47586 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 

20See id. at 39928. 

21See id. at 39927 and 39928. 

22See id. at 39927. 

23 15 U.S.C. 78s(b)(2). 

24 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4Unless otherwise specified, the capitalized 

terms used herein have the same meanings as set 

forth in the Plan. 

crowd, where they cannot control the 

size or frequency of trading interest.20

The Exchange asserts that the New 

Alternative serves as a reasonable 

standard by which to assess the level of 

liquidity provided by non-SQT ROTs, 

albeit with a focus on an additional 

liquidity metric of fewer trades that are 

larger in size.21 The Exchange states 

that, since 100 transactions is only 33% 

of the current requirement, it proposes 

to increase the total number of executed 

contracts requirement in the New 

Alternative by 900 percent to 10,000 

contracts, so as not to dilute the overall 

trading requirement.22 The Commission 

therefore believes that the Exchange’s 

proposal should continue to encourage 

active market making and thereby 

promote the provision of liquidity to the 

market. The Commission also notes that 

non-SQT ROTs continue to have the 

option of complying with the current 

requirement (i.e., the 1000/300 

Alternative) if they so choose. 

Accordingly, the Commission believes 

that the Exchange’s proposed 

amendments to create the New 

Alternative standard to satisfy the 

quarterly trading requirement is 

reasonably designed to preserve the 

market making function performed by 

non-SQT ROTs and thereby serves to 

maintain a fair and orderly market and 

should remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system and help protect investors and 

the public interest, consistent with 

Section 6(b)(5) of the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act 23 that the 

proposed rule change (SR–Phlx–2017– 

67), be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–21996 Filed 10–11–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81824; File No. SR–FINRA– 

2017–031] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend FINRA Rule 

6121 To Reflect Recent Amendments 

to the Regulation NMS Plan To 

Address Extraordinary Market 

Volatility 

October 5, 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 

September 29, 2017, Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been prepared by FINRA. FINRA 

has designated the proposed rule change 

as constituting a ‘‘non-controversial’’ 

rule change under paragraph (f)(6) of 

Rule 19b–4 under the Act,3 which 

renders the proposal effective upon 

receipt of this filing by 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 

FINRA is proposing to amend FINRA 

Rule 6121 (Trading Halts Due to 

Extraordinary Market Volatility) to 

reflect recent amendments to the 

Regulation NMS Plan to Address 

Extraordinary Volatility (‘‘Plan’’) 

regarding the resumption of trading in a 

security subject to the Plan.4

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 

FINRA Rule 6121.01 (Resumption of 

Trading in Securities Subject to the 

Regulation NMS Plan to Address 

Extraordinary Market Volatility) 

(‘‘Rule’’) addresses the circumstances 

under which a member may resume 

trading otherwise than on an exchange 

following a Trading Pause or Regulatory 

Halt in an NMS Stock that is subject to 

the Plan. 

The Rule currently provides that, 

following a Trading Pause or Regulatory 

Halt in an NMS Stock that is subject to 

the Plan, a member may resume trading 

otherwise than on an exchange if 

trading has commenced on the Primary 

Listing Exchange (or on another national 

securities exchange in the case of the 

resumption of trading following a tenminute Trading Pause) and either: (1) 

The member has received the Price 

Bands from the Processor; or (2) if 

immediately following a Trading Pause 

or Regulatory Halt the member has not 

yet received the Price Bands from the 

Processor, the member has calculated an 

upper price band and lower price band 

consistent with the methodology 

provided for in Section V of the Plan 

and ensures that any transactions prior 

to the receipt of the Price Bands from 

the Processor are within the ranges 

provided for pursuant to the Plan. In 

addition, the Rule provides that, where 

the Primary Listing Exchange does not 

reopen for trading at the end of a tenminute Trading Pause (and has issued 

notice that it cannot resume trading for 

a reason other than a significant 

imbalance), a member may resume 

trading otherwise than on an exchange 

if trading has commenced in such NMS 

Stock on at least one other national 

securities exchange. 

On January 19, 2017, the Commission 

approved the Twelfth Amendment to 

the Plan, which provides, among other 

things, that a Trading Pause will 

continue until the Primary Listing 

Exchange has reopened trading using its 

established reopening procedures, even 

if such reopening is more than 10 

minutes after the beginning of a Trading 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 47587 

5See Securities Exchange Act Release No. 79410 

(November 28, 2016), 81 FR 87114 (December 2, 

2016) (Notice of Filing of the Twelfth Amendment 

to the National Market System Plan to Address 

Extraordinary Market Volatility) (‘‘Twelfth 

Amendment’’); see also Securities Exchange Act 

Release No. 79845 (January 19, 2017), 82 FR 8551 

(January 26, 2017) (Order Approving the Twelfth 

Amendment to the National Market System Plan to 

Address Extraordinary Market Volatility) 

(‘‘Approval Order’’). 

6FINRA is correcting a reference to the Plan in 

the existing rule text by replacing ‘‘Section 

VI(A)(1)’’ with ‘‘Section V(A)(1).’’ 

7See supra note 5. 

8See FAQ #6 (When can trading in a paused 

security resume?) in Regulatory Notice 10–30 (June 

2010); see also Regulatory Notice 13–12 (March 

2013). 

9See Securities Exchange Act Release No. 81720 

(September 26, 2017), https://www.sec.gov/rules/ 

sro/nms/2017/34-81720.pdf (Notice of Filing and 

Immediate Effectiveness of the Fifteenth 

Amendment to the National Market System Plan to 

Address Extraordinary Market Volatility) (providing 

that the implementation date for the changes to the 

Plan set forth in the Twelfth and Thirteenth 

Amendment would be changed to no later than 

November 30, 2017). 

10 15 U.S.C. 78o–3(b)(6). 

11 15 U.S.C. 78k–1. 

12 17 CFR 242.608. 

13See Approval Order at 8552. 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(6). 

Pause.5 The Twelfth Amendment 

generally provides that the only time 

trading may resume in the absence of a 

Reopening Price from the Primary 

Listing Exchange is if the Primary 

Listing Exchange notifies the Processor 

that it is unable to reopen due to a 

systems or technology issue. 

To conform to this change, FINRA is 

amending Rule 6121.01 to provide that 

a member may not resume trading 

otherwise than on an exchange 

following a Trading Pause or Regulatory 

Halt in an NMS Stock that is subject to 

the Plan unless trading has commenced 

on the Primary Listing Exchange and 

either: (1) The member has received the 

Price Bands from the Processor; or (2) if 

the Processor hasn’t yet disseminated 

Price Bands, but a Reference Price is 

available, the member calculates and 

applies Price Bands based on the same 

Reference Price that the Processor 

would use for calculating such Price 

Bands until such member receives Price 

Bands from the Processor, consistent 

with Section V(A)(1) 6 of the Plan (i.e., 

‘‘Synthetic Price Bands’’). Thus, 

consistent with the Twelfth 

Amendment, the proposed amendments 

provide that a member may only use 

Synthetic Price Bands in the limited 

circumstance where a Reference Price is 

available but Price Bands have not yet 

been disseminated by the Processor.7

Finally, the proposed amendments 

provide that a member may, 

nonetheless, resume trading otherwise 

than on an exchange in an NMS Stock 

that is subject to the Plan if the Primary 

Listing Exchange notifies the Processor 

that it is unable to reopen the security 

due to a systems or technology issue, or 

if the Primary Listing Exchange reopens 

trading with a quotation that has a zero 

bid or zero offer, or both, and: (1) The 

member has received the Price Bands 

from the Processor; and (2) trading has 

commenced on at least one other 

national securities exchange. In these 

limited circumstances, trading may 

resume otherwise than on an exchange 

in the absence of a Reopening Price 

from the Primary Listing Exchange, but 

only where the member has received the 

Price Bands from the Processor and at 

least one other national security 

exchange has already resumed trading. 

FINRA believes that requiring trading to 

first commence on at least one other 

national securities exchange prior to the 

resumption of trading over the counter 

continues to be appropriate and is 

consistent with existing FINRA rules 

and guidance regarding the resumption 

of over-the-counter trading in a paused 

security.8

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

operative date of the proposed rule 

change will be the same as the 

implementation date of the Twelfth 

Amendment to the Plan.9

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,10 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. 

The proposed rule change is designed 

to conform to the Twelfth Amendment 

to the Plan, which was approved by the 

Commission as being consistent with 

Section 11A of the Act 11 and Rule 608 

thereunder 12 because it is appropriate 

in the public interest, for the protection 

of investors and the maintenance of fair 

and orderly markets, and that it removes 

impediments to, and perfects the 

mechanism of, a national market 

system.13 The proposed rule change 

seeks to help ensure that the goals of the 

Plan are met; thus, FINRA believes that 

the proposed rule change will further 

the goals of investor protection and fair 

and orderly markets. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change seeks to conform 

the requirements applicable to member 

trading otherwise than on an exchange 

under the Rule to the Twelfth 

Amendment to the Plan. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

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 14 and Rule 19b– 

4(f)(6) thereunder.15

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 

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– 

FINRA–2017–031 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. 


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47588 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 

16 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. 

4The Exchange originally filed to amend the Fee 

Schedule on September 29, 2017 (SR–NYSEAmer– 

2017–20) and withdrew such filing on October 4, 

2017. 

5See Fee Schedule, Section III.A. (Monthly ATP 

Fees), available here, https://www.nyse.com/ 

publicdocs/nyse/markets/american-options/NYSE_

American_Options_Fee_Schedule.pdf. 

6See id. (providing, in relevant part, that ‘‘[e]ach 

calendar quarter, with a one-month lag, the 

Exchange will publish on its Web site a list of the 

Bottom 45% of issues traded’’). 

All submissions should refer to File 

Number SR–FINRA–2017–031. 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 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of 

FINRA. 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–FINRA–2017–031 and 

should be submitted on or before 

November 2, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–21994 Filed 10–11–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81828; File No. SR– 

NYSEAMER–2017–22] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Modify the NYSE American 

Options Fee Schedule 

October 5, 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 October 

4, 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, 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to modify the 

NYSE American Options Fee Schedule 

(‘‘Fee Schedule’’). The Exchange 

proposes to implement the fee change 

effective October 4, 2017.4 The 

proposed 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 purpose of this filing is to modify 

the Fee Schedule, effective October 4, 

2017. Specifically, the Exchange 

proposes to (i) modify the monthly rates 

for certain American Trading Permits 

(each an ‘‘ATP’’); and (ii) reduce the 

Messages to Contracts Traded Ratio 

Fees. 

Monthly ATP Fees 

NYSE American Market Makers (each, 

an ‘‘MM’’) must have a certain number 

of ATPs each month in order to submit 

electronic quotations in option issues in 

their appointment.5 The Exchange 

currently employs a sliding scale for the 

cost to each MM per ATP, with the 

amount decreasing as the number of 

ATPs utilized increases, as follows: 6

ATP type Monthly fee 

per ATP Number of issues permitted in a market makers quoting assignment 

MM 1st ATP .................................................................. $8,000 60 plus the Bottom 45%. 

MM 2nd ATP ................................................................ 6,000 150 plus the Bottom 45%. 

MM 3rd ATP ................................................................. 5,000 500 plus the Bottom 45%. 

MM 4th ATP ................................................................. 4,000 1,100 plus the Bottom 45%. 

MM 5th ATP ................................................................. 3,000 All issues traded on the Exchange. 

MM 6th or more ATPs .................................................. 2,000 All issues traded on the Exchange. 

Thus, an MM that would like the 

privilege of quoting in all issues traded 

on the Exchange must have at least five 

ATPs. And, if an MM firm sponsors 

multiple individual MMs, the MM firm 

must pay for the requisite number of 

ATPs for each individual MM to submit 

quotes on the Exchange. For example, 

assume an MM firm has three 

individual MMs and that each MM 

needs to be able to submit quotes in all 

issues traded on the Exchange. In this 

example, the MM firm would have to 

pay for 15 ATPs (five for each 

individual MM). 


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