Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 6.40-O To Allow Certain Order Types To Be Excluded From the Risk Limitation Mechanism, 45631-45634 [2017-20892]
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Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Notices
For the Nuclear Regulatory Commission.
Thomas H. Boyce,
Chief, Regulatory Guidance and Generic
Issues Branch, Division of Engineering, Office
of Nuclear Regulatory Research.
[FR Doc. 2017–20695 Filed 9–28–17; 8:45 am]
BILLING CODE 7590–01–P
PEACE CORPS
Information Collection Request;
Submission for OMB Review
This notice is issued in Washington, DC,
on September 26, 2017.
Denora Miller,
FOIA/Privacy Act Officer, Management.
Peace Corps.
ACTION: 60-Day notice and request for
comments.
AGENCY:
[FR Doc. 2017–20918 Filed 9–28–17; 8:45 am]
The Peace Corps will be
submitting the following information
collection request to the Office of
Management and Budget (OMB) for
review and approval. The purpose of
this notice is to allow 60 days for public
comment in the Federal Register
preceding submission to OMB. We are
conducting this process in accordance
with the Paperwork Reduction Act of
1995 (44 U.S.C. Chapter 35).
DATES: Submit comments on or before
November 28, 2017.
ADDRESSES: Comments should be
addressed to Denora Miller, FOIA/
Privacy Act Officer. Denora Miller can
be contacted by telephone at 202–692–
1236 or email at pcfr@peacecorps.gov.
Email comments must be made in text
and not in attachments.
FOR FURTHER INFORMATION CONTACT:
Denora Miller at Peace Corps address
above.
SUMMARY:
asabaliauskas on DSKBBXCHB2PROD with NOTICES
SUPPLEMENTARY INFORMATION:
Title: 2018–19 Campus Ambassadors
Onboarding form.
OMB Control Number: 0420–xxxx.
Type of Request: New.
Affected Public: Individuals.
Respondents’ Obligation To Reply:
Voluntary.
Burden to the Public:
Estimated burden (hours) of the
collection of information:
a. Number of respondents: 1,000
b. Frequency of response: one time
c. Completion time: 5 minutes
d. Annual burden hours: 83 hours
General Description of Collection: The
information will be used by the Office
of University Programs to collect name,
mailing address, school and t-shirt sizes
to send out a promotional kit to students
that have accepted our offer to become
a campus ambassador.
Request for Comment: Peace Corps
invites comments on whether the
proposed collections of information are
necessary for proper performance of the
functions of the Peace Corps, including
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whether the information will have
practical use; the accuracy of the
agency’s estimate of the burden of the
proposed collection of information,
including the validity of the information
to be collected; and, ways to minimize
the burden of the collection of
information on those who are to
respond, including through the use of
automated collection techniques, when
appropriate, and other forms of
information technology.
BILLING CODE 6051–01–P
PEACE CORPS
Information Collection Request;
Submission for OMB Review
Peace Corps.
60-Day notice and request for
comments.
AGENCY:
ACTION:
The Peace Corps will be
submitting the following information
collection request to the Office of
Management and Budget (OMB) for
review and approval. The purpose of
this notice is to allow 60 days for public
comment in the Federal Register
preceding submission to OMB. We are
conducting this process in accordance
with the Paperwork Reduction Act of
1995.
DATES: Submit comments on or before
November 28, 2017.
ADDRESSES: Comments should be
addressed to Denora Miller, FOIA/
Privacy Act Officer. Denora Miller can
be contacted by telephone at 202–692–
1236 or email at pcfr@peacecorps.gov.
Email comments must be made in text
and not in attachments.
FOR FURTHER INFORMATION CONTACT:
Denora Miller at Peace Corps address
above.
SUPPLEMENTARY INFORMATION:
Title: 2018–19 Campus Ambassadors
Application.
OMB Control Number: 0420–xxxx.
Type of Request: New.
Affected Public: Individuals.
Respondents Obligation to Reply:
Voluntary.
Burden to the Public:
Estimated burden (hours) of the
collection of information:
a. Number of respondents: 1,000
b. Frequency of response: one time
c. Completion time: 20 minutes
d. Annual burden hours: 333 hours
General Description of Collection: The
information will be used by Peace Corps
SUMMARY:
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45631
Recruitment and the Office of
University Programs to select student
campus ambassadors. The application
includes questions related to relevant
experience as well as requests students
upload a resume. The information
requested—general information,
questions related to the position and a
student’s resume—is a standard practice
to determine the best candidates for the
program.
Request for Comment: Peace Corps
invites comments on whether the
proposed collections of information are
necessary for proper performance of the
functions of the Peace Corps, including
whether the information will have
practical use; the accuracy of the
agency’s estimate of the burden of the
proposed collection of information,
including the validity of the information
to be collected; and, ways to minimize
the burden of the collection of
information on those who are to
respond, including through the use of
automated collection techniques, when
appropriate, and other forms of
information technology.
This notice is issued in Washington, DC on
September 26, 2017.
Denora Miller,
FOIA/Privacy Act Officer, Management.
[FR Doc. 2017–20917 Filed 9–28–17; 8:45 am]
BILLING CODE 6051–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81717; File No. SR–
NYSEArca–2017–96]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 6.40–O
To Allow Certain Order Types To Be
Excluded From the Risk Limitation
Mechanism
September 25, 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
September 11, 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
1 15
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. 188 / Friday, September 29, 2017 / Notices
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend
Rule 6.40–O (Risk Limitation
Mechanism) to allow certain order types
to be excluded from the risk limitation
mechanism. 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 6.40–O (Risk Limitation
Mechanism) to allow certain order types
to be excluded from the risk limitation
mechanism. Specifically, the Exchange
proposes to provide OTP Holder and
OTP Firms (collectively, ‘‘OTPs’’) with
the option to exclude Immediate-OrCancel (‘‘IOC’’) orders from being
counted against risk limitation
thresholds.4
Risk Limitation Mechanisms
The Exchange offers OTPs the option
of utilizing risk limitation settings to
assist OTPs in managing risk related to
submitting orders during periods of
increased and significant trading
activity.5 An OTP can utilize one of
asabaliauskas on DSKBBXCHB2PROD with NOTICES
4 An
IOC order is ‘‘[a] Limit Order that is to be
executed in whole or in part on the Exchange as
soon as such order is received, and the portion not
so executed is to be canceled.’’ See Rule 6.62(k).
5 See Commentary .04(b) to Rule 6.40–O
(providing that OTPs may avail themselves of one
of the three risk limitation mechanisms for certain
of their orders). Under the current Rule, Market
Makers are required to utilize the risk limitation
settings for quotes and the Exchange is not
proposing to alter any aspect of this Rule in this
regard. See also Commentary .04(a) to Rule 6.40–
O; and Rule 6.40(b)(2), (c)(2), (d)(2) and (e)(2).
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three risk limitation mechanisms for its
orders—based on the number of
transactions executed, the number of
contracts traded, or the percent of the
OTP’s order size—which automatically
cancels such orders when certain
parameter settings are breached.6 The
Exchange maintains trade counters that
increment based on the number of
trades executed, either from a single-leg
order or any leg of a Complex Order, in
any series in a specified class.7 The
trade counters reset after an Exchangedetermined time period.8 When an OTP
has breached its risk settings (i.e., has
traded more than the contract or volume
limit or cumulative percentage limit of
a class during the specified
measurement interval), the Exchange
will cancel all of the OTP’s open orders
in that class until the OTP notifies the
Exchange it will resume submitting
orders.9 The temporary suspension of
orders from the market that results
when the risk settings are triggered is
meant to operate as a safety valve that
enables OTPs to re-evaluate their
positions before requesting to re-enter
the market.
Proposed Exclusion of IOC Orders From
Risk Settings
Under the current Rule, an OTP may
activate a Risk Limitation Mechanism,
and corresponding settings, for orders in
a specified class and, once activated, the
mechanism and the settings established
will remain active unless, and until, the
OTP deactivates the Risk Limitation
Mechanism or changes the settings.10
Thus, once an OTP activates risk
settings for orders in a specified class,
the risk settings apply to all order types
in that options class. The Exchange
proposes to modify the rule to provide
an OTP that chooses to utilize risk
settings for its orders the option to
exclude both single-legged orders and
Complex Orders designated as IOC from
being considered by the trade counter.
To effect this change, proposed
Commentary .07 to Rule 6.40–O would
be amended to provide that ‘‘[a]ny OTP
6 See Rule 6.40–O(b)(1), (c)(1), (d)(1) and
Commentaries .01 to Rule 6.40–O (regarding the
cancellation of orders once the risk settings have
been breached).
7 See Rule 6.40–O(a)(1), (f). See also
Commentaries .05–.07 to Rule 6.40 (regarding the
operation of the trade counters).
8 See Commentary .06 to Rule 6.40–O.
9 See Commentaries .01 and .02 to Rule 6.40–O
(requiring that an OTP request that it be re-enabled
after a breach of its risk settings). In the event that
an OTP experiences multiple, successive triggers of
its risk settings, the Exchange would cancel all of
the open orders—as opposed to cancelling only
those in the option class (underlying symbol) in
which the risk settings were triggered. See Rule
6.40–O(f) and Commentary .02 to Rule 6.40–O.
10 See Commentary .04(b) to Rule 6.40–O.
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that activates the Risk Limitation
Mechanisms for orders pursuant to
Commentary .04(b) of this Rule may opt
to exclude any orders (i.e., whether
single-leg orders or Complex Orders)
designated with a time-in-force of IOC
from being considered by a trade
counter.’’
By their terms, IOC orders (or portions
thereof) will cancel if not immediately
executed. As such, IOC orders are never
ranked (as resting interest) in the
Consolidated Book. The Exchange
believes that certain OTPs utilize IOC
orders to access liquidity on the
Exchange. Thus, the proposed change is
designed to accommodate participants
that utilize IOCs in this manner by
enabling them to exclude IOC orders
from being counted and avoid
potentially triggering their risk settings
(prematurely), resulting in the
cancellation of open orders. The
Exchange believes that providing OTPs
this additional flexibility may encourage
more OTPs to utilize the risk settings,
which benefits all market participants.
The Exchange also believes that the
proposed change would result in risk
settings that may be better calibrated to
suit the needs of certain OTPs (i.e.,
those that routinely utilize IOC orders to
access liquidity on the Exchange),
which improved risk settings should
encourage OTPs to direct additional
order flow and liquidity to the
Exchange.
The Exchange notes that the proposed
change is limited to IOC orders being
counted towards whether a risk
limitation threshold has been reached.
In the event an OTP breaches its risk
limitation settings, any new orders in
the specified class, including incoming
IOC orders, sent by the OTP would be
rejected until the OTP requests that the
Exchange enable the entry of new
orders.11
Implementation
The Exchange will announce by
Trader Update the implementation date
of the proposed rule change, which
implementation will be no later than 90
days after the effectiveness of this rule
change.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Securities Exchange Act of 1934
(the ‘‘Act’’),12 in general, and furthers
the objectives of Section 6(b)(5) of the
Act,13 in particular, in that it is designed
to prevent fraudulent and manipulative
11 See
Commentary .02 to Rule 6.40–O.
U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
12 15
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Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Notices
acts and practices, 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.
The Exchange believes that the
proposed rule change removes
impediments to and perfects the
mechanism of a free and open market by
providing OTPs greater control and
flexibility over setting their risk
tolerance, which may enhance the
efficacy of the risk settings. By their
terms, IOC orders (or portions thereof)
will cancel if not immediately executed.
As such, IOC orders are never ranked (as
resting interest) in the Consolidated
Book. The Exchange believes that
certain market participants utilize IOC
orders to access liquidity on the
Exchange. Thus, the proposed change is
designed to accommodate participants
that utilize IOCs in this manner by
enabling them to exclude IOC orders
from being counted and avoid
potentially triggering their risk settings
(prematurely), resulting in the
cancellation of open orders. The
Exchange believes that providing OTPs
this additional flexibility may encourage
more OTPs to utilize the risk settings,
which benefits all market participants.
Further, the proposed change would
promote just and equitable principles of
trade because it would result in risk
settings that may be better calibrated to
suit the needs of certain OTPs (i.e.,
those that routinely utilize IOC orders to
access liquidity on the Exchange),
which improved risk settings should
encourage OTPs to direct additional
order flow and liquidity to the
Exchange. To the extent additional
order flow is submitted to the Exchange
as a result of the proposed change, all
market participants stand to benefit
from increased trading.
The Exchange notes that an OTP has
the option of utilizing risk settings for
all orders submitted to the Exchange
and, as proposed, would have the
additional option of excluding from
these risk settings any IOC orders in a
given options class submitted to the
Exchange.
This proposed change, which was
specifically requested by some OTPs,
would foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, and
processing information with respect to,
and facilitating transactions in,
securities as it will be available to all
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OTPs on an optional basis and may
encourage more OTPs to utilize this
enhanced functionality to [sic] benefit of
all market participants. Because the risk
controls are designed to prevent the
execution of erroneously priced trades,
the Exchange believes that any proposal
designed to increase the number of
OTPs that utilize the functionality
would benefit all market participants.
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
Exchange is proposing a market
enhancement that would provide OTPs
with greater control and flexibility over
setting their risk tolerance and,
potentially, more protection over risk
exposure. The proposal is structured to
offer the same enhancement to all OTPs,
regardless of size, and would not
impose a competitive burden on any
participant. The Exchange does not
believe that the proposed enhancement
to the existing risk limitation
mechanism would impose a burden on
competing options exchanges. Rather,
the availability of this mechanism may
foster more competition. Specifically,
the Exchange notes that it operates in a
highly competitive market in which
market participants can readily favor
competing venues. When an exchange
offers enhanced functionality that
distinguishes it from the competition
and participants find it useful, it has
been the Exchange’s experience that
competing exchanges will move to
adopt similar functionality. Thus, the
Exchange believes that this type of
competition amongst exchanges is
beneficial to the market place [sic] as a
whole as it can result in enhanced
processes, functionality, and
technologies.
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 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
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45633
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 16 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 17
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 Exchange can
implement the proposal without delay.
The Exchange believes that waiver of
the operative delay would be consistent
with the protection of investors and the
public interest because it would enable
the Exchange to implement without
delay the proposed optional
functionality, which the Exchange
believes may, in turn, encourage more
OTPs to utilize the optional risk settings
for orders. Thus, the Exchange believes
waiver of the operative delay would
protect investors by enabling the
Exchange to provide greater flexibility
to its Risk Limitation Mechanisms for
orders, which may result in increased
usage of the risk settings to the benefit
of all market participants. The
Commission believes that waiver of the
operative delay is consistent with the
protection of investors and the public
interest because it will provide OTP
Holders with the flexibility to exclude
IOC orders from consideration by a
trade counter, which, the Exchange
believes, could encourage additional
OTP Holders to use the risk limitation
settings. As noted above, the risk
limitation settings are designed to assist
OTP Holders in managing risk related to
submitting orders during periods of
increased and significant trading
activity. Under the proposal, the ability
to exclude IOC orders from
consideration by a trade counter is
optional; thus, an OTP Holder that
utilizes the risk limitation settings and
wishes to continue to have its IOC
orders considered by a trade counter
will be able to do so. Accordingly, the
Commission hereby waives the
operative delay and designates the
14 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.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
15 17
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Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Notices
proposed rule change operative upon
filing.18
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:
asabaliauskas on DSKBBXCHB2PROD with NOTICES
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–2017–96 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–2017–96. 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
18 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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18:50 Sep 28, 2017
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business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
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–2017–96, and should be
submitted on or before October 20,
2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–20892 Filed 9–28–17; 8:45 am]
BILLING CODE 8011–01–P
proceedings to determine whether to
disapprove the proposed rule change.5
On May 11, 2017, the Commission
instituted proceedings to determine
whether to approve or disapprove the
proposed rule change.6 On August 9,
2017, the Commission issued a notice of
designation of a longer period for
Commission action on proceedings to
determine whether to approve or
disapprove the proposed rule change.7
The Commission received no comments
on the proposed rule change.
On September 21, 2017, the Exchange
withdrew the proposed rule change
(SR–BatsBZX–2017–07).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–20890 Filed 9–28–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81715; File No. SR–
BatsBZX–2017–07]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of
Withdrawal of a Proposed Rule
Change, as Modified by Amendment
No. 1, To List and Trade Under BZX
Rule 14.11(c)(4) the Shares of the
VanEck Vectors AMT-Free National
Municipal Index ETF of VanEck
Vectors ETF Trust
September 25, 2017.
On January 27, 2017, Bats BZX
Exchange, Inc. (‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 1 and Rule 19b–
4 thereunder,2 a proposed rule change
to list and trade under BZX Rule
14.11(c)(4) shares of the VanEck Vectors
AMT-Free National Municipal Index
ETF of VanEck Vectors ETF Trust. The
proposed rule change was published for
comment in the Federal Register on
February 14, 2017.3 On March 10, 2017,
the Exchange filed Amendment No. 1 to
the proposed rule change.4 On March
30, 2017, the Commission designated a
longer period within which to approve
the proposed rule change, disapprove
the proposed rule change, or institute
19 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. 79989
(February 8, 2017), 82 FR 10615.
4 Amendment No. 1 is available at: https://
www.sec.gov/comments/sr-batsbzx-2017-07/
batsbzx201707-1667531-148997.pdf.
1 15
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81699; File No. SR–
NYSEArca–2017–111]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change To List and Trade Shares
of the GraniteShares Silver Trust
Under NYSE Arca Equities Rule 8.201
September 25, 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
September 12, 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 list and
trade shares of the GraniteShares Silver
Trust under NYSE Arca Equities Rule
5 See Securities Exchange Act Release No. 80350,
82 FR 16647 (April 5, 2017).
6 See Securities Exchange Act Release No. 80664,
82 FR 22680 (May 17, 2017).
7 See Securities Exchange Act Release No. 81363,
82 FR 38726 (August 15, 2017).
8 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
E:\FR\FM\29SEN1.SGM
29SEN1
]]>Agencies
[Federal Register Volume 82, Number 188 (Friday, September 29, 2017)]
[Notices]
[Pages 45631-45634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20892]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81717; File No. SR-NYSEArca-2017-96]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 6.40-
O To Allow Certain Order Types To Be Excluded From the Risk Limitation
Mechanism
September 25, 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 September 11, 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
[[Page 45632]]
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to amend Rule 6.40-O (Risk Limitation
Mechanism) to allow certain order types to be excluded from the risk
limitation mechanism. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 6.40-O (Risk Limitation
Mechanism) to allow certain order types to be excluded from the risk
limitation mechanism. Specifically, the Exchange proposes to provide
OTP Holder and OTP Firms (collectively, ``OTPs'') with the option to
exclude Immediate-Or-Cancel (``IOC'') orders from being counted against
risk limitation thresholds.\4\
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\4\ An IOC order is ``[a] Limit Order that is to be executed in
whole or in part on the Exchange as soon as such order is received,
and the portion not so executed is to be canceled.'' See Rule
6.62(k).
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Risk Limitation Mechanisms
The Exchange offers OTPs the option of utilizing risk limitation
settings to assist OTPs in managing risk related to submitting orders
during periods of increased and significant trading activity.\5\ An OTP
can utilize one of three risk limitation mechanisms for its orders--
based on the number of transactions executed, the number of contracts
traded, or the percent of the OTP's order size--which automatically
cancels such orders when certain parameter settings are breached.\6\
The Exchange maintains trade counters that increment based on the
number of trades executed, either from a single-leg order or any leg of
a Complex Order, in any series in a specified class.\7\ The trade
counters reset after an Exchange-determined time period.\8\ When an OTP
has breached its risk settings (i.e., has traded more than the contract
or volume limit or cumulative percentage limit of a class during the
specified measurement interval), the Exchange will cancel all of the
OTP's open orders in that class until the OTP notifies the Exchange it
will resume submitting orders.\9\ The temporary suspension of orders
from the market that results when the risk settings are triggered is
meant to operate as a safety valve that enables OTPs to re-evaluate
their positions before requesting to re-enter the market.
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\5\ See Commentary .04(b) to Rule 6.40-O (providing that OTPs
may avail themselves of one of the three risk limitation mechanisms
for certain of their orders). Under the current Rule, Market Makers
are required to utilize the risk limitation settings for quotes and
the Exchange is not proposing to alter any aspect of this Rule in
this regard. See also Commentary .04(a) to Rule 6.40-O; and Rule
6.40(b)(2), (c)(2), (d)(2) and (e)(2).
\6\ See Rule 6.40-O(b)(1), (c)(1), (d)(1) and Commentaries .01
to Rule 6.40-O (regarding the cancellation of orders once the risk
settings have been breached).
\7\ See Rule 6.40-O(a)(1), (f). See also Commentaries .05-.07 to
Rule 6.40 (regarding the operation of the trade counters).
\8\ See Commentary .06 to Rule 6.40-O.
\9\ See Commentaries .01 and .02 to Rule 6.40-O (requiring that
an OTP request that it be re-enabled after a breach of its risk
settings). In the event that an OTP experiences multiple, successive
triggers of its risk settings, the Exchange would cancel all of the
open orders--as opposed to cancelling only those in the option class
(underlying symbol) in which the risk settings were triggered. See
Rule 6.40-O(f) and Commentary .02 to Rule 6.40-O.
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Proposed Exclusion of IOC Orders From Risk Settings
Under the current Rule, an OTP may activate a Risk Limitation
Mechanism, and corresponding settings, for orders in a specified class
and, once activated, the mechanism and the settings established will
remain active unless, and until, the OTP deactivates the Risk
Limitation Mechanism or changes the settings.\10\ Thus, once an OTP
activates risk settings for orders in a specified class, the risk
settings apply to all order types in that options class. The Exchange
proposes to modify the rule to provide an OTP that chooses to utilize
risk settings for its orders the option to exclude both single-legged
orders and Complex Orders designated as IOC from being considered by
the trade counter. To effect this change, proposed Commentary .07 to
Rule 6.40-O would be amended to provide that ``[a]ny OTP that activates
the Risk Limitation Mechanisms for orders pursuant to Commentary .04(b)
of this Rule may opt to exclude any orders (i.e., whether single-leg
orders or Complex Orders) designated with a time-in-force of IOC from
being considered by a trade counter.''
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\10\ See Commentary .04(b) to Rule 6.40-O.
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By their terms, IOC orders (or portions thereof) will cancel if not
immediately executed. As such, IOC orders are never ranked (as resting
interest) in the Consolidated Book. The Exchange believes that certain
OTPs utilize IOC orders to access liquidity on the Exchange. Thus, the
proposed change is designed to accommodate participants that utilize
IOCs in this manner by enabling them to exclude IOC orders from being
counted and avoid potentially triggering their risk settings
(prematurely), resulting in the cancellation of open orders. The
Exchange believes that providing OTPs this additional flexibility may
encourage more OTPs to utilize the risk settings, which benefits all
market participants. The Exchange also believes that the proposed
change would result in risk settings that may be better calibrated to
suit the needs of certain OTPs (i.e., those that routinely utilize IOC
orders to access liquidity on the Exchange), which improved risk
settings should encourage OTPs to direct additional order flow and
liquidity to the Exchange.
The Exchange notes that the proposed change is limited to IOC
orders being counted towards whether a risk limitation threshold has
been reached. In the event an OTP breaches its risk limitation
settings, any new orders in the specified class, including incoming IOC
orders, sent by the OTP would be rejected until the OTP requests that
the Exchange enable the entry of new orders.\11\
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\11\ See Commentary .02 to Rule 6.40-O.
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Implementation
The Exchange will announce by Trader Update the implementation date
of the proposed rule change, which implementation will be no later than
90 days after the effectiveness of this rule change.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\12\ in
general, and furthers the objectives of Section 6(b)(5) of the Act,\13\
in particular, in that it is designed to prevent fraudulent and
manipulative
[[Page 45633]]
acts and practices, 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.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change removes
impediments to and perfects the mechanism of a free and open market by
providing OTPs greater control and flexibility over setting their risk
tolerance, which may enhance the efficacy of the risk settings. By
their terms, IOC orders (or portions thereof) will cancel if not
immediately executed. As such, IOC orders are never ranked (as resting
interest) in the Consolidated Book. The Exchange believes that certain
market participants utilize IOC orders to access liquidity on the
Exchange. Thus, the proposed change is designed to accommodate
participants that utilize IOCs in this manner by enabling them to
exclude IOC orders from being counted and avoid potentially triggering
their risk settings (prematurely), resulting in the cancellation of
open orders. The Exchange believes that providing OTPs this additional
flexibility may encourage more OTPs to utilize the risk settings, which
benefits all market participants. Further, the proposed change would
promote just and equitable principles of trade because it would result
in risk settings that may be better calibrated to suit the needs of
certain OTPs (i.e., those that routinely utilize IOC orders to access
liquidity on the Exchange), which improved risk settings should
encourage OTPs to direct additional order flow and liquidity to the
Exchange. To the extent additional order flow is submitted to the
Exchange as a result of the proposed change, all market participants
stand to benefit from increased trading.
The Exchange notes that an OTP has the option of utilizing risk
settings for all orders submitted to the Exchange and, as proposed,
would have the additional option of excluding from these risk settings
any IOC orders in a given options class submitted to the Exchange.
This proposed change, which was specifically requested by some
OTPs, would foster cooperation and coordination with persons engaged in
regulating, clearing, settling, and processing information with respect
to, and facilitating transactions in, securities as it will be
available to all OTPs on an optional basis and may encourage more OTPs
to utilize this enhanced functionality to [sic] benefit of all market
participants. Because the risk controls are designed to prevent the
execution of erroneously priced trades, the Exchange believes that any
proposal designed to increase the number of OTPs that utilize the
functionality would benefit all market participants.
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 Exchange is proposing a
market enhancement that would provide OTPs with greater control and
flexibility over setting their risk tolerance and, potentially, more
protection over risk exposure. The proposal is structured to offer the
same enhancement to all OTPs, regardless of size, and would not impose
a competitive burden on any participant. The Exchange does not believe
that the proposed enhancement to the existing risk limitation mechanism
would impose a burden on competing options exchanges. Rather, the
availability of this mechanism may foster more competition.
Specifically, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues. When an exchange offers enhanced functionality that
distinguishes it from the competition and participants find it useful,
it has been the Exchange's experience that competing exchanges will
move to adopt similar functionality. Thus, the Exchange believes that
this type of competition amongst exchanges is beneficial to the market
place [sic] as a whole as it can result in enhanced processes,
functionality, and technologies.
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 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 \14\ and Rule 19b-4(f)(6) thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 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.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \16\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \17\ 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 Exchange can implement the proposal without delay. The Exchange
believes that waiver of the operative delay would be consistent with
the protection of investors and the public interest because it would
enable the Exchange to implement without delay the proposed optional
functionality, which the Exchange believes may, in turn, encourage more
OTPs to utilize the optional risk settings for orders. Thus, the
Exchange believes waiver of the operative delay would protect investors
by enabling the Exchange to provide greater flexibility to its Risk
Limitation Mechanisms for orders, which may result in increased usage
of the risk settings to the benefit of all market participants. The
Commission believes that waiver of the operative delay is consistent
with the protection of investors and the public interest because it
will provide OTP Holders with the flexibility to exclude IOC orders
from consideration by a trade counter, which, the Exchange believes,
could encourage additional OTP Holders to use the risk limitation
settings. As noted above, the risk limitation settings are designed to
assist OTP Holders in managing risk related to submitting orders during
periods of increased and significant trading activity. Under the
proposal, the ability to exclude IOC orders from consideration by a
trade counter is optional; thus, an OTP Holder that utilizes the risk
limitation settings and wishes to continue to have its IOC orders
considered by a trade counter will be able to do so. Accordingly, the
Commission hereby waives the operative delay and designates the
[[Page 45634]]
proposed rule change operative upon filing.\18\
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\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ For purposes only of waiving the 30-day operative delay,
the Commission also has 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 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-2017-96 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-2017-96. 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 such 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-2017-96, and should
be submitted on or before October 20, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-20892 Filed 9-28-17; 8:45 am]
BILLING CODE 8011-01-P
