[Federal Register Volume 79, Number 166 (Wednesday, August 27, 2014)]
[Notices]
[Pages 51208-51210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-20338]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72890; File No. SR-NYSEMKT-2014-69]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending Rule 86--
Equities To Extend the Hours for the Core Bond Trading Session for NYSE
MKT Bonds
August 21, 2014.
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 August 13, 2014, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') 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
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 86--Equities to extend the
hours for the Core Bond Trading Session for NYSE MKT Bonds. 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.
[[Page 51209]]
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 86--Equities (``Rule 86'') to
extend the hours for the Core Bond Trading Session for NYSE MKT
Bonds.\4\
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\4\ Terms not defined herein shall have the meaning prescribed
under Rule 86.
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NYSE MKT Bonds is the Exchange's electronic system for receiving,
processing, executing and reporting bids, offers and executions in
bonds. Rule 86 prescribes how bonds are traded through the NYSE MKT
Bonds trading platform, including the receipt, execution and reporting
of bond transactions. NYSE MKT Bonds has three Bond Trading Sessions,
(1) the Opening Bond Trading Session, (2) the Core Bond Trading
Session, and (3) the Late Bond Trading Session. The Opening Bond
Trading Session currently commences at 4:00 a.m. Eastern Time (``ET'')
and concludes at 9:30 a.m. ET. The Core Bond Trading Session currently
commences at 9:30 a.m. ET and concludes at 4:00 p.m. ET. The Late Bond
Trading Session currently commences at 4:00 p.m. ET and concludes at
8:00 p.m. ET.
The Exchange proposes to extend the hours of the Core Bond Trading
Session so that it would commence at 8:00 a.m. ET and end at 5:00 p.m.
ET, adding a total of 2.5 hours to the Core Bond Trading Session and
better aligning its hours with those of other bond trading venues. The
Exchange proposes to amend the references to the various time periods
throughout Rule 86 to effect this change, including, for example, that
the Core Bond Auction would commence at 8:00 a.m. ET instead of the
current 9:30 a.m. ET. Similarly, the Exchange proposes to amend the
hours of the Opening Bond Trading Session and the Late Bond Trading
Session to reflect this change. The Opening Bond Trading Session would
conclude at 8:00 a.m. E.T. instead of the current 9:30 a.m. E.T., and
the Late Bond Trading Session would commence at 5:00 p.m. E.T. instead
of the current 4:00p.m. E.T. The Exchange notes, for example, that the
proposed extended Core Bond Trading Session would also result in the
ability for an ``NYSE MKT Bonds Good `Til Cancelled Order'' or an
``NYSE MKT Bonds Day Order'' to remain in effect for a longer period of
time. The Exchange would announce the date on which the expanded Core
Bond Trading Session hours would take effect via Trader Update.
The proposed change is not otherwise intended to address any other
issues, and the Exchange is not aware of any problems Users would have
in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Sections 6(b)(5) of the Act,\6\ 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 regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to, and
perfect the mechanisms of, a free and open market and a national market
system and, in general, to protect investors and the public interest
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed change would foster
cooperation and coordination with persons engaged in bond transactions
by more closely aligning the hours of the Core Bond Trading Session
with the hours of other marketplaces on which bonds trade (e.g.,
various alternative trading systems). The proposed change would also
remove impediments to, and perfect the mechanisms of, a free and open
market and a national market system by permitting Users to be active in
the Core Bond Trading Session for 2.5 additional hours each day.
Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.
For these reasons, the Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\7\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, the Exchange believes that the proposed
change would contribute to competition because it could lead to
additional bond transactions on NYSE MKT Bonds, a public market, which
would contribute to greater transparency regarding such transactions.
The Exchange also believes that the proposed change would place NYSE
MKT Bonds in a more competitive position compared to other marketplaces
for bond transactions with respect to the time period during which
bonds are traded.
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\7\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
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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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public
[[Page 51210]]
interest. The Exchange has asked the Commission to waive the 30-day
operative delay so that the proposal may become operative immediately
upon filing. The Exchange notes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest.
The Exchange believes that waiver will permit the Exchange to
immediately change its Core Trading Hours to harmonize with effective
rule changes on the NYSE bonds market, which operates on the same
technology platform. The Commission hereby waives the 30-day operative
delay and designates the proposal operative upon filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ 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 such 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 under
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEMKT-2014-69 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-NYSEMKT-2014-69. 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 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; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEMKT-2014-69, and should
be submitted on or before September 17, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-20338 Filed 8-26-14; 8:45 am]
BILLING CODE 8011-01-P