[Federal Register Volume 80, Number 57 (Wednesday, March 25, 2015)]
[Notices]
[Pages 15829-15831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-06713]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74535; File No. SR-NYSEMKT-2015-18]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending Rule
900.3NY(w) and Rule 980NY(d)(1) to Delete the PNP Plus Designation for
Electronic Complex Orders From Its Rules
March 19, 2015.
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 March 12, 2015, 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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[[Page 15830]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 900.3NY(w) (Orders Defined) and
Rule 980NY(d)(1) (Complex Order Trading) to delete the PNP Plus
designation for Electronic Complex Orders from its rules. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 900.3NY(w) and Rule 980NY(d)(1)
to delete the PNP Plus designation for Electronic Complex Orders from
its rules.
PNP Plus Orders
The PNP Plus order type was designed to provide ATP Holders with
additional processing capability in order to control the circumstances
under which their Electronic Complex Orders are executed. However, due
to little demand for PNP Plus orders, the Exchange proposes to
discontinue functionality supporting the order type.
Pursuant to Rule 900.3NY(w), an Electronic Complex Order designated
as PNP Plus (``PNP Plus'') is automatically re-priced by the Exchange
at an MPV greater (less than) the contra-side Complex BBO (as defined
in Rule 900.2NY(7)) for any or all of the order that remains unexecuted
and would otherwise lock or cross the Complex BBO should it be
displayed in the Consolidated Book. The re-priced PNP Plus is then
posted in the Consolidated Book. The Electronic Complex Order
designated as PNP Plus continues to be re-priced at an MPV greater
(less than) than the Complex BBO and re-posted in the Consolidated
Book, with each change in the Complex BBO, until such time as the
Complex BBO has moved to a price where the original limit price of the
order no longer locks or crosses the Complex BBO, at which time the
Electronic Complex Order designated as PNP Plus will revert to its
original limit price. PNP Plus orders are ranked in the Consolidated
Book pursuant to Rule 980NY(b) and assigned a new price time priority
as of the time of each re-posting.
Given the lack of demand for PNP Plus orders, the Exchange proposes
to decommission the order type and delete the definition of PNP Plus
from Rule 900.3NY(w). The Exchange proposes to hold Rule 900.3NY(w) as
Reserved. Similarly, the Exchange proposes to delete the reference to
``Limit Orders designated as PNP Plus'' from Rule 980NY(d)(1) regarding
the types of allowable Electronic Complex Orders. As proposed Rule
980NY(d)(1) would state that ``Electronic Complex Order must be
designated as Limit Orders.''
The Exchange believes the proposed change would assist with the
maintenance of fair and orderly markets because it would reduce the
complexity of order types available to market participants and would
help clarify the nature of order types available for trading on the
Exchange.
Implementation
The Exchange will announce the implementation date of this change
through a Trader Update.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\4\ in general, and
furthers the objectives of Section 6(b)(5),\5\ in particular, in that
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, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
Specifically, the Exchange believes that by eliminating a little-used
order type the proposal would assist with the maintenance of fair and
orderly markets because it would reduce the complexity of order types
available to market participants, thereby adding transparency and
clarity to the Exchange's rules, and would help clarify the nature of
order types available for trading on the Exchange. The Exchange further
believes that deleting an order type rarely used by investors also
removes impediments to and perfects the mechanism of a free and open
market by ensuring that members, regulators and the public can more
easily navigate the Exchange's rulebook and better understand the order
types available for trading on the Exchange. Moreover, the Exchange
believes that the elimination of the PNP Plus order type would simplify
order processing and reduce the burden on system capacity, which the
Exchange believes is consistent with promoting just and equitable
principles of trade as well as protecting 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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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. Specifically, the Exchange
believes that the proposed rule change would relieve a burden on
competition by eliminating an order type and streamlining the
Exchange's rules. In doing so, the proposed rule change would also
serve to promote regulatory clarity and consistency, thereby reducing
burdens on the marketplace and facilitating investor protection.
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)
[[Page 15831]]
of the Act and Rule 19b-4(f)(6) thereunder.\8\
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6).
\8\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with 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.
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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) of the Act \9\ to determine whether the proposed
rule change should be approved or disapproved.
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\9\ 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-2015-18 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEMKT-2015-18. 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 NYSE's principal office and on its
Internet Web site at www.nyse.com. 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-2015-18 and should be submitted on or before
April 15, 2015.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Brent J. Fields,
Secretary.
[FR Doc. 2015-06713 Filed 3-24-15; 8:45 am]
BILLING CODE 8011-01-P