Federal Register / Vol. 82, No. 209 / Tuesday, October 31, 2017 / Notices 50475 

23 Id. 

24 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. 

4See Securities Exchange Act Release No. 79846 

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

(SR–NYSEArca–2016–130). 

5See also Nasdaq Stock Market LLC (‘‘Nasdaq’’) 

Rule 4703(d) (providing that ‘‘any portion of a 

Primary Pegging Order or Market Pegging Order that 

would execute . . . at a price more than $0.25 or 

5 percent worse that the NBBO . . . will be 

cancelled)’’ and Bats BZX Exchange, Inc. (‘‘Bats’’) 

Rule 27.2, Interpretations and Policies .01 and Bats 

Rule 11.13 (stating that Bats ‘‘will not execute any 

portion of a bid at a price more than the greater of 

5 cents or 0.5 percent higher than the lowest 

Protected Offer’’). 

6See Rule 7.46E(f)(2)(A), which provides that 

references to truncating to the MPV in Exchange 

rules instead mean rounding down to the applicable 

quoting MPV. 

7See Rule 7.31E(a)(2)(B) which provides that 

‘‘Limit Order Price Protection will be rounded 

down to the nearest price at the applicable MPV.’’ 

proposed rule change, as modified by 

Amendments No. 2 and No. 3, on an 

accelerated basis. 

VI. Conclusion 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–BatsBZX– 

2017–46), as modified by Amendments 

No. 2 and No. 3 be, and it hereby is, 

approved on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23583 Filed 10–30–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81943; File No. SR– 

NYSEAMER–2017–25] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend NYSE 

American Equities Rules 7.31E To 

Establish a Minimum Dollar Threshold 

Into the Price Protection Mechanisms 

October 25, 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 

13, 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 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 

NYSE American Equities Rules 7.31E 

(Orders and Modifiers) to establish a 

minimum dollar threshold into the price 

protection mechanisms provided for in 

the rule. 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 Equities Rules 7.31E 

(Orders and Modifiers) (‘‘Rule 7.31E’’) to 

establish a minimum dollar threshold 

into the price protection mechanisms 

provided for in the rule. 

Background 

Rule 7.31E(a)(1)(B) describes the price 

protection mechanism for Market 

Orders, i.e., Trading Collars. Currently, 

Rule 7.31E(a)(1)(B)(i) provides that the 

Trading Collar will be based on a price 

that is a specified percentage away from 

the consolidated last sale price. Rule 

7.31E(a)(1)(B)(i) further provides that 

the upper (lower) boundary of the 

Trading Collar is the consolidated last 

sale price increased (decreased) by the 

specified percentage truncated to the 

minimum price variation (‘‘MPV’’) for 

the security. 

Additionally, Rule 7.31E(a)(2)(B) 

(‘‘Limit Order Price Protection’’) 

provides the price protection 

mechanism for Limit Orders and that a 

Limit Order to buy (sell) will be rejected 

if it is priced at or above (below) a 

specified percentage away from the 

National Best Offer (National Best Bid) 

(‘‘NBO’’ and ‘‘NBB’’, respectively). 

Proposed Changes 

• Trading Collar: The Exchange 

proposes to amend Rule 7.31E(a)(1)(B)(i) 

to introduce a minimum dollar 

threshold, of $0.15, into the calculation 

of the Trading Collar. As such, the 

proposed rule would provide that the 

Trading Collar would be based on a 

price that is the greater of $0.15 or a 

specified percentage away from the 

consolidated last sale price. 

Accordingly, the upper (lower) 

boundary of the Trading Collar would 

be the consolidated last sale price 

increased (decreased), by the greater of 

$0.15 or the specified percentage. 

• Limit Order Price Protection: The 

Exchange proposes to amend Rule 

7.31E(a)(2)(B) to introduce the same 

proposed minimum dollar threshold 

that is specified above for the Trading 

Collar, of $0.15, into the Limit Order 

Price Protection calculation. 

Accordingly, the proposed rule would 

provide that a Limit Order to buy (sell) 

would be rejected if it was priced at or 

above (below) the greater of $0.15 or a 

specified percentage away from the 

NBO (NBB). The Exchange believes that 

the introduction of a minimum dollar 

threshold enhances the Limit Order 

Price Protection and encourages price 

continuity specifically in lower priced 

illiquid securities. 

The Exchange believes that adding a 

minimum dollar threshold to the 

Trading Collar and Limit Order Price 

Protection calculations would enhance 

the respective price protection 

mechanisms for securities with a 

consolidated last sale price below $1.50 

because using the current 10 percent 

multiplier for such securities would 

result in too narrow of a price protection 

mechanism. This proposed rule change 

is consistent with how other exchanges 

specify static price collar thresholds for 

lower-price securities. For example, 

NYSE Arca, Inc. (‘‘NYSE Arca’’) Rule 

7.35–E(e)(7) 4 provides that for securities 

with a consolidated last sale price under 

$3.00, the price collar threshold for 

auction collars would be a static $0.15 

instead of 5 percent.5

In addition, the Exchange proposes to 

replace the word ‘‘truncated’’ with the 

words ‘‘rounded down’’ 6 in Rule 

7.31E(a)(1)(B)(i). The Exchange that 

believes that conforming the 

terminology used within Rule 7.31E 7

and elsewhere in Exchange’s rules 

promotes clarity and transparency. 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
50476 Federal Register / Vol. 82, No. 209 / Tuesday, October 31, 2017 / Notices 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10See supra note 4. 

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

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

13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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. 14 17 CFR 200.30–3(a)(12). 

Implementation 

The Exchange anticipates 

implementing the proposed changes in 

the fourth quarter of 2017 and will 

announce the timing of such changes by 

Trader Update. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Exchange Act,8 in 

general, and with Section 6(b)(5),9 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 the proposed 

changes would 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, 

because they would enhance the 

Exchange’s price protection 

mechanisms, which protect from 

aberrant prices and reduce the 

likelihood of halts, thus improving 

continuous trading and price discovery. 

Further, the proposal to enhance the 

price protection mechanisms by adding 

a minimum dollar threshold would 

assist with the maintenance of fair and 

orderly markets because such 

mechanisms protect investors from 

potentially receiving executions away 

from the prevailing market prices at any 

given time. The proposed changes to 

introduce the $0.15 minimum dollar 

threshold is not novel and is similar in 

nature to that of other national 

securities exchanges which incorporate 

dollar thresholds into the calculation of 

the respective price protection 

mechanisms.10

For similar reasons, the Exchange also 

believes that the proposed rule change 

is consistent with Section 6(b)(5) of the 

Act,11 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, 

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. 

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 

proposed rule change is not intended to 

address competitive issues but rather 

provide for a more effective price 

protection mechanism, specifically for 

lower-priced securities. 

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)(iii) of the Act 12 and 

subparagraph (f)(6) of Rule 19b–4 

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: (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– 

NYSEAMER–2017–25 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–NYSEAMER–2017–25. 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. 

Persons submitting comments are 

cautioned that we do not redact or 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– 

NYSEAMER–2017–25 and should be 

submitted on or before November 21, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23581 Filed 10–30–17; 8:45 am] 

BILLING CODE 8011–01–P 


asabaliauskas on DSKBBXCHB2PROD with NOTICES