[Federal Register Volume 79, Number 151 (Wednesday, August 6, 2014)]
[Pages 45851-45852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-18535]



[Release No. 34-72732; 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 March 31, 2015

July 31, 2014.
    On July 3, 2012, the 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'' or ``Exchange'') 
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 each Exchange's Retail Liquidity Program 
(``Programs'').\3\ The limited exemptions were granted concurrently 
with the Commission's approval of the Exchanges' proposals to adopt 
their respective Retail Liquidity 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 July 31, 2014.\5\

    \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, 77 FR 40673 
(July 10, 2012) (SR-NYSE-2011-55; SR-NYSEAmex-2011-84) (``Order'').
    \4\ See id.
    \5\ The pilot term of the Programs was originally scheduled to 
end on July 31, 2013, but the Exchanges extended the term for 
another 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). When the pilot term of the Programs 
was extended, the Commission granted the Exchanges' request to also 
extend the Sub-Penny Exemption through July 31, 2014. See Securities 
Exchange Act Release No. 70085 (July 31, 2013), 78 FR 47807 (August 
6, 2013).


[[Page 45852]]

    The Exchanges now seek to extend the exemptions until March 31, 
2015.\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.

    \6\ See Letter from Martha Redding, Chief Counsel, NYSE, to 
Kevin M. O'Neill, Deputy Secretary, Securities and Exchange 
Commission, dated July 30, 2014.
    \7\ See Securities and Exchange Commission 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-
    \8\ See Order, supra note 3, 77 FR at 40681.

    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 
March 31, 2015.
    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\

    \9\ 17 CFR 200.30-3(a)(83).

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-18535 Filed 8-5-14; 8:45 am]