Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 67 To Specify That D-Quote Functionality Under Rule 67(f)(5) Will Continue To Be in Effect Until Six Months After the End of the Pilot Period, 50427-50430 [2018-21678]
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Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 20 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 21
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
requested that the Commission waive
the 30-day operative delay so that the
proposed rule change may become
operative upon filing. Waiver of the
operative delay would allow the
Exchange to promptly amend its rule to
exclude Orders with a Minimum
Quantity Order Attribute from the
Nasdaq Crosses and Cross price
calculations,22 and promptly implement
system changes in accordance with the
rule. The Commission believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Accordingly, the Commission hereby
waives the operative delay and
designates the proposed rule change
operative upon filing.23
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–
NASDAQ–2018–077 on the subject line.
CFR 240.19b–4(f)(6).
CFR 240.19b–4(f)(6)(iii).
22 According to the Exchange, no market
participant has requested participation of the
Minimum Quantity Order Attribute in any of the
Nasdaq Crosses.
23 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).
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–NASDAQ–2018–077. 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–NASDAQ–2018–077, and
should be submitted on or before
October 26, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–21679 Filed 10–4–18; 8:45 am]
BILLING CODE 8011–01–P
20 17
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21 17
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84330; File No. SR–NYSE–
2018–43]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
67 To Specify That D-Quote
Functionality Under Rule 67(f)(5) Will
Continue To Be in Effect Until Six
Months After the End of the Pilot
Period
October 1, 2018.
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 24, 2018, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 67 (Tick Size Pilot Plan) to specify
that d-Quote functionality under Rule
67(f)(5) will continue to be in effect
until six months after the end of the
pilot period (which will be April 2,
2019). 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.
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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
24 17
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
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 67 (Tick Size Pilot Plan) to specify
that d-Quote functionality described
under Rule 67(f)(5) will continue to be
in effect for all pilot securities (‘‘Pilot
Securities’’) under the plan for the Tick
Size Pilot Program (the ‘‘Plan’’) until six
months after the end of the pilot period
(which will be April 2, 2019).
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Background
On August 25, 2014, NYSE Group,
Inc., on behalf of Bats BZX Exchange,
Inc. (f/k/a BATS Exchange, Inc.), Bats
BYX Exchange, Inc. (f/k/a BATS
Y-Exchange, Inc.), Chicago Stock
Exchange, Inc., Bats EDGA Exchange,
Inc. (f/k/a EDGA Exchange, Inc.), Bats
EDGX Exchange, Inc. (f/k/a EDGX
Exchange, Inc.), the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’),
NASDAQ OMX BX, Inc., NASDAQ
OMX PHLX LLC, the Nasdaq Stock
Market LLC, NYSE MKT LLC, NYSE
Arca, Inc., and the Exchange
(collectively, the ‘‘Participants’’), filed
the Plan to Implement a Tick Size Pilot
Program (‘‘Plan’’) 4 with the Securities
and Exchange Commission (the
‘‘Commission’’), pursuant to Section
11A of the Act 5 and Rule 608 of
Regulation NMS thereunder.6 The
Participants filed the Plan to comply
with an order issued by the Commission
on June 24, 2014 (the ‘‘June 2014
Order’’).7 The Plan was published for
comment in the Federal Register on
November 7, 2014,8 and approved by
the Commission, as modified, on May 6,
2015.9
The Plan includes stocks of
companies with $3 billion or less in
4 See Securities and Exchange Act Release No.
74892 (May 6, 2015), 80 FR 27513 (File No. 4–657)
(‘‘Tick Plan Approval Order’’). See, also, Securities
and Exchange Act Release No. 76382 (November 6,
2015) (File No. 4–657), 80 FR 70284 (File No. 4–
657) (November 13, 2015), which extended the pilot
period commencement date from May 6, 2015 to
October 3, 2016. The Plan was submitted to the
Commission pursuant to Rule 608 of Regulation
NMS. 17 CFR 242.608.
5 15 U.S.C. 78k–1.
6 See Letter from Brendon J. Weiss, Vice
President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014.
7 See Securities Exchange Act Release No. 72460
(June 24, 2014), 79 FR 36840 (June 30, 2014).
8 See Securities and Exchange Act Release No.
73511 (November 3, 2014), 79 FR 66423 (File No.
4–657) (Tick Plan Filing).
9 See Tick Plan Approval Order, supra note 4. See
also Securities Exchange Act Release No. 77277
(March 3, 2016), 81 FR 12162 (March 8, 2016) (File
No. 4–657), amending the Plan to add National
Stock Exchange, Inc. as a Participant.
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17:11 Oct 04, 2018
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market capitalization, an average daily
trading volume of one million shares or
less, and a volume weighted average
price of at least $2.00 for every trading
day. The Plan consists of a control
group (‘‘Control Group’’) of
approximately 1400 Pilot Securities and
three test groups with 400 Pilot
Securities in each selected by a
stratified sampling.10
During the pilot, Pilot Securities in
the Control Group are quoted at the
current tick size increment of $0.01 per
share and trade at the currently
permitted increments. Pilot Securities in
the first test group (‘‘Test Group One’’)
are quoted in $0.05 minimum
increments but continue to trade at any
price increment that is currently
permitted.11 Pilot Securities in the
second test group (‘‘Test Group Two’’)
are quoted in $0.05 minimum
increments and trade at $0.05 minimum
increments subject to a midpoint
exception, a retail investor exception,
and a negotiated trade exception.12 Pilot
Securities in Test Group Three are
subject to the same terms as Test Group
Two and are also subject to the ‘‘Tradeat’’ requirement to prevent price
matching by a person not displaying at
a price of a Trading Center’s ‘‘Best
Protected Bid or ‘‘Best Protected Offer,’’
unless an enumerated exception
applies.13 In addition to the exceptions
provided under Test Group Two, an
exception for Block Size orders and
exceptions that closely resemble those
under Rule 611 of Regulation NMS
(‘‘Rule 611’’) 14 apply to the Trade-at
requirement.
The pilot period commenced on
October 3, 2016 and is in effect for a
period of two years following
commencement, until April 2, 2019 (the
‘‘Pilot Period’’)[sic]. Pursuant to an
exemption granted under Rule 608(e) of
Regulation NMS, the quoting and
trading requirements of the Plan will
terminate at the end of trading on
Friday, September 28, 2018, instead of
at the end of trading on Tuesday,
October 2, 2018.15 At the close of
trading on September 28, 2018, all Pilot
Securities will be moved into the
Control Group and certain data
10 See Section V of the Plan for identification of
Pilot Securities, including criteria for selection and
grouping.
11 See Section VI(B) of the Plan. Pilot Securities
in Test Group One will be subject to a midpoint
exception and a retail investor exception.
12 See Section VI(C) of the Plan.
13 See Section VI(D) of the Plan.
14 17 CFR 242.611.
15 See Letter from David S. Shillman, Associate
Director, for the Commission, by the Division of
Trading of Markets, pursuant to delegated authority,
to John Ramsay, Chief Market Policy Officer, IEX
Group, Inc., dated September 10, 2018.
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collection provisions under Appendix B
and C of the Plan will continue to apply
through six (6) months after the end of
the Pilot Period, which will be April 2,
2019.16
Amendment to Rule 67—d-Quotes
The Exchange adopted Rule 67 to
implement the requirements specified
in the Plan. Rule 67(f)(5) states that, in
all Pilot Securities, d-Quotes to buy
(sell) will not exercise discretion if (i)
exercising discretion would result in an
execution equal to or higher (lower)
than the price of a protected offer (bid),
or (ii) the price of a protected bid (offer)
is equal to or higher (lower) than the
filed price of the d-Quote. As noted
above, at the end of the Pilot Period,
Test Group One, Test Group Two and
Test Group Three Pilot Securities will
be moved into the Control Group.
Because Rule 67(f)(5) applies to all Pilot
Securities, including Pilot Securities in
the Control Group, all Pilot Securities
will continue to be subject to Rule
67(f)(5) for the six-month period after
the end of the Pilot Period. To make this
clear, the Exchange proposes to amend
the first paragraph of Rule 67, which
currently provides that ‘‘The provisions
of this Rule will be in effect during a
pilot to coincide with the Pilot Period
for the Regulation NMS Tick Size Pilot
Plan,’’ to add that ‘‘[p]aragraph (f)(5) of
this Rule will continue to be in effect for
all Pilot Securities for six months after
the end of the Pilot Period.’’ The
Exchange believes that this proposed
rule change will promote transparency
that the existing Rule 67(f)(5)
requirement, which is applicable to
Control Group Pilot Securities, would
continue to be applicable to all Pilot
Securities for the six-month period
following the end of the Pilot Period.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,17 in general, and furthers the
objectives of Section 6(b)(5) of the Act,18
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Exchange believes
that the proposed rule change is
consistent with the Act because it
facilitates data analysis during the data
collection period specified under a Plan
16 See,
supra, note 16.
U.S.C. 78f(b).
18 15 U.S.C. 78f(b)(5).
17 15
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Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
approved by the Commission pursuant
to an order issued by the Commission in
reliance on Section 11A of the Act.19
More specifically, the Exchange believes
that the proposed rule change would
remove impediments to and perfect the
mechanism of a free and open market
and a national market system because it
would promote transparency and clarity
in Exchange rules that an existing
provision in Rule 67 relating to how
Control Group Pilot Securities are
processed would continue during the
six-month period following the end of
the Pilot Period and during which
certain data collection provisions under
Appendix B and C of the Plan will
continue to apply. By specifying that
Rule 67(f)(5) would continue to apply
through the six-month period after the
end of the Pilot Period, during which all
Pilot Securities will be in the Control
Group, this proposed rule change
ensures that the Exchange’s system
functionality during the six-month
period after the end of the Pilot Period
will be in compliance with the Plan.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed changes are being made to
establish, maintain, and enforce written
policies and procedures that are
reasonably designed to comply with the
trading and quoting requirements
specified in the Plan, of which other
equities exchanges are also Participants.
The proposed changes facilitate data
analysis during the data collection
period specified under the Plan.
Therefore, the proposed changes would
not impose any burden on competition,
while providing certainty of treatment
and execution of trading interests on the
Exchange to market participants in NMS
Stocks that are acting in compliance
with the requirements specified in the
Plan.
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
19 See,
supra, note 5.
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17:11 Oct 04, 2018
Jkt 247001
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) 20 of the Act and Rule 19b–
4(f)(6) thereunder.21
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 22 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 23
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange notes that the
Plan’s quoting and trading rule
obligations will cease on September 28,
2018, and this proposed rule change
should be operative on or before that
date in order to provide notice to
members that the provisions of Rule
67(f)(5) would continue to apply during
the six-month period following the end
of the Pilot Period. The Commission
believes that the proposed rule change
provides clarity as to the requirements
under Rule 67(f)(5) during the post-Pilot
Period. In addition, the Commission
believes that the proposed rule change
should ensure that the data collected
under the Tick Size Pilot during the
post-Pilot Period remains consistent
with the data collected during the Pilot
Period. Based on the foregoing, the
Commission believes the waiver of the
operative delay is consistent with the
protection of investors and the public
interest. Therefore, the Commission
hereby waives the operative delay and
designates the proposal operative upon
filing.24
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: (i) Necessary or appropriate in
20 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission 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. The
Exchange has satisfied this requirement.
22 17 CFR 240.19b–4(f)(6).
23 17 CFR 240.19b–4(f)(6)(iii).
24 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).
21 17
PO 00000
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50429
the public interest; (ii) for the protection
of investors; or (iii) 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 rule-comments@
sec.gov. Please include File Number SR–
NYSE–2018–43 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–NYSE–2018–43. 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–NYSE–2018–43 and should
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Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
be submitted on or before October 26,
2018.
Percent
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–21678 Filed 10–4–18; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #15707 and #15708;
Northern Mariana Islands Disaster Number
MP–00007]
Presidential Declaration of a Major
Disaster for the Commonwealth of the
Northern Mariana Islands
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for the Commonwealth of the
NORTHERN MARIANA ISLANDS
(FEMA–4396–DR), dated 09/29/2018.
Incident: Typhoon Mangkhut.
Incident Period: 09/10/2018 through
09/11/2018.
DATES: Issued on 09/29/2018.
Physical Loan Application Deadline
Date: 11/28/2018.
Economic Injury (EIDL) Loan
Application Deadline Date: 07/01/2019.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT:
A. Escobar, Office of Disaster
Assistance, U.S. Small Business
Administration, 409 3rd Street SW,
Suite 6050, Washington, DC 20416,
(202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
09/29/2018, applications for disaster
loans may be filed at the address listed
above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Areas (Physical Damage and
Economic Injury Loans): Rota,
Saipan, Tinian.
Contiguous Areas (Economic Injury
Loans Only):
None.
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SUMMARY:
25 17
CFR 200.30–3(a)(12).
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17:11 Oct 04, 2018
Jkt 247001
The Interest Rates are:
For Physical Damage:
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses
without
Credit
Available Elsewhere ..............
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
Non-Profit Organizations without Credit Available Elsewhere .....................................
4.000
2.000
7.350
3.675
2.500
2.500
3.675
2.500
The number assigned to this disaster
for physical damage is 157078 and for
economic injury is 157080.
(Catalog of Federal Domestic Assistance
Number 59008)
James Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2018–21707 Filed 10–4–18; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration Number #15711
Disaster Number #ZZ–00014]
The Entire United States and U.S.
Territories; Military Reservist
Economic Injury Disaster Loan
Program (MREIDL)
[FR Doc. 2018–21705 Filed 10–4–18; 8:45 am]
This is a notice of the Military
Reservist Economic Injury Disaster Loan
Program (MREIDL), dated 10/01/2018.
DATES: Issued on 10/01/2018.
MREIDL Loan Application Deadline
Date: 1 year after the essential employee
is discharged or released from active
duty.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of Public
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Fmt 4703
Sfmt 4703
(Catalog of Federal Domestic Assistance
Number 59008)
James Rivera,
Associate Administrator for Disaster
Assistance.
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY:
Law 106–50, the Veterans
entrepreneurship and Small Business
Development Act of 1999, and the
Military Reservist and Veteran Small
Business Reauthorization Act of 2008,
this notice establishes the application
filing period for the Military Reservist
Economic Injury Disaster Loan Program
(MREIDL).
Effective 10/01/2018, small
businesses employing military reservists
may apply for economic injury disaster
loans if those employees are called up
to active duty during a period of
military conflict or have received notice
of an expected call-up, and those
employees are essential to the success of
the small business daily operations.
The purpose of the MREIDL program
is to provide funds to an eligible small
business to meet its ordinary and
necessary operating expenses that it
could have met, but is unable to meet,
because an essential employee was
called-up or expects to be called-up to
active duty in his or her role as a
military reservist. These loans are
intended only to provide the amount of
working capital needed by a small
business to pay its necessary obligations
as they mature until operations return to
normal after the essential employee is
released from active duty. For
information/applications contact 1–
800–659–2955 or visit www.sba.gov.
Applications for the Military Reservist
Economic Injury Disaster Loan Program
may be filed at the above address.
The Interest Rate for eligible small
businesses is 4.000.
The number assigned is 157110.
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 15701 and # 15702;
Hawaii Disaster Number HI–00052]
Presidential Declaration of a Major
Disaster for Public Assistance Only for
the State of Hawaii
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of HAWAII (FEMA–4395–DR),
dated 09/27/2018.
Incident: Hurricane Lane.
SUMMARY:
E:\FR\FM\05OCN1.SGM
05OCN1
]]>Agencies
[Federal Register Volume 83, Number 194 (Friday, October 5, 2018)]
[Notices]
[Pages 50427-50430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21678]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84330; File No. SR-NYSE-2018-43]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 67 To Specify That D-Quote Functionality Under Rule 67(f)(5)
Will Continue To Be in Effect Until Six Months After the End of the
Pilot Period
October 1, 2018.
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 24, 2018, 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.
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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 Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 67 (Tick Size Pilot Plan) to
specify that d-Quote functionality under Rule 67(f)(5) will continue to
be in effect until six months after the end of the pilot period (which
will be April 2, 2019). 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.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
[[Page 50428]]
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 67 (Tick Size Pilot Plan) to
specify that d-Quote functionality described under Rule 67(f)(5) will
continue to be in effect for all pilot securities (``Pilot
Securities'') under the plan for the Tick Size Pilot Program (the
``Plan'') until six months after the end of the pilot period (which
will be April 2, 2019).
Background
On August 25, 2014, NYSE Group, Inc., on behalf of Bats BZX
Exchange, Inc. (f/k/a BATS Exchange, Inc.), Bats BYX Exchange, Inc. (f/
k/a BATS Y-Exchange, Inc.), Chicago Stock Exchange, Inc., Bats EDGA
Exchange, Inc. (f/k/a EDGA Exchange, Inc.), Bats EDGX Exchange, Inc.
(f/k/a EDGX Exchange, Inc.), the Financial Industry Regulatory
Authority, Inc. (``FINRA''), NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC,
the Nasdaq Stock Market LLC, NYSE MKT LLC, NYSE Arca, Inc., and the
Exchange (collectively, the ``Participants''), filed the Plan to
Implement a Tick Size Pilot Program (``Plan'') \4\ with the Securities
and Exchange Commission (the ``Commission''), pursuant to Section 11A
of the Act \5\ and Rule 608 of Regulation NMS thereunder.\6\ The
Participants filed the Plan to comply with an order issued by the
Commission on June 24, 2014 (the ``June 2014 Order'').\7\ The Plan was
published for comment in the Federal Register on November 7, 2014,\8\
and approved by the Commission, as modified, on May 6, 2015.\9\
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\4\ See Securities and Exchange Act Release No. 74892 (May 6,
2015), 80 FR 27513 (File No. 4-657) (``Tick Plan Approval Order'').
See, also, Securities and Exchange Act Release No. 76382 (November
6, 2015) (File No. 4-657), 80 FR 70284 (File No. 4-657) (November
13, 2015), which extended the pilot period commencement date from
May 6, 2015 to October 3, 2016. The Plan was submitted to the
Commission pursuant to Rule 608 of Regulation NMS. 17 CFR 242.608.
\5\ 15 U.S.C. 78k-1.
\6\ See Letter from Brendon J. Weiss, Vice President,
Intercontinental Exchange, Inc., to Secretary, Commission, dated
August 25, 2014.
\7\ See Securities Exchange Act Release No. 72460 (June 24,
2014), 79 FR 36840 (June 30, 2014).
\8\ See Securities and Exchange Act Release No. 73511 (November
3, 2014), 79 FR 66423 (File No. 4-657) (Tick Plan Filing).
\9\ See Tick Plan Approval Order, supra note 4. See also
Securities Exchange Act Release No. 77277 (March 3, 2016), 81 FR
12162 (March 8, 2016) (File No. 4-657), amending the Plan to add
National Stock Exchange, Inc. as a Participant.
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The Plan includes stocks of companies with $3 billion or less in
market capitalization, an average daily trading volume of one million
shares or less, and a volume weighted average price of at least $2.00
for every trading day. The Plan consists of a control group (``Control
Group'') of approximately 1400 Pilot Securities and three test groups
with 400 Pilot Securities in each selected by a stratified
sampling.\10\
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\10\ See Section V of the Plan for identification of Pilot
Securities, including criteria for selection and grouping.
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During the pilot, Pilot Securities in the Control Group are quoted
at the current tick size increment of $0.01 per share and trade at the
currently permitted increments. Pilot Securities in the first test
group (``Test Group One'') are quoted in $0.05 minimum increments but
continue to trade at any price increment that is currently
permitted.\11\ Pilot Securities in the second test group (``Test Group
Two'') are quoted in $0.05 minimum increments and trade at $0.05
minimum increments subject to a midpoint exception, a retail investor
exception, and a negotiated trade exception.\12\ Pilot Securities in
Test Group Three are subject to the same terms as Test Group Two and
are also subject to the ``Trade-at'' requirement to prevent price
matching by a person not displaying at a price of a Trading Center's
``Best Protected Bid or ``Best Protected Offer,'' unless an enumerated
exception applies.\13\ In addition to the exceptions provided under
Test Group Two, an exception for Block Size orders and exceptions that
closely resemble those under Rule 611 of Regulation NMS (``Rule 611'')
\14\ apply to the Trade-at requirement.
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\11\ See Section VI(B) of the Plan. Pilot Securities in Test
Group One will be subject to a midpoint exception and a retail
investor exception.
\12\ See Section VI(C) of the Plan.
\13\ See Section VI(D) of the Plan.
\14\ 17 CFR 242.611.
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The pilot period commenced on October 3, 2016 and is in effect for
a period of two years following commencement, until April 2, 2019 (the
``Pilot Period'')[sic]. Pursuant to an exemption granted under Rule
608(e) of Regulation NMS, the quoting and trading requirements of the
Plan will terminate at the end of trading on Friday, September 28,
2018, instead of at the end of trading on Tuesday, October 2, 2018.\15\
At the close of trading on September 28, 2018, all Pilot Securities
will be moved into the Control Group and certain data collection
provisions under Appendix B and C of the Plan will continue to apply
through six (6) months after the end of the Pilot Period, which will be
April 2, 2019.\16\
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\15\ See Letter from David S. Shillman, Associate Director, for
the Commission, by the Division of Trading of Markets, pursuant to
delegated authority, to John Ramsay, Chief Market Policy Officer,
IEX Group, Inc., dated September 10, 2018.
\16\ See, supra, note 16.
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Amendment to Rule 67--d-Quotes
The Exchange adopted Rule 67 to implement the requirements
specified in the Plan. Rule 67(f)(5) states that, in all Pilot
Securities, d-Quotes to buy (sell) will not exercise discretion if (i)
exercising discretion would result in an execution equal to or higher
(lower) than the price of a protected offer (bid), or (ii) the price of
a protected bid (offer) is equal to or higher (lower) than the filed
price of the d-Quote. As noted above, at the end of the Pilot Period,
Test Group One, Test Group Two and Test Group Three Pilot Securities
will be moved into the Control Group. Because Rule 67(f)(5) applies to
all Pilot Securities, including Pilot Securities in the Control Group,
all Pilot Securities will continue to be subject to Rule 67(f)(5) for
the six-month period after the end of the Pilot Period. To make this
clear, the Exchange proposes to amend the first paragraph of Rule 67,
which currently provides that ``The provisions of this Rule will be in
effect during a pilot to coincide with the Pilot Period for the
Regulation NMS Tick Size Pilot Plan,'' to add that ``[p]aragraph (f)(5)
of this Rule will continue to be in effect for all Pilot Securities for
six months after the end of the Pilot Period.'' The Exchange believes
that this proposed rule change will promote transparency that the
existing Rule 67(f)(5) requirement, which is applicable to Control
Group Pilot Securities, would continue to be applicable to all Pilot
Securities for the six-month period following the end of the Pilot
Period.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\17\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\18\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest. The
Exchange believes that the proposed rule change is consistent with the
Act because it facilitates data analysis during the data collection
period specified under a Plan
[[Page 50429]]
approved by the Commission pursuant to an order issued by the
Commission in reliance on Section 11A of the Act.\19\ More
specifically, the Exchange believes that the proposed rule change would
remove impediments to and perfect the mechanism of a free and open
market and a national market system because it would promote
transparency and clarity in Exchange rules that an existing provision
in Rule 67 relating to how Control Group Pilot Securities are processed
would continue during the six-month period following the end of the
Pilot Period and during which certain data collection provisions under
Appendix B and C of the Plan will continue to apply. By specifying that
Rule 67(f)(5) would continue to apply through the six-month period
after the end of the Pilot Period, during which all Pilot Securities
will be in the Control Group, this proposed rule change ensures that
the Exchange's system functionality during the six-month period after
the end of the Pilot Period will be in compliance with the Plan.
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\17\ 15 U.S.C. 78f(b).
\18\ 15 U.S.C. 78f(b)(5).
\19\ See, supra, note 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 purposes of the Act. The proposed changes are
being made to establish, maintain, and enforce written policies and
procedures that are reasonably designed to comply with the trading and
quoting requirements specified in the Plan, of which other equities
exchanges are also Participants. The proposed changes facilitate data
analysis during the data collection period specified under the Plan.
Therefore, the proposed changes would not impose any burden on
competition, while providing certainty of treatment and execution of
trading interests on the Exchange to market participants in NMS Stocks
that are acting in compliance with the requirements specified in the
Plan.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) \20\ of the Act and Rule 19b-
4(f)(6) thereunder.\21\
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\20\ 15 U.S.C. 78s(b)(3)(A).
\21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
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. The Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \22\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \23\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
notes that the Plan's quoting and trading rule obligations will cease
on September 28, 2018, and this proposed rule change should be
operative on or before that date in order to provide notice to members
that the provisions of Rule 67(f)(5) would continue to apply during the
six-month period following the end of the Pilot Period. The Commission
believes that the proposed rule change provides clarity as to the
requirements under Rule 67(f)(5) during the post-Pilot Period. In
addition, the Commission believes that the proposed rule change should
ensure that the data collected under the Tick Size Pilot during the
post-Pilot Period remains consistent with the data collected during the
Pilot Period. Based on the foregoing, the Commission believes the
waiver of the operative delay is consistent with the protection of
investors and the public interest. Therefore, the Commission hereby
waives the operative delay and designates the proposal operative upon
filing.\24\
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\22\ 17 CFR 240.19b-4(f)(6).
\23\ 17 CFR 240.19b-4(f)(6)(iii).
\24\ 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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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-NYSE-2018-43 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-NYSE-2018-43. 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-NYSE-2018-43 and should
[[Page 50430]]
be submitted on or before October 26, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
Eduardo A. Aleman,
Assistant Secretary.
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\25\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-21678 Filed 10-4-18; 8:45 am]
BILLING CODE 8011-01-P
