Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Notices 46323 

38See William J. Baumol and Daniel G. Swanson, 

‘‘The New Economy and Ubiquitous Competitive 

Price Discrimination: Identifying Defensible Criteria 

of Market Power,’’ Antitrust Law Journal, Vol. 70, 

No. 3 (2003). 

39 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

the software), but once the software is 

developed, the incremental cost of 

providing that software to an additional 

user is typically small, or even zero 

(e.g., if the software can be downloaded 

over the internet after being 

purchased).38 It is costly to build and 

maintain a trading platform, but the 

incremental cost of trading each 

additional share on an existing platform, 

or of distributing an additional instance 

of data, is very low. Market information 

and executions are each produced 

jointly (in the sense that the activities of 

trading and placing orders are the 

source of the information that is 

distributed) and are each subject to 

significant scale economies. 

Competition among trading platforms 

can be expected to constrain the 

aggregate return each platform earns 

from the sale of its joint products. The 

level of competition and contestability 

in the market is evident in the 

numerous alternative venues that 

compete for order flow, including SRO 

markets, as well as internalizing BDs 

and various forms of alternative trading 

systems (‘‘ATSs’’), including dark pools 

and electronic communication networks 

(‘‘ECNs’’). Each SRO market competes to 

produce transaction reports via trade 

executions, and two FINRA-regulated 

TRFs compete to attract internalized 

transaction reports. It is common for 

BDs to further and exploit this 

competition by sending their order flow 

and transaction reports to multiple 

markets, rather than providing them all 

to a single market. Competitive markets 

for order flow, executions, and 

transaction reports provide pricing 

discipline for the inputs of proprietary 

data products. The large number of 

SROs, TRFs, BDs, and ATSs that 

currently produce proprietary data or 

are currently capable of producing it 

provides further pricing discipline for 

proprietary data products. Each SRO, 

TRF, ATS, and BD is currently 

permitted to produce proprietary data 

products, and many currently do or 

have announced plans to do so, 

including Nasdaq, NYSE, NYSE MKT, 

NYSE Arca, and the BATS exchanges. 

In this case, the proposed rule change 

enhances competition by introducing a 

new product that increases transparency 

into options transactions and 

democratizes information by providing 

the benefits of sophisticated analytical 

techniques to firms without the 

technology, staff or wherewithal to 

conduct a comparable analysis on their 

own. If the price were to become 

unattractive, those firms would opt not 

to purchase the product. The net effect 

of introducing this product into the 

market is to make market sentiment 

information more widely available to a 

broader array of investors, and lower the 

cost of accessing such information, 

thereby increasing market efficiency. 

For all of these reasons, the Exchange 

does not believe that the proposed 

changes will impair competition in the 

financial markets. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission shall: (a) by order 

approve or disapprove such proposed 

rule change, or (b) institute proceedings 

to determine whether the proposed rule 

change should be 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–2017–74 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–2017–74. 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– 

2017–74 and should be submitted on or 

before October 25, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.39

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–21279 Filed 10–3–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81749; File No. SR– 

BatsBYX–2017–23] 

Self-Regulatory Organizations; Bats 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change to Rule 11.23, 

Opening Process, and Rule 11.26, 

Usage of Data Feeds, To Reflect the 

Name Change of NYSE MKT to NYSE 

American 

September 28, 2017. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on 

September 25, 2017, Bats BYX 

Exchange, Inc. (the ‘‘Exchange’’ or 

‘‘BYX’’) 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. 


sradovich on DSK3GMQ082PROD with NOTICES
46324 Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Notices 

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

4 17 CFR 240.19b–4(f)(6)(iii). 

5See Securities Exchange Act Release No. 80283 

(March 21, 2017), 82 FR 15244 (March 27, 2017) 

(SR–NYSEMKT–2017–14). 

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

7 15 U.S.C. 78f(b)(5). 

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

9 17 CFR 240.19b–4. 

The Exchange has designated this 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(6)(iii) thereunder,4 which 

renders it effective upon filing with the 

Commission. 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 filed a proposal to 

amend paragraph (c)(1) of Rule 11.23, 

Opening Process, and paragraph (a) of 

Rule 11.26, Usage of Data Feeds, to 

reflect the name change of NYSE MKT 

to NYSE American. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.bats.com, at the princiopal [sic] 

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 parts of such 

statements. 

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On March 21, 2017, NYSE MKT LLC 

filed a proposed rule change to change 

its name to NYSE American LLC.5 The 

Exchange now proposes to replace 

references to NYSE MKT within its 

rules with NYSE American. In 

particular, the Exchange proposes to 

replace references to NYSE MKT with 

NYSE American in Rule 11.23(c)(1), 

Opening Process; and Rule 11.26(a), 

Usage of Data Feeds. The Exchange does 

not proposes [sic] to amend the 

operation of these rules in any other 

respect. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 6 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 7

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, 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 non-substantive amendments to 

Rules 11.23(c)(1) and 11.26(a) are 

intended solely to reflect the name 

change from NYSE MKT to NYSE 

American. The proposed rule change, 

therefore, removes impediments to and 

perfects the mechanism of a free and 

open market and a national market 

system because it updates the rule to 

reflect the name change and does not 

alter the way in which orders in NYSE 

American listed securities are handled 

and routed. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will have any 

impact on competition as it affect 

competition [sic] as it is not designed to 

alter the way in which orders in NYSE 

American listed securities are handled 

and routed. It is simply intended to 

reflect the name change from NYSE 

MKT to NYSE American. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on 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: (A) Significantly affect 

the protection of investors or the public 

interest; (B) impose any significant 

burden on competition; and (C) by its 

terms, 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 8 and paragraph (f)(6) of Rule 

19b–4 thereunder,9 the Exchange has 

designated this rule filing as noncontroversial. The Exchange has given 

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. 

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: (1) Necessary or appropriate in 

the public interest; (2) for the protection 

of investors; or (3) 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– 

BatsBYX–2017–23 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–BatsBYX–2017–23. 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 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Notices 46325 

10 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. 

4Units are securities that represent an interest in 

a registered investment company that could be 

organized as a unit investment trust, an open-end 

management investment company, or a similar 

entity, that holds securities comprising, or 

otherwise based on or representing an interest in, 

an index or portfolio of securities or securities in 

another registered investment company that holds 

such securities. See NYSE American Rule 5.2E(j)(3). 

The following securities currently are included in 

Section 2 of NYSE American Rule 8E: Portfolio 

Depositary Receipts (Rule 8.100E); Trust Issued 

Receipts (Rule 8.200E); Commodity-Based Trust 

Shares (Rule 8.201E); Currency Trust Shares (Rule 

8.202E); Commodity Index Trust Shares (Rule 

8.203E); Commodity Futures Trust Shares (Rule 

8.204E); Partnership Units (Rule 8.300E); Paired 

Trust Shares (Rule 8.400E); Trust Units (Rule 

8.500E); Managed Fund Shares (Rule 8.600E); and 

Managed Trust Securities (Rule 8.700E). 

5 Index-Linked Securities are securities that 

qualify for Exchange listing and trading under 

NYSE American Rule 5.2E(j)(6). The securities 

described in Rule 5.2E(j)(3), Rule 5.2E(j)(6) and 

Section 2 of Rule 8E, as referenced above, would 

include securities listed on another national 

securities exchange pursuant to substantially 

equivalent listing rules. 

6The Commission has approved amendments to 

NYSE Arca Rule 5.2E(j)(6) that are substantially 

identical to those proposed herein. See Securities 

Exchange Act Release No. 81442 (August 18, 2017), 

82 FR 40178 (August 24, 2017) (SR–NYSEArca– 

2017–54) (order approving a proposed rule change 

to amend the generic listing criteria applicable to 

Equity Index-Linked Securities). 

7 15 U.S.C. 80–1. 

8See Rule 5.2E(j)(6)(B)(I)(1). 

9See Rule 5.2E(j)(6)(B)(I)(1)(a). 

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– 

BatsBYX–2017–23 and should be 

submitted on or before October 25, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–21277 Filed 10–3–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81755; File No. SR– 

NYSEAMER–2017–19] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend NYSE 

American Rule 5.2E (j)(6) 

September 28, 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 

September 18, 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 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 amend 

NYSE American Rule 5.2E(j)(6) to 

exclude Investment Company Units, 

securities defined in Section 2 of NYSE 

American Rule 8E and Index-Linked 

Securities when applying the 

quantitative generic listing criteria 

applicable to Equity Index-Linked 

Securities. 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 

NYSE American Rule 5.2E(j)(6) to 

exclude Investment Company Units 

(‘‘Units’’) and securities defined in 

Section 2 of NYSE American Rule 8E 

(collectively, together with Units, 

‘‘Derivative Securities Products’’),4 as 

well as Index-Linked Securities,5 when 

applying the quantitative generic listing 

criteria applicable to Equity IndexLinked Securities.6

Equity Index-Linked Securities are 

securities that provide for the payment 

at maturity (or earlier redemption) based 

on the performance of an underlying 

index or indexes of equity securities, 

securities of closed end management 

investment companies registered under 

the Investment Company Act of 1940 7

and/or Units.8 In addition to certain 

other generic listing criteria, Equity 

Index-Linked Securities must satisfy the 

generic quantitative initial and 

continued listing criteria under NYSE 

American Rule 5.2E(j)(6)(B)(I) in order 

to become, and continue to be, listed 

and traded on the Exchange. Certain of 

the applicable quantitative criteria 

specify minimum or maximum 

thresholds that must be satisfied with 

respect to, for example, market value, 

trading volume, and dollar weight of the 

index represented by a single 

component or groups of components. 

The applicable initial quantitative 

listing criteria include (i) that each 

underlying index is required to have at 

least ten component securities; 9 (ii) that 

each component security has a 

minimum market value of at least $75 

million, except that for each of the 

lowest dollar weighted component 

securities in the index that in the 

aggregate account for no more than 10% 

of the dollar weight of the index, the 

market value can be at least $50 million; 

(iii) that component stocks that in the 

aggregate account for at least 90% of the 

weight of the index each have a 

minimum global monthly trading 

volume of 1,000,000 shares, or 

minimum global notional volume traded 

per month of $25,000,000, averaged over 

the last six months; (iv) that no 

underlying component security 

represents more than 25% of the dollar 

weight of the index, and the five highest 

dollar weighted component securities in 

the index do not in the aggregate 

account for more than 50% of the dollar 

weight of the index (60% for an index 

consisting of fewer than 25 component 

securities); and (v) that 90% of the 

index’s numerical value and at least 

80% of the total number of component 

securities meet the then current criteria 

for standardized option trading set forth 

in Rule 915; except that an index will 

not be subject to this last requirement if 

(a) no underlying component security 

represents more than 10% of the dollar 

weight of the index and (b) the index 


sradovich on DSK3GMQ082PROD with NOTICES