Federal Register / Vol. 79, No. 203 / Tuesday, October 21, 2014 / Notices 63007 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

Commission written notice of the Exchange’s intent 

to file the proposed rule change along with a brief 

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 satisfied this requirement. 11 15 U.S.C. 78s(b)(2)(B). 

12 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

mechanism of a free and open market 

and a national market system by 

continuing to advance the efficiency 

and transparency of the opening process 

and fostering price discovery at the 

open of trading, thereby minimizing 

information imbalances in the 

marketplace. Similarly, the proposal 

promotes just and equitable principles 

of trade and removes impediments to 

and perfects the mechanism of a free 

and open market by providing 

customers and the investing public with 

continuous, automated information for 

securities where there will likely be a 

significant price change from the 

previous day’s closing price or for 

which there is a significant published 

imbalance. For the same reasons, the 

proposal is also designed to protect 

investors as well as the public interest. 

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 rule change is not intended to 

address competitive issues but rather 

technologically augment the current 

process of providing pre-market 

information to customers and the 

investing public. 

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 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) of the Act 9 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.10

At any time within 60 days of the 

filing of such 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) 11 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– 

NYSE–2014–50 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–NYSE–2014–50. 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 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 

10:00 a.m. and 3:00 p.m. Copies of the 

filing will also be available for Web site 

viewing and printing at the NYSE’s 

principal office and on its Internet Web 

site at www.nyse.com. 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–NYSE– 

2014–50 and should be submitted on or 

before November 12, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24941 Filed 10–20–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73353; File No. SR– 

NYSEMKT–2014–89] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Proposing To Amend 

Certain of Its Rules To Remove and 

Replace Obsolete References to Fixed 

Return Options With the Updated 

References to Binary Return 

Derivatives Contracts 

October 15, 2014. 

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 October 

8, 2014, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) 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 [sic]. The 

text of the proposed rule change is 

available on the Exchange’s Web site at 

www.nyse.com, at the principal office of 

the Exchange, and at the Commission’s 

Public Reference Room. 

mstockstill on DSK4VPTVN1PROD with NOTICES

63008 Federal Register / Vol. 79, No. 203 / Tuesday, October 21, 2014 / Notices 

4See Securities and Exchange Release No. 71957 

(April 16, 2014), 79 FR 22563 (April 22, 2014) (SR– 

NYSEMKT–2014–06). 

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

6 15 U.S.C. 78f(b)(5). 

7See supra n. 4. 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6)(iii). 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. 

10For 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). 

11 15 U.S.C. 78s(b)(2)(B). 

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 Exchange is proposing to amend 

certain of its rules to remove and 

replace obsolete references to Fixed 

Return Options with the updated 

references to Binary Return Derivatives 

contracts (‘‘ByRDs’’). The Exchange 

recently filed and received approval for 

rule changes related to, among other 

things, a name change for securities 

previously known as Fixed Return 

Options or FROs to reflect a name 

change to ByRDs.4 However, several 

references to FROs remain in Rules 

462(d).10, 909ByRDs and 980ByRDs. 

This rule filing is intended to replace 

these remaining references to FROs with 

references to ByRDs, which will clarify 

Exchange rules and alleviate any 

investor confusion. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) 5 of the Securities Exchange Act of 

1934 (the ‘‘Act’’), in general, and 

furthers the objectives of Section 

6(b)(5),6 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, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. Specifically, the Exchange 

believes that the proposed rule change 

will remove impediments to and perfect 

the mechanisms of a free and open 

market by making rule text consistent 

with the new name of the options 

product (i.e., ByRDs).7 The Exchange 

also believes that the proposed 

clarifying changes and deletions of 

obsolete references to FROs may reduce 

potential investor confusion, and 

protect 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 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 

to revise obsolete or inaccurate rule text, 

thereby reducing confusion and making 

the Exchange’s rules easier to 

understand and navigate. The Exchange 

believes that the proposed rule change 

will serve to promote regulatory clarity 

and consistency, thereby reducing 

burdens on the marketplace and 

facilitating investor protection. 

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 prior to 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 8 and Rule 19b–4(f)(6)(iii) 

thereunder.9

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange stated that waiver 

of this requirement would allow the 

Exchange to delete or correct outmoded 

references without delay, which would 

allow market participants to realize the 

benefits of the clarified rules. The 

Commission believes that the waiver of 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest because it would 

eliminate potential investor confusion 

without delay by amending the 

Exchange’s rules to accurately reflect 

the name of the options product 

(ByRDs) and by removing references to 

its former name (Fixed Return Options). 

Therefore, the Commission designates 

the proposed rule change to be operative 

upon filing.10

At any time within 60 days of the 

filing of such 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) 11 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– 

NYSEMKT–2014–89 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–NYSEMKT–2014–89. 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 Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 203 / Tuesday, October 21, 2014 / Notices 63009 

12 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities and Exchange Release No. 59472 

(February 29, 2009), 74 FR 9843 (March 6, 2009) 

(SR–ALTR–2008–14); see also Securities and 

Exchange Release No. 55162 (January 24, 2007), 72 

FR 4738 (February 1, 2007) (SR–Amex–2006–106) 

(original quote mitigation proposal). 

5See Securities and Exchange Release No. 61978 

(April 23, 2010), 75 FR 22886 (April 30, 2010) (SR– 

NYSEAmex–2010–3). See also OLPP, available at, 

http://www.theocc.com/clearing/industry-services/

olpp.jsp. 

6Rule 903A codified Amendment No. 3 to the 

OLPP. See Securities and Exchange Release No. 

60531 (August 19, 2009), 74 FR 43173 (File No. 4– 

443). See also Rule 903A. 

7 Id., 74 FR at 43174. 

8See Securities and Exchange Release No. 65572 

(October 14, 2011), 76 FR 65310 (October 20, 2011) 

(NYSEAmex–2011–61). 

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 

10:00 a.m. and 3:00 p.m. Copies of such 

filing will also 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– 

NYSEMKT–2014–89 and should be 

submitted on or before November 12, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24945 Filed 10–20–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73367; File No. SR– 

NYSEMKT–2014–86] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing of Proposed 

Rule Change Modifying Its Quote 

Mitigation Plan and Amending Rule 

970NY and Rule 970.1NY 

October 15, 2014. 

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 October 

2, 2014, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to modify its 

quote mitigation plan and to amend 

Rule 970NY (Firm Quotes) and Rule 

970.1NY(Quote Mitigation). The text of 

the proposed rule change is available on 

the Exchange’s Web site 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 is proposing to modify 

its quote mitigation plan and to amend 

Rule 970NY (Firm Quotes) and Rule 

970.1NY (Quote Mitigation). As 

discussed below, the Exchange believes 

the modified quote mitigation plan will 

adequately accommodate the number of 

quotations sent to the Exchange and the 

message traffic that the Exchange sends 

to the Options Price Reporting 

Authority (‘‘OPRA’’). 

Rule 970.1NY 

In connection with the adoption of 

the Penny Pilot Program, the Exchange 

adopted a quote mitigation plan 

designed to reduce the number of 

quotations generated by the Exchange 

for all options traded on the Exchange, 

not just issues included in the Penny 

Pilot Program.4 The current plan 

reduces the number of messages the 

Exchange sends to OPRA by only 

submitting quote messages for ‘‘active’’ 

series. Rule 970.1NY defines active 

series as: (i) The series has traded on 

any options exchange in the previous 14 

calendar days; or, (ii) the series is solely 

listed on the Exchange; or (iii) the series 

has been trading ten days or less, or; (iv) 

the Exchange has an order in the series. 

Alternatively, the Exchange may define 

a series as active on an intraday basis if: 

(i) The series trades at any options 

exchange; (ii) the Exchange receives an 

order in the series; or (iii) the Exchange 

receives a request for quote from a 

Customer in that series. 

The Exchange believes it no longer 

needs the quote mitigation provided by 

Rule 970.1NY because rules adopted 

since Rule 970.1NY provide sufficient 

quote mitigation. 

Current Market Structure and Controls 

on the Exchange 

In 2010, the Exchange incorporated 

select provisions of the Options Listing 

Procedures Plan (‘‘OLPP’’) in Rule 903A 

as a quote mitigation strategy.5

The OLPP is a national market system 

plan that, among other things, sets forth 

procedures governing the listing of new 

options series. From the OLPP, the 

Exchange incorporated in Rule 903A 

‘‘applied uniform standards to the range 

of options series exercise (or strike) 

prices available for trading on the 

[Exchange] as a quote mitigation 

strategy.’’ 6 In approving the OLPP 

provisions, subsequently incorporated 

in Rule 903A, the Commission indicated 

that ‘‘adopting uniform standards to the 

range of options series exercise (or 

strike) prices available for trading on the 

[Exchange] should reduce the number of 

option series available for trading, and 

thus should reduce increases in the 

options quote message traffic because 

market participants will not be 

submitting quotes in those series.’’ 7

One year after adopting select 

provisions of the OLPP, the Exchange 

refined the quoting obligations 

applicable to Market Makers as a quote 

mitigation strategy.8 Specifically, the 

Exchange adopted Commentary .01 to 

Rule 925.1NY, which states that 

Specialists’ and Market Makers’ 

continuous quoting obligations ‘‘shall 

not apply to Market Makers with respect 

to adjusted option series, and series 

mstockstill on DSK4VPTVN1PROD with NOTICES