49050 Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 / Notices 

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. The 

Exchange has satisfied this requirement. 

35 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. 

4Self-Trade Prevention is only applicable to 

electronic trading on the Exchange. 

5See Securities Exchange Act Release No. 66386 

(February 13, 2012), 77 FR 9721 (February 17, 2012) 

(SR–NYSEArca–2012–08). 

6Self-Trade Prevention currently is applicable to 

the following order types used by Market Makers: 

‘‘PNP Orders,’’ ‘‘PNP–Blind Orders,’’ and ‘‘PNP– 

Light Orders.’’ PNP Orders, PNP–Blind Orders, and 

PNP–Light Orders are defined in NYSE Arca Rule 

6.62–O, and each is a type of non-routable Limit 

Order that is only executed on the Exchange. The 

Exchange notes that Market Makers primarily use 

these order types, as opposed to other order types 

offered by the Exchange, because they are similar 

to quotes (i.e., they are non-routable Limit Orders). 

See Regulatory Information Bulletin RBO–12–04 at 

https://www.nyse.com/publicdocs/nyse/markets/ 

arca-options/rule-interpretations/2012/ 

NYSEArca%20RBO-12-04.pdf. 

7The Exchange uses a Market Maker’s TPID to 

monitor for self-trades. TPIDs are assigned to 

Market Makers, as well as other OTP Firms and 

OTP Holders, to identify them in the Exchange’s 

systems. Market Makers on the Exchange are not 

able to submit orders on an agency basis. Thus, a 

Market Maker within a firm that conducts both an 

agency and market making business has a unique 

TPID that could only be used for that Market 

Maker’s quotes and orders. 

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–2017–120 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–NYSEArca–2017–120. 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–2017–120 and should be 

submitted on or before November 13, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.35

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–22885 Filed 10–20–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81888; File No. SR– 

NYSEArca–2017–118] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 6.76A–O 

To Adopt Additional Self-Trade 

Prevention Modifiers 

October 17, 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 

3, 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

Rule 6.76A–O (Order Execution—OX). 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the filing is to amend 

Commentary .01 to NYSE Arca Rule 

6.76A–O (Order Execution—OX) 

regarding the Exchange’s Self-Trade 

Prevention (‘‘STP’’) functionality.4 The 

Exchange currently offers a basic form 

of self-trade prevention 5 pursuant to 

which the Exchange cancels any resting 

Market Maker quote(s) and order(s) 6 to 

buy (sell) that are priced equal to or 

higher (lower) than an incoming Market 

Maker quote, order or both to sell (buy) 

entered under the same trading permit 

identification (‘‘TPID’’).7

The Exchange proposes to expand the 

self-trade functionality by adopting 

three STP modifiers. The proposed STP 

modifiers are designed to prevent 

incoming Market Maker order(s) or 

quote(s) designated with an STP 


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8Market Markers on the Exchange would not 

have the ability to deactivate Self-Trade Prevention 

or change any settings related to it. 

9See, e.g., NYSE Arca Rule 6.64–O. 

10See supra, note 5. The Exchange also 

previously noted that it would be difficult to 

Continued 

modifier from executing against an 

opposite side resting Market Maker 

order(s) or quote(s) also designated with 

an STP modifier and entered from the 

same TPID. As proposed, the STP 

modifier on the incoming Market Maker 

order or quote would control the 

interaction between two orders and/or 

quotes marked with STP modifiers. The 

proposed STP modifiers are intended to 

prevent interaction between the same 

TPIDs. STP modifiers must be present 

on both the buy and the sell interest in 

order to prevent an interaction from 

occurring and to effect a cancel 

instruction. 

The Exchange believes the proposed 

functionality will allow OTP Holders to 

better manage order flow and prevent 

undesirable or unexpected executions 

with themselves. Given enhancements 

in technology in today’s trading 

environment, OTP Holders often have 

multiple connections into the Exchange. 

Orders, for example, routed by the same 

OTP Holder via different connections 

may, in certain circumstances, trade 

against each other. The proposed STP 

modifiers would provide OTP Holders 

the opportunity to prevent these 

potentially undesirable interactions 

occurring under the same TPID on both 

the buy and sell side of an execution. 

The three new STP modifiers are 

discussed more thoroughly below. 

STP Cancel Newest (‘‘STPN’’) 

An incoming order or quote marked 

with the STPN modifier will not execute 

against opposite side resting interest 

marked with any STP modifier from the 

same TPID. The incoming order or quote 

marked with the STPN modifier will be 

cancelled back to the originating TPID. 

The resting order(s) or quote(s) will 

remain on the Consolidated Book. 

STPN Example 1: Market Maker 1 is 

configured for one of the three proposed 

STP modifiers and submits a quote to 

sell 100 contracts @ $5.50. A Customer 

order to sell 5 contracts @ $5.49 is 

resting on the Consolidated Book. 

Market Maker 1 enters an order to buy 

100 contracts @ $5.60 with an STPN 

modifier. 

STPN Result 1: Market Maker 1 buys 

5 contracts @ $5.49 because Market 

Maker 1 has no interest at $5.49. The 

remaining quantity of Market Maker 1’s 

order will be cancelled due to Market 

Maker 1’s quote at $5.50. 

STPN Example 2: Market Maker 1 is 

configured for one of the three proposed 

STP modifiers and submits a quote to 

sell 100 contracts @ $5.50. A Customer 

order to sell 5 contracts @ $5.50 is 

resting on the Consolidated Book. 

Market Maker 1 enters an order to buy 

200 contracts @ $5.60 with an STPN 

modifier. 

STPN Result 2: Market Maker 1’s 

entire order to buy 200 contracts is 

cancelled due to Market Maker 1’s quote 

at $5.50. No execution with any other 

interest at $5.50 occurs. 

STP Cancel Oldest (‘‘STPO’’) 

An incoming order or quote marked 

with the STPO modifier will not execute 

against opposite side resting interest 

market with any STP modifier from the 

same TPID. The resting order(s) or 

quote(s) marked with the STP modifier 

will be cancelled back to the originating 

TPID. The incoming order or quote 

marked with the STPO modifier will 

remain on the Consolidated Book. 

STPO Example 1: Market Maker 1 is 

configured for one of the three proposed 

STP modifiers and submits a quote to 

sell 100 contracts @ $5.50. Market 

Maker 1 enters an order to buy 100 

contracts @ $5.50 with an STPO 

modifier. 

STPO Result 1: Market Maker 1’s buy 

order cannot trade with Market Maker 

1’s quote because the buy order is 

marked for STP and the quotes are 

configured for STP. Market Maker 1’s 

quote to sell is cancelled and removed 

from the Consolidated Book. Market 

Maker 1’s buy order will post to the 

Consolidated Book at $5.50. 

STPO Example 2: Market Maker 1 has 

a resting order on the Consolidated 

Book to sell 10 contracts @ $5.51 with 

an STPN modifier. Market Maker 1 is 

configured for one of the three proposed 

STP modifiers and submits a quote to 

sell 100 contracts @ $5.50. Customer 1 

has an order to sell 5 contracts @ $5.50 

resting on the Consolidated Book. 

Customer 2 has an order to sell 10 

contracts @ $5.51 resting on the 

Consolidated Book. Market Maker 1 

enters an order to buy 100 contracts @ 

$5.51 with an STPO modifier. 

STPO Result 2: Market Maker 1’s buy 

order cannot trade with Market Maker 

1’s quote because the buy order is 

marked for STP and the quotes are 

configured for STP. Market Maker 1’s 

quote to sell 100 contracts @ $5.50 is 

cancelled and removed from the 

Consolidated Book. Market Maker 1’s 

buy order will trade 5 contracts with 

Customer 1 at $5.50, leaving 95 

contracts. The remaining 95 contracts 

will now attempt to trade at the $5.51 

price level. Market Maker 1’s buy order, 

however, cannot trade with Market 

Maker 1’s resting sell order and the sell 

order is therefore cancelled and 

removed from the Consolidated Book. 

Market Maker 1’s buy order will then 

trade 10 contracts with the Customer 2 

@ $5.51. The remaining 85 contracts of 

Market Maker 1’s buy order will post to 

the Consolidated Book at $5.51. 

STP Cancel Both (‘‘STPC’’) 

An incoming order or quote marked 

with the STPC modifier will not execute 

against opposite side resting interest 

marked with any STP modifier from the 

same TPID. The entire size of both 

orders and/or quotes will be cancelled 

back to the originating TPID. 

STPC Example 1: Market Maker 1 is 

configured for one of the three proposed 

STP modifiers and submits a quote to 

sell 100 contracts @ $5.50. Market 

Maker 1 enters an order to buy 100 

contracts @ $5.50 with an STPC 

modifier. 

STPC Result 1: No execution occurs. 

Both Market Maker 1’s buy order and 

Market Maker 1’s quote to sell are 

cancelled and removed from the 

Consolidated Book. 

STPC Example 2: Market Maker 1 has 

a resting order on the Consolidated 

Book to sell 10 contracts @ $5.51 with 

an STPN modifier. Market Maker 1 is 

configured for one of the three proposed 

STP modifiers and submits a quote to 

sell 100 contracts @ $5.50. Market 

Maker 1 enters an additional order to 

buy 100 contracts @ $5.51 with an STPC 

modifier. 

STPC Result 2: Market Maker 1’s buy 

order cannot trade with Market Maker 

1’s quote to sell 100 contracts @ $5.50 

because the buy order is marked for STP 

and the quotes are configured for STP. 

Both the Market Maker 1 buy order and 

the Market Maker 1 quote to sell are 

cancelled and removed from the 

Consolidated Book. Market Maker 1’s 

resting sell order to sell 10 contracts @ 

$5.51 is not impacted as the incoming 

Market Maker 1 buy order never 

attempts to trade at the $5.51 price level 

and therefore, Market Maker 1’s resting 

sell order remains on the Consolidated 

Book. 

Additional Discussion 

As with the current functionality, the 

enhanced STP functionality would be in 

effect throughout the trading day for all 

Market Makers on the Exchange,8 but 

not during Trading Auctions.9 In this 

regard, the Exchange believes, as it 

previously noted when STP was first 

adopted, it is highly unlikely that a 

Market Maker would trade against its 

own resting interest during a Trading 

Auction.10 The enhanced STP 


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implement STP from a technological and 

operational perspective because it would require 

the Exchange to cancel resting, executable Market 

Maker trading interest as it is calculating the price 

at which to conduct the Trading Auction. 

11See supra, note 5. 

12A QCC Order is comprised of an originating 

order to buy or sell at least 1,000 contracts, or 

10,000 mini-options contracts, that is identified as 

being part of a qualified contingent trade, as that 

term is defined in Commentary .02 to Rule 6.62– 

O, coupled with a contra-side order or orders 

totaling an equal number of contracts. See NYSE 

Arca Rule 6.62–O(bb). 

13See Bats Rule 21.1(g). 

14See NYSE Arca Rule 7.31–E(i)(2). 

15Bats currently offers MTP Decrement and 

Cancel (‘‘MDC’’) where an incoming order with the 

MDC modifier is prevented from executing against 

opposite side resting interest marked with any MTP 

modifier originating from the same user on that 

exchange. If both orders are equal in size, both 

orders are canceled. For those not equivalent in 

size, the smaller order is canceled and the larger 

order is decremented by the size of the smaller 

order with the balance remaining on the order book. 

Bats also currently offers MTP Cancel Smallest 

(‘‘MCS’’) where an incoming order with the MCS 

modifier is prevented from executing against 

opposite side resting interest marked with any MTP 

modifier originating from the same user. If both 

orders are equal in size, both orders are cancelled. 

For those not equivalent in size, the smaller order 

is canceled and the larger order remains on the 

book. 

16The NYSE Arca equities market also currently 

offers STP Decrement and Cancel (‘‘STPD’’) that 

provides similar self-trade prevention functionality 

as the Bats offering. At this time, the Exchange is 

not proposing to adopt the STPD modifier for the 

options market. 

17See NOM, Chapter VI, Section 10(6). The NOM 

anti-internalization (‘‘AIQ’’) functionality works 

similar to the proposed STPO modifier in that 

quotes and orders entered by NOM market makers 

using the same market participant identifier are 

automatically prevented from interacting with each 

other. Rather than executing quotes and orders from 

the same market participant identifier, the AIQ 

functionality cancels the oldest of the quotes and 

orders. 

18 15 U.S.C. 78f(b). 

19 15 U.S.C. 78f(b)(5). 

20See supra, notes 13, 14 and 17. 

functionality would also not apply to 

individual legs of Complex Orders. As 

previously noted by the Exchange, 

senders of Complex Orders, including 

Market Makers, view them as discrete 

orders with a desire to execute all legs 

and to prevent the execution of one leg 

would be contrary to the investment 

purpose of the Complex Order.11

As proposed, the enhanced STP 

functionality would not be applicable to 

Qualified Contingent Cross (‘‘QCC’’) 

Orders.12 QCC Orders are paired orders 

intended to serve a particular 

investment purpose that are contingent 

on the options leg of a QCC Order being 

executed. Because the non-execution of 

the options leg is contrary to the 

investment purpose of a QCC Order, the 

Exchange has determined not to apply 

STP in a manner that would prevent the 

execution of a QCC Order. The 

Exchange notes that the enhanced STP 

functionality proposed herein would 

not relieve or modify a Market Maker’s 

obligations under the Exchange’s Rules, 

such as the Market Maker’s quoting 

obligations, or any other rules and 

regulations to which the Market Maker 

is subject. 

The enhanced STP functionality 

proposed herein is similar to 

functionality currently offered by the 

Bats Exchange, Inc. (‘‘Bats’’).13 In 

particular, Bats offers Match Trade 

Prevention (‘‘MTP’’), a self-trade 

prevention functionality where any 

incoming order designated with an MTP 

modifier is prevented from executing 

against a resting opposite side order also 

designated with an MTP modifier and 

originating from the same market 

participant identifier. Additionally, the 

Exchange’s equities market provides for 

self-trade prevention order modifiers 

that prevent orders so designated from 

executing against resting opposite side 

orders entered under the same equity 

trading permit identification that are 

also designated with the modifier.14

With two exceptions, the Exchange is 

proposing to adopt all the STP modifiers 

that are currently available on Bats.15

And with one exception, the Exchange 

is proposing to adopt all the STP 

modifiers that are currently available on 

the Exchange’s equities market.16 The 

Exchange notes that while the Bats rule 

and the NYSE Arca equities rule apply 

to orders, and not to orders and quotes, 

the Exchange’s proposal is otherwise 

similar to functionality offered on Bats 

and on the Exchange’s equities market. 

The NASDAQ Options Market 

(‘‘NOM’’) currently offers functionality 

that applies to orders and quotes, but in 

a limited manner.17 Notwithstanding 

the fact that the STPN and STPC 

modifiers, as proposed for orders and 

quotes, are not currently available on an 

options market, the Exchange does not 

believe the proposed functionality is 

novel and does not raise any new 

regulatory concerns. Further, the STP 

functionality currently available on the 

Exchange applies to both orders and 

quotes, and Market Makers are therefore 

generally familiar with the application 

of self-trade prevention to orders and 

quotes. The Exchange further believes 

the proposed adoption of the STPN and 

STPC modifiers would add further 

specificity to the rule while aligning the 

proposed functionality with Market 

Makers’ expectation. Self-trade 

prevention is a risk mechanism tool to 

prevent inadvertent trading of both 

orders and quotes that has been widely 

used for many years in both the equities 

and options markets. The enhanced 

functionality proposed herein would 

provide Market Makers with a method 

of managing their trading interest that is 

similar to functionality currently 

available on other markets. 

The Exchange also proposes at this 

time to make a procedural change for 

announcements regarding the STP 

functionality. Presently the Exchange 

issues Regulatory Information Bulletins 

when making announcements related to 

STP functionality. Going forward, the 

Exchange proposes to issue a Trader 

Update in lieu of a Regulatory 

Information Bulletin. Regulatory 

Information Bulletins generally contain 

information regarding legal and 

regulatory matters while a Trader 

Update deals with issues such as 

trading, systems changes and real-time 

market announcements. The Exchange 

believes that it is more appropriate to 

make announcements regarding the STP 

functionality via Trader Update. Trader 

Updates, like Regulatory Information 

Bulletins, are electronically distributed 

to OTP Holders and posted on the 

Exchange’s Web site. Accordingly, the 

Exchange proposes to amend 

Commentary .01 to current Rule 

6.76A–O by replacing reference to 

‘‘Regulatory Information Bulletin’’ with 

‘‘Trader Update.’’ 

Implementation 

Because of the technology changes 

associated with this proposed rule 

change, the Exchange will announce by 

Trader Update the implementation date 

of the proposed rule change, which will 

be no later than 60 days from the 

effective date of this rule filing. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 18 of the 

Securities Exchange Act of 1934 (the 

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

objectives of Section 6(b)(5),19 in 

particular, in that 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, and to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system. 

As discussed above, the Exchange 

believes that the proposed rule change 

is designed to promote just and 

equitable principles of trade because it 

would provide Market Makers with a 

functionality that is similar to 

functionality currently available on 

other markets.20 Additionally, the 

Exchange believes that the proposed 


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21See NYSE Arca Rule 6.77A–O. 

22 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. 

23 17 CFR 240.19b–4(f)(6). 

24 17 CFR 240.19b–4(f)(6)(iii). 

25For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

rule change is designed to prevent 

fraudulent and manipulative acts and 

practices, to remove impediments to, 

and perfect the mechanisms of, a free 

and open market and a national market 

system and, in general, to protect 

investors and the public interest, 

because it would allow Market Makers 

to better manage their trading interest 

and provide a means to prevent 

executions against their own trading 

interest. 

The Exchange notes that Market 

Makers have expressed an interest in the 

proposed functionality as it would 

prevent them from inadvertently trading 

with their own interest. In such a 

situation, OTP Holders currently ask the 

Exchange to nullify such inadvertent 

trades, which they are permitted to do 

under the Exchange’s rules because the 

OTP Holder is on both sides of the 

trade.21 While the proposed STP 

functionality would prevent inadvertent 

self-trading, the Exchange notes that the 

functionality would also prevent 

intentional self-trading. In this regard, 

the proposed rule change provides a 

means to prevent manipulative conduct 

such as ‘‘wash trading.’’ 

Finally, the replacement of reference 

to Regulatory Information Bulletin with 

Trader Update, would foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities as Trader 

Updates deal with issues such as 

trading, systems changes and real-time 

market announcements and are 

electronically distributed to OTP 

Holders and posted on the Exchange’s 

Web site. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is designed to 

enhance STP functionality provided to 

Exchange Market Makers, and will 

benefit members that wish to protect 

their orders and quotes against trading 

with other orders and quotes that 

originate from the same TPID. The new 

functionality, which is similar to 

functionality currently offered on other 

markets, is also voluntary, and the 

Exchange therefore does not believe that 

providing an enhanced offering to 

prevent against self-trading will have 

any significant impact on competition. 

The Exchange believes that the 

proposed rule change is evidence of the 

competitive environment in the options 

industry where exchanges must 

continually improve their offerings to 

maintain competitive standing. 

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 and Rule 19b– 

4(f)(6) thereunder.22

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 23 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 24

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay so that the Exchange can 

implement the enhanced functionality 

without delay. The Exchange believes 

that waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because it would enable the Exchange to 

implement the change when the 

technology supporting the change is 

available, which the Exchange 

anticipates will be no later than 60 days 

from the effective date of this rule filing. 

The Commission believes that waiving 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest because the new 

functionality is designed to provide 

market makers with a tool to prevent 

undesirable executions against 

themselves and therefore may assist 

market makers in managing their order 

flow. Therefore, the Commission hereby 

waives the operative delay and 

designates the proposed rule change 

operative upon filing.25

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– 

NYSEArca–2017–118 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–NYSEArca–2017–118. 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 


ethrower on DSK3G9T082PROD with NOTICES
49054 Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 / Notices 

26 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. 

4 15 U.S.C. 78s(b)(1). 

5 17 CRF 240.19b–4. 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4. 

8See Securities Exchange Act Release No. 

Securities Exchange Act Release No. 80283 (March 

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

NYSEMKT–2017–14). 

9See Securities Exchange Act Release No. 79902 

(January 30, 2017), 82 FR 9258 (February 3, 2017) 

(SR–NSX–2016–16). 

10See NYSE Trader Update dated January 18, 

2017 available at: https://www.nyse.com/ 

publicdocs/nyse/markets/nyse/NYSE_Group_NSX_

Member_Notice.pdf. 

11 15 U.S.C. 78f. 

12 15 U.S.C. 78f(b)(5). 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

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–2017–118, and should be 

submitted on or before November 13, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–22883 Filed 10–20–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81889; File No. SR–IEX– 

2017–33] 

Self-Regulatory Organizations: 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Reflect 

Name Changes of NYSE MKT to NYSE 

American LLC and the National Stock 

Exchange to NYSE National, Inc. 

October 17, 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, the Investors Exchange LLC 

(‘‘IEX’’ or the ‘‘Exchange’’) 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 

Pursuant to the provisions of Section 

19(b)(1) under the Securities Exchange 

Act of 1934 (‘‘Act’’),4 and Rule 19b–4 

thereunder,5 Investors Exchange LLC 

(‘‘IEX’’ or ‘‘Exchange’’) is filing with the 

Commission a proposed rule change to 

amend Rules 2.220(a)(7) and 11.410(a) 

to reflect the name change NYSE MKT 

to NYSE American LLC (‘‘NYSE 

American’’) and the National Stock 

Exchange to NYSE National, Inc. 

(‘‘NYSE National’’). The Exchange has 

designated this rule change as ‘‘noncontroversial’’ under Section 19(b)(3)(A) 

of the Act 6 and provided the 

Commission with the notice required by 

Rule 19b–4(f)(6) thereunder.7 The text of 

the proposed rule change is available at 

the Exchange’s Web site at 

www.iextrading.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 the 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Rules 2.220(a)(7) and 11.410(a) to reflect 

reflect [sic] the name change NYSE 

MKT to NYSE American 8 and the 

National Stock Exchange to NYSE 

National.9 IEX Rule 2.220(a)(7) lists the 

away trading centers that IEX Services 

LLC (‘‘IEX Services’’) routes to as 

outbound router for the Exchange. Rule 

11.410(a) specifies the market data 

sources for each away trading center 

that the Exchange uses for necessary 

price reference points. The proposed 

changes are nonsubstantive and do not 

alter the manner in which orders are 

handled or routed by the Exchange. The 

Exchange notes that NYSE National 

ceased operations on February 1, 2017 

and has not yet re-launched 

operations.10

2. Statutory Basis 

IEX believes that the proposed rule 

change is consistent with the provisions 

of Section 6(b) 11 of the Act in general, 

and furthers the objectives of Section 

6(b)(5) of the Act 12 in particular, in that 

it is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, 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 it is consistent with 

the Act to update the referenced rules to 

reflect the name changes of NYSE 

American and NYSE National so that 

IEX’s rules accurately specify away 

markets referenced, as well as to avoid 

any potential confusion on the part of 

market participants. As noted in the 

Purpose section, the proposed changes 

are nonsubstantive and do not alter the 

manner in which orders are handled or 

routed by the Exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

IEX 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 

Exchange believes that the proposed 

correction does not impact competition 

in any respect since it is designed to 

simply update away market names. 

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 

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 if 

consistent with the protection of 

investors and the public interest, 

provided that the self-regulatory 


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