Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 7.37, 37245-37247 [2017-16737]
Download as PDF
<![CDATA[
Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices
Commission received one comment in
response to the proposed rule change.4
The Exchange filed Amendment No. 1,
which supersedes and replaces the
proposed rule change in its entirety, on
July 28, 2017.5
Section 19(b)(2) of the Act 6 provides
that, within 45 days of the publication
of the notice of the filing of a proposed
rule change, or within such longer
period up to 90 days as the Commission
may designate if it finds such longer
period to be appropriate and publishes
its reasons for so finding or as to which
the self-regulatory organization
consents, the Commission shall approve
the proposed rule change, disapprove
the proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The Commission is
extending this 45-day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change, as modified by Amendment
No. 1. Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,7
designates September 18, 2017, as the
date by which the Commission should
approve, disapprove, or institute
proceedings to determine whether to
disapprove the proposed rule change
(File No. SR–NYSE–2017–30), as
modified by Amendment No. 1.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–16741 Filed 8–8–17; 8:45 am]
sradovich on DSK3GMQ082PROD with NOTICES
BILLING CODE 8011–01–P
4 See letter to the Commission from James J.
Angel, Ph.D., CFA, Georgetown University, dated
July 28, 2017.
5 Amendment No. 1 removes the proposal to
allow the Exchange to declare a regulatory halt in
a security that is the subject of an initial public
offering, and amends the proposed provisions of
Rule 15 and Rule 104 relating to private placement
market trading and proposed Rule 123D(d) relating
to trading halts for initial listings. Amendment No.
1 is available at https://www.sec.gov/comments/srnyse-2017-30/nyse201730.htm.
6 15 U.S.C. 78s(b)(2).
7 Id.
8 17 CFR 200.30–3(a)(57).
VerDate Sep<11>2014
17:00 Aug 08, 2017
Jkt 241001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81303; File No. SR–
NYSEArca–2017–83]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 7.37
August 3, 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 26,
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 [sic] Rule
7.37 (Order Execution and Routing). 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
Rule 7.37 (Order Execution and
Routing) to reflect changes to how the
Exchange would process MOC/LOC
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00057
Fmt 4703
Sfmt 4703
37245
Orders 4 routed to NYSE American LLC
(‘‘NYSE American’’).5 Rule 7.37(b)(7)(C)
provides that the Exchange rejects
requests to cancel or to reduce in size
a Market-on-Close Order (‘‘MOC Order’’)
or a Limit-on-Close Order (‘‘LOC
Order’’) in NYSE-listed securities or
NYSE MKT-listed securities (‘‘NYSE
American-listed securities’’) 6 that is
electronically entered after the time
specified in NYSE Rules [sic] 123C(3)(b)
and NYSE MKT Rule 123C(3)(b)—
Equities (‘‘NYSE American Rule
123C(3)(b)—Equities’’) 7 and
Supplementary Material .40 to those
rules.8
The Exchange proposes to amend
Rule 7.37(b)(7)(C) to provide that the
Exchange would no longer reject
requests to cancel or reduce in size
MOC/LOC Orders in NYSE Americanlisted securities. The Exchange is
enhancing functionality to coincide
with the recent migration of NYSE
American to the Pillar trading system.
On Pillar, NYSE American no longer
processes MOC or LOC Orders under
NYSE American Rule 123C—Equities
and instead processes such orders under
NYSE American Rule 7.35E.9 Because
NYSE American will systemically
enforce its requirements by rejecting
requests to cancel or requests to cancel
4 A Market-on-Close Order is a Market Order that
is to be traded only during the Closing Auction and
a Limit-on-Close Order is a Limit Order that is to
be traded only during the Closing Auction. See Rule
7.31(c)(3) and (4). If the Exchange does not conduct
a closing auction in a UTP Security, the Exchange
routes MOC/LOC Orders in such a UTP Security to
the primary listing market. See Rule 7.34(c)(2)(B).
5 On July 24, 2017, the Exchange’s affiliate, NYSE
MKT LLC, transitioned to the Pillar trading
platform and was renamed NYSE American LLC.
See Securities Exchange Act Release Nos. 79242
(November 4, 2016), 81 FR 79081 (November 10,
2016) (SR–NYSEMKT–2016–97); 79400 (November
25, 2016), 81 FR 86750 (December 1, 2016) (SR–
NYSEMKT–2016–103); 80283 (March 21, 2017), 82
FR 15244 (March 27, 2017) (SR–NYSEMKT–2017–
14); and 80748 (May 23, 2017), 82 FR 24764 (May
30, 2017) (SR–NYSEMKT–2017–20).
6 See supra, note 5.
7 See supra, note 5.
8 NYSE Rule 123C(3)(b) and NYSE American Rule
123C(3)(b)—Equities provide that between 3:45
p.m. and 3:58 p.m., MOC, LOC and CO Orders may
be cancelled or reduced in size to correct a
legitimate error, and NYSE Rule 123C(3)(c) and
NYSE American Rule 123C(3)(c)—Equities provide
that MOC, LOC and CO Orders may not be
cancelled or adjusted for any reason after 3:58 p.m.
unless there is an Extreme Order Imbalance at or
Near the Close, as provided in NYSE Rule 123C(9)
and NYSE American Rule 123C(9)—Equities.
Accordingly, between 3:45 p.m. and 3:58 p.m.,
NYSE and NYSE American accept requests to
cancel MOC and LOC Orders.
9 NYSE American Rule 7.35E(d)(2)(B) provides
that when the Closing Auction Imbalance Freeze
begins, NYSE American will reject requests to
cancel and requests to cancel and replace MOC
Orders and LOC Orders.
E:\FR\FM\09AUN1.SGM
09AUN1
37246
Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices
and replace 10 a MOC or LOC Order in
an NYSE American-listed security, the
Exchange will no longer need to
monitor the trading behavior on NYSE
American. As a result, the Exchange
proposes to accept and route all requests
to cancel or reduce in size MOC/LOC
Orders in NYSE American-listed
securities, regardless of the time. The
Exchange believes that the proposed
changes would provide transparency
regarding how requests to cancel orders
or reduce in size would be processed on
the Exchange.
Because of technology changes
associated with this proposed rule
change, the Exchange will announce the
implementation date by Trader Update,
which the Exchange anticipates will be
in the third quarter of 2017.
sradovich on DSK3GMQ082PROD with NOTICES
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),11 in general, and furthers the
objectives of Section 6(b)(5),12 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.
Specifically, the Exchange believes
that the proposed rule change would
promote just and equitable principles of
trade, and remove impediments to and
perfect the mechanism of a free and
open market and a national market
system by allowing the Exchange to
accept and route requests to cancel or
reduce in size MOC Orders and LOC
Orders in NYSE American-listed
securities regardless of the time. The
Exchange believes that the proposed
change would remove impediments to
and perfect the mechanism of a free and
open market and a national market
system because now that NYSE
American has transitioned to Pillar,
NYSE American systemically enforces
whether it accepts a request to cancel or
reduce in size a MOC or LOC Order, and
the Exchange would no longer need to
monitor this functionality.
The Exchange further believes that the
proposed amendments to Rule
10 On the Pillar trading system, to reduce the size
of an order, an ETP Holder submits a request to
cancel a portion of the order.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
17:00 Aug 08, 2017
Jkt 241001
7.37(b)(7)(C) would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because
the proposed changes would provide
greater clarity regarding how requests to
cancel or reduce in size MOC Orders
and LOC Orders in NYSE Americanlisted securities would be processed by
the Exchange, thereby promoting
transparency and clarity in Exchange
rules.
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
to make amendments to Rule 7.37 to
reflect differences to how NYSE
American processes requests to cancel
or reduce in size MOC and LOC Orders
on the Pillar trading system.
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) of the Act 13 and Rule 19b–
4(f)(6) thereunder.14
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 15 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 16
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
14 17
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange stated that NYSE
American has transitioned to the Pillar
trading platform and now systemically
enforces whether it accepts a request to
cancel or reduce in size a MOC or LOC
order, so the Exchange no longer needs
to monitor this functionality. The
Exchange also stated that waiver of the
30-day operative delay would allow it to
implement the proposed rule change
when the technology supporting the
change becomes available, which the
Exchange anticipates to be less than 30
days after the date of this filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Therefore, the
Commission hereby waives the
operative delay and designates the
proposal operative upon filing.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 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
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–
NYSEArca–2017–83 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–NYSEArca–2017–83. This
file number should be included on the
17 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).
E:\FR\FM\09AUN1.SGM
09AUN1
Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices
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–2017–83 and should be
submitted on or before August 30, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–16737 Filed 8–8–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
32774; 812–14792]
Sage Advisory Services LTD Co. and
Northern Lights Fund Trust IV
August 4, 2017.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
AGENCY:
Secretary, Securities and
Exchange Commission, 100 F Street NE.,
Washington, DC 20549–1090;
Applicants: The Initial Adviser, 5900
Southwest Parkway, Building 1, Suite
100, Austin, Texas 78735–6202; the
Trust, 17605 Wright Street, Omaha, NE
68130.
sradovich on DSK3GMQ082PROD with NOTICES
ADDRESSES:
18 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:00 Aug 08, 2017
Jkt 241001
FOR FURTHER INFORMATION CONTACT:
Rochelle Kauffman Plesset, Senior
Counsel, at (202) 551–6840, or David J.
Marcinkus, Branch Chief, at (202) 551–
6882 (Division of Investment
Management, Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: Notice of
an application for an order under
section 6(c) of the Investment Company
Act of 1940 (the ‘‘Act’’) for an
exemption from sections 2(a)(32),
5(a)(1), 22(d), and 22(e) of the Act and
rule 22c–1 under the Act, under
sections 6(c) and 17(b) of the Act for an
exemption from sections 17(a)(1) and
17(a)(2) of the Act, and under section
12(d)(1)(J) for an exemption from
sections 12(d)(1)(A) and 12(d)(1)(B) of
the Act. The requested order would
permit (a) index-based series of certain
open-end management investment
companies (‘‘Funds’’) to issue shares
redeemable in large aggregations only
(‘‘Creation Units’’); (b) secondary market
transactions in Fund shares to occur at
negotiated market prices rather than at
net asset value (‘‘NAV’’); (c) certain
Funds to pay redemption proceeds,
under certain circumstances, more than
seven days after the tender of shares for
redemption; (d) certain affiliated
persons of a Fund to deposit securities
into, and receive securities from, the
Fund in connection with the purchase
and redemption of Creation Units; and
(e) certain registered management
investment companies and unit
investment trusts outside of the same
group of investment companies as the
Funds (‘‘Funds of Funds’’) to acquire
shares of the Funds.
Applicants: Sage Advisory Services
LTD Co. (the ‘‘Initial Adviser’’), a Texas
limited liability company that is
registered as an investment adviser
under the Investment Advisers Act of
1940 and Northern Lights Fund Trust
IV, (the ‘‘Trust’’), a Delaware statutory
trust registered under the Act as an
open-end management investment
company with multiple series.
Filing Date: The application was filed
on June 29, 2017.
Hearing or Notification of Hearing: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on August 30, 2017, and
should be accompanied by proof of
service on applicants, in the form of an
affidavit, or for lawyers, a certificate of
service. Pursuant to rule 0–5 under the
Act, hearing requests should state the
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
37247
nature of the writer’s interest, any facts
bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
The following is a summary of the
application. The complete application
may be obtained via the Commission’s
Web site by searching for the file
number, or for an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
Summary of the Application
1. Applicants request an order that
would allow Funds to operate as index
exchange traded funds (‘‘ETFs’’).1 Fund
shares will be purchased and redeemed
at their NAV in Creation Units only. All
orders to purchase Creation Units and
all redemption requests will be placed
by or through an ‘‘Authorized
Participant’’, which will have signed a
participant agreement with the
Distributor. Shares will be listed and
traded individually on a national
securities exchange, where share prices
will be based on the current bid/offer
market. Any order granting the
requested relief would be subject to the
terms and conditions stated in the
application.
2. Each Fund will hold investment
positions selected to correspond
generally to the performance of an
Underlying Index. In the case of SelfIndexing Funds, an affiliated person, as
defined in section 2(a)(3) of the Act
(‘‘Affiliated Person’’), or an affiliated
person of an Affiliated Person (‘‘SecondTier Affiliate’’), of the Trust or a Fund,
of the Adviser, of any sub-adviser to or
promoter of a Fund, or of the Distributor
will compile, create, sponsor or
maintain the Underlying Index.2
3. Shares will be purchased and
redeemed in Creation Units and
generally on an in-kind basis. Except
1 Applicants request that the order apply to the
new series of the Trust and any additional series of
the Trust, and any other open-end management
investment company or series thereof (each,
included in the term ‘‘Fund’’), each of which will
operate as an ETF and will track a specified index
comprised of domestic or foreign equity and/or
fixed income securities (each, an ‘‘Underlying
Index’’). Any Fund will (a) be advised by the Initial
Adviser or an entity controlling, controlled by, or
under common control with the Initial Adviser
(each, an ‘‘Adviser’’) and (b) comply with the terms
and conditions of the application.
2 Each Self-Indexing Fund will post on its Web
site the identities and quantities of the investment
positions that will form the basis for the Fund’s
calculation of its NAV at the end of the day.
Applicants believe that requiring Self-Indexing
Funds to maintain full portfolio transparency will
help address, together with other protections,
conflicts of interest with respect to such Funds.
E:\FR\FM\09AUN1.SGM
09AUN1
]]>Agencies
[Federal Register Volume 82, Number 152 (Wednesday, August 9, 2017)]
[Notices]
[Pages 37245-37247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16737]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81303; File No. SR-NYSEArca-2017-83]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Rule 7.37
August 3, 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 26, 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 [sic] Rule 7.37 (Order Execution and
Routing). 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 Rule 7.37 (Order Execution and
Routing) to reflect changes to how the Exchange would process MOC/LOC
Orders \4\ routed to NYSE American LLC (``NYSE American'').\5\ Rule
7.37(b)(7)(C) provides that the Exchange rejects requests to cancel or
to reduce in size a Market-on-Close Order (``MOC Order'') or a Limit-
on-Close Order (``LOC Order'') in NYSE-listed securities or NYSE MKT-
listed securities (``NYSE American-listed securities'') \6\ that is
electronically entered after the time specified in NYSE Rules [sic]
123C(3)(b) and NYSE MKT Rule 123C(3)(b)--Equities (``NYSE American Rule
123C(3)(b)--Equities'') \7\ and Supplementary Material .40 to those
rules.\8\
---------------------------------------------------------------------------
\4\ A Market-on-Close Order is a Market Order that is to be
traded only during the Closing Auction and a Limit-on-Close Order is
a Limit Order that is to be traded only during the Closing Auction.
See Rule 7.31(c)(3) and (4). If the Exchange does not conduct a
closing auction in a UTP Security, the Exchange routes MOC/LOC
Orders in such a UTP Security to the primary listing market. See
Rule 7.34(c)(2)(B).
\5\ On July 24, 2017, the Exchange's affiliate, NYSE MKT LLC,
transitioned to the Pillar trading platform and was renamed NYSE
American LLC. See Securities Exchange Act Release Nos. 79242
(November 4, 2016), 81 FR 79081 (November 10, 2016) (SR-NYSEMKT-
2016-97); 79400 (November 25, 2016), 81 FR 86750 (December 1, 2016)
(SR-NYSEMKT-2016-103); 80283 (March 21, 2017), 82 FR 15244 (March
27, 2017) (SR-NYSEMKT-2017-14); and 80748 (May 23, 2017), 82 FR
24764 (May 30, 2017) (SR-NYSEMKT-2017-20).
\6\ See supra, note 5.
\7\ See supra, note 5.
\8\ NYSE Rule 123C(3)(b) and NYSE American Rule 123C(3)(b)--
Equities provide that between 3:45 p.m. and 3:58 p.m., MOC, LOC and
CO Orders may be cancelled or reduced in size to correct a
legitimate error, and NYSE Rule 123C(3)(c) and NYSE American Rule
123C(3)(c)--Equities provide that MOC, LOC and CO Orders may not be
cancelled or adjusted for any reason after 3:58 p.m. unless there is
an Extreme Order Imbalance at or Near the Close, as provided in NYSE
Rule 123C(9) and NYSE American Rule 123C(9)--Equities. Accordingly,
between 3:45 p.m. and 3:58 p.m., NYSE and NYSE American accept
requests to cancel MOC and LOC Orders.
---------------------------------------------------------------------------
The Exchange proposes to amend Rule 7.37(b)(7)(C) to provide that
the Exchange would no longer reject requests to cancel or reduce in
size MOC/LOC Orders in NYSE American-listed securities. The Exchange is
enhancing functionality to coincide with the recent migration of NYSE
American to the Pillar trading system. On Pillar, NYSE American no
longer processes MOC or LOC Orders under NYSE American Rule 123C--
Equities and instead processes such orders under NYSE American Rule
7.35E.\9\ Because NYSE American will systemically enforce its
requirements by rejecting requests to cancel or requests to cancel
[[Page 37246]]
and replace \10\ a MOC or LOC Order in an NYSE American-listed
security, the Exchange will no longer need to monitor the trading
behavior on NYSE American. As a result, the Exchange proposes to accept
and route all requests to cancel or reduce in size MOC/LOC Orders in
NYSE American-listed securities, regardless of the time. The Exchange
believes that the proposed changes would provide transparency regarding
how requests to cancel orders or reduce in size would be processed on
the Exchange.
---------------------------------------------------------------------------
\9\ NYSE American Rule 7.35E(d)(2)(B) provides that when the
Closing Auction Imbalance Freeze begins, NYSE American will reject
requests to cancel and requests to cancel and replace MOC Orders and
LOC Orders.
\10\ On the Pillar trading system, to reduce the size of an
order, an ETP Holder submits a request to cancel a portion of the
order.
---------------------------------------------------------------------------
Because of technology changes associated with this proposed rule
change, the Exchange will announce the implementation date by Trader
Update, which the Exchange anticipates will be in the third quarter of
2017.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\11\ in general, and
furthers the objectives of Section 6(b)(5),\12\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Specifically, the Exchange believes that the proposed rule change
would promote just and equitable principles of trade, and remove
impediments to and perfect the mechanism of a free and open market and
a national market system by allowing the Exchange to accept and route
requests to cancel or reduce in size MOC Orders and LOC Orders in NYSE
American-listed securities regardless of the time. The Exchange
believes that the proposed change would remove impediments to and
perfect the mechanism of a free and open market and a national market
system because now that NYSE American has transitioned to Pillar, NYSE
American systemically enforces whether it accepts a request to cancel
or reduce in size a MOC or LOC Order, and the Exchange would no longer
need to monitor this functionality.
The Exchange further believes that the proposed amendments to Rule
7.37(b)(7)(C) would remove impediments to and perfect the mechanism of
a free and open market and a national market system because the
proposed changes would provide greater clarity regarding how requests
to cancel or reduce in size MOC Orders and LOC Orders in NYSE American-
listed securities would be processed by the Exchange, thereby promoting
transparency and clarity in Exchange rules.
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 to make amendments
to Rule 7.37 to reflect differences to how NYSE American processes
requests to cancel or reduce in size MOC and LOC Orders on the Pillar
trading system.
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) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the
Commission to 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
stated that NYSE American has transitioned to the Pillar trading
platform and now systemically enforces whether it accepts a request to
cancel or reduce in size a MOC or LOC order, so the Exchange no longer
needs to monitor this functionality. The Exchange also stated that
waiver of the 30-day operative delay would allow it to implement the
proposed rule change when the technology supporting the change becomes
available, which the Exchange anticipates to be less than 30 days after
the date of this filing. The Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and
the public interest. Therefore, the Commission hereby waives the
operative delay and designates the proposal operative upon filing.\17\
---------------------------------------------------------------------------
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ 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).
---------------------------------------------------------------------------
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 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 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-NYSEArca-2017-83 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-NYSEArca-2017-83. This
file number should be included on the
[[Page 37247]]
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-2017-83 and should be submitted on or before
August 30, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-16737 Filed 8-8-17; 8:45 am]
BILLING CODE 8011-01-P
