[Federal Register Volume 81, Number 61 (Wednesday, March 30, 2016)]
[Notices]
[Page 17752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07097]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77437; File No. SR-NYSEArca-2013-107]
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an
Extension to Limited Exemption From Rule 612(c) of Regulation NMS in
Connection With the Exchange's Retail Liquidity Program Until August
31, 2016
March 24, 2016.
On December 23, 2013, the Securities and Exchange Commission
(``Commission'') issued an order pursuant to its authority under Rule
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted NYSE
Arca, Inc. (``Exchange'') a limited exemption from the Sub-Penny Rule
in connection with the operation of the Exchange's Retail Liquidity
Program (``Program'').\2\ The limited exemption was granted
concurrently with the Commission's approval of the Exchange's proposal
to adopt the Program for a one-year pilot term.\3\ The exemption was
granted coterminous with the effectiveness of the pilot Program; both
the pilot Program and exemption are scheduled to expire on March 31,
2016.\4\
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\1\ 17 CFR 242.612(c).
\2\ See Securities Exchange Act Release No. 71176 (December 23,
2013), 78 FR 79524 (December 30, 2013) (SR-NYSEArca-2013-107)
(``Order'').
\3\ See id.
\4\ The pilot term of the Program was originally scheduled to
end on April 14, 2015, but the Exchange initially extended the term
through September 30, 2015, see Securities Exchange Act Release No.
74572 (March 24, 2015), 80 FR 16705 (March 30, 2015) (NYSEArca-2015-
22), and then subsequently extended the term again through March 31,
2016, see Securities Exchange Act Release Nos. 75994 (September 28,
2015), 80 FR 59834 (October 2, 2015) (SR-NYSEArca-2015-84) and 77236
(Feb. 25, 2016), 81 FR 10943 (March 2, 2016) (SR-NYSEArca-2016-30).
Each time the pilot term of the Program was extended, the Commission
granted the Exchange's request to also extend the Sub-Penny
exemption through September 30, 2015, see Securities Exchange Act
Release No. 74609 (March 30, 2015), 80 FR 18272 (April 3, 2015), and
March 31, 2016, see Securities Exchange Act Release No. 34-76021
(September 29, 2015), 80 FR 60207 (October 5, 2015).
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The Exchange now seeks to extend the exemption until August 31,
2016.\5\ The Exchange's request was made in conjunction with an
immediately effective filing that extends the operation of the Program
through the same date.\6\ In its request to extend the exemption, the
Exchange notes that the participation in the Program has increased more
recently. Accordingly, the Exchange has asked for additional time to
allow itself and the Commission to analyze more robust data concerning
the Program, which the Exchange committed to provide to the
Commission.\7\ For this reason and the reasons stated in the Order
originally granting the limited exemption, the Commission finds that
extending the exemption, pursuant to its authority under Rule 612(c) of
Regulation NMS, is appropriate in the public interest and consistent
with the protection of investors.
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\5\ See Letter from Martha Redding, Assistant Secretary, NYSE,
to Brent J. Fields, Secretary, Securities and Exchange Commission,
dated March 17, 2016.
\6\ See Securities Exchange Act Release No. 77425 (March 23,
2016), FR--(SR-NYSEArca-2016-47).
\7\ See Order, supra note 2, 78 FR at 79529.
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Therefore, it is hereby ordered that, pursuant to Rule 612(c) of
Regulation NMS, the Exchange is granted a limited exemption from Rule
612 of Regulation NMS that allows it to accept and rank orders priced
equal to or greater than $1.00 per share in increments of $0.001, in
connection with the operation of its Retail Liquidity Program, until
August 31, 2016.
The limited and temporary exemption extended by this Order is
subject to modification or revocation if at any time the Commission
determines that such action is necessary or appropriate in furtherance
of the purposes of the Securities Exchange Act of 1934. Responsibility
for compliance with any applicable provisions of the Federal securities
laws must rest with the persons relying on the exemption that is the
subject of this Order.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(83).
Brent J. Fields,
Secretary.
[FR Doc. 2016-07097 Filed 3-29-16; 8:45 am]
BILLING CODE 8011-01-P