[Federal Register Volume 79, Number 78 (Wednesday, April 23, 2014)]
[Notices]
[Pages 22746-22748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09204]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71960; File No. SR-NYSEArca-2014-38]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Revising the
Schedule for Implementing the Exchange's Recently Approved Retail
Liquidity Program Pursuant to NYSE Arca Equities Rule 7.44
April 17, 2014.
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 4, 2014, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'')
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 Exchange. 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\ 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 revise the schedule for implementing the
Exchange's recently approved Retail Liquidity Program (``Program'')
pursuant to NYSE Arca Equities Rule 7.44. The text of the proposed rule
change is available on the Exchange's Web site at www.nyse.com, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to revise the schedule for implementing
the Exchange's recently approved Retail Liquidity Program (``Program'')
pursuant to NYSE Arca Equities Rule 7.44.
When the Exchange filed to adopt the Program, it stated that it
would announce via Trader Update the implementation date of the
Program.\3\ The Exchange anticipates that it will be announcing via
Trader Update that the implementation date for the Program will be in
April 2014.
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\3\ See Securities Exchange Act Release No. 70824 (Nov. 6,
2013), 78 FR 68116 at 68120 (Nov. 13, 2013) (SR-NYSEArca-2013-107);
see also Securities Exchange Act Release No. 71176 (Dec. 23, 2013),
78 FR 79524 (Dec. 30, 2014) (SR-NYSEArca-2013-107) (Approval Order).
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NYSE Arca Equities Rule 7.44(j) currently provides, that ``[a]n
identifier shall be disseminated through the Consolidated Quotation
System, the UTP Quote Data Feed, and the Exchange's proprietary data
feed when RPI interest priced at least $0.001 better than the PBB or
PBO for a particular security is available in Exchange systems (`Retail
Liquidity Identifier').'' In connection with the planned implementation
of the Program, the Exchange will be disseminating the Retail Liquidity
Identifier through the Consolidated Quotation System and the UTP Quote
Data Feed (the ``public data feeds''). However, because of the
differing technology associating [sic] with disseminating data via the
Exchange's proprietary data feed, the Exchange will not be able to
disseminate the Retail Liquidity Identifier via the Exchange's
proprietary data feed on the proposed initial implementation date of
the Program. Accordingly, the Exchange proposes a separate
implementation date for disseminating the Retail Liquidity Identifier
via the Exchange's proprietary data feed and will announce that date
via Trader Update.
The Exchange is proposing this rule change simply to be clear that
the implementation schedule regarding the dissemination of the Retail
Liquidity Identifier pursuant to Rule 7.44(j) will be staggered. The
Exchange proposes that the implementation date for disseminating the
Retail Liquidity Indicator via the Exchange's proprietary
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data feed will be within 120 days of the initial implementation date of
the Program.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\4\ in general, and furthers the objectives of Section 6(b)(5),\5\
in particular, in that it is designed 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.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that announcing the implementation date of
new trading systems such as the Program via Trader Update removes
impediments to and perfects the mechanism of a free and open market
because it provides notice of when a new program is being implemented.
The Exchange further believes that providing for a later implementation
date for disseminating the Retail Liquidity Identifier via the
Exchange's proprietary data feeds is consistent with the Act because
the Retail Liquidity Identifier will be disseminated via the public
data feeds on the initial implementation date of the Program.
Accordingly, the proposed staggered implementation date for Rule
7.44(j) would protect investors and the public interest because
information about Retail Liquidity Identifiers will be available on the
initial date of Program implementation via the public data feeds.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
the Program is designed to increase competition among execution venues,
encourage additional liquidity, and offer the potential for price
improvement to retail investors. The Exchange notes that
notwithstanding the proposed staggered implementation schedule for how
the Retail Liquidity Identifier will be disseminated, such information
will be available via the public data feeds from the initial date of
Program implementation and therefore market participants will have
access to information regarding the Retail Liquidity Identifiers.
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 \6\ and Rule 19b-4(f)(6) thereunder.\7\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Commission has waived that requirement for this proposed rule
change.
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A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\9\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because, under the
proposal, the Exchange would not delay dissemination of the Retail
Liquidity Identifier over the public data feeds, and this waiver would
allow the Exchange to implement the Program, which has already been
subject to notice and comment, without further delay. Accordingly, the
Commission hereby grants the Exchange's request and designates the
proposal operative upon filing.\10\
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\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
\10\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of this proposed rule
change, the Commission summarily may temporarily suspend this 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 (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSEArca-2014-38 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-2014-38. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of this filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments
[[Page 22748]]
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make publicly available. All
submissions should refer to File Number SR-NYSEArca-2014-38 and should
be submitted on or before May 14, 2014.
For the Commission, by the Division of Trading and Markets, pursuant
to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-09204 Filed 4-22-14; 8:45 am]
BILLING CODE 8011-01-P