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]

Download as PDF 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 VerDate Sep<11>2014 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 Frm 00095 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 VerDate Sep<11>2014 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 Frm 00096 Fmt 4703 Sfmt 4703 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). E:\FR\FM\07JYN1.SGM 07JYN1 31644 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 (http://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 (http://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 E:\FR\FM\07JYN1.SGM 07JYN1

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]


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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\
---------------------------------------------------------------------------

    \12\ See NYSE Group Pillar Migration Trader Update available at 
https://www.nyse.com/publicdocs/nyse/notifications/trader-update/Pillar%20Migration%20Update.pdf.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f(b).
    \15\ 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 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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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 (http://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 (http://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