Federal Register / Vol. 82, No. 175 / Tuesday, September 12, 2017 / Notices 42865 

33 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 79792 

(Jan. 13, 2017), 82 FR 7891 (Jan. 23, 2017). 

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

5See Securities Exchange Act Release No. 80094 

(Feb. 23, 2017), 82 FR 12268 (Mar. 1, 2017). The 

Commission designated April 23, 2017, as the date 

by which the Commission shall either approve or 

disapprove, or institute proceedings to determine 

whether to approve or disapprove, the proposed 

rule change. 

6See Securities Exchange Act Release No. 80501 

(Apr. 21, 2017), 82 FR 19397 (Apr. 27, 2017). 

7See Securities Exchange Act Release No. 81155 

(July 17, 2017), 82 FR 33938 (July 21, 2017). The 

Commission designated September 20, 2017, as the 

date by which the Commission shall either approve 

or disapprove the proposed rule change. 

8See Letters from Andrew Quentson (Apr. 26, 

2017); Charles K. Massey, III, Venture Private 

Equity Investment (Apr. 26, 2017); Anita Desai 

(Apr. 29, 2017); Luc Jean (May 3, 2017); Tisho P. 

(May 10, 2017); Kevin McSheehan (May 14, 2017); 

Bruce Granger (May 16, 2017); Bruce Granger (May 

16, 2017); Alen Lee (May 18, 2017). All comments 

on the proposed rule change are available on the 

Commission’s Web site at: https://www.sec.gov/ 

Continued 

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–2017–93 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–2017–93. 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–2017–93 and should be 

submitted on or before October 3, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.33

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19241 Filed 9–11–17; 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, Pub. L. 94–409, that the 

Securities and Exchange Commission 

Advisory Committee on Small and 

Emerging Companies will hold a public 

meeting on Wednesday, September 13, 

2017, in Multi-Purpose Room LL–006 at 

the Commission’s headquarters, 100 F 

Street, NE., Washington, DC. 

The meeting will begin at 9:30 a.m. 

(EDT) and will be open to the public. 

Seating will be on a first-come, firstserved basis. Doors will open at 9:00 

a.m. Visitors will be subject to security 

checks. The meeting will be webcast on 

the Commission’s Web site at 

www.sec.gov. 

On August 14, 2017, the Commission 

published notice of the Committee 

meeting (Release No. 33–10399), 

indicating that the meeting is open to 

the public and inviting the public to 

submit written comments to the 

Committee. This Sunshine Act notice is 

being issued because a majority of the 

Commission may attend the meeting. No 

earlier notice of this Meeting was 

practicable. 

The agenda for the meeting includes 

matters relating to rules and regulations 

affecting small and emerging companies 

under the federal securities laws. 

For further information, please 

contact Brent J. Fields from the Office of 

the Secretary at (202) 551–5400. 

Dated: September 8, 2017. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–19445 Filed 9–8–17; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81538; File No. SR– 

NYSEArca–2016–176] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Withdrawal of a 

Proposed Rule Change Relating to the 

Listing and Trading of Shares of the 

EtherIndex Ether Trust Under NYSE 

Arca Equities Rule 8.201 

September 6, 2017. 

On December 30, 2016, NYSE Arca, 

Inc. (‘‘NYSE Arca’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Exchange Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to list and trade shares of the 

EtherIndex Ether Trust. The proposed 

rule change was published for comment 

in the Federal Register on January 23, 

2017.3

On February 23, 2017, pursuant to 

Section 19(b)(2) of the Exchange Act,4

the Commission designated a longer 

period within which to approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether to 

approve or disapprove the proposed 

rule change.5 On April 21, 2017, the 

Commission instituted proceedings to 

determine whether to approve or 

disapprove the proposed rule change.6

On July 17, 2017, the Commission 

designated a longer period for 

Commission action on the proposed rule 

change.7 The Commission received nine 

comment letters regarding the proposed 

rule change.8


pmangrum on DSK3GDR082PROD with NOTICES1
42866 Federal Register / Vol. 82, No. 175 / Tuesday, September 12, 2017 / Notices 

comments/sr-nysearca-2016-176/ 

nysearca2016176.htm. 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Rule 900.3NY(e) defines a Complex Order as 

any order involving the simultaneous purchase 

and/or sale of two or more different option series 

in the same underlying security, for the same 

account, in a ratio that is equal to or greater than 

one-to-three (.333) and less than or equal to threeto-one (3.00) and for the purpose of executing 

particular investment strategy. Per Rule 980NY, an 

ECO is a Complex Order that has been entered into 

the NYSE System for possible execution. See Rule 

980NY(a). 

4See Commentary .05 to Rule 980NY (providing 

for the rejection of ECOs that are priced away from 

the current market by a ‘‘Specified Amount,’’ which 

Specified Amount varies depending on the smallest 

MPV of any leg in the ECO) (the ‘‘Price Protection 

Filter’’ or ‘‘Filter’’) . 

5See proposed Commentary .06 to Rule 980NY 

which would provide that the Exchange would 

reject any incoming ECO that has a strategy 

described in paragraphs (a)(1)–(3) of proposed 

Commentary .06 to Rule 980NY. Because 

Reasonability Checks would be performed before 

the Price Protection Filter, the proposed rule text 

would provide that ‘‘[a]ny incoming Electronic 

Complex Order that passes this Reasonability Check 

would still be subject to the Price Protection Filter, 

per Commentary .05(b) of this Rule.’’ See id. 

6See e.g., ISE Rule 722, Supplementary Material 

.07 (Price limits for complex orders and quotes). 

The Exchange notes that, as discussed herein, the 

proposed Reasonability Checks are similar to those 

initially adopted by ISE and do not include a later 

adopted pre-set value ‘‘buffer.’’ See infra nn. 12 [sic] 

and 15 [sic]. Moreover, because the Exchange does 

not support ECOs entered as market orders, the 

Exchange has not adopted price checks related to 

such orders (which orders ISE supports). See e.g., 

ISE Rule 722, Supplementary Material .07(c)(1),(3). 

The Exchange also notes that the Chicago Board 

Options Exchange, Inc. (‘‘CBOE’’) likewise includes 

complex strategy price checks, which cover more 

strategies than proposed herein, but are nonetheless 

designed to accomplish the same goal of avoiding 

execution of erroneously priced complex orders. 

See CBOE Rule 6.53C, Interpretations and Policies 

.08 (Price Check Parameters). 

7See proposed Commentary .06(a)(1) to Rule 

980NY. 

On September 1, 2017, NYSE Arca 

withdrew the proposed rule change 

(SR–NYSEArca–2016–176). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19240 Filed 9–11–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81537; File No. SR– 

NYSEAMER–2017–07] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Adopt Commentary 

.06 to Rule 980NY To Enhance the 

Price Protections for Complex Orders 

Executed on the Exchange 

September 6, 2017. 

Pursuant to the provisions of Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on August 25, 2017, NYSE American 

LLC (the ‘‘Exchange’’ or ‘‘NYSE 

American’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

as described in Items I and II below, 

which Items have been prepared by the 

Exchange. 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 adopt 

Commentary .06 to Rule 980NY 

(Electronic Complex Order Trading) to 

enhance the price protections for 

Complex Orders executed on the 

Exchange. 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 

Exchange 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 these 

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 aspects 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 adopt 

Commentary .06 to Rule 980NY to 

enhance the price protections applicable 

to Electronic Complex Orders (or 

‘‘ECOs’’).3

The Exchange currently provides 

price protection to ECOs, which is 

designed to prevent the execution of 

orders at prices that are priced a certain 

percentage away from the current 

market and, therefore, are potentially 

erroneous.4 The Exchange proposes an 

additional price protection that would 

be another check on whether an ECO’s 

limit price is correctly aligned to the 

complex strategy and would reject 

erroneously priced incoming ECOs (the 

‘‘Reasonability Checks’’).5 As discussed 

herein, the proposed price protections 

are materially identical to price 

protections available on other options 

exchanges, including Nasdaq ISE, LLC 

(‘‘ISE’’).6

First, the Exchange proposes 

Commentary .06(a)(1) to Rule 980NY, 

pursuant to which, upon entry into the 

System, the Exchange would reject any 

incoming order for a complex strategy 

where all legs are to sell (buy) if it is 

entered at a price that is less (more) than 

the minimum (maximum) price, which 

is calculated as the sum of the ratio on 

each leg of the Complex Order 

multiplied by $0.01 (¥$0.01) per leg 

(e.g., an order to sell (buy) 2 calls and 

sell (buy) 1 put would have a minimum 

(maximum) price of $0.03 (¥$0.03)).7

For example, an order to sell 2 calls 

and sell 1 put would have a minimum 

net credit price of $0.03. If such an 

order were entered at a price of $0.02, 

it would not be executable, as a price of 

zero would have to be assigned to one 

of the legs of the order. As proposed, 

this order would be rejected. 

As another example, if a market 

participant is entering the following ‘‘all 

sell’’ complex strategy for a debit: 

• Leg A: 100 × 0.01¥0.02 × 100 

• Leg B: 100 × 0.01¥0.02 × 100 

• Order 1: Sell 1 Leg A, Sell 2 Leg B; 

Net price: ¥$0.03 

Result: As proposed, Order 1 would 

be rejected because it is priced less than 

the minimum order price of $0.03. 

Based on each individual leg trading for 

at least $0.01, this complex strategy 

would never trade at a net credit price 

of less than $0.03. Thus, any sell order 

for this strategy with a limit price less 

than $0.03 would be rejected. 

If, for example, a market participant is 

entering the following ‘‘all buy’’ 

complex strategy: 

• Leg A: 100 × 0.01¥0.02 × 100 

• Leg B: 100 × 0.01¥0.02 × 100 

• Order 1: Buy Leg A, Buy 2 Leg B; Net 

price: ¥$0.02 

Result: As proposed, Order 1 would 

be rejected because it is priced greater 

than the maximum net debit price of 

¥$0.03 (and only orders priced at 

¥$0.03 or less would be accepted). 

Because debit orders are entered into 

the Exchange System as a negative 

value, the ‘‘maximum’’ price check for 

buy orders is effectively a check for the 

minimum order price. Here, Order 1 @

¥$0.02 would represent an order to buy 


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