Federal Register / Vol. 83, No. 1 / Tuesday, January 2, 2018 / Notices 179 

1 15 U.S.C.78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 61499 

(February 4, 2010), 75 FR 6738 (February 10, 2010) 

(SR–NYSEAmex–2010–04). This proposed rule 

change would further conform the rule books of the 

Exchange and FINRA. 

5See Securities Exchange Act Release No. 68650 

(January 14, 2013), 78 FR 4182 (January 18, 2013) 

(SR–FINRA–2013–001) and No. 73576 (November 

12, 2014), 79 FR 68731 (November 18, 2014) (SR– 

FINRA–2014–045). 

6 In addition to the Exchange, the other exchanges 

that entered into the 17d–2 Agreement were: The 

Boston Stock Exchange, Inc., the Chicago Board 

Options Exchange, Inc., the International Securities 

Exchange, LLC, FINRA, the NASDAQ Stock Market 

LLC, the New York Stock Exchange, LLC, NYSE 

Arca, Inc. and the Philadelphia Stock Exchange. 

7As FINRA Rule 2220 is the operative rule 

concerning options communications, for the sake of 

clarity and for ease of reference, the Exchange 

proposes to copy the text of the definition into new 

proposed Rule 991(a)(1)(A) in lieu of crossreferencing FINRA Rule 2210(a)(2). 

8FINRA’s definition excludes a member’s 

internal communications from this institutional 

category. In addition, given the distinction between 

institutional and retail investors, the Exchange 

believes that a cross-reference to FINRA Rule 

2210(a)(3) in proposed Rule 991(a)(1)(B) is 

appropriate. 

9As FINRA Rule 2220 is the operative rule 

concerning options communications, for the sake of 

clarity and for ease of reference, the Exchange 

proposes to copy the text of the definition into new 

proposed Rule 991(a)(1)(C) in lieu of crossreferencing FINRA Rule 2210(a)(5). 

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 NSCC and on DTCC’s website 

(http://dtcc.com/legal/sec-rulefilings.aspx). 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–NSCC– 

2017–807 and should be submitted on 

or before January 17, 2018. 

By the Commission. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–28221 Filed 12–29–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82402; File No. SR– 

NYSEAMER–2017–39] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 991 

December 26, 2017. 

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 December 

12, 2017, NYSE American LLC (the 

‘‘Exchange’’ or ‘‘NYSE American’’) filed 

with the Securities and Exchange 

Commission (the ‘‘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 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 991, regarding options 

communications, to conform with the 

rules of the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’). 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to amend 

NYSE American Rule 991, regarding 

options communications, to conform 

with the rules of FINRA. Previously, the 

Exchange harmonized its then extant 

Rule 991 to FINRA Rule 2220.4 For the 

sake of consistency, and to further 

promote a more comprehensive and 

coordinated regulatory process for the 

review of communications, the 

Exchange now proposes to conform its 

rulebook to subsequent amendments by 

FINRA.5

Pursuant to Rule 17d–2 under the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), several exchanges, including the 

Exchange, entered into an agreement 

dated June 5, 2008 (the ‘‘17d–2 

Agreement’’) to allocate regulatory 

responsibility for common rules.6 In 

order to continue this successful 

regulatory approach, the Exchange 

proposes to further harmonize Rule 991 

(Options Communications) with the 

comparable FINRA rule, in furtherance 

of the 17d–2 Agreement and in order to 

continue to maintain substantial 

similarity with the relevant FINRA 

rules. 

Rule 991 sets forth the regulatory 

standards applicable to options 

communications including inter alia the 

definitions of diverse categories of 

communications, and the standards and 

attendant review and approval 

processes for those categories of 

communications. 

Specifically, in order to continue to 

ensure a uniform regulatory approach, 

and to reduce any potential risks or 

inefficiencies in rules, the Exchange 

proposes to: 

• Replace the definition of 

‘‘correspondence’’ in Rules 

991(a)(1)(C)(i) and (ii) with the 

substantially similar though more 

succinct definition of ‘‘correspondence’’ 

in FINRA Rule 2210(a)(2), that in turn 

is referenced in FINRA Rule 

2220(a)(1)(A); 7

• Replace the definition of 

‘‘institutional sales material’’ in Rule 

991(a)(1)(D) with the substantially 

similar though expanded definition of 

‘‘Institutional Communication’’ in 

FINRA Rule 2210(a)(3) concerning 

options; 8

• Add the definition of ‘‘Retail 

Communication’’ in FINRA Rule 

2210(a)(5), that in turn is referenced in 

FINRA Rule 2220(a)(1)(C), to Rule 

991(a)(1)(C); 9

• Delete the now inapplicable 

individual definitions of 

‘‘advertisement’’, ‘‘sales literature’’, 

‘‘correspondence’’, ‘‘institutional sales 

material’’, ‘‘public appearance’’, and 

‘‘independently prepared reprints’’, as 

contained in Rule 991(a)(1)(A), Rule 

991(a)(1)(B), Rule 991(a)(1)(C), Rule 

991(a)(1)(D), Rule 991(a)(1)(E), Rule 

991(a)(1)(F), respectively; 

• Replace the definition of ‘‘existing 

retail customer’’ in Rule 991(a)(2) with 

the definition of ‘‘retail investor’’ in 

FINRA Rule 2210(a)(6), that in turn is 


daltland on DSKBBV9HB2PROD with NOTICES
180 Federal Register / Vol. 83, No. 1 / Tuesday, January 2, 2018 / Notices 

10 In connection with equities communications, 

the Exchange previously adopted the text of FINRA 

Rule 2210(a)(6), and the same definition of ‘‘retail 

investor’’. See NYSE American Rule 2210— 

Equities. See also Securities Exchange Act Release 

No. 70963 (November 29, 2013), 78 FR 73223 

(December 5, 2013) (SR–NYSEMKT–2013–95). 11FINRA Rule 2210 (concerning 

communications) is premised upon three categories 

of communications—retail communications, 

correspondence, and institutional 

communications—that in turn categorize [sic] the 

approval and procedural requirements of FINRA 

Rule 2220(b)(1), (2) and (3) (concerning options 

communications) and the corresponding rule 

changes to Rules 991(b)(1), (2) and (3) proposed 

herein. 

12 Ibid. 13 Ibid. 

14 15 U.S.C. 78f(b). 

15 15 U.S.C. 78f(b)(5). 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change, along with a brief 

referenced in the definition of ‘‘Retail 

Communication’’ supra; 10

• Replace the approval requirement 

of advertisements, sales literature and 

independently prepared reprints in Rule 

991(b)(1) with the approval requirement 

of ‘‘Retail Communications’’ in FINRA 

Rule 2220(b)(1); 11

• Replace the procedural supervisory 

and review requirements of 

correspondence in Rule 991(b)(2) with 

the substantially similar requirements in 

FINRA Rule 2220(b)(2), that in turn 

references the requirements of FINRA 

Rules 3110(b) and 3110.06 through 

.09; 12

• Replace the written procedural 

requirements of institutional sales 

material in Rule 991(b)(3) with the 

substantially similar requirements in 

FINRA Rule 2220(b)(3), that regards [sic] 

institutional communications written 

procedural requirements of FINRA Rule 

2210(b)(3); 13

• Replace the reference to 

‘‘advertisements, sales literature, and 

independently prepared reprints’’ in 

Rule 991(c)(1) with ‘‘Retail 

Communications’’, the current category 

of such communications; 

• Replace the reference to the 

‘‘designated’’ Advertising Regulation 

Department with the Advertising 

Regulation Department ‘‘of FINRA’’ in 

Rule 991(c)(1), for clarification and 

specificity; and 

• Replace the reference to 

‘‘institutional sales material’’ in Rule 

991(d)(2)(B) with ‘‘Institutional 

Communications’’, the current category 

of such communications. 

The Exchange believes that the 

proposed rule change would 

structurally and procedurally align the 

Exchange’s rule concerning options 

communications with FINRA rule 

concerning the same subject matter, and 

would further both the Exchange’s selfregulatory responsibilities and FINRA’s 

delegated responsibilities under the 

17d–2 Agreement. 

In addition, the Exchange proposes a 

non-substantive amendment to Rule 991 

to replace the term ‘‘member’’ with the 

term ‘‘ATP Holder’’ throughout the rule. 

Rule 900.2NY defines ‘‘ATP Holder’’, 

and provides that ‘‘references to 

‘member’, ‘member organization’ and 

‘86 Trinity Permit Holder’ as those 

terms are used in the Rules of the 

Exchange should be deemed to be 

references to ATP Holders.’’ Because the 

Exchange uses the term ‘‘ATP Holder’’ 

rather than ‘‘member,’’ the Exchange 

proposes to update this rule consistent 

with that terminology. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Securities Exchange Act of 1934 

(the ‘‘Act’’),14 in general, and furthers 

the objectives of Section 6(b)(5) of the 

Act,15 in particular, in that 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. 

Specifically, the Exchange believes 

that the proposed change would remove 

impediments to, and perfect the 

mechanisms of, a free and open market 

and a national market system and, in 

general, protect investors and the public 

interest because the proposed rule 

change would provide ATP Holders 

with a clearer, more consistent, and 

more comprehensive regulatory scheme 

by further harmonizing the NYSE 

American rule concerning options 

communications with the FINRA rule in 

the same subject matter. The proposed 

rule change would continue to ensure a 

uniform regulatory approach and would 

reduce any potential risks or 

inefficiencies in rules. Structurally and 

procedurally, harmonizing and aligning 

the Exchange’s rule with the FINRA rule 

would further both the Exchange’s selfregulatory responsibilities and FINRA’s 

delegated responsibilities under the 

17d–2 Agreement. The Exchange also 

believes that harmonizing definitions, 

categories of communications, and the 

standards and attendant review and 

approval processes of those categories of 

communications, would also foster 

cooperation and coordination with 

persons engaged in regulating, clearing, 

settling, processing information with 

respect to, and facilitating transactions 

in securities. The Exchange further 

notes that the proposed change are 

neither novel nor controversial and are 

modeled on existing and operative 

FINRA rules. 

The Exchange also believes that the 

proposal to use the term ‘‘ATP Holder’’ 

instead of ‘‘member’’ would remove 

impediments to, and perfect the 

mechanisms of, a free and open market 

and a national market system and, in 

general, protect investors and the public 

interest because the proposed change 

would update terminology in the 

Exchange’s rulebook, reducing any 

potential ambiguity and providing 

clarification concerning options 

communications. The proposed use of 

the term ‘‘ATP Holder’’ would be 

consistent with the FINRA term 

‘‘member,’’ as both terms refer to the 

broker-dealer members of a selfregulatory organization. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not designed to 

address any competitive issues. Rather, 

the proposed change is designed to 

further harmonize the Exchange’s rule 

regarding options communications to 

the comparable FINRA rule, and to 

update the terms used in Exchanges 

rules. 

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 if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 16 and Rule 19b–4(f)(6) 

thereunder.17


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Federal Register / Vol. 83, No. 1 / Tuesday, January 2, 2018 / Notices 181 

description and 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. The Exchange 

has met this requirement. 

18 17 CFR 240.19b–4(f)(6). 

19 17 CFR 240.19b–4(f)(6)(iii). 

20For 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). 

21 15 U.S.C. 78s(b)(2)(B). 22 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 34–82063 

(November 13, 2017), 82 FR 54423 (November 17, 

2017) (SR–ICEEU–2017–011) (‘‘Notice’’). 

4 15 U.S.C. 78s(b)(2). 

A proposed rule change filed under 

Rule 19b–4(f)(6) 18 normally does not 

become operative for 30 days after the 

date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii),19 the Commission 

may 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 Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest 

because it will allow the Exchange to 

immediately implement the proposed 

rule change to promote greater 

harmonization between the rules of 

FINRA and the Exchange and also to 

make clerical changes that may 

minimize potential investor confusion. 

Accordingly, the Commission hereby 

waives the 30-day operative delay 

requirement and designates the 

proposed rule change as operative upon 

filing.20

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 

under Section 19(b)(2)(B) 21 of the Act to 

determine whether the proposed rule 

change 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 rule-comments@

sec.gov. Please include File Number SR– 

NYSEAMER–2017–39 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 

Number SR–NYSEAMER–2017–39. 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–2017–39, and 

should be submitted on or before 

January 23, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–28229 Filed 12–29–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82405; File No. SR–ICEEU– 

2017–011] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of 

Designation of Longer Period for 

Commission Action on Proposed Rule 

Change To Modify the ICE Clear 

Europe Limited Collateral and Haircut 

Policy 

December 27, 2017. 

On November 2, 2017, ICE Clear 

Europe Limited (‘‘ICE Clear Europe’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

modify the ICE Clear Europe Collateral 

and Haircut Policy to incorporate 

certain changes to the calculation of 

absolute collateral limits for bonds 

provided as Permitted Cover by Clearing 

Members. (File No. SR–ICEEU–2017– 

011). The proposed rule change was 

published for comment in the Federal 

Register on November 17, 2017.3 To 

date, the Commission has not received 

comments on the proposed rule change. 

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate, if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day from the 

publication of notice of filing of this 

proposed rule change is January 1, 2018. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. ICE Clear 

Europe proposes to modify the ICE Clear 

Europe Collateral and Haircut Policy to 

incorporate certain changes to the 

calculation of absolute collateral limits 

for bonds provided as Permitted Cover 

by Clearing Members. The Commission 

finds it is appropriate to designate a 

longer period within which to take 

action on the proposed rule change so 

that it has sufficient time to consider 


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