[Federal Register Volume 81, Number 61 (Wednesday, March 30, 2016)]
[Notices]
[Pages 17752-17753]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07098]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77438; File Nos. SR-NYSE-2011-55; SR-NYSEAmex-2011-84]
Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE
MKT LLC; Order Granting an Extension to Limited Exemptions From Rule
612(c) of Regulation NMS in Connection With the Exchanges' Retail
Liquidity Programs Until August 31, 2016
March 24, 2016.
On July 3, 2012, 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 the New
York Stock Exchange LLC (``NYSE'') and NYSE MKT LLC \2\ (``NYSE MKT''
and, together with NYSE, the ``Exchanges'') limited exemptions from the
Sub-Penny Rule in connection with the operation of the Exchanges'
respective Retail Liquidity Programs (``Programs'').\3\ The limited
exemptions were granted concurrently with the Commission's approval of
the Exchanges' proposals to adopt their respective Programs for one-
year pilot terms.\4\ The exemptions were granted coterminous with the
effectiveness of the pilot Programs; both the pilot Programs and
exemptions are scheduled to expire on March 31, 2016.\5\
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\1\ 17 CFR 242.612(c).
\2\ At the time it filed the original proposal to adopt the
Retail Liquidity Program, NYSE MKT went by the name NYSE Amex LLC.
On May 14, 2012, the Exchange filed a proposed rule change,
immediately effective upon filing, to change its name from NYSE Amex
LLC to NYSE MKT LLC. See Securities Exchange Act Release No. 67037
(May 21, 2012), 77 FR 31415 (May 25, 2012) (SR-NYSEAmex-2012-32).
\3\ See Securities Exchange Act Release No. 67347 (July 3,
2012), 77 FR 40673 (July 10, 2012) (SR-NYSE-2011-55; SR-NYSEAmex-
2011-84) (``Order'').
\4\ See id.
\5\ The pilot terms of the Programs were originally scheduled to
end on July 31, 2013, but the Exchanges initially extended the terms
for an additional year, through July 31, 2014, see Securities
Exchange Act Release Nos. 70096 (August 2, 2013), 78 FR 48520
(August 8, 2013) (SR-NYSE-2013-48), and 70100 (August 2, 2013), 78
FR 48535 (August 8, 2013) (SR-NYSEMKT-2013-60), and then
subsequently extended the terms again through March 31, 2015, see
Securities Exchange Act Release Nos. 72629 (July 16, 2014), 79 FR
42564 (July 22, 2014) (SR-NYSE-2014-35), and 72625 (July 16, 2014),
79 FR 42566 (July 22, 2014) (SR-NYSEMKT-2014-60), September 30,
2015, see Securities Exchange Act Release Nos. 74454 (March 6,
2015), 80 FR 13054 (March 12, 2015) (SR-NYSE-2015-10), and 74455
(March 6, 2015), 80 FR 13047 (March 12, 2015) (SR-NYSEMKT-2015-14),
and March 31, 2016 see Securities Exchange Act Release Nos. 75993
(September 28, 2015), 80 FR 59844 (October 2, 2015) (SR-NYSE-2015-
41), and 75995 (September 28, 2015), 80 FR 59836 (October 2, 2015)
(SR-NYSEMKT-2015-69). Each time the pilot terms of the Programs were
extended, the Commission granted the Exchanges' requests to also
extend the Sub-Penny exemptions through July 31, 2014, see
Securities Exchange Act Release No. 70085 (July 31, 2013), 78 FR
47807 (August 6, 2013), March 31, 2015, see Securities Exchange Act
Release No. 72732 (July 31, 2014), 79 FR 45851 (August 6, 2014),
September 30, 2015, see Securities Exchange Act Release No. 74507
(March 13, 2015), 80 FR 14421 (March 19, 2015), and March 31, 2016,
see Securities Exchange Act Release No. 76020 (September 29, 2015),
80 FR 60201 (October 5, 2015).
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[[Page 17753]]
The Exchanges now seek to extend the exemptions until August 31,
2016.\6\ The Exchanges' request was made in conjunction with
immediately effective filings that extend the operation of the Programs
through the same date.\7\ In their request to extend the exemptions,
the Exchanges note that the participation in the Programs has increased
more recently. Accordingly, the Exchanges have asked for additional
time to allow themselves and the Commission to analyze more robust data
concerning the Programs, which the Exchanges committed to provide to
the Commission.\8\ For this reason and the reasons stated in the Order
originally granting the limited exemptions, the Commission finds that
extending the exemptions, 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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\6\ See Letter from Martha Redding, Assistant Secretary, NYSE,
to Brent J. Fields, Secretary, Securities and Exchange Commission,
dated March 17, 2016.
\7\ See Securities Exchange Act Release Nos. 77426 (March 23,
2016), FR - (SR-NYSE-2016-25), and 77424 (March 23, 2016), FR - (SR-
NYSEMKT-2016-39).
\8\ See Order, supra note 3, 77 FR at 40681.
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Therefore, it is hereby ordered that, pursuant to Rule 612(c) of
Regulation NMS, each 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 exemptions extended by this Order are
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 exemptions that are the
subject of this Order.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(83).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-07098 Filed 3-29-16; 8:45 am]
BILLING CODE 8011-01-P