[Federal Register Volume 81, Number 212 (Wednesday, November 2, 2016)]
[Notices]
[Pages 76393-76395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26403]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79174; File No. SR-NSX-2016-14]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing of a Proposed Rule Change To Amend Exchange Rule 11.26
To Correct Defective Numbering in the Interpretations and Policies of
the Rule
October 27, 2016.
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 October 13, 2016, National Stock Exchange, Inc. (``NSX'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``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 comment 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 is proposing to amend Exchange Rule 11.26, Compliance
with Regulation NMS Plan to Implement a Tick Size Pilot to correct
defective numbering under the Interpretations and Policies of the rule.
The Exchange
[[Page 76394]]
is not proposing any substantive amendments to the rule text.
The Exchange has designated this proposal as a ``non-
controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of
the Act \3\ and provided the Commission with the notice required by
Rule 19b-4(f)(6)(iii) under the Act.\4\
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\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
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The text of the proposed rule change is available on the Exchange's
Web site at http://www.nsx.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 Exchange 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 these 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 make ministerial non-substantive
changes to the numbering of the Interpretations and Policies sections
of Rule 11.26. The changes are intended to address incorrect numbering
that resulted from two recent amendments [sic] the rule filed by the
Exchange. On September 28, 2016 the Commission noticed a proposed rule
change filed by the Exchange to amend Rule 11.26, including certain
sections of the Interpretations and Policies.\5\ As part of these
amendments, the Exchange proposed new text for section .09, which
resulted a renumbering of former section .09 as .10. Section .10, with
certain text proposed to be amended, was renumbered to .11; former .11
was renumbered as section .12, with no changes proposed to the text.
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\5\ See Securities Exchange Act Release No. 78960 (September 28,
2016), 81 FR 68476 (October 4, 2016) (SR-NSX-2016-12).
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On September 29, 2016, the SEC noticed a proposed rule change filed
by the Exchange to make further rule changes in connection with the
Regulation NMS Plan to Implement a Tick Size Pilot, including an
amendment to Rule 11.26, Interpretations and Policies.\6\ The filing
should have reflected that the language of Interpretations and Polices
.12 was being replaced and that the former language of Interpretations
and Policies .12 was being added as Interpretations and Policies .13.
However, the Exchange, in its filing incorrectly assigned the number
.11 where it should have used .12 and incorrectly assigned the number
.12 where it should have used .13. As a result, two separate sections
of the Interpretations and Policies are designated as number .11. The
Exchange proposes to correct this error by amending the numbering
associated with these sections. The section that was incorrectly
numbered .11 will become .12 and the section previously incorrectly
numbered .12 will become .13.
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\6\ See Securities Exchange Act Release No. 78987 (September 29,
2016), 81 FR 69123 (October 5, 2016) (SR-NSX-2016-13).
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \7\ in general, and furthers the objectives of Section
6(b)(5) of the Act \8\ in particular, in that it is designed to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, 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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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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Specifically, the proposal is designed to correct an administrative
error from a previous filing that resulted in incorrect numbering of
certain sections of Rule 11.26, Interpretations and Policies.
Correcting these errors will avoid confusion and will promote clarity
and ease of reference in the Exchange's rules and is consistent with
Section 6(b)(5) of the Act in that it will promote just and equitable
principles of trade and the protection of investors and the public
interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
rule change is intended to correct defective numbering in the
Interpretations and Policies of Rule 11.26 and raises no competitive
issues.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) \9\ of the Act and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the
Commission to 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 upon filing. The Exchange believes
that waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest because the proposed
changes are ministerial and the Commission granted a similar waiver of
the 30-day operative delay in its notice of the rule changes that
contained the original incorrect numbering.\13\ The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because the proposed
changes are non-substantive and will provide clarity to the Exchange's
rules. Therefore, the Commission hereby waives the operative delay and
designates the proposed rule change operative upon filing.\14\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ See supra notes 5 and 6.
\14\ 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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[[Page 76395]]
At any time within 60 days of the filing of the 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 to
determine whether the proposed rule should be approved or disapproved.
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-NSX-2016-14 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 No. SR-NSX-2016-14. This file
number should be included in the subject line if email is used. To help
the Commission process and review 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 a.m. and 3
p.m. eastern time. Copies of such filings 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-NSX-2016-14 and should be
submitted on or before November 23, 2016.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission by the Division of Trading and Markets,
pursuant to the delegated authority.\15\
Brent J. Fields,
Secretary.
[FR Doc. 2016-26403 Filed 11-1-16; 8:45 am]
BILLING CODE 8011-01-P