Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices 43609 

11 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. 

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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 

• 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– 

Phlx–2017–72 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–Phlx–2017–72. 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–Phlx– 

2017–72, and should be submitted on or 

before October 10, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19708 Filed 9–15–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81603; File No. SR– 

NYSEARCA–2017–102] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend NYSE Arca 

Rule 7.35–E, NYSE Arca Rule 7.31–E 

and NYSE Arca Rule 7.23–E 

September 13, 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 August 

31, 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 to amend (i) 

NYSE Arca Rule 7.35–E (Auctions) to 

provide that Market-on-Open (‘‘MOO’’), 

Limit-on-Open (‘‘LOO’’) Orders, and 

Imbalance Offset (‘‘IO’’) Orders would 

be cancelled if the Re-Opening Time for 

a Trading Halt Auction would be in the 

last ten minutes of trading before the 

end of Core Trading Hours; (ii) NYSE 

Arca Rule 7.31–E (Orders and 

Modifiers) regarding IO Orders; and (iii) 

NYSE Arca Rule 7.23–E (Obligations of 

Market Makers) to amend obsolete cross 

references. 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 

The Exchange proposes to amend (i) 

NYSE Arca Rule 7.35–E (Auctions) 

(‘‘Rule 7.35–E’’) to provide that MOO, 

LOO, and IO Orders would be cancelled 

if the Re-Opening Time for a Trading 

Halt Auction would be in the last ten 

minutes of trading before the end of 

Core Trading Hours; (ii) NYSE Arca 

Rule 7.31–E (Orders and Modifiers) 

(‘‘Rule 7.31–E’’) regarding IO Orders; 

and (iii) NYSE Arca Rule 7.23–E 

(Obligations of Market Makers) (‘‘Rule 

7.23–E’’) to amend obsolete cross 

references. 

Rule 7.35–E(e)(10) provides that if the 

Reopening Time for a Trading Halt 

Auction would be in the last ten 

minutes of trading before the end of 

Core Trading Hours, the Exchange will 

not conduct a Trading Halt Auction in 

that security, will not transition to 

continuous trading, will remain paused, 

and will conduct a Closing Auction in 

such security as provided for in Rule 

7.35–E(d). Rule 7.35–E(e)(10)(A) further 

provides that in such circumstances, 

MOO Orders, LOO Orders, and IO 

Orders entered during the pause or halt 

will not participate in the Closing 

Auction and will expire at the end of 

the Core Trading Session. 

The Exchange proposes to amend 

Rule 7.35–E(e)(10)(A) to provide that in 

such circumstances, MOO Orders, LOO 

Orders, and IO Orders entered during 

the pause or halt will not participate in 

the Closing Auction and will be 

cancelled. This proposed rule change is 

not intended to make any functional 

changes to when MOO Orders, LOO 

Orders, and IO Orders are eligible to 

trade at the Exchange; these orders still 

would not participate in a Closing 


sradovich on DSKBBY8HB2PROD with NOTICES
43610 Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices 

4The Exchange established IO Orders in the 

Reopening Filing, infra note 5 [sic]. 

5See Securities Exchange Act Release No. 79688 

(December 23, 2016), 82 FR 96534 (December 30, 

2016) (SR–NYSEArca–2016–170) (Notice of Filing). 

The Pillar phase II protocols were implemented on 

August 21, 2017. See Trader Update dated August 

17, 2017, available here: https://www.nyse.com/ 

publicdocs/nyse/markets/nyse-arca/Pillar_Update_

NYSE_Arca_August_17_2017.pdf. 

6See Securities Exchange Act Release No. 79846 

(January 19, 2017), 82 FR 8548 (January 26, 2017) 

(SR–NYSEArca–2016–130) (Approval Order) (the 

‘‘Reopening Filing’’). 

7See Securities Exchange Act Release No. 79845 

(January 19, 2017), 82 FR 8551 (January 26, 2017) 

(File No. 4–631) (Order approving twelfth 

amendment to the Plan). 

8The Exchange’s affiliated equities exchange has 

adopted a similar change to its rules. See Securities 

Exchange Act Release No. 80577 (May 2, 2017), 82 

FR 21446 (May 8, 2017) (SR–NYSEMKT–2017–04) 

(Order approving NYSE American LLC (‘‘NYSE 

American’’) Rule 7.23E(a)(1)(B)(iii) and (iv)). The 

proposed rule changes are also based on Bats BZX, 

Inc. (‘‘BZX’’) Rule 11.8(d)(2)(D) and (E). 

9Securities previously subject to Rule 7.11(a)(ii) 

were all NMS Stocks, other than securities included 

in the S&P 500® Index, Russell 1000® Index, and 

a pilot list of Exchange Traded Products, with a 

price equal to or greater than $1 and securities 

previously subject to Rule 7.11(a)(iii) were all NMS 

Stocks, other than securities included in the S&P 

500® Index, Russell 1000® Index, and a pilot list 

of Exchange Traded Products, with a price less than 

$1.00. See Securities Exchange Act Release No. 

64422 (May 6, 2011), 76 FR 27691 (May 12, 2011) 

(SR–NYSEArca–2011–26) (Notice of filing). 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

Auction. However, as proposed, if a 

trading pause or halt extends past 3:50 

p.m., these orders would be cancelled 

back to the entering firm at 3:50 p.m. 

instead of remaining on the Exchange 

Book and expiring after Core Trading 

Hours concludes. The Exchange 

believes this proposed change would 

provide ETP Holders with more timely 

information regarding the status of 

pending orders. 

The Exchange also proposes to amend 

Rule 7.31–E(c)(5), which defines the 

term IO Order, to provide that such 

orders would be available only to ETP 

Holders using Pillar phase II protocols.4

The Exchange previously filed a 

proposed rule change describing that 

when it implements Pillar phase II 

protocols, the Exchange will be able to 

support new order functionality.5

Because there will be a period when 

both Pillar phase I and Pillar phase II 

protocols will be available to ETP 

Holders, the Exchange amended its 

rules to describe how an ETP Holder’s 

orders would behave depending on the 

protocol that an ETP Holder chooses to 

use. Because IO Orders would be 

available only via Pillar phase II 

protocols, the Exchange proposes to 

amend Rule 7.31–E(c)(5) to specify this 

requirement. 

The Exchange proposes to implement 

the proposed amendments to Rules 

7.35–E and 7.31–E at the same time that 

it implements previously-approved 

changes to Rule 7.35–E and 7.31–E, 

which the Exchange previously stated 

that it anticipated implementing in the 

third quarter of 2017.6 As described in 

greater detail in the Reopening Filing, 

the Exchange amended its rules relating 

to the reopening of trading in 

conjunction with the twelfth 

amendment to the Regulation NMS Plan 

to Address Extraordinary Market 

Volatility (‘‘Plan’’), which the 

Commission approved.7 The Exchange 

proposes to implement the changes 

described in the Reopening Filing, as 

amended by this proposed rule change, 

at the same time that the twelfth 

amendment to the Plan is implemented, 

which, subject to technology changes 

and effectiveness of the extension of the 

implementation date for the changes 

made in the twelfth amendment to the 

Plan, is anticipated to be in the fourth 

quarter of 2017. 

The Exchange also proposes to amend 

NYSE Arca Equities Rules 7.23– 

E(a)(1)(B)(iii) and (iv) to remove 

obsolete cross references and to reflect 

that the applicable percentages are 

based on how a security is designated 

under the Plan.8 Rule 7.23–E(a)(1)(B) 

sets forth among other things, the 

obligation of Market Makers to maintain 

a bid (offer) not more than the 

‘‘Designated Percentage’’ away from the 

then current National Best Bid (Offer) 

(‘‘NBBO’’) and if the NBBO changes 

such that the Market Maker’s bid/offer 

is more than the ‘‘Defined Limit’’ away 

from the NBBO, the Market Maker must 

enter an updated bid (offer). The 

Exchange proposes to amend Rule 7.23– 

E(a)(1)(B)(iii) and Rule 7.23– 

E(a)(1)(B)(iv) to remove cross-references 

to Rule 7.11–E and instead use Plan 

definitions for specifying which 

securities are subject to which 

‘‘Designated Percentages’’ and ‘‘Defined 

Limits.’’ Accordingly, as proposed: 

• The phrase ‘‘securities subject to 

Rule 7.11–E(a)(i)’’ would be replaced 

with the phrases ‘‘Tier 1 NMS Stocks 

under the Limit Up-Limit Down Plan’’ 

or ‘‘Tier 1 NMS Stocks;’’ 

• the phrase ‘‘securities subject to 

Rule 7.11–E(a)(ii)’’ would be replaced 

with the phrases ‘‘Tier 2 NMS Stocks 

under the Limit Up-Limit Down Plan 

with a price equal to or greater than 

$1.00’’ or ‘‘Tier 2 NMS Stocks with a 

price equal to or greater than $1.00;’’ 

• the phrase ‘‘securities subject to 

Rule 7.11–E(a)(iii)’’ would be replaced 

with the phrase ‘‘Tier 2 NMS Stocks 

with a price lower than $1.00;’’ and 

• the phrase ‘‘when Rule 7.11–E is 

not in effect’’ would be deleted. 

Because rights and warrants are not 

subject to the Plan, but are subject to 

market maker quoting requirements, the 

Exchange proposes to provide that for 

purposes of Rule 7.23–E(a)(1)(B)(iii) and 

(iv), rights and warrants would be 

considered Tier 2 NMS Stocks. This 

proposed rule text is consistent with 

current practice and the now-obsolete 

cross references to Rule 7.11.9 The 

Exchange also proposes a nonsubstantive amendment to Rules 7.23– 

E(a)(1)(B)(iii) and (iv) to change 

references from Pacific Time to Eastern 

Time. 

The Exchange also proposes a nonsubstantive amendment to Rule 7.23– 

E(a)(2) to replace the current reference 

to ‘‘Rule 4.1–E’’ with a reference to ‘‘the 

provisions of Rule 15c3–1 under the 

Securities Exchange Act of 1934.’’ Rule 

4.1–E requires ETP Holders to maintain 

minimum net capital in accordance 

with the provisions of Rule 15c3–1 

under the Act. Accordingly, by 

referencing Rule 15c3–1 under the Act 

instead of Rule 4.1–E, the proposed rule 

change to Rule 7.23–E(a)(2) would not 

make any substantive changes to the 

rule. This proposed rule change is based 

on NYSE American Rule 7.23E(a)(2). 

The Exchange proposes that the 

amendments to Rule 7.23–E would be 

operative upon the operative date of this 

proposed rule change. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),10 in general, and furthers the 

objectives of Section 6(b)(5),11 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 that the 

proposed amendments to Rule 7.35–E 

would remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system because the proposed rule 

change would provide ETP Holders 

with timely information regarding the 

status of MOO Orders, LOO Orders, and 

IO Orders, which are intended to 

participate in a Trading Halt Auction, if 

there is a trading pause or halt that 

extends past the last ten minutes of 

trading of Core Trading Hours. In such 


sradovich on DSKBBY8HB2PROD with NOTICES
Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices 43611 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(6). 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. 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

case, because the Exchange would not 

be conducting a Trading Halt Auction, 

the Exchange would provide ETP 

Holders with more timely information 

about the status of their orders. The 

proposed rule change would not make 

any substantive differences regarding 

how such orders would execute on the 

Exchange. Accordingly, the proposed 

rule change is designed to enhance 

transparency. 

The Exchange believes that the 

proposed amendment to Rule 7.31–E 

would remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system because the proposed rule 

change would provide transparency to 

ETP Holders regarding which 

communication protocol should be used 

for entering IO Orders. 

The Exchange believes that the 

proposed amendments to Rule 7.23–E 

would remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system because the proposed rule 

change is designed to remove obsolete 

cross references. The proposed rule 

change is based on the rules of NYSE 

American and BZX. 

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 

Exchange believes that the proposed 

rule change is not designed to address 

any competitive issues but rather to 

provide ETP Holders with more timely 

information about the status of orders 

intended for a Trading Halt Auction and 

which communication protocol to use 

for entering IO Orders. In addition, the 

proposed rule change is designed to 

remove obsolete cross references and is 

based on the rules of NYSE American 

and BZX. 

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 12 and Rule 19b– 

4(f)(6) thereunder.13

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–2017–102 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–2017–102. 

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–2017–102 and should be 

submitted on or before October 10, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19812 Filed 9–15–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81591; File No. SR– 

NASDAQ–2017–091] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

List and Trade Shares of Calvert UltraShort Income NextSharesTM

September 13, 2017. 

Pursuant to 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 

30, 2017, The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) 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 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 list and 

trade under Nasdaq Rule 5745 

(Exchange-Traded Managed Fund 


sradovich on DSKBBY8HB2PROD with NOTICES