Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change To Amend Section 202.06 of the NYSE Listed Company Manual To Prohibit Listed Companies From Issuing Material News After the Official Closing Time for the Exchange's Trading Session Until the Earlier of Publication of Such Company's Official Closing Price on the Exchange or Five Minutes After the Official Closing Time, 42008-42010 [2017-18659]
Download as PDF
42008
Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Notices
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–
BatsBZX–2017–56 and should be
submitted on or before September 26,
2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–18660 Filed 9–1–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSK30JT082PROD with NOTICES
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a closed meeting
on Wednesday, September 6, 2017 at 2
p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (a)(5), (a)(7),
(a)(9)(ii) and (a)(10), permit
consideration of the scheduled matters
at the closed meeting.
Commissioner Stein, as duty officer,
voted to consider the items listed for the
closed meeting in closed session.
The subject matters of the closed
meeting will be:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Adjudicatory matters;
Resolution of litigation claims; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed; please
contact Brent J. Fields from the Office of
the Secretary at (202) 551–5400.
Dated: August 30, 2017.
Brent J. Fields,
Secretary.
[FR Doc. 2017–18807 Filed 8–31–17; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81494; File No. SR–NYSE–
2017–32]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change To
Amend Section 202.06 of the NYSE
Listed Company Manual To Prohibit
Listed Companies From Issuing
Material News After the Official Closing
Time for the Exchange’s Trading
Session Until the Earlier of Publication
of Such Company’s Official Closing
Price on the Exchange or Five Minutes
After the Official Closing Time
August 29, 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 August
17, 2017, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
19 17
CFR 200.30–3(a)(12).
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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
Section 202.06 of the NYSE Listed
Company Manual (the ‘‘Manual’’) to
limit the issuance of material news by
listed companies in the period
immediately after the official closing
time for the Exchange’s trading session.
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
Section 202.06 of the Manual to limit
the issuance of material news by listed
companies in the period immediately
after the official closing time for the
Exchange’s trading session.
Continuous trading on the Exchange
ends at the Exchange’s official closing
time of 4:00 p.m. Eastern Time (except
that on certain days the official closing
time occurs early at 1:00 p.m. Eastern
Time), which is when the Exchange
stops accepting new orders, including
orders designated for the closing
auction, and requests to cancel orders.4
The Designated Market Maker (‘‘DMM’’)
registered in a security facilitates the
close of trading after continuous trading
ends at the official closing time of 4:00
4 Pursuant to NYSE Rule 123C(2), orders
designated for the close, including Market on Close
(‘‘MOC’’) and Limit on Close (‘‘LOC’’) Orders can
be entered after 3:45 p.m. to offset a published
Mandatory MOC/LOC Imbalance Publication.
Closing Offset (‘‘CO’’) Orders can be entered on
both sides of the market up to 4:00 p.m. regardless
of whether there is a published imbalance.
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Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Notices
p.m.5 Up to 4:00 p.m., the Exchange
publishes Order Imbalance Information,
which includes real-time order
imbalance information and information
indicating the price at which closing
interest may be executed in full and the
price at which Exchange Book and
closing-only interest may be executed in
full.6
The DMM-facilitated closing process
is manual, however, a DMM can choose
to automate the process.7 Because of the
manual nature of how the close is
facilitated, the DMM cannot begin the
process until order entry acceptance has
ended, i.e., after 4:00 p.m. A DMM
therefore facilitates a closing auction
based on an order imbalance established
before 4:00 p.m., and on orders entered
with information available before 4:00
p.m.
Because there is trading after 4:00
p.m. Eastern Time on other exchange
and non-exchange venues, if a listed
company releases material news
immediately after 4:00 p.m., but before
the closing auction on the NYSE is
completed, there can be a significant
price difference in nearly
contemporaneous trades on other
markets and the closing price on the
Exchange.8 As the discrepancy between
the NYSE closing price and trading
prices on other markets can cause
confusion to investors, the Exchange
previously added advisory text in
Section 202.06 of the Manual requesting
that listed companies intending to
release material news after the close of
trading on the Exchange wait until the
earlier of the publication of their
security’s official closing price on the
Exchange or 15 minutes after the
scheduled closing time on the
Exchange.
Notwithstanding this advisory text,
the Exchange has continued to
mstockstill on DSK30JT082PROD with NOTICES
5 Pursuant
to NYSE Rule 104(a)(3), a DMM has a
responsibility and duty to facilitate the close of
trading for each of the securities in which the DMM
is registered as required by Exchange rules, which
may include supplying liquidity as needed.
6 See NYSE Rule 123C(6) (describing the Order
Imbalance Information Data Feed).
7 See NYSE Rule 123C, which establishes the
Exchange’s Closing Procedures, including that
closings may be effectuated manually or
electronically by the DMM (Supplementary
Material .10 to Rule 123C). In particular, see Rule
123C(7) for the order of execution on the close,
including which orders are guaranteed to
participate in the closing transaction, and in which
order and Rule 123C(8) for how closing transactions
are to be effectuated if there is an imbalance of
shares to buy over shares to sell in MOC and/or
marketable LOC orders, or vice versa.
8 The price of the closing auction is based in large
part on the order imbalance established before 4:00
p.m.; if material news is issued after 4:00 p.m., but
before the closing auction, market participants can
neither enter nor cancel orders intended for the
close on the NYSE.
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experience situations where material
news released shortly after 4:00 p.m. has
caused significant investor confusion.
Specifically, when a listed company
releases material news shortly after 4:00
p.m., but before the DMM has been able
to complete the closing auction, the
news release can cause the company’s
stock to trade on other markets at
materially different prices than the price
of the NYSE’s closing auction.
The Exchange now proposes to amend
Section 202.06 to prohibit listed
companies from issuing material news
after the official closing time for the
Exchange’s trading session until the
earlier of publication of such company’s
official closing price on the Exchange or
five minutes after the official closing
time. In the Exchange’s experience,
DMMs are able to complete the closing
auctions for the securities assigned to a
DMM in almost all cases within five
minutes of the Exchange’s official
closing time, so the proposed
amendment utilizes that timeframe as it
would make it unlikely that a listed
company would ever issue material
news between the official closing time
and the completion of the closing
auction.9 This prohibition would
mitigate the risk of market disruption
and investor confusion associated with
the occurrence of significant newsrelated price volatility on other markets
during the brief period between the
NYSE’s official closing time and the
completion of the closing auction.
While the Exchange notes the
importance of the requirement of
Section 202.05 of the Manual that listed
companies issue material news as
quickly as possible, it believes that the
brief delay mandated by the proposed
amendment is desirable in light of the
benefit of the reduced likelihood of the
occurrence investor confusion
associated with the issuance of material
news prior to the completion of the
closing auction.
in regulating, clearing, settling,
processing information with respect to,
and 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 and is
not designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers. In
particular, the proposed amendment is
designed to promote just and equitable
principles of trade by ensuring that
participants in the closing auction at the
Exchange do not have their trades
executed at a price that is inconsistent
with contemporaneous trading prices on
other markets that reflect material news
that was released after the NYSE’s
official closing time.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) 10 of the Act, in general, and
furthers the objectives of Section 6(b)(5)
of the Act,11 in particular in that it is
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
9 To avoid market disruptions when the closing
auction is delayed more than five minutes, the
amended rule will continue to include advisory text
asking companies to avoid issuing material news
until the earlier of publication of the official closing
price or 15 minutes after the NYSE’s official closing
time.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
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 purpose of the Exchange Act. The
purpose of the proposed amendment is
not to affect competition, but rather to
ensure that participants in the closing
auction at the Exchange do not have
their trades executed at a price that is
inconsistent with contemporaneous
trading prices on other markets that
reflect material news that was released
after the NYSE’s official closing time.
Therefore, the proposed rule change
will not impose any burden on
competition.
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.
Within 45 days of the date of
publication of this notice in the Federal
Register or up to 90 days (i) as the
Commission may designate if it finds
such longer period to be appropriate
and publishes its reasons for so finding
or (ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
E:\FR\FM\05SEN1.SGM
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Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Notices
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–18659 Filed 9–1–17; 8:45 am]
BILLING CODE 8011–01–P
Electronic Comments
SMALL BUSINESS ADMINISTRATION
• 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–
NYSE–2017–32 on the subject line.
Delegation of Authority
Paper Comments
mstockstill on DSK30JT082PROD with NOTICES
• 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–NYSE–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–NYSE–
2017–32 and should be submitted on or
before September 26, 2017.
U.S. Small Business
Administration.
ACTION: Notice of delegation of
authority.
AGENCY:
This document provides the
public with notice of the delegation of
authority for certain activities related to
the licensing of small business
investment companies by the
Administrator of the Small Business
Administration (SBA) to the Agency
Licensing Committee.
FOR FURTHER INFORMATION CONTACT:
Carol Fendler, Office of Investment and
Innovation, U.S. Small Business
Administration, 409 3rd Street SW.,
Washington, DC 20416; (202) 205–7559
or carol.fendler@sba.gov.
SUPPLEMENTARY INFORMATION: This
document provides the public with
notice of the Administrator’s delegation
of authority to the Agency Licensing
Committee to review and recommend to
the Administrator for approval
applications for licenses to operate as a
small business investment company
under the Small Business Investment
Act of 1958, as amended.
This delegation of authority reads as
follows:
Pursuant to the authority vested in me
pursuant to section 301 of the Small
Business Investment Act of 1958, as
amended, the authority to take any and
all actions necessary to review
applications for licensing under section
301 of the Small Business Investment
Act of 1958, as amended, and to
recommend to the Administrator which
such applications should be approved is
delegated to the Agency Licensing
Committee.
The Agency Licensing Committee
shall be composed of the following
members:
Deputy Administrator, Chair
Associate Administrator for Capital
Access
Associate Administrator for Investment
and Innovation
General Counsel
Deputy General Counsel
Chief Financial Officer
SUMMARY:
12 17
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CFR 200.30–3(a)(12).
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Fmt 4703
Sfmt 4703
This authority revokes all other
authorities granted by the Administrator
to recommend and approve applications
for a license to operate as a small
business investment company under the
Small Business Investment Act of 1958,
as amended. This authority may not be
re-delegated; however, in the event that
the person serving in one of the
positions listed as a member of the
Agency Licensing Committee is absent
from the office, as defined in SBA
Standard Operating Procedure 00 01 2,
Chapter 3, paragraph 2, or is unable to
perform the functions and duties of his
or her position, the individual serving
in an acting capacity, pursuant to a
written and established line of
succession, may serve on the Committee
during such absence or inability. In
addition, if one of the positions listed as
a member of the Agency Licensing
Committee is vacant, the individual
serving in that position in an acting
capacity shall serve on the Agency
Licensing Committee. This authority
will remain in effect until revoked in
writing by the Administrator or by
operation of law.
Dated: August 24, 2017.
Linda E. McMahon,
Administrator.
[FR Doc. 2017–18665 Filed 9–1–17; 8:45 am]
BILLING CODE P
DEPARTMENT OF STATE
[Public Notice 10106]
60-Day Notice of Proposed Information
Collection: Electronic Medical
Examination for Visa or Applicant
Notice of request for public
comment.
ACTION:
The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
In accordance with the Paperwork
Reduction Act of 1995, we are
requesting comments on this collection
from all interested individuals and
organizations. The purpose of this
notice is to allow 60 days for public
comment preceding submission of the
collection to OMB.
DATES: The Department will accept
comments from the public up to
November 6, 2017.
ADDRESSES: You may submit comments
by any of the following methods:
• Web: Persons with access to the
Internet may comment on this notice by
going to www.Regulations.gov. You can
search for the document by entering
SUMMARY:
E:\FR\FM\05SEN1.SGM
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Agencies
[Federal Register Volume 82, Number 170 (Tuesday, September 5, 2017)]
[Notices]
[Pages 42008-42010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-18659]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81494; File No. SR-NYSE-2017-32]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Proposed Rule Change To Amend Section 202.06 of the
NYSE Listed Company Manual To Prohibit Listed Companies From Issuing
Material News After the Official Closing Time for the Exchange's
Trading Session Until the Earlier of Publication of Such Company's
Official Closing Price on the Exchange or Five Minutes After the
Official Closing Time
August 29, 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 August 17, 2017, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III 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 Section 202.06 of the NYSE Listed
Company Manual (the ``Manual'') to limit the issuance of material news
by listed companies in the period immediately after the official
closing time for the Exchange's trading session. 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 Section 202.06 of the Manual to
limit the issuance of material news by listed companies in the period
immediately after the official closing time for the Exchange's trading
session.
Continuous trading on the Exchange ends at the Exchange's official
closing time of 4:00 p.m. Eastern Time (except that on certain days the
official closing time occurs early at 1:00 p.m. Eastern Time), which is
when the Exchange stops accepting new orders, including orders
designated for the closing auction, and requests to cancel orders.\4\
The Designated Market Maker (``DMM'') registered in a security
facilitates the close of trading after continuous trading ends at the
official closing time of 4:00
[[Page 42009]]
p.m.\5\ Up to 4:00 p.m., the Exchange publishes Order Imbalance
Information, which includes real-time order imbalance information and
information indicating the price at which closing interest may be
executed in full and the price at which Exchange Book and closing-only
interest may be executed in full.\6\
---------------------------------------------------------------------------
\4\ Pursuant to NYSE Rule 123C(2), orders designated for the
close, including Market on Close (``MOC'') and Limit on Close
(``LOC'') Orders can be entered after 3:45 p.m. to offset a
published Mandatory MOC/LOC Imbalance Publication. Closing Offset
(``CO'') Orders can be entered on both sides of the market up to
4:00 p.m. regardless of whether there is a published imbalance.
\5\ Pursuant to NYSE Rule 104(a)(3), a DMM has a responsibility
and duty to facilitate the close of trading for each of the
securities in which the DMM is registered as required by Exchange
rules, which may include supplying liquidity as needed.
\6\ See NYSE Rule 123C(6) (describing the Order Imbalance
Information Data Feed).
---------------------------------------------------------------------------
The DMM-facilitated closing process is manual, however, a DMM can
choose to automate the process.\7\ Because of the manual nature of how
the close is facilitated, the DMM cannot begin the process until order
entry acceptance has ended, i.e., after 4:00 p.m. A DMM therefore
facilitates a closing auction based on an order imbalance established
before 4:00 p.m., and on orders entered with information available
before 4:00 p.m.
---------------------------------------------------------------------------
\7\ See NYSE Rule 123C, which establishes the Exchange's Closing
Procedures, including that closings may be effectuated manually or
electronically by the DMM (Supplementary Material .10 to Rule 123C).
In particular, see Rule 123C(7) for the order of execution on the
close, including which orders are guaranteed to participate in the
closing transaction, and in which order and Rule 123C(8) for how
closing transactions are to be effectuated if there is an imbalance
of shares to buy over shares to sell in MOC and/or marketable LOC
orders, or vice versa.
---------------------------------------------------------------------------
Because there is trading after 4:00 p.m. Eastern Time on other
exchange and non-exchange venues, if a listed company releases material
news immediately after 4:00 p.m., but before the closing auction on the
NYSE is completed, there can be a significant price difference in
nearly contemporaneous trades on other markets and the closing price on
the Exchange.\8\ As the discrepancy between the NYSE closing price and
trading prices on other markets can cause confusion to investors, the
Exchange previously added advisory text in Section 202.06 of the Manual
requesting that listed companies intending to release material news
after the close of trading on the Exchange wait until the earlier of
the publication of their security's official closing price on the
Exchange or 15 minutes after the scheduled closing time on the
Exchange.
---------------------------------------------------------------------------
\8\ The price of the closing auction is based in large part on
the order imbalance established before 4:00 p.m.; if material news
is issued after 4:00 p.m., but before the closing auction, market
participants can neither enter nor cancel orders intended for the
close on the NYSE.
---------------------------------------------------------------------------
Notwithstanding this advisory text, the Exchange has continued to
experience situations where material news released shortly after 4:00
p.m. has caused significant investor confusion. Specifically, when a
listed company releases material news shortly after 4:00 p.m., but
before the DMM has been able to complete the closing auction, the news
release can cause the company's stock to trade on other markets at
materially different prices than the price of the NYSE's closing
auction.
The Exchange now proposes to amend Section 202.06 to prohibit
listed companies from issuing material news after the official closing
time for the Exchange's trading session until the earlier of
publication of such company's official closing price on the Exchange or
five minutes after the official closing time. In the Exchange's
experience, DMMs are able to complete the closing auctions for the
securities assigned to a DMM in almost all cases within five minutes of
the Exchange's official closing time, so the proposed amendment
utilizes that timeframe as it would make it unlikely that a listed
company would ever issue material news between the official closing
time and the completion of the closing auction.\9\ This prohibition
would mitigate the risk of market disruption and investor confusion
associated with the occurrence of significant news-related price
volatility on other markets during the brief period between the NYSE's
official closing time and the completion of the closing auction. While
the Exchange notes the importance of the requirement of Section 202.05
of the Manual that listed companies issue material news as quickly as
possible, it believes that the brief delay mandated by the proposed
amendment is desirable in light of the benefit of the reduced
likelihood of the occurrence investor confusion associated with the
issuance of material news prior to the completion of the closing
auction.
---------------------------------------------------------------------------
\9\ To avoid market disruptions when the closing auction is
delayed more than five minutes, the amended rule will continue to
include advisory text asking companies to avoid issuing material
news until the earlier of publication of the official closing price
or 15 minutes after the NYSE's official closing time.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \10\ of the Act, in general, and furthers the
objectives of Section 6(b)(5) of the Act,\11\ in particular in that it
is designed to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
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
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers. In particular, the proposed amendment is
designed to promote just and equitable principles of trade by ensuring
that participants in the closing auction at the Exchange do not have
their trades executed at a price that is inconsistent with
contemporaneous trading prices on other markets that reflect material
news that was released after the NYSE's official closing time.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Exchange Act. The purpose of the
proposed amendment is not to affect competition, but rather to ensure
that participants in the closing auction at the Exchange do not have
their trades executed at a price that is inconsistent with
contemporaneous trading prices on other markets that reflect material
news that was released after the NYSE's official closing time.
Therefore, the proposed rule change will not impose any burden on
competition.
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
Within 45 days of the date of publication of this notice in the
Federal Register or up to 90 days (i) as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or (ii) as to which the self-regulatory
organization consents, the Commission will:
(A) By order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
[[Page 42010]]
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-NYSE-2017-32 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-NYSE-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-NYSE-2017-32 and should be
submitted on or before September 26, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-18659 Filed 9-1-17; 8:45 am]
BILLING CODE 8011-01-P