Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Exchange's Authority To Grant Exemptions From the OATS Requirements, 27732-27734 [2017-12455]

Download as PDF 27732 Federal Register / Vol. 82, No. 115 / Friday, June 16, 2017 / Notices Public Attendance The public is welcome to attend the argument at the Atomic Safety and Licensing Board Panel’s hearing room. However, only the designated representatives will be permitted to participate in the argument. Neither signs nor any manner of demonstration will be permitted in the hearing room. Those people wishing to attend the oral argument in person should contact the Board’s law clerk, Julie Reynolds-Engel, at 301–415–5680 or julie.reynoldsengel@nrc.gov no later than Tuesday, June 27, 2017, to provide their names for security purposes. All members of the public participating in person must present a valid photo ID and should arrive at least twenty minutes early so as to allow sufficient time to pass through security screening. Cell phones are not permitted in the hearing room. sradovich on DSK3GMQ082PROD with NOTICES Listen-Only Telephone Access The Board’s law clerk will contact the participants by email to provide the telephone number and pass code for listen-only access to oral argument. Members of the public who wish to listen to the conference may also contact the Board’s law clerk, Julie ReynoldsEngel, at 301–415–5680 or julie.reynolds-engel@nrc.gov, for the necessary listen-only telephone access information by Tuesday, June 27, 2017. Transcript Availability After June 29, 2017, a transcript of the oral argument will be available for public inspection electronically on the NRC’s Electronic Hearing Docket (EHD). EHD is accessible from the NRC Web site at https://adams.nrc.gov/ehd. For additional information regarding EHD, please see https://www.nrc.gov/aboutnrc/regulatory/adjudicatory.html#ehd. Persons who do not have access to the internet or who encounter problems in accessing the documents located on the NRC’s Web site may contact the NRC Public Document Room reference staff by email to pdr@nrc.gov or by telephone at (800) 397–4209 or (301) 415–4737. Reference staff are available Monday through Friday between 8:00 a.m. and 4:00 p.m. ET, except federal holidays. For additional information regarding the NRC Public Document Room please see https://www.nrc.gov/reading-rm/ pdr.html. It is so ordered. For the Atomic Safety and Licensing Board, Rockville, Maryland. Dated: June 5, 2017. Ronald M. Spritzer, Chairman, Administrative Judge. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–80903; File No. SR– NYSEArca-2017–66] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Exchange’s Authority To Grant Exemptions From the OATS Requirements June 12, 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 June 2, 2017, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 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 proposes to amend NYSE Arca Equities Rule 7470 (Exemption to the Order Recording and Data Transmission Requirements) to extend until November 15, 2019 the ability to exempt certain members from the recording and order data transmission requirements of NYSE Arca Equities Rules 7440 and 7450, respectively, for manual orders. 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. [FR Doc. 2017–12357 Filed 6–15–17; 8:45 am] 1 15 BILLING CODE 7590–01–P 2 17 VerDate Sep<11>2014 17:12 Jun 15, 2017 Jkt 241001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00058 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 NYSE Arca Equities Rule 7400 Series consists of NYSE Arca Equities Rules 7410 through 7470 and sets forth the recording and reporting requirements of the Order Audit Trail System (‘‘OATS’’) Rules. The OATS Rules require all Exchange permit holders and associated persons to record in electronic form and report to the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’), on a daily basis, certain information with respect to orders originated, received, transmitted, modified, canceled, or executed by permit holders in all NMS stocks, as that term is defined in Rule 600(b)(47) of Regulation NMS,3 traded on the Exchange. NYSE Arca Equities Rule 7470 provides the Exchange with the authority to exempt certain members from the recording and reporting requirements and from the recording and order data transmission requirements of NYSE Arca Equities Rules 7440 and 7450, respectively, for manual orders, if such exemption is consistent with the protection of investors and the public interest, and the ETP Holder meets the criteria set forth in paragraph (a) of the Rule.4 NYSE Arca Equities Rule 7470 contains a sunset provision, which was July 10, 2015. In June 2015, FINRA filed a proposed rule change to extend the sunset provision until July 10, 2019.5 The Exchange proposes to amend NYSE Arca Equities Rule 7470 to extend the provision until November 15, 2019. The proposed change would correct an oversight in not filing when the sunset provision expired in 2015. The Exchange believes it would be appropriate to extend the sunset provision in NYSE Arca Equities Rule 7470 to November 15, 2019 rather than the July 10, 2019 date in the FINRA Rule. At the time FINRA filed its proposed rule change, the National 3 17 CFR 242.600(b)(47). criteria are as follows: (1) The ETP Holder and current control affiliates and associated persons have not been subject within the last five years to any final disciplinary action, and within the last ten years to any disciplinary action involving fraud; (2) the ETP Holder has annual revenues of less than $2 million; (3) the ETP Holder does not conduct any market making activities in NMS stocks: (4) the ETP Holder does not execute principal transactions with its customers (with limited exception for principal transactions executed pursuant to error corrections); and (5) the ETP Holder does not conduct clearing or carrying activities for other firms. 5 See Securities Exchange Act Release No. 75160 (June 11, 2015), 80 FR 34727 (June 17, 2015) (SR– FINRA–2015–016). 4 The E:\FR\FM\16JNN1.SGM 16JNN1 Federal Register / Vol. 82, No. 115 / Friday, June 16, 2017 / Notices Market System Plan Governing the Consolidated Audit Trail (the ‘‘CAT NMS Plan’’) 6 had not been approved by the Commission. The CAT NMS Plan was approved by the Commission, as modified, on November 15, 2016.7 On March 21, 2017, the Commission approved the NYSE Arca Equities Rule 6.6800 Series to implement the provisions of the CAT NMS Plan applicable to ETP Holders.8 NYSE Arca Equities Rule 6.6895(c)(2) requires each Industry Member that is a Small Industry Member to record and report the Industry Member Data to the Central Repository by November 15, 2019. The Exchange believes that extending the sunset provision in NYSE Arca Equities Rule 7470 to the same date that all Small Industry Members must report to the CAT is appropriate and would permit such firms relying on the exemption to continue to do so provided they meet the criteria to qualify until that time. The Exchange is not proposing any substantive changes to the criteria necessary for firms to qualify for an exemption and notes that all of those member organizations currently reporting to OATS or relying on an exemption from OATS reporting will be reporting to the CAT by November 15, 2019.9 2. Statutory Basis sradovich on DSK3GMQ082PROD with NOTICES The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,10 in general, and furthers the objectives of Section 6(b)(5) of the Act,11 in particular, because 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, and, in general to protect investors and the public interest. 6 Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth herein or in the CAT NMS Plan. 7 Securities Exchange Act Release No. 79318 (November 15, 2016), 81 FR 84696 (November 23, 2016) (Order Approving the National Market System Plan Governing the Consolidated Audit Trail). 8 See Securities Exchange Act Release No. 80256 (March 15, 2017), 82 FR 14526 (March 21, 2017) (SR–NYSEArca–2017–03; SR–NYSEArca–2017–04) (Order Approving Proposed Rule Changes to Adopt Consolidated Audit Trail Compliance Rules). 9 Rule 6.6895(c)(1) requires each Industry Member (other than a Small Industry Member) to record and report the Industry Member Data to the Central Repository by November 15, 2018. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 17:12 Jun 15, 2017 Jkt 241001 In particular, the Exchange believes that amending NYSE Arca Equities Rule 7470 to extend until November 15, 2019 the ability to exempt certain members from the recording and order data transmission requirements of NYSE Arca Equities Rules 7440 and 7450, respectively, for manual orders, is consistent with Section 6(b)(5) of the Act 12 because it would enable the Exchange to exempt manual orders received by certain small firms from the OATS Rules and avoid imposing potentially unnecessary expense or hardship on those firms that qualify for the exemption as they transition to reporting order information to the CAT Central Repository. As noted, the proposed sunset provision is the same date that all Small Industry Members must report to the CAT. Further, the Exchange is not proposing any substantive changes to the criteria necessary for firms to qualify for an exemption, which will continue to ensure that only those firms with limited revenue, no recent final disciplinary actions, and limited business models will remain eligible for the exemption. The Exchange accordingly believes that the proposed rule change is consistent with the protection of investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is not designed to address any competitive issue but rather, as noted above, would enable the Exchange to exempt manual orders received by certain small firms from the OATS reporting requirements through November 15, 2019, the same date that all Small Industry Members must report to the CAT, and thereby avoid imposing potentially unnecessary expense or hardship on those firms that qualify for the exemption as they transition to reporting order information to the CAT Central Repository. 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. 12 15 PO 00000 U.S.C. 78f(b)(5). Frm 00059 Fmt 4703 Sfmt 4703 27733 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 13 and Rule 19b–4(f)(6) thereunder.14 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.15 The Exchange has asked the Commission to waive the 30-day operative delay so that the proposed rule change will become operative immediately upon filing. In support of its request, the Exchange stated that waiver of the operative delay would continue to enable the Exchange to grant small firms exemptions from the OATS requirements as those firms are preparing to report information to the CAT Central Repository, thereby avoiding potentially unnecessary expense or hardship on firms that qualify for the exemption. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Absent such action, a small firm that otherwise would qualify for an exemption would have to comply with the Exchange requirements to record and report manual orders to OATS because the Exchange would not have the authority to grant an exemption during the 30-day pre-operative period. The Commission agrees with the Exchange that waiving the 30-day operative delay would enable the Exchange, in appropriate cases, to prevent unnecessary expense being imposed on small firms. Therefore, the Commission hereby waives the operative delay and designates the 13 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 15 In addition, Rule 19b–4(f)(6)(iii) requires the Exchange to provide 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. The Exchange has complied with this requirement. 14 17 E:\FR\FM\16JNN1.SGM 16JNN1 27734 Federal Register / Vol. 82, No. 115 / Friday, June 16, 2017 / Notices proposed rule change operative upon filing.16 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) of the Act 17 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: 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–2017–66 and should be submitted on or before July 7, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–12455 Filed 6–15–17; 8:45 am] BILLING CODE 8011–01–P sradovich on DSK3GMQ082PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NYSEArca–2017–66 on the subject line. SECURITIES AND EXCHANGE COMMISSION 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–2017–66. 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 June 13, 2017. 16 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 17 15 U.S.C. 78s(b)(2)(B). VerDate Sep<11>2014 17:12 Jun 15, 2017 Jkt 241001 [Investment Company Act Release No. 32678; 812–14711] CION Ares Diversified Credit Fund, et al.; Notice of Application Securities and Exchange Commission (‘‘Commission’’). ACTION: Notice. AGENCY: Notice of an application under section 6(c) of the Investment Company Act of 1940 (the ‘‘Act’’) for an exemption from sections 18(a)(2), 18(c), and 18(i) of the Act, and for an order pursuant to section 17(d) of the Act and rule 17d–1 under the Act. Summary of Application: Applicants request an order to permit certain registered closed-end management investment companies to issue multiple classes of shares of beneficial interest (‘‘Shares’’) and to impose asset-based service and/or distribution fees, and contingent deferred sales loads (‘‘CDSCs’’). Applicants: CION Ares Diversified Credit Fund (the ‘‘Fund’’) and CION Ares Management, LLC (the ‘‘Adviser’’). Filing Dates: The application was filed on October 24, 2016, and amended on February 13, 2017, March 13, 2017, May 11, 2017, and June 6, 2017. Hearing or Notification of Hearing: An order granting the requested relief will be issued unless the Commission orders a hearing. Interested persons may request a hearing by writing to the 18 17 PO 00000 CFR 200.30–3(a)(12). Frm 00060 Fmt 4703 Sfmt 4703 Commission’s Secretary and serving applicants with a copy of the request, personally or by mail. Hearing requests should be received by the Commission by 5:30 p.m. on July 8, 2017, and should be accompanied by proof of service on applicants, in the form of an affidavit or, for lawyers, a certificate of service. Pursuant to rule 0–5 under the Act, hearing requests should state the nature of the writer’s interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by writing to the Commission’s Secretary. ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549– 1090; Applicants, 3 Park Avenue, 36th Floor, New York, NY 10016. FOR FURTHER INFORMATION CONTACT: Jessica Shin, Attorney-Adviser, at (202) 551–5921 or Robert H. Shapiro, Branch Chief, at (202) 551–6821 (Division of Investment Management, Chief Counsel’s Office). SUPPLEMENTARY INFORMATION: The following is a summary of the application. The complete application may be obtained via the Commission’s Web site by searching for the file number, or an applicant using the Company name box, at https:// www.sec.gov/search/search.htm or by calling (202) 551–8090. Applicants’ Representations 1. The Fund is a Delaware statutory trust that is registered under the Act as a diversified, closed-end management investment company. The Fund’s objective is to provide superior riskadjusted returns across various market cycles by investing in a diversified portfolio of liquid and illiquid asset classes. 2. The Adviser, a Delaware limited liability company, is registered as an investment adviser under the Investment Advisers Act of 1940. The Adviser serves as investment adviser to the Fund. 3. The applicants seek an order to permit the Fund to issue multiple classes of Shares, each having its own fee and expense structure, and to impose asset-based distribution and/or service fees, and CDSCs. 4. Applicants request that the order also apply to any other continuously offered registered closed-end management investment company existing now or in the future for which the Adviser or any entity controlling, controlled by, or under common control E:\FR\FM\16JNN1.SGM 16JNN1

Agencies

[Federal Register Volume 82, Number 115 (Friday, June 16, 2017)]
[Notices]
[Pages 27732-27734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-12455]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80903; File No. SR-NYSEArca-2017-66]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Extend the 
Exchange's Authority To Grant Exemptions From the OATS Requirements

June 12, 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 June 2, 2017, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') 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 Exchange. 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\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Arca Equities Rule 7470 
(Exemption to the Order Recording and Data Transmission Requirements) 
to extend until November 15, 2019 the ability to exempt certain members 
from the recording and order data transmission requirements of NYSE 
Arca Equities Rules 7440 and 7450, respectively, for manual orders. 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 NYSE Arca Equities Rule 7400 Series consists of NYSE Arca 
Equities Rules 7410 through 7470 and sets forth the recording and 
reporting requirements of the Order Audit Trail System (``OATS'') 
Rules. The OATS Rules require all Exchange permit holders and 
associated persons to record in electronic form and report to the 
Financial Industry Regulatory Authority, Inc. (``FINRA''), on a daily 
basis, certain information with respect to orders originated, received, 
transmitted, modified, canceled, or executed by permit holders in all 
NMS stocks, as that term is defined in Rule 600(b)(47) of Regulation 
NMS,\3\ traded on the Exchange. NYSE Arca Equities Rule 7470 provides 
the Exchange with the authority to exempt certain members from the 
recording and reporting requirements and from the recording and order 
data transmission requirements of NYSE Arca Equities Rules 7440 and 
7450, respectively, for manual orders, if such exemption is consistent 
with the protection of investors and the public interest, and the ETP 
Holder meets the criteria set forth in paragraph (a) of the Rule.\4\
---------------------------------------------------------------------------

    \3\ 17 CFR 242.600(b)(47).
    \4\ The criteria are as follows: (1) The ETP Holder and current 
control affiliates and associated persons have not been subject 
within the last five years to any final disciplinary action, and 
within the last ten years to any disciplinary action involving 
fraud; (2) the ETP Holder has annual revenues of less than $2 
million; (3) the ETP Holder does not conduct any market making 
activities in NMS stocks: (4) the ETP Holder does not execute 
principal transactions with its customers (with limited exception 
for principal transactions executed pursuant to error corrections); 
and (5) the ETP Holder does not conduct clearing or carrying 
activities for other firms.
---------------------------------------------------------------------------

    NYSE Arca Equities Rule 7470 contains a sunset provision, which was 
July 10, 2015. In June 2015, FINRA filed a proposed rule change to 
extend the sunset provision until July 10, 2019.\5\ The Exchange 
proposes to amend NYSE Arca Equities Rule 7470 to extend the provision 
until November 15, 2019. The proposed change would correct an oversight 
in not filing when the sunset provision expired in 2015.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 75160 (June 11, 
2015), 80 FR 34727 (June 17, 2015) (SR-FINRA-2015-016).
---------------------------------------------------------------------------

    The Exchange believes it would be appropriate to extend the sunset 
provision in NYSE Arca Equities Rule 7470 to November 15, 2019 rather 
than the July 10, 2019 date in the FINRA Rule. At the time FINRA filed 
its proposed rule change, the National

[[Page 27733]]

Market System Plan Governing the Consolidated Audit Trail (the ``CAT 
NMS Plan'') \6\ had not been approved by the Commission. The CAT NMS 
Plan was approved by the Commission, as modified, on November 15, 
2016.\7\ On March 21, 2017, the Commission approved the NYSE Arca 
Equities Rule 6.6800 Series to implement the provisions of the CAT NMS 
Plan applicable to ETP Holders.\8\ NYSE Arca Equities Rule 6.6895(c)(2) 
requires each Industry Member that is a Small Industry Member to record 
and report the Industry Member Data to the Central Repository by 
November 15, 2019.
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    \6\ Unless otherwise specified, capitalized terms used in this 
rule filing are defined as set forth herein or in the CAT NMS Plan.
    \7\ Securities Exchange Act Release No. 79318 (November 15, 
2016), 81 FR 84696 (November 23, 2016) (Order Approving the National 
Market System Plan Governing the Consolidated Audit Trail).
    \8\ See Securities Exchange Act Release No. 80256 (March 15, 
2017), 82 FR 14526 (March 21, 2017) (SR-NYSEArca-2017-03; SR-
NYSEArca-2017-04) (Order Approving Proposed Rule Changes to Adopt 
Consolidated Audit Trail Compliance Rules).
---------------------------------------------------------------------------

    The Exchange believes that extending the sunset provision in NYSE 
Arca Equities Rule 7470 to the same date that all Small Industry 
Members must report to the CAT is appropriate and would permit such 
firms relying on the exemption to continue to do so provided they meet 
the criteria to qualify until that time. The Exchange is not proposing 
any substantive changes to the criteria necessary for firms to qualify 
for an exemption and notes that all of those member organizations 
currently reporting to OATS or relying on an exemption from OATS 
reporting will be reporting to the CAT by November 15, 2019.\9\
---------------------------------------------------------------------------

    \9\ Rule 6.6895(c)(1) requires each Industry Member (other than 
a Small Industry Member) to record and report the Industry Member 
Data to the Central Repository by November 15, 2018.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\10\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\11\ in particular, because 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, 
and, in general to protect investors and the public interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the Exchange believes that amending NYSE Arca 
Equities Rule 7470 to extend until November 15, 2019 the ability to 
exempt certain members from the recording and order data transmission 
requirements of NYSE Arca Equities Rules 7440 and 7450, respectively, 
for manual orders, is consistent with Section 6(b)(5) of the Act \12\ 
because it would enable the Exchange to exempt manual orders received 
by certain small firms from the OATS Rules and avoid imposing 
potentially unnecessary expense or hardship on those firms that qualify 
for the exemption as they transition to reporting order information to 
the CAT Central Repository. As noted, the proposed sunset provision is 
the same date that all Small Industry Members must report to the CAT. 
Further, the Exchange is not proposing any substantive changes to the 
criteria necessary for firms to qualify for an exemption, which will 
continue to ensure that only those firms with limited revenue, no 
recent final disciplinary actions, and limited business models will 
remain eligible for the exemption. The Exchange accordingly believes 
that the proposed rule change is consistent with the protection of 
investors and the public interest.
---------------------------------------------------------------------------

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

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed change is not 
designed to address any competitive issue but rather, as noted above, 
would enable the Exchange to exempt manual orders received by certain 
small firms from the OATS reporting requirements through November 15, 
2019, the same date that all Small Industry Members must report to the 
CAT, and thereby avoid imposing potentially unnecessary expense or 
hardship on those firms that qualify for the exemption as they 
transition to reporting order information to the CAT Central 
Repository.

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 \13\ and Rule 19b-4(f)(6) thereunder.\14\ 
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.\15\
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    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to 
provide 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. The Exchange has complied with this 
requirement.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposed rule change will become operative 
immediately upon filing. In support of its request, the Exchange stated 
that waiver of the operative delay would continue to enable the 
Exchange to grant small firms exemptions from the OATS requirements as 
those firms are preparing to report information to the CAT Central 
Repository, thereby avoiding potentially unnecessary expense or 
hardship on firms that qualify for the exemption.
    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
Absent such action, a small firm that otherwise would qualify for an 
exemption would have to comply with the Exchange requirements to record 
and report manual orders to OATS because the Exchange would not have 
the authority to grant an exemption during the 30-day pre-operative 
period. The Commission agrees with the Exchange that waiving the 30-day 
operative delay would enable the Exchange, in appropriate cases, to 
prevent unnecessary expense being imposed on small firms. Therefore, 
the Commission hereby waives the operative delay and designates the

[[Page 27734]]

proposed rule change operative upon filing.\16\
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    \16\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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 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) of the Act \17\ to determine whether the proposed 
rule change should be approved or disapproved.
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    \17\ 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-2017-66 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-2017-66. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEArca-2017-66 and should 
be submitted on or before July 7, 2017.
    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-12455 Filed 6-15-17; 8:45 am]
BILLING CODE 8011-01-P
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