Self-Regulatory Organizations; NYSE MKT LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Adopt New Equities Trading Rules To Transition Trading on the Exchange From a Floor Based Market With a Parity Allocation Model to Fully Automated Price-Time Priority Model on the Exchange's New Trading Technology Platform, Pillar, 16459-16460 [2017-06569]
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Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Notices
the clause ‘‘except as provided for in
Rule 36.30.’’ The Exchange also
proposes to add new Rule 98(c)(3)(B)(ii)
to provide that while on the Trading
Floor of the Exchange, employees of the
DMM unit may not trade any security
that is a related product of its DMM
securities. The Exchange would
renumber current Rules 98(c)(3)(B)(ii)
and (iii) as new Rules 98(c)(3)(B)(iii)
and (iv).
As a result of these proposed changes,
DMMs would no longer be restricted
from trading securities that are
unrelated to DMM securities while on
the Trading Floor. However, the
proposed amendments would continue
to require that, while on the Trading
Floor, DMMs would not be able to trade
any securities that are related products
to DMM securities. The proposed
amendment would also add a new
requirement that DMMs may only trade
their DMM securities at their assigned
stock trading post.
The proposed rule change would
allow Exchange DMMs that are also
NYSE MKT LLC (‘‘NYSE MKT’’) DMMs
to continue to operate. Currently, NYSE
MKT’s cash equities trading operations
share a Floor with the Exchange. DMMs
who are also approved as NYSE MKT
DMMs currently trade in both NYSElisted DMM securities and NYSE MKTlisted DMM securities from the same
physical location on the exchanges’
respective Trading Floors.8 NYSE MKT
has proposed to transition from a Floorbased trading model to a fully
automated trading model.9 After this
transition, NYSE MKT would continue
to have electronic-access DMMs that
would be the same member
organizations that are currently
operating as Floor-based NYSE MKT
DMMs. The proposed amendment to
Rule 98 would permit NYSE DMMs to
continue to support their electronic
NYSE MKT DMM functions in the same
physical location where they are
currently operating.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
III. Discussion and Commission
Findings
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.10 In particular, the
8 NYSE MKT DMMs operate under the NYSE
MKT Rule 98—Equities.
9 See Securities Exchange Act Release No. 79993
(Feb. 9, 2017), 82 FR 10814 (Feb. 15, 2017) (notice
of filing of SR–NYSEMKT–2017–1 (‘‘NYSE MKT
Trading Rules Filing’’)). Subject to rule approval,
NYSE MKT anticipates transitioning off of its Floor
in the second quarter of 2017.
10 In approving this proposed rule change, the
Commission has considered the proposed rule’s
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16:21 Apr 03, 2017
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Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,11 which requires,
among other things, that the rules of a
national securities exchange be
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, 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.
Under the proposal, DMMs would be
permitted to trade securities that are
unrelated to DMM securities while on
the Trading Floor. The Exchange
represents that DMMs do not have a
unique role or access to any non-public
order information with respect to
securities that are not assigned to them
under Rule 103B. The Commission
notes that, while on the Trading Floor,
DMMs would continue to be prohibited
from trading securities that are related
products to DMM securities. In
addition, the Commission notes that,
while on the Trading Floor, employees
of the DMM unit would be permitted to
trade DMM securities only on or
through the systems and facilities of the
Exchange at the DMM unit’s assigned
stock trading post location and as
permitted by Exchange rules.
For the above reasons, the
Commission finds that the proposal is
consistent with the requirements of the
Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (NYSEMKT–
2017–03) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–06567 Filed 4–3–17; 8:45 am]
BILLING CODE 8011–01–P
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
11 15 U.S.C. 78f(b)(5).
12 Id.
13 17 CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80337; File No. SR–
NYSEMKT–2017–01]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Designation of a
Longer Period for Commission Action
on a Proposed Rule Change To Adopt
New Equities Trading Rules To
Transition Trading on the Exchange
From a Floor Based Market With a
Parity Allocation Model to Fully
Automated Price-Time Priority Model
on the Exchange’s New Trading
Technology Platform, Pillar
March 29, 2017.
On January 25, 2017, NYSE MKT LLC
(‘‘Exchange’’ or ‘‘NYSE MKT’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to transition trading on the
Exchange to Pillar, the Exchange’s new
trading technology platform, and to
operate as a fully automated cash
equities market. The proposed rule
change was published for comment in
the Federal Register on February 15,
2017.3 The Commission received no
comments on the proposed rule change.
Section 19(b)(2) of the Act 4 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
approved or disapproved. The 45th day
after publication of the notice for this
proposed rule change is April 1, 2017.
The Commission is extending this 45day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change. Accordingly, the
Commission, pursuant to Section
19(b)(2) of the Act,5 designates May 16,
2017, as the date by which the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 79993
(Feb. 9, 2017), 82 FR 10814.
4 15 U.S.C. 78s(b)(2).
5 Id.
2 17
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Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Notices
Commission should either approve or
disapprove or institute proceedings to
determine whether to disapprove the
proposed rule change (File Number SR–
NYSEMKT–2017–01).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–06569 Filed 4–3–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; ISE
Mercury, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Rename the Exchange
as Nasdaq MRX, LLC
March 29, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 17,
2017, ISE Mercury, LLC (‘‘ISE Mercury’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
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 amend its
Constitution, Limited Liability
Company Agreement, Rule Book and
Fee Schedule to rename itself Nasdaq
MRX, LLC. In addition this rule change
proposes to amend references to the
names of certain affiliated markets
within the ISE Mercury Rulebook.3
The text of the proposed rule change
is available on the Exchange’s Web site
at www.ise.com, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The affiliated markets are the International
Securities Exchange, LLC and ISE Gemini, LLC.
1 15
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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
[Release No. 34–80326; File No. SR–
ISEMercury–2017–05]
6 17
II. 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 rename the Exchange to
reflect its new placement within the
Nasdaq, Inc. corporate structure in
connection with the March 9, 2016
acquisition by Nasdaq of the capital
stock of U.S. Exchange Holdings, and
the thereby indirectly acquiring all of
the interests of the International
Securities Exchange, LLC, ISE Gemini,
LLC, and ISE Mercury, LLC.4
Specifically, all references in the
Exchange’s Constitution, Limited
Liability Company Agreement, Rule
Book and Fee Schedule to ‘‘ISE
Mercury, LLC’’ or references to
‘‘Mercury’’ shall be amended to
‘‘Nasdaq MRX, LLC’’ or ‘‘Nasdaq MRX.’’
Moreover, consistent with changes
already filed for ISE Gemini, LLC, the
rule change proposes to amend
references to ‘‘ISE Gemini’’ to ‘‘Nasdaq
GEMX,’’ and references to the
‘‘International Securities Exchange’’ and
‘‘ISE’’ to ‘‘Nasdaq ISE.’’ 5 The Exchange
also proposes minor grammatical
changes which are necessary as a result
of the name change, i.e., amending ‘‘a’’
to ‘‘an.’’ The Exchange proposes to
amend its name for ISE Mercury on
April 3, 2017.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Section 6(b)(5) of the Act,7
in particular, in that it is designed 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 by
renaming the Exchange and updating
the names of certain affiliated markets
to reflect its current ownership.
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 not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe that the
proposed rule change will impact the
intense competition that exists in the
options market. The name change will
reflect the current ownership structure
and unify the options markets operated
by Nasdaq, Inc.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not (i) significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
7 15
4 See Securities Exchange Act Release No. 78119
(June 27, 2016), 81 FR 41611 (SR–ISE–2016–11; SR–
ISE Gemini-2016–05; SR–ISE Mercury–2016–10)
(Order Granting Accelerated Approval of Proposed
Rule Changes, Each as Modified by Amendment No.
1 Thereto, Relating to a Corporate Transaction in
Which Nasdaq, Inc. Will Become the Indirect Parent
of ISE, ISE Gemini, and ISE Mercury).
5 See Securities Exchange Act Release No. 80248
(March 15, 2017) (SR–ISEGemini–2017–13). See
also SR–ISE–2017–25.
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Agencies
[Federal Register Volume 82, Number 63 (Tuesday, April 4, 2017)]
[Notices]
[Pages 16459-16460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06569]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80337; File No. SR-NYSEMKT-2017-01]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of
Designation of a Longer Period for Commission Action on a Proposed Rule
Change To Adopt New Equities Trading Rules To Transition Trading on the
Exchange From a Floor Based Market With a Parity Allocation Model to
Fully Automated Price-Time Priority Model on the Exchange's New Trading
Technology Platform, Pillar
March 29, 2017.
On January 25, 2017, NYSE MKT LLC (``Exchange'' or ``NYSE MKT'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
transition trading on the Exchange to Pillar, the Exchange's new
trading technology platform, and to operate as a fully automated cash
equities market. The proposed rule change was published for comment in
the Federal Register on February 15, 2017.\3\ The Commission received
no comments on the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 79993 (Feb. 9,
2017), 82 FR 10814.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \4\ provides that, within 45 days of
the publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be approved or
disapproved. The 45th day after publication of the notice for this
proposed rule change is April 1, 2017. The Commission is extending this
45-day time period.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The Commission finds that it is appropriate to designate a longer
period within which to take action on the proposed rule change so that
it has sufficient time to consider the proposed rule change.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\5\ designates May 16, 2017, as the date by which the
[[Page 16460]]
Commission should either approve or disapprove or institute proceedings
to determine whether to disapprove the proposed rule change (File
Number SR-NYSEMKT-2017-01).
---------------------------------------------------------------------------
\5\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-06569 Filed 4-3-17; 8:45 am]
BILLING CODE 8011-01-P