[Federal Register Volume 83, Number 109 (Wednesday, June 6, 2018)]
[Notices]
[Pages 26327-26329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12115]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83357; File No. SR-NYSEAMER-2018-24]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Rule 7.37E and Rule 7.45E With Respect to NYSE National's Reopening of 
Trading and Reactivating Connection to the Securities Information 
Processors

May 31, 2018.
    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 May 18, 2018, NYSE American LLC (the ``Exchange'' or 
``NYSE American'') filed with the Securities and Exchange Commission 
(``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

[[Page 26328]]

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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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to: (1) Amend Rule 7.37E to amend in Exchange 
rules the Exchange's use of data feeds from NYSE National, Inc. (``NYSE 
National'') for order handling and execution, order routing, and 
regulatory compliance; and (2) amend Rule 7.45E to reflect that 
Archipelago Securities LLC (``Arca Securities'') would function as a 
routing broker for the Exchange's affiliate, NYSE National. The 
proposed rule change is available on the Exchange's website 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to update and amend the table in Rule 7.37E 
that sets forth on a market-by-market basis the specific network 
processor and proprietary data feeds that the Exchange utilizes for the 
handling, execution and routing of orders, and for performing the 
regulatory compliance checks related to each of those functions. NYSE 
National intends to reopen trading and reactivate its connections to 
the securities information processors (``SIPs''). To reflect that, the 
Exchange proposes to revise Rule 7.37E to specify which data feeds the 
Exchange would use for NYSE National. Rule 7.37E currently provides 
that NYSE National uses the SIP data feeds as the primary source and 
does not have a secondary source. The Exchange proposes to use the 
direct data feeds for NYSE National and would use the SIP data feeds as 
a secondary source.
    Additionally, the Exchange proposes to amend Rule 7.45E to reflect 
that Arca Securities would function as a routing broker for the 
Exchange's affiliate, NYSE National. Specifically, the Exchange 
proposes to amend Rule 7.45E(c)(1) and (2) to reference NYSE National 
as an affiliate of the Exchange for the purposes of the inbound routing 
function performed by Arca Securities. The proposed rule change would 
provide more clarity and transparency to all the functions that Arca 
Securities performs on behalf of the Exchange and its affiliates, which 
now includes NYSE National. The Exchange is not proposing any 
substantive change to the rule.
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, because 
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, 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. The Exchange 
believes its proposal to update the table in Rule 7.37E will ensure 
that the rule correctly identifies on a market-by-market basis all of 
the specific network processor and proprietary data feeds that the 
Exchange utilizes for the handling, execution and routing of orders, 
and for performing the regulatory compliance checks to each of those 
functions. The proposed rule change also removes impediments to and 
perfects the mechanism of a free and open market and protects investors 
and the public interest because it provides additional specificity, 
clarity and transparency. The Exchange believes its proposal to amend 
Rule 7.45E removes impediments to and perfects the mechanism of a free 
and open market and protects investors and the public interest because 
the proposed rule change would enhance the clarity and transparency in 
Exchange Rules surrounding the inbound routing function performed by 
Arca Securities for the Exchange's affiliate, NYSE National.
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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. The proposed change is not 
designed to address any competitive issue but rather would provide the 
public and investors with information about which data feeds the 
Exchange uses for execution and routing decisions, and provide clarity 
in Exchange rules that Arca Securities would perform the inbound 
routing function on behalf on the Exchange's affiliate, NYSE National.

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

    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 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) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
ntoice 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 \8\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \9\ 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 proposed rule change may become operative upon filing. The Exchange 
states that waiver of the operative delay would be consistent with the 
protection of investors and the public interest because it will allow 
the Exchange to immediately provide enhanced

[[Page 26329]]

transparency in Exchange rules regarding which data feeds the Exchange 
will use for NYSE National and clarify in the Exchange's rules that 
Arca Securities will perform the inbound routing function for NYSE 
National. The Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Therefore, the Commission hereby waives the operative delay 
and designates the proposal as operative upon filing.\10\
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    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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

    <bullet> Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#cbb9bea7aee6a8a4a6a6aea5bfb88bb8aea8e5aca4bd"><span class="__cf_email__" data-cfemail="acded9c0c981cfc3c1c1c9c2d8dfecdfc9cf82cbc3da">[email protected]</span></a>. Please include 
File Number SR-NYSEAMER-2018-24 on the subject line.

Paper Comments

    <bullet> 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 Number SR-NYSEAMER-2018-24. 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 website (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 website 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 principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEAMER-2018-24, and should be 
submitted on or before June 27, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12115 Filed 6-5-18; 8:45 am]
BILLING CODE 8011-01-P


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