Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.31(i)(4) Relating to the Last Sale Peg Modifier, 16549-16552 [2019-07851]
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Federal Register / Vol. 84, No. 76 / Friday, April 19, 2019 / Notices
For the Nuclear Regulatory Commission.
David C. Cullison,
NRC Clearance Officer, Office of the Chief
Information Officer.
[FR Doc. 2019–07843 Filed 4–18–19; 8:45 am]
BILLING CODE 7590–01–P
POSTAL REGULATORY COMMISSION
[Docket Nos. MC2019–124 and CP2019–133]
New Postal Product
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
a negotiated service agreement. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: April 23,
2019.
SUMMARY:
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.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Docketed Proceeding(s)
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I. Introduction
The Commission gives notice that the
Postal Service 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
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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
3007.301.1
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,
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).: MC2019–124 and
CP2019–133; Filing Title: USPS Request
to Add Priority Mail Express, Priority
Mail & First-Class Package Service
Contract 59 to Competitive Product List
and Notice of Filing Materials Under
Seal; Filing Acceptance Date: April 15,
2019; Filing Authority: 39 U.S.C. 3642,
39 CFR 3020.30 et seq., and 39 CFR
3015.5; Public Representative: Kenneth
R. Moeller; Comments Due: April 23,
2019.
This Notice will be published in the
Federal Register.
Stacy L. Ruble,
Secretary.
[FR Doc. 2019–07879 Filed 4–18–19; 8:45 am]
BILLING CODE 7710–FW–P
Notice of Public Meeting
The Presidio Trust.
Notice of public meeting.
AGENCY:
In accordance with the
Presidio Trust Act, and in accordance
with the Presidio Trust’s bylaws, notice
is hereby given that a public meeting of
the Presidio Trust Board of Directors
will be held commencing 5:30 p.m. on
May 23, 2019, at the Golden Gate Club,
SUMMARY:
1 See Docket No. RM2018–3, Order Adopting
Final Rules Relating to Non-Public Information,
June 27, 2018, Attachment A at 19–22 (Order No.
4679).
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135 Fisher Loop, Presidio of San
Francisco, California.
The purposes of this meeting are to:
Provide the Chairperson’s report;
provide the Chief Executive Officer’s
report; honoring Greg Moore’s Service to
the Presidio as CEO of the Golden Gate
National Parks Conservancy;
presentations by staff and respondents
regarding the Fort Winfield Scott project
requests for proposals; and receive
public comment on these and other
matters pertaining to Trust business.
Individuals requiring special
accommodation at this meeting, such as
needing a sign language interpreter,
should contact Laurie Fox at
415.561.5300 prior to May 14, 2019.
DATES: The meeting will begin at 5:30
p.m. on May 23, 2019.
ADDRESSES: The meeting will be held at
the Golden Gate Club, 135 Fisher Loop,
Presidio of San Francisco.
FOR FURTHER INFORMATION CONTACT:
George K.H. Schell, General Counsel,
the Presidio Trust, 103 Montgomery
Street, P.O. Box 29052, San Francisco,
California 94129–0052, Telephone:
415.561.5300.
Dated: April 15, 2019.
George K.H. Schell,
General Counsel.
[FR Doc. 2019–07880 Filed 4–18–19; 8:45 am]
BILLING CODE 4310–4R–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85649; File No. SR–NYSE–
2019–16]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
7.31(i)(4) Relating to the Last Sale Peg
Modifier
April 15, 2019.
PRESIDIO TRUST
ACTION:
16549
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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 April 2,
2019, 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 and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 84, No. 76 / Friday, April 19, 2019 / Notices
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 7.31(i)(4) relating to the Last Sale
Peg Modifier. 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
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1. Purpose
The Exchange proposes to amend
Rule 7.31(i)(4) relating to the Last Sale
Peg Modifier, also referred to as a ‘‘Last
Sale Peg Order.’’ Specifically, the
Exchange proposes to specify a
circumstance when the working price of
a Last Sale Peg Order would not be
adjusted.
Rule 7.31(i)(4) provides that a Last
Sale Peg Order is a Non-Routable Limit
Order to buy that will not trade or be
displayed at a price higher than the lastsale price, which is the later of the most
recent last-sale eligible trade 4 executed
on the Exchange or the most recent
consolidated last-sale eligible trade.5
Rule 7.31(i)(4)(A) provides that the
working price of a Last Sale Peg Order
will be pegged to the lower of the lastsale price, the limit price of the order,
or the PBO. The Last Sale Peg Order is
available to buy Non-Routable Limit
Orders only and is designed to assist
member organizations in their
compliance with the ‘‘safe harbor’’
provisions of Rule 10b–18 under the Act
4 A last-sale eligible trade must be of at least one
round lot.
5 A consolidated last-sale eligible trade is the lastsale eligible trade reported to the responsible single
plan processor.
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(‘‘Rule 10b–18’’) for issuer repurchases.6
One of the four provisions required to
fall under Rule 10b–18’s safe harbor is
that the purchase price of a security may
not exceed the highest independent bid
or the last independent transaction price
for the security.7 Because a Last Sale Peg
Order will not trade at a price that is
higher than the last-sale price, member
organizations can use this instruction to
facilitate their compliance with at least
one of the conditions of the safe harbor
provision of Rule 10b–18.8
Rule 7.31(i)(4)(B) provides that the
display price of a Last Sale Peg Order is
the same as the working price, unless
the working price is pegged to the PBO,
in which case, the display price is
determined under paragraph (e)(1) of
Rule 7.31.9 The Exchange proposes to
amend Rule 7.31(i)(4)(B) to further
specify that the working price of a Last
Sale Peg Order would not be adjusted if
the PBO has adjusted to be equal to or
lower than the working price of the Last
Sale Order. As a Non-Routable Limit
Order, a Last Sale Peg Order is subject
to Rule 7.31(e)(1)(iii), which provides in
part that if the PBO of an Away Market
re-prices to be equal to or lower than a
Non-Routable Limit Order’s last display
price, the order’s display price will not
change, but the working price will be
adjusted to be equal to its display price.
The Exchange proposes that if the PBO
has adjusted in this manner, the
working price of the Last Sale Peg Order
would not change if the last-sale price
adjusts to be the same or higher than the
working price.
Accordingly, as amended, Rule
7.31(i)(4)(B) would provide that if the
PBO has adjusted to be equal to or lower
than the working price of the Last Sale
Peg Order, the working price of such
order would not change if the last-sale
price adjusts to be the same or higher
than the working price. The Exchange
believes that this proposed amendment
would simplify the operation of the
6 See 17 CFR 240.10b–18. See also Securities
Exchange Act Release No. 78679 (August 25, 2016),
81 FR 60080 (August 31, 2016) (SR–NYSE–2016–
59).
7 See 17 CFR 240.10b–18(b)(3). The other three
conditions relate to time of purchases, volume of
purchases, and a requirement that only one broker
or dealer be involved in such repurchases on a
single day.
8 See Securities Exchange Act Release No. 85158
(February 15, 2019), 84 FR 5794 (February 22, 2019)
(SR–NYSE–2018–52) (‘‘NYSE Approval Order’’).
The Exchange does not represent that a Last Sale
Peg Order is guaranteed to meet the requirements
of the safe harbor provision of Rule 10b–18; rather,
these instruction are available to member
organizations to facilitate their own compliance
with Rule 10b–18.
9 Rule 7.31(e)(1) describes how a Non-Routable
Limit Order to buy that, at the time of entry and
after trading with any sell orders in the Exchange
Book priced at or below the PBO is priced.
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Last-Sale Peg Order and eliminate the
need for a price change that would not
otherwise be required for such order to
facilitate compliance with Rule 10b–18.
This proposed amendment would not
change the behavior of a Last-Sale Peg
Order if the last-sale price adjusts lower.
In such case, even if the PBO has
adjusted to be equal to or lower than the
working price of a Last Sale Peg Order,
if the last-sale price adjusts to be lower
than such working price, the working
price of the Last Sale Peg Order would
be adjusted.
For example, if the Away Market PBO
is $10.02 and the last-sale price is
$10.00, a Last Sale Peg Order to buy
1,000 shares with a limit price of $10.05
will be assigned a working and display
price of $10.00, which is the same as the
last-sale price. If the Away Market PBO
updates to $9.95, which is lower than
the Last Sale Peg Order’s working price,
pursuant to Rule 7.31(e)(1)(iii), the Last
Sale Peg Order would remain at $10.00.
If, while the PBO is $9.95, there is an
update of the last-sale price to $10.02,
with this proposed rule change, the Last
Sale Peg Order would remain at $10.00
and not be adjusted. By contrast, if,
while the PBO is $9.95, there is an
update of the last-sale price to $9.99, the
working price of the Last Sale Peg Order
would be adjusted to $9.95, with a
display price of $9.94.10
The Exchange has not yet
implemented Last Sale Peg Orders,
which were recently approved.11 The
Exchange proposes that, subject to
effectiveness of this proposed rule
change, to implement this proposed rule
change at the same time that it
introduces Last Sale Peg Orders.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),12 in general, and furthers the
objectives of Section 6(b)(5),13 in
particular, because it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to, and perfect the
mechanism of, a free and open market
10 See
Rule 7.31(e)(1)(A).
NYSE Approval Order, supra note 8. The
Exchange has announced that it will implement
Last Sale Peg Orders on April 29, 2019. See Trader
Update dated February 21, 2019, available here:
https://www.nyse.com/publicdocs/nyse/markets/
nyse/Pillar_Update_NYSE_Tape_A_NGW_
February_2019.pdf.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
11 See
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and a national market system and, in
general, to protect investors and the
public interest. The Exchange believes
that the proposal would 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 because it would specify
in the Exchange’s rules circumstances
when a Last Sale Peg Order would not
be re-priced. The proposed rule change
would further remove impediments to
and perfect the mechanism of a free and
open market and a national market
system because it would simplify
operations by reducing the number of
times a Last Sale Peg Order would be
required to re-price while at the same
time maintaining the order type’s core
functionality to facilitate compliance
with Rule 10b–18. Because a Last Sale
Peg Order will continue to not trade at
a price that is higher than the last sale,
member organizations can continue use
Last Sale Peg Orders to facilitate their
compliance with at least one of the
conditions of the safe harbor provision
of Rule 10b–18.14 Lastly, the Last Sale
Peg Order was recently approved by the
Commission 15 and this proposal does
not seek to amend its operation in any
significant manner.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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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 rule change is not designed to
have a competitive impact because it is
intended to simplify operations by
reducing the number of times a Last
Sale Peg Order would be required to
reprice, while maintaining the core
functionality of such order to facilitate
compliance with Rule 10b–18.
Nonetheless, the proposed rule change
should promote competition by
enhancing the Exchange’s rules to
provide greater specificity to market
participants and improving the
efficiency of the Exchange’s order
handling processes.
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.
14 See
15 See
supra note 6.
NYSE Approval Order, supra note 8.
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III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 16 and Rule
19b–4(f)(6) thereunder.17 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) of the Act 18 and Rule 19b–
4(f)(6) thereunder.19
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 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
NYSE asked the Commission to waive
the 30-day operative delay so that the
Exchange. Specifically the Exchange
noted that Last Sale Peg Orders were
approved by the Commission on
February 15, 2019,21 and intends to
implement the orders on April 29,
2019.22 The Exchange represents that
this proposed rule change does not seek
to amend the operation of the Last Sale
Peg Order in any significant manner and
that the proposed rule change maintains
the core functionality of this order type
to facilitate issuer compliance with
Exchange Act Rule 10b–18. The
Commission believes that waiver of the
operative delay is consistent with the
protection of investors and the public
interest, and accordingly, the
Commission hereby waives the 30-day
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
16 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
18 15 U.S.C. 78s(b)(3)(A).
19 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.
20 17 CFR 240.19b–4(f)(6)(iii).
21 See NYSE Approval Order, supra note 8.
22 See supra note 11.
23 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).
17 17
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16551
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 rule-comments@
sec.gov. Please include File Number SR–
NYSE–2019–16 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2019–16. 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
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Federal Register / Vol. 84, No. 76 / Friday, April 19, 2019 / Notices
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSE–2019–16 and should
be submitted on or before May 10, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–07851 Filed 4–18–19; 8:45 am]
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85650; File No. SR–CBOE–
2019–022]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Renew an
Existing Pilot Program Until November
4, 2019
April 15, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 10,
2019, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 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
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to renew
an existing pilot program until
November 4, 2019. The text of the
proposed rule change is provided
below.
khammond on DSKBBV9HB2PROD with NOTICES
(additions are italicized; deletions are
[bracketed])
*
*
*
*
*
Rules of Cboe Exchange, Inc.
*
*
*
*
*
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
16:23 Apr 18, 2019
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The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/CBOELegalRegulatory
Home.aspx), at the Exchange’s Office of
the Secretary, 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
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
On September 14, 2010, the
Commission approved a Cboe Options
proposal to establish a pilot program
under which the Exchange is permitted
to list P.M.-settled options on broadbased indexes to expire on (a) any
Friday of the month, other than the
third Friday-of-the-month, and (b) the
last trading day of the month.5 On
January 14, 2016, the Commission
approved a Cboe Options proposal to
expand the pilot program to allow P.M.settled options on broad-based indexes
to expire on any Wednesday of month,
other than those that coincide with an
EOM.6 On August 10, 2016, the
Commission approved a Cboe Options
proposal to expand the pilot program to
allow P.M.-settled options on broadbased indexes to expire on any Monday
5 See Securities Exchange Act Release 62911
(September 14, 2010), 75 FR 57539 (September 21,
2010) (order approving SR–CBOE–2009–075).
6 See Securities Exchange Act Release 76909
(January 14, 2016), 81 FR 3512 (January 21, 2016)
(order approving SR–CBOE–2015–106).
24 17
VerDate Sep<11>2014
Rule 24.9. Terms of Index Option Contracts
(a)–(d) (No change).
(e) Nonstandard Expirations Pilot Program
(1)–(2) (No change).
(3) Duration of Nonstandard Expirations
Pilot Program. The Nonstandard Expirations
Pilot Program shall be through [May 6]
November 4, 2019.
(4) (No change).
. . . Interpretations and Policies:
.01–.14 (No change).
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of month, other than those that coincide
with an EOM.7 Under the terms of the
Nonstandard Expirations Pilot Program
(‘‘Program’’), Weekly Expirations and
EOMs are permitted on any broad-based
index that is eligible for regular options
trading. Weekly Expirations and EOMs
are cash-settled and have Europeanstyle exercise. The proposal became
effective on a pilot basis for a period of
fourteen months that commenced on the
next full month after approval was
received to establish the Program 8 and
was subsequently extended.9 The
Program is scheduled to expire on May
6, 2019. The Exchange believes that the
Program has been successful and well
received by its Trading Permit Holders
and the investing public during that the
time that it has been in operation. The
Exchange hereby proposes to extend the
Program until November 4, 2019. This
proposal does not request any other
changes to the Program.
Pursuant to the order approving the
establishment of the Program, two
months prior to the conclusion of the
pilot period, Cboe Options is required to
submit an annual report to the
Commission, which addresses the
following areas: Analysis of Volume &
Open Interest, Monthly Analysis of
Weekly Expirations & EOM Trading
Patterns and Provisional Analysis of
Index Price Volatility. The Exchange has
submitted, under separate cover, the
annual report in connection with the
present proposed rule change.
Additionally, the Exchange will provide
the Commission with any additional
data or analyses the Commission
requests because it deems such data or
analyses necessary to determine
whether the Program is consistent with
the Exchange Act. The Exchange is in
the process of making public all data
7 See Securities Exchange Act Release 78531
(August 10, 2016), 81 FR 54643 (August 16, 2016)
(order approving SR–CBOE–2016–046).
8 Id.
9 See Securities Exchange Act Release 65741
(November 14, 2011), 76 FR 72016 (November 21,
2011) (immediately effective rule change extending
the Program through February 14, 2013). See also
Securities Exchange Act Release 68933 (February
14, 2013), 78 FR 12374 (February 22, 2013)
(immediately effective rule change extending the
Program through April 14, 2014); 71836 (April 1,
2014), 79 FR 19139 (April 7, 2014) (immediately
effective rule change extending the Program
through November 3, 2014); 73422 (October 24,
2014), 79 FR 64640 (October 30, 2014) (immediately
effective rule change extending the Program
through May 3, 2016); 76909 (January 14, 2016), 81
FR 3512 (January 21, 2016) (extending the Program
through May 3, 2017); 80387 (April 6, 2017), 82 FR
17706 (April 12, 2017) (extending the Program
through May 3, 2018); 83165 (May 3, 2018), 83 FR
21316 (May 9, 2018) (SR–CBOE–2018–038)
(extending the Program through November 5, 2018);
and 84534 (November 5, 2019), 83 FR 56119
(November 9, 2018) (SR–CBOE–2018–070)
(extending the Program through May 6, 2019).
E:\FR\FM\19APN1.SGM
19APN1
]]>Agencies
[Federal Register Volume 84, Number 76 (Friday, April 19, 2019)]
[Notices]
[Pages 16549-16552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07851]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85649; File No. SR-NYSE-2019-16]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 7.31(i)(4) Relating to the Last Sale Peg Modifier
April 15, 2019.
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 April 2, 2019, 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
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
[[Page 16550]]
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 7.31(i)(4) relating to the Last
Sale Peg Modifier. 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 Rule 7.31(i)(4) relating to the Last
Sale Peg Modifier, also referred to as a ``Last Sale Peg Order.''
Specifically, the Exchange proposes to specify a circumstance when the
working price of a Last Sale Peg Order would not be adjusted.
Rule 7.31(i)(4) provides that a Last Sale Peg Order is a Non-
Routable Limit Order to buy that will not trade or be displayed at a
price higher than the last-sale price, which is the later of the most
recent last-sale eligible trade \4\ executed on the Exchange or the
most recent consolidated last-sale eligible trade.\5\ Rule
7.31(i)(4)(A) provides that the working price of a Last Sale Peg Order
will be pegged to the lower of the last-sale price, the limit price of
the order, or the PBO. The Last Sale Peg Order is available to buy Non-
Routable Limit Orders only and is designed to assist member
organizations in their compliance with the ``safe harbor'' provisions
of Rule 10b-18 under the Act (``Rule 10b-18'') for issuer
repurchases.\6\ One of the four provisions required to fall under Rule
10b-18's safe harbor is that the purchase price of a security may not
exceed the highest independent bid or the last independent transaction
price for the security.\7\ Because a Last Sale Peg Order will not trade
at a price that is higher than the last-sale price, member
organizations can use this instruction to facilitate their compliance
with at least one of the conditions of the safe harbor provision of
Rule 10b-18.\8\
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\4\ A last-sale eligible trade must be of at least one round
lot.
\5\ A consolidated last-sale eligible trade is the last-sale
eligible trade reported to the responsible single plan processor.
\6\ See 17 CFR 240.10b-18. See also Securities Exchange Act
Release No. 78679 (August 25, 2016), 81 FR 60080 (August 31, 2016)
(SR-NYSE-2016-59).
\7\ See 17 CFR 240.10b-18(b)(3). The other three conditions
relate to time of purchases, volume of purchases, and a requirement
that only one broker or dealer be involved in such repurchases on a
single day.
\8\ See Securities Exchange Act Release No. 85158 (February 15,
2019), 84 FR 5794 (February 22, 2019) (SR-NYSE-2018-52) (``NYSE
Approval Order''). The Exchange does not represent that a Last Sale
Peg Order is guaranteed to meet the requirements of the safe harbor
provision of Rule 10b-18; rather, these instruction are available to
member organizations to facilitate their own compliance with Rule
10b-18.
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Rule 7.31(i)(4)(B) provides that the display price of a Last Sale
Peg Order is the same as the working price, unless the working price is
pegged to the PBO, in which case, the display price is determined under
paragraph (e)(1) of Rule 7.31.\9\ The Exchange proposes to amend Rule
7.31(i)(4)(B) to further specify that the working price of a Last Sale
Peg Order would not be adjusted if the PBO has adjusted to be equal to
or lower than the working price of the Last Sale Order. As a Non-
Routable Limit Order, a Last Sale Peg Order is subject to Rule
7.31(e)(1)(iii), which provides in part that if the PBO of an Away
Market re-prices to be equal to or lower than a Non-Routable Limit
Order's last display price, the order's display price will not change,
but the working price will be adjusted to be equal to its display
price. The Exchange proposes that if the PBO has adjusted in this
manner, the working price of the Last Sale Peg Order would not change
if the last-sale price adjusts to be the same or higher than the
working price.
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\9\ Rule 7.31(e)(1) describes how a Non-Routable Limit Order to
buy that, at the time of entry and after trading with any sell
orders in the Exchange Book priced at or below the PBO is priced.
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Accordingly, as amended, Rule 7.31(i)(4)(B) would provide that if
the PBO has adjusted to be equal to or lower than the working price of
the Last Sale Peg Order, the working price of such order would not
change if the last-sale price adjusts to be the same or higher than the
working price. The Exchange believes that this proposed amendment would
simplify the operation of the Last-Sale Peg Order and eliminate the
need for a price change that would not otherwise be required for such
order to facilitate compliance with Rule 10b-18. This proposed
amendment would not change the behavior of a Last-Sale Peg Order if the
last-sale price adjusts lower. In such case, even if the PBO has
adjusted to be equal to or lower than the working price of a Last Sale
Peg Order, if the last-sale price adjusts to be lower than such working
price, the working price of the Last Sale Peg Order would be adjusted.
For example, if the Away Market PBO is $10.02 and the last-sale
price is $10.00, a Last Sale Peg Order to buy 1,000 shares with a limit
price of $10.05 will be assigned a working and display price of $10.00,
which is the same as the last-sale price. If the Away Market PBO
updates to $9.95, which is lower than the Last Sale Peg Order's working
price, pursuant to Rule 7.31(e)(1)(iii), the Last Sale Peg Order would
remain at $10.00. If, while the PBO is $9.95, there is an update of the
last-sale price to $10.02, with this proposed rule change, the Last
Sale Peg Order would remain at $10.00 and not be adjusted. By contrast,
if, while the PBO is $9.95, there is an update of the last-sale price
to $9.99, the working price of the Last Sale Peg Order would be
adjusted to $9.95, with a display price of $9.94.\10\
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\10\ See Rule 7.31(e)(1)(A).
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The Exchange has not yet implemented Last Sale Peg Orders, which
were recently approved.\11\ The Exchange proposes that, subject to
effectiveness of this proposed rule change, to implement this proposed
rule change at the same time that it introduces Last Sale Peg Orders.
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\11\ See NYSE Approval Order, supra note 8. The Exchange has
announced that it will implement Last Sale Peg Orders on April 29,
2019. See Trader Update dated February 21, 2019, available here:
https://www.nyse.com/publicdocs/nyse/markets/nyse/Pillar_Update_NYSE_Tape_A_NGW_February_2019.pdf.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\12\ in general, and
furthers the objectives of Section 6(b)(5),\13\ in particular, because
it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, to remove impediments to, and perfect the
mechanism of, a free and open market
[[Page 16551]]
and a national market system and, in general, to protect investors and
the public interest. The Exchange believes that the proposal would
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 because it would specify in the
Exchange's rules circumstances when a Last Sale Peg Order would not be
re-priced. The proposed rule change would further remove impediments to
and perfect the mechanism of a free and open market and a national
market system because it would simplify operations by reducing the
number of times a Last Sale Peg Order would be required to re-price
while at the same time maintaining the order type's core functionality
to facilitate compliance with Rule 10b-18. Because a Last Sale Peg
Order will continue to not trade at a price that is higher than the
last sale, member organizations can continue use Last Sale Peg Orders
to facilitate their compliance with at least one of the conditions of
the safe harbor provision of Rule 10b-18.\14\ Lastly, the Last Sale Peg
Order was recently approved by the Commission \15\ and this proposal
does not seek to amend its operation in any significant manner.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
\14\ See supra note 6.
\15\ See NYSE Approval Order, supra note 8.
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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 rule change is
not designed to have a competitive impact because it is intended to
simplify operations by reducing the number of times a Last Sale Peg
Order would be required to reprice, while maintaining the core
functionality of such order to facilitate compliance with Rule 10b-18.
Nonetheless, the proposed rule change should promote competition by
enhancing the Exchange's rules to provide greater specificity to market
participants and improving the efficiency of the Exchange's order
handling processes.
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\
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) of the Act \18\ and Rule 19b-4(f)(6)
thereunder.\19\
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\16\ 15 U.S.C. 78s(b)(3)(A)(iii).
\17\ 17 CFR 240.19b-4(f)(6).
\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 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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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 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 NYSE asked the Commission to
waive the 30-day operative delay so that the Exchange. Specifically the
Exchange noted that Last Sale Peg Orders were approved by the
Commission on February 15, 2019,\21\ and intends to implement the
orders on April 29, 2019.\22\ The Exchange represents that this
proposed rule change does not seek to amend the operation of the Last
Sale Peg Order in any significant manner and that the proposed rule
change maintains the core functionality of this order type to
facilitate issuer compliance with Exchange Act Rule 10b-18. The
Commission believes that waiver of the operative delay is consistent
with the protection of investors and the public interest, and
accordingly, the Commission hereby waives the 30-day operative delay
and designates the proposed rule change operative upon filing.\23\
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\20\ 17 CFR 240.19b-4(f)(6)(iii).
\21\ See NYSE Approval Order, supra note 8.
\22\ See supra note 11.
\23\ 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-NYSE-2019-16 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2019-16. 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
[[Page 16552]]
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSE-2019-16 and should be
submitted on or before May 10, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-07851 Filed 4-18-19; 8:45 am]
BILLING CODE 8011-01-P
