Document ID: SEC-2014-0664-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2014-04-23T04:00Z

[Federal Register Volume 79, Number 78 (Wednesday, April 23, 2014)]
[Notices]
[Pages 22746-22748]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-09204]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71960; File No. SR-NYSEArca-2014-38]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Revising the 
Schedule for Implementing the Exchange's Recently Approved Retail 
Liquidity Program Pursuant to NYSE Arca Equities Rule 7.44

April 17, 2014.
    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 April 4, 2014, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the Exchange. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to revise the schedule for implementing the 
Exchange's recently approved Retail Liquidity Program (``Program'') 
pursuant to NYSE Arca Equities Rule 7.44. The text of 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 Exchange is proposing to revise the schedule for implementing 
the Exchange's recently approved Retail Liquidity Program (``Program'') 
pursuant to NYSE Arca Equities Rule 7.44.
    When the Exchange filed to adopt the Program, it stated that it 
would announce via Trader Update the implementation date of the 
Program.\3\ The Exchange anticipates that it will be announcing via 
Trader Update that the implementation date for the Program will be in 
April 2014.
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    \3\ See Securities Exchange Act Release No. 70824 (Nov. 6, 
2013), 78 FR 68116 at 68120 (Nov. 13, 2013) (SR-NYSEArca-2013-107); 
see also Securities Exchange Act Release No. 71176 (Dec. 23, 2013), 
78 FR 79524 (Dec. 30, 2014) (SR-NYSEArca-2013-107) (Approval Order).
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    NYSE Arca Equities Rule 7.44(j) currently provides, that ``[a]n 
identifier shall be disseminated through the Consolidated Quotation 
System, the UTP Quote Data Feed, and the Exchange's proprietary data 
feed when RPI interest priced at least $0.001 better than the PBB or 
PBO for a particular security is available in Exchange systems (`Retail 
Liquidity Identifier').'' In connection with the planned implementation 
of the Program, the Exchange will be disseminating the Retail Liquidity 
Identifier through the Consolidated Quotation System and the UTP Quote 
Data Feed (the ``public data feeds''). However, because of the 
differing technology associating [sic] with disseminating data via the 
Exchange's proprietary data feed, the Exchange will not be able to 
disseminate the Retail Liquidity Identifier via the Exchange's 
proprietary data feed on the proposed initial implementation date of 
the Program. Accordingly, the Exchange proposes a separate 
implementation date for disseminating the Retail Liquidity Identifier 
via the Exchange's proprietary data feed and will announce that date 
via Trader Update.
    The Exchange is proposing this rule change simply to be clear that 
the implementation schedule regarding the dissemination of the Retail 
Liquidity Identifier pursuant to Rule 7.44(j) will be staggered. The 
Exchange proposes that the implementation date for disseminating the 
Retail Liquidity Indicator via the Exchange's proprietary

[[Page 22747]]

data feed will be within 120 days of the initial implementation date of 
the Program.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\4\ in general, and furthers the objectives of Section 6(b)(5),\5\ 
in particular, in that it is designed 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.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that announcing the implementation date of 
new trading systems such as the Program via Trader Update removes 
impediments to and perfects the mechanism of a free and open market 
because it provides notice of when a new program is being implemented. 
The Exchange further believes that providing for a later implementation 
date for disseminating the Retail Liquidity Identifier via the 
Exchange's proprietary data feeds is consistent with the Act because 
the Retail Liquidity Identifier will be disseminated via the public 
data feeds on the initial implementation date of the Program. 
Accordingly, the proposed staggered implementation date for Rule 
7.44(j) would protect investors and the public interest because 
information about Retail Liquidity Identifiers will be available on the 
initial date of Program implementation via the public data feeds.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange believes that 
the Program is designed to increase competition among execution venues, 
encourage additional liquidity, and offer the potential for price 
improvement to retail investors. The Exchange notes that 
notwithstanding the proposed staggered implementation schedule for how 
the Retail Liquidity Identifier will be disseminated, such information 
will be available via the public data feeds from the initial date of 
Program implementation and therefore market participants will have 
access to information regarding the Retail Liquidity Identifiers.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\ 
Because the 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 prior to 
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, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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. The 
Commission has waived that requirement for this proposed rule 
change.
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    A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\9\ the Commission 
may 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 proposal 
may become operative immediately upon filing. The Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest because, under the 
proposal, the Exchange would not delay dissemination of the Retail 
Liquidity Identifier over the public data feeds, and this waiver would 
allow the Exchange to implement the Program, which has already been 
subject to notice and comment, without further delay. Accordingly, the 
Commission hereby grants the Exchange's request and designates the 
proposal operative upon filing.\10\
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    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ For 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).
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    At any time within 60 days of the filing of this proposed rule 
change, the Commission summarily may temporarily suspend this 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.

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-2014-38 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-2014-38. 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 this filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments

[[Page 22748]]

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 publicly available. All 
submissions should refer to File Number SR-NYSEArca-2014-38 and should 
be submitted on or before May 14, 2014.

For the Commission, by the Division of Trading and Markets, pursuant 
to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-09204 Filed 4-22-14; 8:45 am]
BILLING CODE 8011-01-P