Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Arca Rule 5.1-E(a)(2), 63958-63960 [2018-26832]
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63958
Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
A proposed rule change filed under
Rule 19b–4(f)(6) 19 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii)20 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 states that
immediately codifying its current
practice within its rules to accurately
reflect the operation of the Exchange’s
System will avoid confusion. 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 as operative upon
filing.21
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
amozie on DSK3GDR082PROD with NOTICES1
• 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–
ISE–2018–96 on the subject line.
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.
19 17 CFR 240.19b–4(f)(6).
20 17 CFR 240.19b–4(f)(6)(iii).
21 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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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–ISE–2018–96. 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 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–ISE–2018–96 and should be
submitted on or before January 2, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–26826 Filed 12–11–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84735; File No. SR–
NYSEArca–2018–87]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend NYSE Arca
Rule 5.1–E(a)(2)
December 6, 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
November 27, 2018, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) 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
NYSE Arca Rule 5.1–E(a)(2) to remove
the requirement that the Exchange file
with the Securities and Exchange
Commission (the ‘‘Commission’’) a
Form 19b–4(e) for each ‘‘new derivative
securities product’’ that will commence
trading on the Exchange pursuant to
unlisted trading privileges. 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
22 17
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
The purpose of the proposed rule
change is to amend NYSE Arca Rule
5.1–E(a)(2)(i) to remove the requirement
that the Exchange file with the
Commission a Form 19b–4(e) for each
‘‘new derivative securities product’’ that
will commence trading on the Exchange
pursuant to unlisted trading privileges.
The Exchange also proposes to
renumber the remaining subsections of
NYSE Arca Rule 5.1–E(a)(2) to maintain
an organized rule structure. The
Exchange notes that a substantially
identical proposed rule change by NYSE
National, Inc. (‘‘NYSE National’’) was
recently approved by the Commission.4
NYSE Arca Rule 5.1–E(a)(2)(i) sets
forth the requirement for the Exchange
to file with the Commission a Form
19b–4(e) with respect to each ‘‘new
derivative securities product’’ that is
traded pursuant to unlisted trading
privileges. However, the Exchange
believes that it should not be necessary
to file a Form 19b–4(e) with the
Commission if it begins trading a ‘‘new
derivative securities product’’ pursuant
to unlisted trading privileges, because
Rule 19b–4(e)(1) under the Act refers to
the ‘‘listing and trading’’ of a ‘‘new
derivative securities product.’’ The
Exchange believes that the requirements
of that rule refer to when an exchange
lists and trades a ‘‘new derivative
securities product’’, and not when an
exchange seeks only to trade such
product pursuant to unlisted trading
privileges pursuant to Rule 12f–2 under
the Act.5 Therefore, the Exchange
proposes to delete the requirement in
current NYSE Arca Rule 5.1–E(a)(2)(i)
for the Exchange to file a Form 19b–4(e)
with the Commission with respect to
each ‘‘new derivative securities
product’’ it begins trading pursuant to
unlisted trading privileges. In addition,
as a result of the deletion of current
NYSE Arca Rule 5.1–E(a)(2)(i), the
Exchange proposes to renumber current
NYSE Arca Rules 5.1–E(a)(2)(ii)–(vi).
Lastly, the Exchange proposes to delete
a duplicative reference to subparagraph
(v).
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) 6 of the
4 See Securities Exchange Act Release No. 83289
(May 17, 2018), 83 FR 23968 (May 23, 2018) (Order
Approving File No. SR–NYSENat–2018–02).
5 17 CFR 240.12f–2.
6 15 U.S.C. 78f(b).
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Act in general, and furthers the
objectives of Section 6(b)(5) of the Act 7
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. Specifically, eliminating
the requirement to file a Form 19b–4(e)
for each ‘‘new derivative securities
product’’ the Exchange begins trading
on an unlisted trading privileges basis
removes an unnecessary regulatory
requirement thereby providing for a
more efficient process for adding a ‘‘new
derivative securities product’’ to trading
on the Exchange on an unlisted trading
privileges basis.
As noted above, the Commission
recently approved a substantially
identical proposed rule change by NYSE
National.8 In particular, the Commission
noted in the approval order that it
‘‘believes that the filing of a Form 19b–
4(e) is not required when an Exchange
is trading a new derivative securities
product on a UTP basis only’’ 9 and also
found that the NYSE National’s
proposed rule change is ‘‘consistent
with the requirements of Section 6(b)(5)
of the Act.’’ 10 The Nasdaq Stock Market
LLC (‘‘Nasdaq’’), Nasdaq PHLX LLC
(‘‘PHLX’’), Nasdaq BX, Inc. (‘‘BX’’) and
Investors Exchange LLC (‘‘IEX’’) also
recently amended their rules to remove
the requirement to file with the
Commission a Form 19b–4(e) for each
‘‘new derivative securities product’’
traded on each of those exchanges
pursuant to unlisted trading
privileges.11
With respect to the renumbering of
current NYSE Arca Rules 5.1–
E(a)(2)(ii)–(vi) and the deletion of the
duplicative reference to subparagraph
(v), the Exchange believes that these
changes are consistent with the Act
because they will allow the Exchange to
maintain a clear and organized rule
structure, thus preventing investor
confusion.
7 15
U.S.C. 78f(b)(5).
Securities Exchange Act Release No. 83289
(May 17, 2018), 83 FR 23968 (May 23, 2018) (Order
Approving File No. (SR–NYSENat–2018–02).
9 See supra note 10 [sic] at page 23975 at footnote
149.
10 See supra note 10 [sic] at page 23975–6.
11 See Securities Exchange Act Release Nos.
84488 (October 25, 2018), 83 FR 54801 (October 31,
2018) (SR–NASDAQ–2018–082); 84542 (November
6, 2018), 83 FR 56385 (November 13, 2018) (SR–
Phlx–2018–67); 84546 (November 7, 2018) 83 FR
56888 (November 14, 2018) (SR–BX–2018–051);
and 83609 (July 9, 2018), 83 FR 32704 (July 13,
2018) (SR–IEX–2018–14).
8 See
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63959
For these reasons, the Exchange
believes the proposed rule change is
consistent with the requirements of
Section 6(b)(5) of the Act.
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. To the
contrary, removing the requirement to
file a Form 19b–4(e) will serve to
enhance competition by providing for
the efficient addition of new derivative
securities products for trading pursuant
to unlisted trading privileges on the
Exchange. To the extent that a
competitor marketplace believes that the
proposed rule change places it at a
competitive disadvantage, it may file
with the Commission a proposed rule
change to adopt the same or similar
rule.
In addition, the proposal to renumber
current NYSE Arca Rules 5.1–
E(a)(2)(ii)–(vi) does not impact
competition in any respect since it
merely maintains a clear and organized
rule structure.
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; or (iii) become
operative prior to 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 12 and
Rule 19b–4(f)(6) thereunder.13
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 notes that the
Exchange’s proposal does not present
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) 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 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
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63960
Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
any new or novel issues. Thus, the
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest and hereby waives the
30-day operative delay and designates
the proposed rule change to be operative
upon filing.14
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.
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–NYSEArca–2018–87 and
should be submitted on or before
January 2, 2019.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Assistant Secretary.
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–2018–87 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–NYSEArca–2018–87. 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,
14 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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[FR Doc. 2018–26832 Filed 12–11–18; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–84724; File No. SR–
NYSEAMER–2018–54]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change of Amendments to the
Exchange’s Rules To Delete
References to the Term ‘‘Allied
Member’’ and Correct Rule 2.1220
December 6, 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 November
30, 2018, NYSE American LLC (the
‘‘Exchange’’ or ‘‘NYSE American’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
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 amendments
to the Exchange’s rules to delete
references to the term ‘‘allied member’’
and correct an inadvertent error in Rule
2.1220. The proposed rule change is
15 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.
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Fmt 4703
Sfmt 4703
intended to harmonize Exchange rules
with the rules of the Exchange’s
affiliates and the Financial Regulatory
Authority, Inc. (‘‘FINRA’’) and thus
promote consistency within the
securities industry. 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.
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 its
rules to delete the term ‘‘allied member’’
from its rules. The ‘‘allied member’’
designation is a regulatory category
based on a person’s control of a member
organization. The Exchange’s affiliate
New York Stock Exchange LLC (the
‘‘NYSE’’) no longer has allied members,
and FINRA has deleted the term from its
Incorporated NYSE Rules.4 In order to
harmonize with the rules of the NYSE
and FINRA, the Exchange accordingly
proposes to delete reference to ‘‘allied
member’’ from the following Exchange
rules: Rule 2, Rule 2.21E, Rule 7.3E,
Rule 18, Rule 25, Rule 50, Rule 204,
Rule 310, Rule 317, Rule 320, Rule 341,
Rule 341A, Rule 342, Rule 356, Rule
359, Rule 359B, Rule 415, the preamble
to the rule regarding Proxies, Rule 458—
Equities, Rule 472, Rule 481, Rule 520,
Rule 624, Rule 724, Rule 900.2NY and
Rule 9232. The Exchange also proposes
to delete Rule 23, which defines the
term allied member, and Rule 355,
which provides the requirements for an
allied membership, in their entirety.
4 See Securities Exchange Act Release No. 58549
(September 15, 2008), 73 FR 54444 (September 19,
2008) (SR–NYSE–2008–80) (Notice); Securities
Exchange Act Release No. 58533 (September 12,
2008), 73 FR 54652 (September 22, 2008) (SR–
FINRA–2008–036) (Order).
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]]>Agencies
[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)]
[Notices]
[Pages 63958-63960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26832]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84735; File No. SR-NYSEArca-2018-87]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Arca
Rule 5.1-E(a)(2)
December 6, 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 November 27, 2018, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') 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 NYSE Arca Rule 5.1-E(a)(2) to remove
the requirement that the Exchange file with the Securities and Exchange
Commission (the ``Commission'') a Form 19b-4(e) for each ``new
derivative securities product'' that will commence trading on the
Exchange pursuant to unlisted trading privileges. 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 63959]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend NYSE Arca Rule
5.1-E(a)(2)(i) to remove the requirement that the Exchange file with
the Commission a Form 19b-4(e) for each ``new derivative securities
product'' that will commence trading on the Exchange pursuant to
unlisted trading privileges. The Exchange also proposes to renumber the
remaining subsections of NYSE Arca Rule 5.1-E(a)(2) to maintain an
organized rule structure. The Exchange notes that a substantially
identical proposed rule change by NYSE National, Inc. (``NYSE
National'') was recently approved by the Commission.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 83289 (May 17,
2018), 83 FR 23968 (May 23, 2018) (Order Approving File No. SR-
NYSENat-2018-02).
---------------------------------------------------------------------------
NYSE Arca Rule 5.1-E(a)(2)(i) sets forth the requirement for the
Exchange to file with the Commission a Form 19b-4(e) with respect to
each ``new derivative securities product'' that is traded pursuant to
unlisted trading privileges. However, the Exchange believes that it
should not be necessary to file a Form 19b-4(e) with the Commission if
it begins trading a ``new derivative securities product'' pursuant to
unlisted trading privileges, because Rule 19b-4(e)(1) under the Act
refers to the ``listing and trading'' of a ``new derivative securities
product.'' The Exchange believes that the requirements of that rule
refer to when an exchange lists and trades a ``new derivative
securities product'', and not when an exchange seeks only to trade such
product pursuant to unlisted trading privileges pursuant to Rule 12f-2
under the Act.\5\ Therefore, the Exchange proposes to delete the
requirement in current NYSE Arca Rule 5.1-E(a)(2)(i) for the Exchange
to file a Form 19b-4(e) with the Commission with respect to each ``new
derivative securities product'' it begins trading pursuant to unlisted
trading privileges. In addition, as a result of the deletion of current
NYSE Arca Rule 5.1-E(a)(2)(i), the Exchange proposes to renumber
current NYSE Arca Rules 5.1-E(a)(2)(ii)-(vi). Lastly, the Exchange
proposes to delete a duplicative reference to subparagraph (v).
---------------------------------------------------------------------------
\5\ 17 CFR 240.12f-2.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \6\ of the Act in general, and
furthers the objectives of Section 6(b)(5) of the Act \7\ 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. Specifically,
eliminating the requirement to file a Form 19b-4(e) for each ``new
derivative securities product'' the Exchange begins trading on an
unlisted trading privileges basis removes an unnecessary regulatory
requirement thereby providing for a more efficient process for adding a
``new derivative securities product'' to trading on the Exchange on an
unlisted trading privileges basis.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
As noted above, the Commission recently approved a substantially
identical proposed rule change by NYSE National.\8\ In particular, the
Commission noted in the approval order that it ``believes that the
filing of a Form 19b-4(e) is not required when an Exchange is trading a
new derivative securities product on a UTP basis only'' \9\ and also
found that the NYSE National's proposed rule change is ``consistent
with the requirements of Section 6(b)(5) of the Act.'' \10\ The Nasdaq
Stock Market LLC (``Nasdaq''), Nasdaq PHLX LLC (``PHLX''), Nasdaq BX,
Inc. (``BX'') and Investors Exchange LLC (``IEX'') also recently
amended their rules to remove the requirement to file with the
Commission a Form 19b-4(e) for each ``new derivative securities
product'' traded on each of those exchanges pursuant to unlisted
trading privileges.\11\
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\8\ See Securities Exchange Act Release No. 83289 (May 17,
2018), 83 FR 23968 (May 23, 2018) (Order Approving File No. (SR-
NYSENat-2018-02).
\9\ See supra note 10 [sic] at page 23975 at footnote 149.
\10\ See supra note 10 [sic] at page 23975-6.
\11\ See Securities Exchange Act Release Nos. 84488 (October 25,
2018), 83 FR 54801 (October 31, 2018) (SR-NASDAQ-2018-082); 84542
(November 6, 2018), 83 FR 56385 (November 13, 2018) (SR-Phlx-2018-
67); 84546 (November 7, 2018) 83 FR 56888 (November 14, 2018) (SR-
BX-2018-051); and 83609 (July 9, 2018), 83 FR 32704 (July 13, 2018)
(SR-IEX-2018-14).
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With respect to the renumbering of current NYSE Arca Rules 5.1-
E(a)(2)(ii)-(vi) and the deletion of the duplicative reference to
subparagraph (v), the Exchange believes that these changes are
consistent with the Act because they will allow the Exchange to
maintain a clear and organized rule structure, thus preventing investor
confusion.
For these reasons, the Exchange believes the proposed rule change
is consistent with the requirements of Section 6(b)(5) of the Act.
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. To the contrary, removing
the requirement to file a Form 19b-4(e) will serve to enhance
competition by providing for the efficient addition of new derivative
securities products for trading pursuant to unlisted trading privileges
on the Exchange. To the extent that a competitor marketplace believes
that the proposed rule change places it at a competitive disadvantage,
it may file with the Commission a proposed rule change to adopt the
same or similar rule.
In addition, the proposal to renumber current NYSE Arca Rules 5.1-
E(a)(2)(ii)-(vi) does not impact competition in any respect since it
merely maintains a clear and organized rule structure.
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; or (iii) become operative prior to
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 \12\ and Rule 19b-4(f)(6)
thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
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 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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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 notes that the Exchange's proposal does not
present
[[Page 63960]]
any new or novel issues. Thus, the Commission believes that waiver of
the 30-day operative delay is consistent with the protection of
investors and the public interest and hereby waives the 30-day
operative delay and designates the proposed rule change to be operative
upon filing.\14\
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\14\ 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.
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-NYSEArca-2018-87 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-NYSEArca-2018-87. 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-NYSEArca-2018-87 and should be submitted
on or before January 2, 2019.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26832 Filed 12-11-18; 8:45 am]
BILLING CODE 8011-01-P
