to all incoming orders will help further prevent potentially erroneous executions, which benefits all market participants. The proposed rule change will not impose any burden on intermarket competition, as it merely incorporates best prices available on other markets into current price protection mechanisms applicable to complex orders. Additionally, the proposed rule change is substantially similar to a rule of another options exchange.34 further discussed below, the proposed rule change is substantially similar to NASDAQ OMX [sic] PHLX LLC (‘‘PHLX’’) Rule 1098(i). 34 See PHLX Rule 1098(i). VerDate Sep<11>2014 17:42 Mar 13, 2017 Jkt 241001 The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 35 and Rule 19b– 4(f)(6) thereunder.36 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments B. Self-Regulatory Organization’s Statement on Burden on Competition 33 As C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others 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: • 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– CBOE–2017–016 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. 35 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). As required under Rule 19b–4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. 36 17 Frm 00110 Fmt 4703 All submissions should refer to File Number SR–CBOE–2017–016. 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–CBOE– 2017–016 and should be submitted on or before April 4, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.37 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–04928 Filed 3–13–17; 8:45 am] BILLING CODE 8011–01–P Electronic Comments PO 00000 13685 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–80172; File No. SR–NYSE– 2017–10] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 67 To Modify the Date of Appendix B Web Site Data Publication Pursuant to the Regulation NMS Plan To Implement a Tick Size Pilot Program March 8, 2017. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the 37 17 1 15 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). E:\FR\FM\14MRN1.SGM 14MRN1 13686 Federal Register / Vol. 82, No. 48 / Tuesday, March 14, 2017 / Notices ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that on February 28, 2017, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the 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 67 to modify the date of Appendix B Web site data publication pursuant to the Regulation NMS Plan to Implement a Tick Size Pilot Program (‘‘Plan’’). 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 Rule 67(b) (Compliance with Data Collection Requirements) 4 implements 2 15 U.S.C. 78a. CFR 240.19b–4. 4 See Securities Exchange Act Release No. 77468 (March 29, 2016), 81 FR 19269 (April 4, 2016) (Immediate Effectiveness of Proposed Rule Change Adopting Requirements for the Collection and Transmission of Data Pursuant to Appendices B and C of Regulation NMS Plan to Implement a Tick Size Pilot Program) (SR–NYSE–2016–27); see also Securities Exchange Act Release No. 78813 (September 12, 2016), 81 FR 63825 (September 16, 2016) (Immediate Effectiveness of Proposed Rule Change to Amend Rule 67 to Modify Certain Data Collection Requirements of the Regulation NMS Plan to Implement a Tick Size Pilot Program) (SR– NYSE–2016–63); see also Letter from John C. Roeser, Associate Director, Division of Trading and Markets, Commission, to Sherry Sandler, Associate General Counsel, NYSE, dated April 4, 2016. asabaliauskas on DSK3SPTVN1PROD with NOTICES 3 17 VerDate Sep<11>2014 17:42 Mar 13, 2017 Jkt 241001 the data collection and Web site publication requirements of the Plan.5 Supplementary Material .70 to Rule 67 provides, among other things, that the requirement that the Exchange or their DEA make certain data publicly available on the Exchange’s or DEA’s Web site pursuant to Appendix B and C to the Plan shall commence at the beginning of the Pilot Period,6 and that the Exchange or their DEA shall make data for the Pre-Pilot Period publicly available on the Exchange’s or DEA’s Web site pursuant to Appendix B and C of the Plan by February 28, 2017.7 The Exchange is proposing amendments to Supplementary Material .70 to Rule 67 to delay the date by which Pre-Pilot and Pilot Appendix B data is to be made publicly available on the Exchange’s or DEA’s Web site from February 28, 2017, until April 28, 2017. Appendix C data for the Pre-Pilot Period through the month of January 2017 will be published on the Exchange’s or DEA’s Web site on February 28, 2017, and, thereafter, on the original 30-day schedule. In the SRO Tick Size Plan Proposal, the Participants stated that the public data will be made available for free ‘‘on a disaggregated basis by trading center’’ on the Web sites of the Participants and the Designated Examining Authorities.8 However, market participants have expressed confidentiality concerns regarding this approach for over-the5 The Participants filed the Plan to comply with an order issued by the Commission on June 24, 2014. See Letter from Brendon J. Weiss, Vice President, Intercontinental Exchange, Inc., to Secretary, Commission, dated August 25, 2014 (‘‘SRO Tick Size Plan Proposal’’). See Securities Exchange Act Release No 72460 (June 24, 2014), 79 FR 36840 (June 30, 2014); see also Securities Exchange Act Release No. 74892 (May 6, 2015), 80 FR 27513 (May 13, 2015). 6 Unless otherwise defined herein, capitalized terms have the meaning ascribed to them in the Plan. 7 On November 30, 2016, the SEC granted exemptive relief to the Participants to, among other things, delay the publication of Web site data pursuant to Appendices B and C to the Plan until February 28, 2017, and to delay the ongoing Web site publication by ninety days such that data would be published within 120 calendar days following the end of the month. See Letter from David S. Shillman, Associate Director, Division of Trading and Markets, Commission, to Marcia E. Asquith, Senior Vice President and Corporate Secretary, Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’), dated November 30, 2016; see also Securities Exchange Act Release No. 79477 (December 6, 2016), 81 FR 89559 (December 12, 2016) (Notice of Filing and Immediate Effectiveness of File No. SR–NYSE–2016–83). 8 See Securities Exchange Act Release No. 73511 (November 3, 2014), 79 FR 66423 (November 7, 2014) (Notice of Filing of Proposed National Market System Plan to Implement a Tick Size Pilot Program on a One-Year Pilot Basis, File No. 4–657) (‘‘Tick Size Plan Proposal’’). PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 counter (‘‘OTC’’) data.9 Thus, the Exchange is filing the instant proposed rule change to provide additional time to assess a means of addressing the confidentiality concerns raised in connection with the publication of Appendix B data related to OTC activity in furtherance of the objectives of the Plan.10 Pursuant to this amendment, Appendix B data publication will be delayed until April 28, 2017. The Participants anticipate filing additional proposed rule changes in the near future to address Appendix B data publication. As noted in Item 2 of this filing, the Exchange has filed the proposed rule change for immediate effectiveness and has requested that the Commission waive the 30-day operative delay. If the Commission waives the 30-day operative delay, the operative date of the proposed rule change will be the date of filing. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,11 in general, and furthers the objectives of Section 6(b)(5) of the Act,12 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Plan is designed to allow the Commission, market participants, and the public to study and assess the impact of increment conventions on the liquidity and trading of the common stock of small-capitalization companies. The Exchange believes that this proposal is consistent with the Act because it is in furtherance of the objectives of Section VII(A) of the Plan in that it is designed to provide the Exchange with additional time to assess a means of addressing the confidentiality concerns raised in connection with the publication of Appendix B data, to comply with the Plan’s requirements that the data made publicly available will not identify the trading center that generated the data. 9 See letters from Adam C. Cooper, Senior Managing Director and Chief Legal Officer, Citadel Securities, to Brent J. Fields, Secretary, Commission, dated December 21, 2016 (‘‘Citadel letter’’); and William Hebert, Managing Director, Financial Information Forum, to Robert W. Errett, Deputy Secretary, Commission, dated December 21, 2016 (‘‘FIF letter’’). 10 FINRA, on behalf of the Participants, also is submitting an exemptive request to the SEC in connection with the instant filing. 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(5). E:\FR\FM\14MRN1.SGM 14MRN1 Federal Register / Vol. 82, No. 48 / Tuesday, March 14, 2017 / Notices B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that the proposed rule change implements the provisions of the Plan, and is designed to assist the Participants in meeting their regulatory obligations pursuant to the Plan. 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. asabaliauskas on DSK3SPTVN1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 13 and Rule 19b– 4(f)(6) thereunder.14 A proposed rule change filed under Rule 19(b)–4(f)(6) normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii), the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has filed the proposed rule change for immediate effectiveness and has requested that the Commission waive the requirement that the proposed rule change not become operative for 30 days after the date of the filing so that it may become operative on February 28, 2017. The Exchange notes that the proposed rule change is intended to address confidentiality concerns raised in connection with the publication of overthe-counter (‘‘OTC’’) Appendix B data by permitting the Exchange to delay Web site publication of its Appendix B data from February 28, 2017 to April 28, 2017.15 The Exchange notes that the delay would provide additional time to assess a means of addressing the 13 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 15 See supra note 9. The Commission notes that FINRA has submitted a proposed rule change to delay the publication of OTC Appendix B data. See SR–FINRA–2017–005. 14 17 VerDate Sep<11>2014 17:42 Mar 13, 2017 Jkt 241001 confidentiality concerns. The Exchange notes that it expects Participants to file a proposed rule changes related to publishing Appendix B data. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it will allow the Exchange to delay publication of its Appendix B data until April 28, 2017. As noted above, commenters continue to raise concerns about the publication of OTC Appendix B data.16 Delaying publication of Exchange’s Appendix B data 17 will prevent the publication of partial (i.e., Exchange-only) Appendix B data required under the Plan. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposed rule change to be operative on February 28, 2017.18 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule 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– NYSE–2017–10 on the subject line. 16 The Commission notes that FINRA has filed a proposed rule change that is intended to mitigate confidentiality concerns raised by commenters regarding the publication of OTC Appendix B data. See SR–FINRA–2017–006. 17 The Commission notes that other Participants have proposed to delay the publication of their Appendix B data until April 28, 2017. See SR– BatsBYX–2017–05; SR–BatsBZX–2017–15; SR– BatsEDGA–2017–05; SR–BatsEDGX–2017–13; SR– BX–2017–016; SR–CHX–2017–05; SR–FINRA– 2017–005; SR–IEX–2017–07; SR–NASDAQ–2017– 024; SR–Phlx–2017–22; SR–NYSEArca–2017–19; SR–NYSEMKT–2017–11. 18 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). PO 00000 Frm 00112 Fmt 4703 Sfmt 9990 13687 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–NYSE–2017–10. 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–NYSE– 2017–10 and should be submitted on or before April 4, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–04922 Filed 3–13–17; 8:45 am] BILLING CODE 8011–01–P 19 17 E:\FR\FM\14MRN1.SGM CFR 200.30–3(a)(12). 14MRN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 82, Number 48 (Tuesday, March 14, 2017)]
[Notices]
[Pages 13685-13687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04922]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80172; File No. SR-NYSE-2017-10]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending Rule 67 To Modify the Date of Appendix B Web Site Data
Publication Pursuant to the Regulation NMS Plan To Implement a Tick
Size Pilot Program

March 8, 2017.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the

[[Page 13686]]

``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that
on February 28, 2017, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the 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 67 to modify the date of
Appendix B Web site data publication pursuant to the Regulation NMS
Plan to Implement a Tick Size Pilot Program (``Plan''). 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
Rule 67(b) (Compliance with Data Collection Requirements) \4\
implements the data collection and Web site publication requirements of
the Plan.\5\ Supplementary Material .70 to Rule 67 provides, among
other things, that the requirement that the Exchange or their DEA make
certain data publicly available on the Exchange's or DEA's Web site
pursuant to Appendix B and C to the Plan shall commence at the
beginning of the Pilot Period,\6\ and that the Exchange or their DEA
shall make data for the Pre-Pilot Period publicly available on the
Exchange's or DEA's Web site pursuant to Appendix B and C of the Plan
by February 28, 2017.\7\
---------------------------------------------------------------------------

\4\ See Securities Exchange Act Release No. 77468 (March 29,
2016), 81 FR 19269 (April 4, 2016) (Immediate Effectiveness of
Proposed Rule Change Adopting Requirements for the Collection and
Transmission of Data Pursuant to Appendices B and C of Regulation
NMS Plan to Implement a Tick Size Pilot Program) (SR-NYSE-2016-27);
see also Securities Exchange Act Release No. 78813 (September 12,
2016), 81 FR 63825 (September 16, 2016) (Immediate Effectiveness of
Proposed Rule Change to Amend Rule 67 to Modify Certain Data
Collection Requirements of the Regulation NMS Plan to Implement a
Tick Size Pilot Program) (SR-NYSE-2016-63); see also Letter from
John C. Roeser, Associate Director, Division of Trading and Markets,
Commission, to Sherry Sandler, Associate General Counsel, NYSE,
dated April 4, 2016.
\5\ The Participants filed the Plan to comply with an order
issued by the Commission on June 24, 2014. See Letter from Brendon
J. Weiss, Vice President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014 (``SRO Tick Size Plan
Proposal''). See Securities Exchange Act Release No 72460 (June 24,
2014), 79 FR 36840 (June 30, 2014); see also Securities Exchange Act
Release No. 74892 (May 6, 2015), 80 FR 27513 (May 13, 2015).
\6\ Unless otherwise defined herein, capitalized terms have the
meaning ascribed to them in the Plan.
\7\ On November 30, 2016, the SEC granted exemptive relief to
the Participants to, among other things, delay the publication of
Web site data pursuant to Appendices B and C to the Plan until
February 28, 2017, and to delay the ongoing Web site publication by
ninety days such that data would be published within 120 calendar
days following the end of the month. See Letter from David S.
Shillman, Associate Director, Division of Trading and Markets,
Commission, to Marcia E. Asquith, Senior Vice President and
Corporate Secretary, Financial Industry Regulatory Authority, Inc.
(``FINRA''), dated November 30, 2016; see also Securities Exchange
Act Release No. 79477 (December 6, 2016), 81 FR 89559 (December 12,
2016) (Notice of Filing and Immediate Effectiveness of File No. SR-
NYSE-2016-83).
---------------------------------------------------------------------------

The Exchange is proposing amendments to Supplementary Material .70
to Rule 67 to delay the date by which Pre-Pilot and Pilot Appendix B
data is to be made publicly available on the Exchange's or DEA's Web
site from February 28, 2017, until April 28, 2017. Appendix C data for
the Pre-Pilot Period through the month of January 2017 will be
published on the Exchange's or DEA's Web site on February 28, 2017,
and, thereafter, on the original 30-day schedule.
In the SRO Tick Size Plan Proposal, the Participants stated that
the public data will be made available for free ``on a disaggregated
basis by trading center'' on the Web sites of the Participants and the
Designated Examining Authorities.\8\ However, market participants have
expressed confidentiality concerns regarding this approach for over-
the-counter (``OTC'') data.\9\ Thus, the Exchange is filing the instant
proposed rule change to provide additional time to assess a means of
addressing the confidentiality concerns raised in connection with the
publication of Appendix B data related to OTC activity in furtherance
of the objectives of the Plan.\10\ Pursuant to this amendment, Appendix
B data publication will be delayed until April 28, 2017. The
Participants anticipate filing additional proposed rule changes in the
near future to address Appendix B data publication.
---------------------------------------------------------------------------

\8\ See Securities Exchange Act Release No. 73511 (November 3,
2014), 79 FR 66423 (November 7, 2014) (Notice of Filing of Proposed
National Market System Plan to Implement a Tick Size Pilot Program
on a One-Year Pilot Basis, File No. 4-657) (``Tick Size Plan
Proposal'').
\9\ See letters from Adam C. Cooper, Senior Managing Director
and Chief Legal Officer, Citadel Securities, to Brent J. Fields,
Secretary, Commission, dated December 21, 2016 (``Citadel letter'');
and William Hebert, Managing Director, Financial Information Forum,
to Robert W. Errett, Deputy Secretary, Commission, dated December
21, 2016 (``FIF letter'').
\10\ FINRA, on behalf of the Participants, also is submitting an
exemptive request to the SEC in connection with the instant filing.
---------------------------------------------------------------------------

As noted in Item 2 of this filing, the Exchange has filed the
proposed rule change for immediate effectiveness and has requested that
the Commission waive the 30-day operative delay. If the Commission
waives the 30-day operative delay, the operative date of the proposed
rule change will be the date of filing.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\11\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\12\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

The Plan is designed to allow the Commission, market participants,
and the public to study and assess the impact of increment conventions
on the liquidity and trading of the common stock of small-
capitalization companies. The Exchange believes that this proposal is
consistent with the Act because it is in furtherance of the objectives
of Section VII(A) of the Plan in that it is designed to provide the
Exchange with additional time to assess a means of addressing the
confidentiality concerns raised in connection with the publication of
Appendix B data, to comply with the Plan's requirements that the data
made publicly available will not identify the trading center that
generated the data.

[[Page 13687]]

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
notes that the proposed rule change implements the provisions of the
Plan, and is designed to assist the Participants in meeting their
regulatory obligations pursuant to the Plan.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

No written comments were solicited or received with respect to the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\
---------------------------------------------------------------------------

\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

A proposed rule change filed under Rule 19(b)-4(f)(6) normally does
not become operative prior to 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii), the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has filed
the proposed rule change for immediate effectiveness and has requested
that the Commission waive the requirement that the proposed rule change
not become operative for 30 days after the date of the filing so that
it may become operative on February 28, 2017.
The Exchange notes that the proposed rule change is intended to
address confidentiality concerns raised in connection with the
publication of over-the-counter (``OTC'') Appendix B data by permitting
the Exchange to delay Web site publication of its Appendix B data from
February 28, 2017 to April 28, 2017.\15\ The Exchange notes that the
delay would provide additional time to assess a means of addressing the
confidentiality concerns. The Exchange notes that it expects
Participants to file a proposed rule changes related to publishing
Appendix B data.
---------------------------------------------------------------------------

\15\ See supra note 9. The Commission notes that FINRA has
submitted a proposed rule change to delay the publication of OTC
Appendix B data. See SR-FINRA-2017-005.
---------------------------------------------------------------------------

The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to delay publication of its Appendix
B data until April 28, 2017. As noted above, commenters continue to
raise concerns about the publication of OTC Appendix B data.\16\
Delaying publication of Exchange's Appendix B data \17\ will prevent
the publication of partial (i.e., Exchange-only) Appendix B data
required under the Plan. Therefore, the Commission hereby waives the
30-day operative delay and designates the proposed rule change to be
operative on February 28, 2017.\18\
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\16\ The Commission notes that FINRA has filed a proposed rule
change that is intended to mitigate confidentiality concerns raised
by commenters regarding the publication of OTC Appendix B data. See
SR-FINRA-2017-006.
\17\ The Commission notes that other Participants have proposed
to delay the publication of their Appendix B data until April 28,
2017. See SR-BatsBYX-2017-05; SR-BatsBZX-2017-15; SR-BatsEDGA-2017-
05; SR-BatsEDGX-2017-13; SR-BX-2017-016; SR-CHX-2017-05; SR-FINRA-
2017-005; SR-IEX-2017-07; SR-NASDAQ-2017-024; SR-Phlx-2017-22; SR-
NYSEArca-2017-19; SR-NYSEMKT-2017-11.
\18\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule 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-NYSE-2017-10 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-NYSE-2017-10. 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-NYSE-2017-10 and should be
submitted on or before April 4, 2017.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-04922 Filed 3-13-17; 8:45 am]
BILLING CODE 8011-01-P

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