Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 11.26 To Modify the Date of Appendix B Web site Data Publication Pursuant to the Regulation NMS Plan To Implement a Tick Size Pilot Program, 36508-36510 [2017-16404]
Download as PDF
36508
Federal Register / Vol. 82, No. 149 / Friday, August 4, 2017 / Notices
amendments to ISE’s rules regarding
ownership, voting, and transfer
restrictions relating to certain market
maker rights on the Exchange; (3) revise
the related discussion of the purpose of
the proposed changes; (4) add
clarification to the description of the
proposal regarding the operation of
certain provisions; and (5) make certain
technical corrections. The Commission
believes that Amendment No. 1 does not
raise any novel regulatory issues and
instead better aligns ISE’s proposed
New Governing Documents with certain
provisions in its Current Governing
Documents and the governing
documents of other exchanges that were
previously approved by the
Commission.166 As discussed more fully
above, certain provisions of ISE’s New
Governing Documents, as modified by
Amendment No. 1, are designed to
facilitate the ability of ISE to maintain
the independence of its self-regulatory
function, enable it to operate in a
manner that complies with the federal
securities laws, and facilitate the ability
of ISE and the Commission to fulfill
their regulatory and oversight
obligations under the Act.167 The
Commission further believes that
Amendment No. 1 provides additional
clarity in the rule text and the
description of the proposal, which is
consistent with ISE’s original proposal
and supports ISE’s analysis of how its
proposal is consistent with the Act, thus
facilitating the Commission’s ability to
make the findings set forth above to
approve the proposal. Accordingly, the
Commission finds that good cause exists
to approve the proposal, as modified by
Amendment No. 1, on an accelerated
basis.
V. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning Amendment No.
1, including whether Amendment No. 1
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
166 See, e.g., Securities Exchange Act Release Nos.
70050 (July 26, 2013), 78 FR 46622 (August 1, 2013)
(granting GEMX’s (f/k/a Topaz Exchange, LLC)
application for registration as a national securities
exchange); and Mercury Exchange Approval, supra
note 28.
167 See supra Section III.B.4 (discussing, for
example, certain provisions in ISE’s New Governing
Documents that are designed to help maintain the
independence of the regulatory functions of the
Exchange).
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• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ISE–2017–32 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–81269; File No. SR–
NYSENAT–2017–03]
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ISE–2017–32. 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–ISE–
2017–32 and should be submitted on or
before August 25, 2017.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,168 that
theproposed rule change (SR–ISE–2017–
32), as modified by Amendment No. 1,
be, and hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.169
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–16398 Filed 8–3–17; 8:45 am]
Self-Regulatory Organizations; NYSE
National, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 11.26 To
Modify the Date of Appendix B Web
site Data Publication Pursuant to the
Regulation NMS Plan To Implement a
Tick Size Pilot Program
July 31, 2017.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on July 18,
2017, NYSE National, Inc. (the
‘‘Exchange’’ or ‘‘NYSE NAT’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 11.26 to modify the date of
Appendix B Web site data publication
pursuant to the Regulation NMS Plan to
Implement a Tick Size Pilot Program
(‘‘Plan’’). The proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
BILLING CODE 8011–01–P
1 15
168 15
U.S.C. 78s(b)(2).
169 17 CFR 200.30–3(a)(12).
PO 00000
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U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 82, No. 149 / Friday, August 4, 2017 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Rule 11.26(b) (Compliance with Data
Collection Requirements) 4 implements
the data collection and Web site
publication requirements of the Plan.5
Interpretations and Policies .08 to Rule
11.26 provides, among other things, that
the requirement that the Exchange or
their [sic] DEA make certain data
publicly available on the Exchange’s or
DEA’s Web site pursuant to Appendix B
and C to the Plan shall commence at the
beginning of the Pilot Period, 6 and that
the Exchange or their [sic] DEA shall
make data for the Pre-Pilot Period
publicly available on the Exchange’s or
DEA’s Web site pursuant to Appendix B
and C of the Plan by February 28, 2017.7
The Exchange is proposing to amend
Interpretations and Policies .08 to Rule
11.26 to delay the date by which PrePilot and Pilot Appendix B data is to be
made publicly available on the
Exchange’s or DEA’s Web site from
4 See Securities Exchange Act Release No. 77483
(March 31, 2016), 81 FR 20040 (April 6, 2016)
(Immediate Effectiveness of Proposed Rule Change
To Adopt Exchange Rule 11.26 To Implement the
Regulation NMS Plan To Implement a Tick Size
Pilot Program) (SR–NSX–2016–01); see also
Securities Exchange Act Release No. 78960
(September 28, 2016), 81 FR 68476 (October 4,
2016) (Immediate Effectiveness of Proposed Rule
Change to Amend Rule 11.26 to Modify Certain
Data Collection Requirements of the Regulation
NMS Plan to Implement a Tick Size Pilot Program)
(SR–NSX–2016–12); see also Letter from John C.
Roeser, Associate Director, Division of Trading and
Markets, Commission, to James Buckley, Chief
Regulatory Officer, National Stock Exchange, Inc.,
dated April 4, 2016.
5 The Participants filed the Plan to comply with
an order issued by the Commission on June 24,
2014. See Letter from Brendon J. Weiss, Vice
President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014
(‘‘SRO Tick Size Plan Proposal’’). See Securities
Exchange Act Release No. 72460 (June 24, 2014), 79
FR 36840 (June 30, 2014); see also Securities
Exchange Act Release No. 74892 (May 6, 2015), 80
FR 27513 (May 13, 2015).
6 Unless otherwise defined herein, capitalized
terms have the meaning ascribed to them in the
Plan.
7 On November 30, 2016, the SEC granted
exemptive relief to the Participants to, among other
things, delay the publication of Web site data
pursuant to Appendices B and C to the Plan until
February 28, 2017, and to delay the ongoing Web
site publication by ninety days such that data
would be published within 120 calendar days
following the end of the month. See Letter from
David S. Shillman, Associate Director, Division of
Trading and Markets, Commission, to Marcia E.
Asquith, Senior Vice President and Corporate
Secretary, Financial Industry Regulatory Authority,
Inc. (‘‘FINRA’’), dated November 30, 2016; see also
Securities Exchange Act Release No. 79806 (January
17, 2017), 82 FR 8249 (January 24, 2017 and
corrected on February 3, 2017) (Notice of Filing and
Immediate Effectiveness of File No. SR–NSX–2017–
01).
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36509
February 28, 2017, until August 31,
2017.8 Appendix C data for the Pre-Pilot
Period through the month of January
2017 was published on the DEA’s Web
site on February 28, 2017, and,
thereafter, on the original 30-day
schedule.
The Exchange is also proposing to
delete the words ‘‘and make certain data
publicly available on the Exchange’s or
DEA’s Web site’’ in the second sentence
to Interpretations and Policies .08 to
Rule 11.26 as it is duplicate of the
requirement in third sentence.
Pursuant to this proposed
amendment, Appendix B data
publication would be delayed until
August 31, 2017, with the Exchange
publishing the required Appendix B
data for the Pre-Pilot Period through
April 30, 2017, by August 31, 2017.
Thereafter, Appendix B data for a
particular month would be published
within 120 calendar days following
such month end. Thus, for example,
Appendix B data for May 2017 would be
made available on the Exchange’s or
DEA’s Web site by September 28, 2017,
and data for June 2017 would be made
available on the Exchange’s or DEA’s
Web site by October 28, 2017. This
proposed rule change would align the
Exchange’s rules with those of the other
Participants and is consistent with the
Commission’s Exemptive Relief I and
Exemptive Relief II.9
general, to protect investors and the
public interest.
The Plan is designed to allow the
Commission, market participants, and
the public to study and assess the
impact of increment conventions on the
liquidity and trading of the common
stock of small-capitalization companies.
The Exchange believes that this
proposal is consistent with the Act
because it is in furtherance of the
objectives of Section VII(A) of the Plan
in that it is designed to provide the
Exchange with additional time to assess
a means of addressing the
confidentiality concerns raised in
connection with the publication of
Appendix B data and to comply with
the Plan’s requirements that the data
made publicly available will not
identify the trading center that
generated the data.
The Exchange ceased operations on
February 1, 2017 and erroneously
understood that it was not thereafter
required to modify its rules to reflect
extensions of the deadlines to publish
data on its Web site. The purpose of this
filing is to correct that error and would
align the Exchange’s rules with the rules
of the other Participants and is
consistent with the Commission’s
Exemptive Relief I and Exemptive Relief
II.
2. Statutory Basis
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the proposed rule change will
result in the Exchange’s rules being
consistent with those of other national
securities exchanges and all of the other
Participants under the Plan.12 The
Exchange believes that the proposed
amendment is consistent with the goal
of removing impediments to a free and
open market because it would
harmonize the Exchange’s rules with
rules of other exchanges, further
promote fair competition in trading
among exchanges, and help implement
the provisions of the Plan, as it is
designed to assist the Participants in
meeting their regulatory obligations
pursuant to the Plan.
The Exchange believes that its
proposal 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, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
8 On February 28, 2017, the SEC granted
exemptive relief to the Participants to delay the
publication of Web site data pursuant to Appendix
B to the Plan until April 28, 2017 (‘‘Exemptive
Relief I’’). See Letter from David S. Shillman,
Associate Director, Division of Trading and
Markets, Commission, to Mr. Robert L.D. Colby,
Executive Vice President and Chief Legal Officer,
FINRA, dated February 28, 2017.
On April 28, 2017, the SEC granted exemptive
relief to the Participants to further delay the
publication of Web site data pursuant to Appendix
B to the Plan from April 28, 2017 until August 31,
2017 (‘‘Exemptive Relief II’’). See Letter from David
S. Shillman, Associate Director, Division of Trading
and Markets, Commission, to Ms. Jennifer Piorko
Mitchell, Vice President and Deputy Corporate
Secretary, FINRA, dated April 28, 2017.
9 Id.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00154
Fmt 4703
Sfmt 4703
B. Self-Regulatory Organization’s
Statement on Burden on Competition
12 See, e.g., Bats BZX Exchange, Inc. Rule 11.27;
Bats BYX Exchange, Inc. Rule 11.27; Bats EDGA
Exchange, Inc. Rule 11.21; Bats EDGX Exchange,
Inc. Rule 11.22; Chicago Stock Exchange, Inc.
Article 20, Rule 13; Investors Exchange LLC Rule
11340; NASDAQ BX, Inc. Rule 4770; Nasdaq Stock
Market LLC Rule 4770; NASDAQ PHLX LLC Rule
3317; FINRA Rule 6191; New York Stock Exchange
LLC Rule 67; NYSE MKT LLC Rule 67-Equities; and
NYSE Arca, Inc. Rule 7.46.
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Federal Register / Vol. 82, No. 149 / Friday, August 4, 2017 / Notices
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 designated this
proposed rule change as noncontroversial under 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)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),16 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange believes that
waiving the operative delay would be
consistent with the protection of
investors and the public interest
because the proposed rule change
would immediately align the Exchange’s
rules with those of the other
Participants.17 The Commission
believes that synchronizing the timing
for publication of Appendix B data for
all Participants should enhance the
consistency and usefulness of the
data.18 Therefore, the Commission
hereby waives the operative delay and
designates the proposed rule change
operative upon filing.19
13 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
17 See supra note 12.
18 See Exemptive Relief II, supra note 8.
19 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).
14 17
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15:13 Aug 03, 2017
Jkt 241001
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) 20 of the Act 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:
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–
NYSENAT–2017–03 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSENAT–2017–03. 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
20 15
PO 00000
U.S.C. 78s(b)(2)(B).
Frm 00155
Fmt 4703
Sfmt 4703
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–
NYSENAT–2017–03 and should be
submitted on or before August 25, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–16404 Filed 8–3–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81267; File No. SR–
NYSEArca–2017–36]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove a Proposed
Rule Change To Adopt NYSE Arca
Equities Rule 8.900 To Permit Listing
and Trading of Managed Portfolio
Shares and To List and Trade Shares
of the Royce Pennsylvania ETF; Royce
Premier ETF; and Royce Total Return
ETF Under Proposed NYSE Arca
Equities Rule 8.900
July 31, 2017.
On April 14, 2017, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to: (1) Adopt NYSE Arca
Equities Rule 8.900 (Managed Portfolio
Shares); and (2) list and trade shares
(‘‘Shares’’) of the Royce Pennsylvania
ETF, Royce Premier ETF, and Royce
Total Return ETF under proposed NYSE
Arca Equities Rule 8.900. The proposed
rule change was published for comment
in the Federal Register on May 4, 2017.3
On June 15, 2017, pursuant to Section
19(b)(2) of the 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
21 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 80553
(April 28, 2017), 82 FR 20932 (‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
1 15
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Agencies
[Federal Register Volume 82, Number 149 (Friday, August 4, 2017)]
[Notices]
[Pages 36508-36510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16404]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81269; File No. SR-NYSENAT-2017-03]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Amending
Rule 11.26 To Modify the Date of Appendix B Web site Data Publication
Pursuant to the Regulation NMS Plan To Implement a Tick Size Pilot
Program
July 31, 2017.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on July 18, 2017, NYSE National, Inc. (the ``Exchange'' or
``NYSE NAT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 11.26 to modify the date of
Appendix B Web site data publication pursuant to the Regulation NMS
Plan to Implement a Tick Size Pilot Program (``Plan''). The proposed
rule change is available on the Exchange's Web site at www.nyse.com, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
[[Page 36509]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
Rule 11.26(b) (Compliance with Data Collection Requirements) \4\
implements the data collection and Web site publication requirements of
the Plan.\5\ Interpretations and Policies .08 to Rule 11.26 provides,
among other things, that the requirement that the Exchange or their
[sic] DEA make certain data publicly available on the Exchange's or
DEA's Web site pursuant to Appendix B and C to the Plan shall commence
at the beginning of the Pilot Period, \6\ and that the Exchange or
their [sic] DEA shall make data for the Pre-Pilot Period publicly
available on the Exchange's or DEA's Web site pursuant to Appendix B
and C of the Plan by February 28, 2017.\7\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 77483 (March 31,
2016), 81 FR 20040 (April 6, 2016) (Immediate Effectiveness of
Proposed Rule Change To Adopt Exchange Rule 11.26 To Implement the
Regulation NMS Plan To Implement a Tick Size Pilot Program) (SR-NSX-
2016-01); see also Securities Exchange Act Release No. 78960
(September 28, 2016), 81 FR 68476 (October 4, 2016) (Immediate
Effectiveness of Proposed Rule Change to Amend Rule 11.26 to Modify
Certain Data Collection Requirements of the Regulation NMS Plan to
Implement a Tick Size Pilot Program) (SR-NSX-2016-12); see also
Letter from John C. Roeser, Associate Director, Division of Trading
and Markets, Commission, to James Buckley, Chief Regulatory Officer,
National Stock Exchange, Inc., dated April 4, 2016.
\5\ The Participants filed the Plan to comply with an order
issued by the Commission on June 24, 2014. See Letter from Brendon
J. Weiss, Vice President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014 (``SRO Tick Size Plan
Proposal''). See Securities Exchange Act Release No. 72460 (June 24,
2014), 79 FR 36840 (June 30, 2014); see also Securities Exchange Act
Release No. 74892 (May 6, 2015), 80 FR 27513 (May 13, 2015).
\6\ Unless otherwise defined herein, capitalized terms have the
meaning ascribed to them in the Plan.
\7\ On November 30, 2016, the SEC granted exemptive relief to
the Participants to, among other things, delay the publication of
Web site data pursuant to Appendices B and C to the Plan until
February 28, 2017, and to delay the ongoing Web site publication by
ninety days such that data would be published within 120 calendar
days following the end of the month. See Letter from David S.
Shillman, Associate Director, Division of Trading and Markets,
Commission, to Marcia E. Asquith, Senior Vice President and
Corporate Secretary, Financial Industry Regulatory Authority, Inc.
(``FINRA''), dated November 30, 2016; see also Securities Exchange
Act Release No. 79806 (January 17, 2017), 82 FR 8249 (January 24,
2017 and corrected on February 3, 2017) (Notice of Filing and
Immediate Effectiveness of File No. SR-NSX-2017-01).
---------------------------------------------------------------------------
The Exchange is proposing to amend Interpretations and Policies .08
to Rule 11.26 to delay the date by which Pre-Pilot and Pilot Appendix B
data is to be made publicly available on the Exchange's or DEA's Web
site from February 28, 2017, until August 31, 2017.\8\ Appendix C data
for the Pre-Pilot Period through the month of January 2017 was
published on the DEA's Web site on February 28, 2017, and, thereafter,
on the original 30-day schedule.
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\8\ On February 28, 2017, the SEC granted exemptive relief to
the Participants to delay the publication of Web site data pursuant
to Appendix B to the Plan until April 28, 2017 (``Exemptive Relief
I''). See Letter from David S. Shillman, Associate Director,
Division of Trading and Markets, Commission, to Mr. Robert L.D.
Colby, Executive Vice President and Chief Legal Officer, FINRA,
dated February 28, 2017.
On April 28, 2017, the SEC granted exemptive relief to the
Participants to further delay the publication of Web site data
pursuant to Appendix B to the Plan from April 28, 2017 until August
31, 2017 (``Exemptive Relief II''). See Letter from David S.
Shillman, Associate Director, Division of Trading and Markets,
Commission, to Ms. Jennifer Piorko Mitchell, Vice President and
Deputy Corporate Secretary, FINRA, dated April 28, 2017.
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The Exchange is also proposing to delete the words ``and make
certain data publicly available on the Exchange's or DEA's Web site''
in the second sentence to Interpretations and Policies .08 to Rule
11.26 as it is duplicate of the requirement in third sentence.
Pursuant to this proposed amendment, Appendix B data publication
would be delayed until August 31, 2017, with the Exchange publishing
the required Appendix B data for the Pre-Pilot Period through April 30,
2017, by August 31, 2017. Thereafter, Appendix B data for a particular
month would be published within 120 calendar days following such month
end. Thus, for example, Appendix B data for May 2017 would be made
available on the Exchange's or DEA's Web site by September 28, 2017,
and data for June 2017 would be made available on the Exchange's or
DEA's Web site by October 28, 2017. This proposed rule change would
align the Exchange's rules with those of the other Participants and is
consistent with the Commission's Exemptive Relief I and Exemptive
Relief II.\9\
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\9\ Id.
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2. Statutory Basis
The Exchange believes that its proposal 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, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Plan is designed to allow the Commission, market participants,
and the public to study and assess the impact of increment conventions
on the liquidity and trading of the common stock of small-
capitalization companies. The Exchange believes that this proposal is
consistent with the Act because it is in furtherance of the objectives
of Section VII(A) of the Plan in that it is designed to provide the
Exchange with additional time to assess a means of addressing the
confidentiality concerns raised in connection with the publication of
Appendix B data and to comply with the Plan's requirements that the
data made publicly available will not identify the trading center that
generated the data.
The Exchange ceased operations on February 1, 2017 and erroneously
understood that it was not thereafter required to modify its rules to
reflect extensions of the deadlines to publish data on its Web site.
The purpose of this filing is to correct that error and would align the
Exchange's rules with the rules of the other Participants and is
consistent with the Commission's Exemptive Relief I and Exemptive
Relief II.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. To the contrary,
the proposed rule change will result in the Exchange's rules being
consistent with those of other national securities exchanges and all of
the other Participants under the Plan.\12\ The Exchange believes that
the proposed amendment is consistent with the goal of removing
impediments to a free and open market because it would harmonize the
Exchange's rules with rules of other exchanges, further promote fair
competition in trading among exchanges, and help implement the
provisions of the Plan, as it is designed to assist the Participants in
meeting their regulatory obligations pursuant to the Plan.
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\12\ See, e.g., Bats BZX Exchange, Inc. Rule 11.27; Bats BYX
Exchange, Inc. Rule 11.27; Bats EDGA Exchange, Inc. Rule 11.21; Bats
EDGX Exchange, Inc. Rule 11.22; Chicago Stock Exchange, Inc. Article
20, Rule 13; Investors Exchange LLC Rule 11340; NASDAQ BX, Inc. Rule
4770; Nasdaq Stock Market LLC Rule 4770; NASDAQ PHLX LLC Rule 3317;
FINRA Rule 6191; New York Stock Exchange LLC Rule 67; NYSE MKT LLC
Rule 67-Equities; and NYSE Arca, Inc. Rule 7.46.
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[[Page 36510]]
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 designated this proposed rule change as non-
controversial under 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) thereunder.
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Exchange believes
that waiving the operative delay would be consistent with the
protection of investors and the public interest because the proposed
rule change would immediately align the Exchange's rules with those of
the other Participants.\17\ The Commission believes that synchronizing
the timing for publication of Appendix B data for all Participants
should enhance the consistency and usefulness of the data.\18\
Therefore, the Commission hereby waives the operative delay and
designates the proposed rule change operative upon filing.\19\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ See supra note 12.
\18\ See Exemptive Relief II, supra note 8.
\19\ 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) \20\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\20\ 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-NYSENAT-2017-03 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSENAT-2017-03. 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-NYSENAT-2017-03 and should
be submitted on or before August 25, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-16404 Filed 8-3-17; 8:45 am]
BILLING CODE 8011-01-P