Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.4E To Reflect the Standard Settlement Cycle of Two Business Days After the Trade Date, 23948-23950 [2018-10974]
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23948
DATES:
Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices
Comments are due: May 25,
2018.
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
Table of Contents
daltland on DSKBBV9HB2PROD with NOTICES
I. Introduction
II. Docketed Proceeding(s)
I. Introduction
The Commission gives notice that the
Postal Service has filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the market dominant or
the competitive product list, or the
modification of an existing product
currently appearing on the market
dominant or the competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3007.40.
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
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39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
II. Docketed Proceeding(s)
1. Docket No(s).: CP2018–221; Filing
Title: Notice of United States Postal
Service of Filing a Functionally
Equivalent Global Reseller Expedited
Package 2 Negotiated Service
Agreement; Filing Acceptance Date:
May 17, 2018; Filing Authority: 39 CFR
3015.5; Public Representative:
Christopher C. Mohr; Comments Due:
May 25, 2018.
2. Docket No(s).: CP2018–222; Filing
Title: Notice of United States Postal
Service of Filing a Functionally
Equivalent Global Expedited Package
Services 7 Negotiated Service
Agreement and Application for NonPublic Treatment of Materials Filed
Under Seal; Filing Acceptance Date:
May 17, 2018; Filing Authority: 39 CFR
3015.5; Public Representative:
Christopher C. Mohr; Comments Due:
May 25, 2018.
3. Docket No(s).: MC2018–154 and
CP2018–223; Filing Title: USPS Request
to Add Priority Mail Express, Priority
Mail & First-Class Package Service
Contract 37 to Competitive Product List
and Notice of Filing Materials Under
Seal; Filing Acceptance Date: May 17,
2018; Filing Authority: 39 U.S.C. 3642
and 39 CFR 3020.30 et seq.; Public
Representative: Kenneth R. Moeller;
Comments Due: May 25, 2018.
This notice will be published in the
Federal Register.
Stacy L. Ruble,
Secretary.
[FR Doc. 2018–11012 Filed 5–22–18; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL SERVICE
Product Change—Priority Mail
Express, Priority Mail, & First-Class
Package Service Negotiated Service
Agreement
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: May 23,
2018.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Reed, 202–268–3179.
SUMMARY:
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The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on May 17, 2018,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail, &
First-Class Package Service Contract 37
to Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2018–154, CP2018–223.
SUPPLEMENTARY INFORMATION:
Elizabeth Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2018–10985 Filed 5–22–18; 8:45 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83273; File No. SR–
NYSEAMER–2018–21]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 7.4E To
Reflect the Standard Settlement Cycle
of Two Business Days After the Trade
Date
May 17, 2018.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on May 11,
2018, NYSE American LLC (‘‘Exchange’’
or ‘‘NYSE American’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 7.4E to reflect the standard
settlement cycle of two business days
after the trade date (‘‘T+2’’) in Securities
Exchange Act Rule 15c6–1(a). The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
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. 83, No. 100 / Wednesday, May 23, 2018 / Notices
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 7.4E to reflect the standard T+2
settlement cycle in Securities Exchange
Act (the ‘‘Act’’) Rule 15c6–1(a) (‘‘Rule
15c6–1(a)’’).
Background
On September 28, 2016, the Securities
and Exchange Commission (‘‘SEC’’)
proposed amendments to Rule 15c6–
1(a) under the Act 4 to shorten the
standard settlement cycle from three
business days after the trade date
(‘‘T+3’’) to T+2.5 The amendment was
adopted on March 22, 2017, with a
compliance date of September 5, 2017.6
In response, the Exchange adopted
new rules with the modifier ‘‘T’’ to
reflect a T+2 settlement cycle but
retained versions of rules reflecting T+3
settlement because the Exchange would
not implement the new rules until after
the final implementation of T+2.7
Rule 7.4E (Ex-Dividend or Ex-Right
Dates), which establishes the exdividend and ex-rights dates for stocks
traded regular way in connection with
the implementation of Pillar on the
Exchange, was approved in May 2017.8
4 See
17 CFR 240.15c6–1(a).
Securities Exchange Act Release No. 78962
(September 28, 2016), 81 FR 69240 (October 5,
2016) (File No. S7–22–16).
6 See Securities Exchange Act Release No. 80295
(March 22, 2017), 82 FR 15564 (March 29, 2017)
(File No. S7–22–16).
7 See Securities Exchange Act Release No. 80020
(February 10, 2017), 82 FR 10940 (February 16,
2017) (SR–NYSEMKT–2016–119).
8 See Securities Exchange Act Release Nos. 80590
(May 4, 2017), 82 FR 21843 (May 10, 2017)
(Approval Order) and 79993 (February 9, 2017), 82
FR 10814,10815–16 (February 15, 2017) (SR–
NYSEMKT–2017–01) (Notice). Pillar is an
integrated trading technology platform designed to
use a single specification for connecting to the
equities and options markets operated by the
Exchange and its affiliates, NYSE Arca, Inc. and
New York Stock Exchange LLC.
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5 See
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The Exchange began trading on the
Pillar platform on July 24, 2017.
In connection with the September 5,
2017 compliance date for shortening of
the standard settlement cycle from T+3
to T+2, the Exchange deleted the rules
reflecting the T+3 settlement cycle and
implemented the new rules reflecting
the T+2 settlement cycle. The Exchange,
however, inadvertently did not update
Rule 7.4E to reflect T+2 settlement,
which it currently proposes to do.
To effectuate the proposed change,
the Exchange proposes to delete the
word ‘‘second’’ so the reference would
be to the ‘‘business day’’ preceding the
record date. The current Rule further
provides that if the record date or
closing of transfer books occurs upon a
day other than a business day, the Rule
shall apply for the third preceding
business day. The Exchange also
proposes to change ‘‘third preceding
business day’’ to ‘‘second preceding
business day.’’
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
further the objectives of Section 6(b)(5)
of the Act,10 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices,
promote just and equitable principles of
trade, 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 proposed change is consistent
with the SEC’s amendment to Rule
15c6–1(a) requiring standard settlement
no later than T+2. The Exchange
believes that removing obsolete
references to T+3 settlement from the
Exchange’s rulebook removes
impediments to and perfects the
mechanism of a free and open market,
thereby reducing potential confusion,
making the Exchange’s rules easier to
navigate. The Exchange believes that
eliminating obsolete material would not
be inconsistent with the public interest
and the protection of investors because
investors will not be harmed and in fact
would benefit from increased
transparency, thereby reducing potential
confusion.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition that is not
necessary or appropriate in furtherance
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15
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23949
of the purposes of the Act. The
proposed change is not designed to
address any competitive issue but rather
to promote clarity and consistency,
thereby reducing burdens on the
marketplace and facilitating investor
protection.
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 if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and Rule 19b–4(f)(6)
thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii),14 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Waiving the operative
delay will allow the Exchange to
immediately conform its rule to Rule
15c6–1(a) under the Act, that has a
standard settlement cycle of T+2, and
eliminate outdated references to the T+3
settlement cycle. Accordingly, the
Commission hereby waives the 30-day
operative delay requirement and
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
12 17
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Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices
designates the proposed rule change as
operative upon filing.15
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
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:
daltland on DSKBBV9HB2PROD 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–
NYSEAMER–2018–21 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–NYSEAMER–2018–21. 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 website (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 website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
15 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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17:33 May 22, 2018
Jkt 244001
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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSEAMER–2018–21, and
should be submitted on or before June
13, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–10974 Filed 5–22–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83269; File No. SR–ISE–
2018–45]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend
Supplementary Material .03 to Rule 804
To Enhance Anti-Internalization
Functionality
May 17, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 2,
2018, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Supplementary Material .03 to Rule 804
to enhance anti-internalization
functionality.
The text of the proposed rule change
is available on the Exchange’s website at
https://ise.cchwallstreet.com/, at the
principal office of the Exchange, and at
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
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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
Exchange 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 these
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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to enhance the antiinternalization (‘‘AIQ’’) functionality
provided to Market Makers on the
Exchange by giving members the
flexibility to choose to have this
protection apply at the market
participant identifier level (i.e., existing
functionality),3 at the Exchange account
level, or at the member firm level. The
Exchange believes that this
enhancement will provide helpful
flexibility for Market Makers that wish
to prevent trading against all quotes and
orders entered by their firm, or
Exchange account, instead of just quotes
and orders that are entered under the
same market participant identifier.
Similar functionality was also recently
introduced on the Exchange’s affiliated
exchanges, Nasdaq PHLX LLC (‘‘Phlx’’)
and NOM.4 The Exchange believes that
introducing this functionality now on
ISE will ensure that ISE Market Makers
on will benefit from similar flexibility in
applying this protection.
Currently, the Exchange provides
mandatory AIQ functionality whereby
quotes and orders entered by Market
Makers using the same market
3 Currently, the rule uses the term ‘‘member
identifier’’ for this concept. The Exchange proposes
to rename ‘‘member identifier’’ to ‘‘market
participant identifier’’ to be consistent with
terminology used on the Nasdaq Options Market
(‘‘NOM’’) and to avoid member confusion that
could result in using the similar terms ‘‘member
identifier’’ and ‘‘member firm identifier’’ in this
rule.
4 See Phlx Rule 1080(p)(2); NOM Chapter VI, Sec.
10. See also Securities Exchange Act Release Nos.
82012 (November 3, 3017), 82 FR 52082 (November
9, 2017) (SR–Phlx–2017–93); 81171 (July 19, 2017),
82 FR 34557 (July 25, 2017) (SR–Nasdaq–2017–
069).
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]]>Agencies
[Federal Register Volume 83, Number 100 (Wednesday, May 23, 2018)]
[Notices]
[Pages 23948-23950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10974]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83273; File No. SR-NYSEAMER-2018-21]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 7.4E To Reflect the Standard Settlement Cycle of Two Business Days
After the Trade Date
May 17, 2018.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on May 11, 2018, NYSE American LLC (``Exchange'' or ``NYSE
American'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 7.4E to reflect the standard
settlement cycle of two business days after the trade date (``T+2'') in
Securities Exchange Act Rule 15c6-1(a). The proposed rule change is
available on the Exchange's website at www.nyse.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
[[Page 23949]]
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 7.4E to reflect the standard
T+2 settlement cycle in Securities Exchange Act (the ``Act'') Rule
15c6-1(a) (``Rule 15c6-1(a)'').
Background
On September 28, 2016, the Securities and Exchange Commission
(``SEC'') proposed amendments to Rule 15c6-1(a) under the Act \4\ to
shorten the standard settlement cycle from three business days after
the trade date (``T+3'') to T+2.\5\ The amendment was adopted on March
22, 2017, with a compliance date of September 5, 2017.\6\
---------------------------------------------------------------------------
\4\ See 17 CFR 240.15c6-1(a).
\5\ See Securities Exchange Act Release No. 78962 (September 28,
2016), 81 FR 69240 (October 5, 2016) (File No. S7-22-16).
\6\ See Securities Exchange Act Release No. 80295 (March 22,
2017), 82 FR 15564 (March 29, 2017) (File No. S7-22-16).
---------------------------------------------------------------------------
In response, the Exchange adopted new rules with the modifier ``T''
to reflect a T+2 settlement cycle but retained versions of rules
reflecting T+3 settlement because the Exchange would not implement the
new rules until after the final implementation of T+2.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 80020 (February 10,
2017), 82 FR 10940 (February 16, 2017) (SR-NYSEMKT-2016-119).
---------------------------------------------------------------------------
Rule 7.4E (Ex-Dividend or Ex-Right Dates), which establishes the
ex-dividend and ex-rights dates for stocks traded regular way in
connection with the implementation of Pillar on the Exchange, was
approved in May 2017.\8\ The Exchange began trading on the Pillar
platform on July 24, 2017.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release Nos. 80590 (May 4,
2017), 82 FR 21843 (May 10, 2017) (Approval Order) and 79993
(February 9, 2017), 82 FR 10814,10815-16 (February 15, 2017) (SR-
NYSEMKT-2017-01) (Notice). Pillar is an integrated trading
technology platform designed to use a single specification for
connecting to the equities and options markets operated by the
Exchange and its affiliates, NYSE Arca, Inc. and New York Stock
Exchange LLC.
---------------------------------------------------------------------------
In connection with the September 5, 2017 compliance date for
shortening of the standard settlement cycle from T+3 to T+2, the
Exchange deleted the rules reflecting the T+3 settlement cycle and
implemented the new rules reflecting the T+2 settlement cycle. The
Exchange, however, inadvertently did not update Rule 7.4E to reflect
T+2 settlement, which it currently proposes to do.
To effectuate the proposed change, the Exchange proposes to delete
the word ``second'' so the reference would be to the ``business day''
preceding the record date. The current Rule further provides that if
the record date or closing of transfer books occurs upon a day other
than a business day, the Rule shall apply for the third preceding
business day. The Exchange also proposes to change ``third preceding
business day'' to ``second preceding business day.''
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and further the objectives
of Section 6(b)(5) of the Act,\10\ in particular, because it is
designed to prevent fraudulent and manipulative acts and practices,
promote just and equitable principles of trade, 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The proposed change is consistent with the SEC's amendment to Rule
15c6-1(a) requiring standard settlement no later than T+2. The Exchange
believes that removing obsolete references to T+3 settlement from the
Exchange's rulebook removes impediments to and perfects the mechanism
of a free and open market, thereby reducing potential confusion, making
the Exchange's rules easier to navigate. The Exchange believes that
eliminating obsolete material would not be inconsistent with the public
interest and the protection of investors because investors will not be
harmed and in fact would benefit from increased transparency, thereby
reducing potential confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
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 promote clarity
and consistency, thereby reducing burdens on the marketplace and
facilitating investor protection.
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 if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6)
thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. Waiving the operative
delay will allow the Exchange to immediately conform its rule to Rule
15c6-1(a) under the Act, that has a standard settlement cycle of T+2,
and eliminate outdated references to the T+3 settlement cycle.
Accordingly, the Commission hereby waives the 30-day operative delay
requirement and
[[Page 23950]]
designates the proposed rule change as operative upon filing.\15\
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of 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 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 [email protected]. Please include
File Number SR-NYSEAMER-2018-21 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-NYSEAMER-2018-21. 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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEAMER-2018-21, and should be
submitted on or before June 13, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10974 Filed 5-22-18; 8:45 am]
BILLING CODE 8011-01-P
