Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Specify in Exchange Rules the Exchange's Primary and Secondary Sources of Data Feeds From NYSE MKT LLC, 31642-31644 [2017-14241]
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31642
Federal Register / Vol. 82, No. 129 / Friday, July 7, 2017 / Notices
asabaliauskas on DSKBBXCHB2PROD with NOTICES
class of shareholders. Applicants submit
that the proposed arrangements would
permit a Fund to facilitate the
distribution of its shares and provide
investors with a broader choice of
shareholder services. Applicants assert
that the proposed closed-end
investment company multiple class
structure does not raise the concerns
underlying section 18 of the Act to any
greater degree than open-end
investment companies’ multiple class
structures that are permitted by rule
18f–3 under the Act. Applicants state
that each Fund will comply with the
provisions of rule 18f–3 as if it were an
open-end investment company.
Early Withdrawal Charges
1. Section 23(c) of the Act provides,
in relevant part, that no registered
closed-end investment company shall
purchase securities of which it is the
issuer, except: (a) On a securities
exchange or other open market; (b)
pursuant to tenders, after reasonable
opportunity to submit tenders given to
all holders of securities of the class to
be purchased; or (c) under other
circumstances as the Commission may
permit by rules and regulations or
orders for the protection of investors.
2. Rule 23c–3 under the Act permits
a registered closed-end investment
company (an ‘‘interval fund’’) to make
repurchase offers of between five and
twenty-five percent of its outstanding
shares at net asset value at periodic
intervals pursuant to a fundamental
policy of the interval fund. Rule 23c–
3(b)(1) under the Act permits an interval
fund to deduct from repurchase
proceeds only a repurchase fee, not to
exceed two percent of the proceeds, that
is paid to the interval fund and is
reasonably intended to compensate the
fund for expenses directly related to the
repurchase.
3. Section 23(c)(3) provides that the
Commission may issue an order that
would permit a closed-end investment
company to repurchase its shares in
circumstances in which the repurchase
is made in a manner or on a basis that
does not unfairly discriminate against
any holders of the class or classes of
securities to be purchased.
4. Applicants request relief under
section 6(c), discussed above, and
section 23(c)(3) from rule 23c–3 to the
extent necessary for the Funds to
impose early withdrawal charges on
shares of the Funds submitted for
repurchase that have been held for less
than a specified period.
5. Applicants state that the early
withdrawal charges they intend to
impose are functionally similar to
contingent deferred sales loads imposed
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20:56 Jul 06, 2017
Jkt 241001
by open-end investment companies
under rule 6c–10 under the Act. Rule
6c–10 permits open-end investment
companies to impose contingent
deferred sales loads, subject to certain
conditions. Applicants note that rule
6c–10 is grounded in policy
considerations supporting the
employment of contingent deferred
sales loads where there are adequate
safeguards for the investor and state that
the same policy considerations support
imposition of early withdrawal charges
in the interval fund context. In addition,
applicants state that early withdrawal
charges may be necessary for the
distributor to recover distribution costs.
Applicants represent that any early
withdrawal charge imposed by the
Funds will comply with rule 6c–10
under the Act as if the rule were
applicable to closed-end investment
companies. The Funds will disclose
early withdrawal charges in accordance
with the requirements of Form N–1A
concerning contingent deferred sales
loads.
Asset-Based Distribution and
Shareholder Service Fees
1. Section 17(d) of the Act and rule
17d–1 under the Act prohibit an
affiliated person of a registered
investment company, or an affiliated
person of such person, acting as
principal, from participating in or
effecting any transaction in connection
with any joint enterprise or joint
arrangement in which the investment
company participates unless the
Commission issues an order permitting
the transaction. In reviewing
applications submitted under section
17(d) and rule 17d–1, the Commission
considers whether the participation of
the investment company in a joint
enterprise or joint arrangement is
consistent with the provisions, policies
and purposes of the Act, and the extent
to which the participation is on a basis
different from or less advantageous than
that of other participants.
2. Rule 17d–3 under the Act provides
an exemption from section 17(d) and
rule 17d–1 to permit open-end
investment companies to enter into
distribution arrangements pursuant to
rule 12b–1 under the Act. Applicants
request an order under section 17(d) and
rule 17d–1 under the Act to the extent
necessary to permit the Fund to impose
asset-based distribution and shareholder
service fees. Applicants have agreed to
comply with rules 12b–1 and 17d–3 as
if those rules applied to closed-end
investment companies, which they
believe will resolve any concerns that
might arise in connection with a Fund
PO 00000
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Fmt 4703
Sfmt 4703
financing the distribution of its shares
through asset-based distribution fees.
For the reasons stated above,
applicants submit that the exemptions
requested under section 6(c) are
necessary and appropriate in the public
interest and are consistent with the
protection of investors and the purposes
fairly intended by the policy and
provisions of the Act. Applicants further
submit that the relief requested
pursuant to section 23(c)(3) will be
consistent with the protection of
investors and will insure that applicants
do not unfairly discriminate against any
holders of the class of securities to be
purchased. Finally, applicants state that
the Funds’ imposition of asset-based
distribution and shareholder service
fees is consistent with the provisions,
policies and purposes of the Act and
does not involve participation on a basis
different from or less advantageous than
that of other participants.
Applicants’ Condition
Applicants agree that any order
granting the requested relief will be
subject to the following condition:
Each Fund relying on the order will
comply with the provisions of rules 6c–
10, 12b–1, 17d–3, 18f–3, 22d–1, and,
where applicable, 11a–3 under the Act,
as amended from time to time, as if
those rules applied to closed-end
management investment companies,
and will comply with the FINRA Sales
Charge Rule, as amended from time to
time, as if that rule applied to all closedend management investment
companies.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Eduardo Aleman,
Assistant Secretary.
[FR Doc. 2017–14314 Filed 7–6–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81061; File No. SR–
NYSEArca-2017–70]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Specify in Exchange
Rules the Exchange’s Primary and
Secondary Sources of Data Feeds
From NYSE MKT LLC
June 30, 2017.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
1 15
E:\FR\FM\07JYN1.SGM
U.S.C. 78s(b)(1).
07JYN1
Federal Register / Vol. 82, No. 129 / Friday, July 7, 2017 / Notices
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on June 21,
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 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 specify in
Exchange rules the Exchange’s primary
and secondary sources of data feeds
from NYSE MKT LLC for order handling
and execution, order routing, and
regulatory compliance. 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.
asabaliauskas on DSKBBXCHB2PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NYSE Arca Equities Rule 7.37 (‘‘Rule
7.37’’) to specify in Exchange rules the
primary and secondary sources of data
feeds from NYSE MKT LLC (‘‘NYSE
MKT’’) that the Exchange would use for
order handling and execution, order
routing, and regulatory compliance.
On July 18, 2014, the Exchange filed
a proposed rule change that clarified the
Exchange’s use of certain data feeds for
order handling and execution, order
routing, and regulatory compliance.4 As
2 15
U.S.C. 78a.
CFR 240.19b–4.
4 See Securities Exchange Act Release No. 72708
(July 29, 2014), 79 FR 45572 (Aug. 5, 2014) (SR–
NYSEArca-2014–82).
3 17
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20:56 Jul 06, 2017
Jkt 241001
noted in that filing, the data feeds
available for the purposes of order
handling and execution, order routing,
and regulatory compliance at the
Exchange include the exclusive
securities information processor (‘‘SIP’’)
data feeds 5 or proprietary data feeds
from individual market centers (‘‘Direct
Feed’’). On February 24, 2015, the
Exchange adopted Commentary .01 to
Rule 7.37 to specify which data feeds
that the Exchange uses for the handling,
execution, and routing of orders, as well
as for regulatory compliance.6 After
implementation of Pillar, the Exchange’s
new trading technology system,
Commentary .01 was replaced by Rule
7.37(d).7
NYSE MKT has amended its rules to
provide for an intentional access delay
to certain inbound and outbound order
messages on that exchange (the ‘‘Delay
Mechanism’’).8 NYSE MKT will be
implementing the Delay Mechanism
when it transitions to the Pillar trading
platform.9 The Delay Mechanism adds
350 microseconds of one-way latency to
inbound and outbound
communications, including all
outbound communications to NYSE
MKT’s Direct Feeds.10 NYSE MKT will
not apply the Delay Mechanism to
outbound communications to the SIP.11
To use the lowest-latency source of
information regarding NYSE MKT
quotes and trades in Tape A and B
securities, the Exchange proposes to
amend Rule 7.37(d) to specify that the
Exchange would use the SIP Data Feed
as the primary source of data for all
securities, including Tape C, from that
market center, and would use the Direct
Feed from NYSE MKT as the secondary
source.
The Exchange proposes to implement
these changes coincident with the
5 The SIP feeds are disseminated pursuant to
effective joint-industry plans as required by Rule
603(b) of Regulation NMS. 17 CFR 242.603(b). The
three joint-industry plans are: (1) The CTA Plan,
which is operated by the Consolidated Tape
Association and disseminates transaction
information for securities with the primary listing
market on exchanges other than NASDAQ Stock
Market LLC (‘‘Nasdaq’’); (2) the CQ Plan, which
disseminates consolidated quotation information
for securities with their primary listing on
exchanges other than Nasdaq; and (3) the Nasdaq
UTP Plan, which disseminates consolidated
transaction and quotation information for securities
with their primary listing on Nasdaq.
6 See Securities Exchange Act Release No. 74409
(March 2, 2015), 80 FR 12221 (March 6, 2015) (SR–
NYSEArca–2015–11).
7 See Securities Exchange Act Release No. 79078
(October 11, 2016), 81 FR 71559 (October 17, 2016)
(SR–NYSEArca–2016–135).
8 See NYSE MKT Rule 7.29E(b).
9 Securities Exchange Act Release No. 80700 (May
16, 2017), 82 FR 23381 (May 22, 2017) (SR–
NYSEMKT–2017–05) (Approval Order).
10 See NYSE MKT Rule 7.29E(b)(1)(E).
11 See NYSE MKT Rule 7.29E(b)(2)(C).
PO 00000
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31643
transition of NYSE MKT to the Pillar
technology and with the
implementation of the Delay
Mechanism, which are expected to be
on July 24, 2017.12
The Exchange also proposes nonsubstantive amendments to Rule 7.37(d)
to update the names of the market
centers and to eliminate an inoperative
market center.13
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Act,14 in general, and furthers the
objectives of Section 6(b)(5),15 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, 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 Exchange believes
that the proposed rule change removes
impediments to and perfects the
mechanism of a free and open market
because it would provide notice of
which data feeds the Exchange uses for
execution and routing decisions and for
order handling and regulatory
compliance, thus enhancing
transparency.
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
would provide the public and investors
with information about which data
feeds the Exchange uses for execution
12 See NYSE Group Pillar Migration Trader
Update available at https://www.nyse.com/
publicdocs/nyse/notifications/trader-update/
Pillar%20Migration%20Update.pdf.
13 Specifically the Exchange proposes to update
the names of Bats BYX Exchange, Inc. (formerly
BATS Y-Exchange, Inc.), Bats BZX Exchange, Inc.
(formerly BATS Exchange, Inc.), Bats EDGA
Exchange, Inc. (formerly EDGA Exchange, Inc.),
Bats EDGX Exchange, Inc. (formerly EDGX
Exchange, Inc.), NASDAQ BX, Inc. (formerly
NASDAQ OMX BX, Inc.) and NASDAQ PHLX LLC
(formerly NASDAQ OMX PHLX, LLC). The
Exchange also proposes to remove National Stock
Exchange LLC, which is currently not operating and
therefore the Exchange is not receiving any data
feeds from that market center. See Securities
Exchange Act Release No. 80018 (February 10,
2017), 82 FR 10947 (February 16, 2017) (SR–NSX–
2017–04).
14 15 U.S.C. 78f(b).
15 15 U.S.C. 78f(b)(5).
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Federal Register / Vol. 82, No. 129 / Friday, July 7, 2017 / Notices
and routing decisions and for order
handling and regulatory compliance.
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) 16 of the Act and Rule 19b–
4(f)(6) thereunder.17
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
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
Paper Comments
asabaliauskas on DSKBBXCHB2PROD with NOTICES
• Send paper comments in triplicate
to Secretary, Securities and Exchange
16 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission 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 satisfied this requirement.
17 17
20:56 Jul 06, 2017
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Brent J. Fields,
Secretary.
[FR Doc. 2017–14241 Filed 7–6–17; 8:45 am]
BILLING CODE 8011–01–P
• 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–2017–70 on the subject line.
VerDate Sep<11>2014
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2017–70. 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–2017–70, and should be
submitted on or before July 28, 2017.
Jkt 241001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81065; File No. SR–CBOE–
2017–010]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Withdrawal of
a Proposed Rule Change Related to
Unusual Market Conditions and the
Duty To Systemize Non-Electronic
Orders Prior to Representation
June 30, 2017.
On February 15, 2017, the Chicago
Board Options Exchange, Incorporated
PO 00000
18 17
CFR 200.30–3(a)(12).
Frm 00097
Fmt 4703
Sfmt 4703
(‘‘Exchange’’ or ‘‘CBOE’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Exchange Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend its rules regarding the
circumstances in which CBOE Floor
Officials may declare a ‘‘fast’’ market
and the actions those Floor Officials
may take when a fast market is declared,
including the ability to suspend the
duty to systemize a non-electronic order
prior to representing it in open outcry
trading. The proposed rule change was
published for comment in the Federal
Register on March 6, 2017.3 On April
18, 2017, pursuant to Section 19(b)(2) of
the Exchange Act,4 the Commission
designated a longer period within which
to approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to disapprove the proposed
rule change.5 On June 2, 2017, the
Commission instituted proceedings to
determine whether to approve or
disapprove the proposed rule change.6
The Commission received no comments
on the proposed rule change. On June
26, 2017, CBOE withdrew the proposed
rule change (SR–CBOE–2017–010).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Brent J. Fields,
Secretary.
[FR Doc. 2017–14244 Filed 7–6–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81060; File No. SR–MSRB–
2017–04]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing of a Proposed
Rule Change To Amend MSRB Rule G–
21(e), on Municipal Fund Security
Product Advertisements
June 30, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 80123
(February 28, 2017), 82 FR 12667 (‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 80481,
82 FR 18941 (April 24, 2017). The Commission
designated June 4, 2017, as the date by which the
Commission shall either approve or disapprove, or
institute proceedings to determine whether to
disapprove, the proposed rule change.
6 See Securities Exchange Act Release No. 80854,
82 FR 26724 (June 8, 2017).
7 17 CFR 200.30–3(a)(12).
2 17
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Agencies
[Federal Register Volume 82, Number 129 (Friday, July 7, 2017)]
[Notices]
[Pages 31642-31644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14241]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81061; File No. SR-NYSEArca-2017-70]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Specify in
Exchange Rules the Exchange's Primary and Secondary Sources of Data
Feeds From NYSE MKT LLC
June 30, 2017.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the
[[Page 31643]]
``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that,
on June 21, 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 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 specify in Exchange rules the Exchange's
primary and secondary sources of data feeds from NYSE MKT LLC for order
handling and execution, order routing, and regulatory compliance. The
proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend NYSE Arca Equities Rule 7.37 (``Rule
7.37'') to specify in Exchange rules the primary and secondary sources
of data feeds from NYSE MKT LLC (``NYSE MKT'') that the Exchange would
use for order handling and execution, order routing, and regulatory
compliance.
On July 18, 2014, the Exchange filed a proposed rule change that
clarified the Exchange's use of certain data feeds for order handling
and execution, order routing, and regulatory compliance.\4\ As noted in
that filing, the data feeds available for the purposes of order
handling and execution, order routing, and regulatory compliance at the
Exchange include the exclusive securities information processor
(``SIP'') data feeds \5\ or proprietary data feeds from individual
market centers (``Direct Feed''). On February 24, 2015, the Exchange
adopted Commentary .01 to Rule 7.37 to specify which data feeds that
the Exchange uses for the handling, execution, and routing of orders,
as well as for regulatory compliance.\6\ After implementation of
Pillar, the Exchange's new trading technology system, Commentary .01
was replaced by Rule 7.37(d).\7\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 72708 (July 29,
2014), 79 FR 45572 (Aug. 5, 2014) (SR-NYSEArca-2014-82).
\5\ The SIP feeds are disseminated pursuant to effective joint-
industry plans as required by Rule 603(b) of Regulation NMS. 17 CFR
242.603(b). The three joint-industry plans are: (1) The CTA Plan,
which is operated by the Consolidated Tape Association and
disseminates transaction information for securities with the primary
listing market on exchanges other than NASDAQ Stock Market LLC
(``Nasdaq''); (2) the CQ Plan, which disseminates consolidated
quotation information for securities with their primary listing on
exchanges other than Nasdaq; and (3) the Nasdaq UTP Plan, which
disseminates consolidated transaction and quotation information for
securities with their primary listing on Nasdaq.
\6\ See Securities Exchange Act Release No. 74409 (March 2,
2015), 80 FR 12221 (March 6, 2015) (SR-NYSEArca-2015-11).
\7\ See Securities Exchange Act Release No. 79078 (October 11,
2016), 81 FR 71559 (October 17, 2016) (SR-NYSEArca-2016-135).
---------------------------------------------------------------------------
NYSE MKT has amended its rules to provide for an intentional access
delay to certain inbound and outbound order messages on that exchange
(the ``Delay Mechanism'').\8\ NYSE MKT will be implementing the Delay
Mechanism when it transitions to the Pillar trading platform.\9\ The
Delay Mechanism adds 350 microseconds of one-way latency to inbound and
outbound communications, including all outbound communications to NYSE
MKT's Direct Feeds.\10\ NYSE MKT will not apply the Delay Mechanism to
outbound communications to the SIP.\11\ To use the lowest-latency
source of information regarding NYSE MKT quotes and trades in Tape A
and B securities, the Exchange proposes to amend Rule 7.37(d) to
specify that the Exchange would use the SIP Data Feed as the primary
source of data for all securities, including Tape C, from that market
center, and would use the Direct Feed from NYSE MKT as the secondary
source.
---------------------------------------------------------------------------
\8\ See NYSE MKT Rule 7.29E(b).
\9\ Securities Exchange Act Release No. 80700 (May 16, 2017), 82
FR 23381 (May 22, 2017) (SR-NYSEMKT-2017-05) (Approval Order).
\10\ See NYSE MKT Rule 7.29E(b)(1)(E).
\11\ See NYSE MKT Rule 7.29E(b)(2)(C).
---------------------------------------------------------------------------
The Exchange proposes to implement these changes coincident with
the transition of NYSE MKT to the Pillar technology and with the
implementation of the Delay Mechanism, which are expected to be on July
24, 2017.\12\
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\12\ See NYSE Group Pillar Migration Trader Update available at
https://www.nyse.com/publicdocs/nyse/notifications/trader-update/Pillar%20Migration%20Update.pdf.
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The Exchange also proposes non-substantive amendments to Rule
7.37(d) to update the names of the market centers and to eliminate an
inoperative market center.\13\
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\13\ Specifically the Exchange proposes to update the names of
Bats BYX Exchange, Inc. (formerly BATS Y-Exchange, Inc.), Bats BZX
Exchange, Inc. (formerly BATS Exchange, Inc.), Bats EDGA Exchange,
Inc. (formerly EDGA Exchange, Inc.), Bats EDGX Exchange, Inc.
(formerly EDGX Exchange, Inc.), NASDAQ BX, Inc. (formerly NASDAQ OMX
BX, Inc.) and NASDAQ PHLX LLC (formerly NASDAQ OMX PHLX, LLC). The
Exchange also proposes to remove National Stock Exchange LLC, which
is currently not operating and therefore the Exchange is not
receiving any data feeds from that market center. See Securities
Exchange Act Release No. 80018 (February 10, 2017), 82 FR 10947
(February 16, 2017) (SR-NSX-2017-04).
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\14\ in general, and furthers the objectives of Section
6(b)(5),\15\ 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, 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 Exchange believes that the
proposed rule change removes impediments to and perfects the mechanism
of a free and open market because it would provide notice of which data
feeds the Exchange uses for execution and routing decisions and for
order handling and regulatory compliance, thus enhancing transparency.
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\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(5).
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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 would provide the
public and investors with information about which data feeds the
Exchange uses for execution
[[Page 31644]]
and routing decisions and for order handling and regulatory compliance.
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) \16\ of the Act and Rule 19b-
4(f)(6) thereunder.\17\
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
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 satisfied this requirement.
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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: (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 should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2017-70 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-2017-70. 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-2017-70, and should
be submitted on or before July 28, 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).
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Brent J. Fields,
Secretary.
[FR Doc. 2017-14241 Filed 7-6-17; 8:45 am]
BILLING CODE 8011-01-P