Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 37625 

30 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 Exchange Act Release No. 78962 

(September 28, 2016), 81 FR 69240 (October 5, 

2016) (File No. S7–22–16). 

5See Securities Exchange Act Release No. 79732 

(January 4, 2017), 82 FR 3042 (January 10, 2017) 

(SR–NYSEArca–2016–145). 

6See 17 CFR 240.15c6–1(a). 

7See Securities Exchange Act Release No. 80295 

(March 22, 2017), 82 FR 15564 (March 29, 2017) 

(File No. S7–22–16). 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

submitted on or before September 1, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–16927 Filed 8–10–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81325; File No. SR– 

NYSEARCA–2017–82] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change in Connection With the 

September 5, 2017 Compliance Date 

for the Shortening of the Standard 

Settlement Cycle From Three Business 

Days After the Trade Date to Two 

Business Days After the Trade Date 

August 7, 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 July 26, 

2017, NYSE Arca, Inc. (the ‘‘Exchange’’ 

or ‘‘NYSE Arca’’) 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 in connection 

with the September 5, 2017, compliance 

date for the shortening of the standard 

settlement cycle from three business 

days after the trade date (‘‘T+3’’) to two 

business days after the trade date 

(‘‘T+2’’), to (1) delete NYSE Arca 

Equities Rule 7.4 (Ex-Dividend or ExRight Dates); (2) delete the preamble and 

‘‘T’’ modifier from NYSE Arca Equities 

Rule 7.4T (‘‘Rule 7.4T’’); and (3) 

establish the operative date of Rule 

7.4T. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In connection with the September 5, 

2017, compliance date for shortening of 

the standard settlement cycle from T+3 

to T+2, the Exchange proposes to (1) 

delete NYSE Arca Equities Rule 7.4 

(‘‘Rule 7.4’’); (2) delete the preamble and 

‘‘T’’ modifier from Rule 7.4T; and (3) 

establish the operative date of Rule 7.4T 

as September 5, 2017. 

Background 

On September 28, 2016, the Securities 

and Exchange Commission (‘‘SEC’’) 

proposed amendments to Rule 15c6– 

1(a) to shorten the standard settlement 

cycle from T+3 to T+2.4 Following this 

action by the SEC, the Exchange 

adopted a new Rule 7.4 with the 

modifier ‘‘T’’ to reflect a T+2 settlement 

cycle.5 Because the Exchange would not 

implement Rule 7.4T until after the final 

implementation of T+2, the Exchange 

retained the version of Rule 7.4 

reflecting T+3 settlement on its books. 

In order to reduce the potential for 

confusion regarding which version of 

the rule governs, the Exchange added 

explanatory preambles to Rule 7.4 and 

Rule 7.4T. 

In particular, the following preamble 

was added to Rule 7.4: 

This version of Rule 7.4 will remain 

operative until the Exchange files separate 

proposed rule changes as necessary to 

establish the operative date of ‘‘Rule 7.4T. 

Ex-Dividend or Ex-Right Dates,’’ to delete 

this version of Rule 7.4 and preamble, and to 

remove the preamble text from the version of 

Rule 7.4T. In addition to filing the necessary 

proposed rule changes, the Exchange will 

announce via Information Memo the 

operative date of the deletion of this Rule and 

implementation of ‘‘Rule 7.4T. Ex-Dividend 

or Ex-Right Dates.’’ 

The following preamble was added to 

Rule 7.4T: 

The Exchange will file separate proposed 

rule changes to establish the operative date 

of Rule 7.4T, to delete ‘‘Rule 7.4. ExDividend or Ex-Right Dates’’ and the 

preamble text from Rule 7.4, and to remove 

the preamble text from the version of Rule 

7.4T. Until such time, ‘‘Rule 7.4. Ex-Dividend 

or Ex-Right Dates’’ will remain operative. In 

addition to filing the necessary proposed rule 

changes, the Exchange will announce via 

Information Memo the implementation of 

this Rule and the operative date of the 

deletion of ‘‘Rule 7.4. Ex-Dividend or ExRight Dates.’’ 

On March 22, 2017, the SEC adopted 

the proposed amendment to Rule 15c6– 

1(a) under the Act 6 with a compliance 

date of September 5, 2017.7

Proposed Rule Change 

In order to comply with the 

September 5, 2017, transition to T+2 

settlement, the Exchange proposes to: 

• Delete Rule 7.4, including the 

preamble, in its entirety; 

• delete the preamble to Rule 7.4T; 

and 

• delete the ‘‘T’’ modifier in Rule 

7.4T, which distinguished it from Rule 

7.4. 

The Exchange proposes that the 

changes described herein would take 

effect on September 5, 2017, to coincide 

with the transition to T+2. The 

Exchange will announce via Information 

Memo the implementation of Rule 7.4T 

and the operative date of the deletion of 

Rule 7.4. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,8 in general, and 

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

of the Act,9 in particular, because it is 

designed to prevent fraudulent and 

manipulative acts and practices, 

promote just and equitable principles of 

trade, 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. 

In particular, the Exchange believes 

that the proposed changes remove 

impediments to and perfect the 

mechanism of a free and open market by 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
37626 Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 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 its 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. 12 17 CFR 200.30–3(a)(12). 

adding clarity as to which rules are 

operative and when, thereby reducing 

potential confusion, and making the 

Exchange’s rules easier to navigate. The 

Exchange also believes that eliminating 

obsolete material from its rulebook also 

removes impediments to and perfects 

the mechanism of a free and open 

market by removing confusion that may 

result from having obsolete material in 

the Exchange’s rulebook. The Exchange 

believes that eliminating such obsolete 

material would not be inconsistent with 

the public interest and the protection of 

investors because investors will not be 

harmed and in fact would benefit from 

increased transparency, thereby 

reducing potential confusion. 

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 change is not designed to 

address any competitive issue but rather 

facilitate the industry’s transition to a 

T+2 regular-way settlement cycle. The 

Exchange also believes that the 

proposed rule change will serve to 

promote 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 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 10 and Rule 19b– 

4(f)(6) thereunder.11

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 

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– 

NYSEARCA–2017–82 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEARCA–2017–82. 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 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– 

NYSEARCA–2017–82 and should be 

submitted on or before September 1, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–16928 Filed 8–10–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold an Open Meeting 

on Tuesday, August 15, 2017 at 1:00 

p.m., in the Auditorium (L–002) at the 

Commission’s headquarters building, to 

hear oral argument in an appeal from an 

initial decision of an administrative law 

judge by respondents Frank H. 

Chiappone, Andrew G. Guzzetti, 

William F. Lex, Thomas E. Livingston, 

Brian T. Mayer, and Philip S. 

Rabinovich, formerly registered 

representatives associated with former 

broker-dealer McGinn, Smith & Co., Inc. 

On February 25, 2015, the ALJ found 

that Chiappone, Lex, Livington, Mayer, 

and Rabinovich violated antifraud 

provisions of the federal securities laws 

by recommending that customers 

purchase securities without conducting 

a reasonable investigation into the 

offerings as well as provisions of the 

securities laws prohibiting unregistered 

offers and sales of securities. The ALJ 

barred or suspended these respondents 

from certain associations in the 

securities industry and ordered them to 

pay third-tier civil money penalties, to 

pay disgorgement of commissions 

received for their sales in violation of 

the antifraud provisions plus 

prejudgment interest, and to cease and 

desist from further violations of the 

securities laws. The ALJ found that 

Guzzetti failed reasonably to supervise 

the other respondents, ordered him to 

pay a third-tier civil money penalty, and 

suspended him from association in 

certain capacities in the securities 

industry. 


asabaliauskas on DSKBBXCHB2PROD with NOTICES