Document ID: SEC-2018-0614-0001
Agency: sec
Document Type: Notice
Title: Joint Industry Plans: Cboe BZX Exchange, Inc., Cboe BYX Exchange, Inc., CboeEDGA Exchange, Inc., Cboe EDGX Exchange, Inc., Chicago Stock Exchange, Inc., Financial Industry Regulatory Authority, Inc., Investors Exchange LLC, NASDAQ BX, Inc., NASDAQ PHLX LLC, The Nasdaq Stock Market LLC, NYSE National, Inc., New York Stock Exchange LLC, NYSE American LLC, and NYSE Arca, Inc.
Posted Date: 2018-04-18T04:00Z

[Federal Register Volume 83, Number 75 (Wednesday, April 18, 2018)]
[Notices]
[Pages 17205-17206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08080]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83044; File No. 4-631]

Joint Industry Plan; Order Approving the Seventeenth Amendment to 
the National Market System Plan To Address Extraordinary Market 
Volatility by Cboe BZX Exchange, Inc., Cboe BYX Exchange, Inc., Cboe 
EDGA Exchange, Inc., Cboe EDGX Exchange, Inc., Chicago Stock Exchange, 
Inc., Financial Industry Regulatory Authority, Inc., Investors Exchange 
LLC, NASDAQ BX, Inc., NASDAQ PHLX LLC, The Nasdaq Stock Market LLC, 
NYSE National, Inc., New York Stock Exchange LLC, NYSE American LLC, 
and NYSE Arca, Inc.

April 12, 2018.

I. Introduction

    On February 26, 2018, NYSE Group, Inc., on behalf of the other 
parties \1\ to the National Market System Plan to Address Extraordinary 
Market Volatility (the ``Plan''), filed with the Securities and 
Exchange Commission (``Commission'') pursuant to Section 11A of the 
Securities Exchange Act of 1934 (``Act'') \2\ and Rule 608 
thereunder,\3\ a proposal to amend the Plan.\4\ The proposal represents 
the seventeenth amendment to the Plan, and reflects proposed changes 
unanimously approved by the Participants (``Seventeenth Amendment''). 
The proposed Seventeenth Amendment was published for comment in the 
Federal Register on March 21, 2018.\5\ The Commission received no 
comment letters regarding the amendment. This order approves the 
Seventeenth Amendment to the Plan as proposed.
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    \1\ Cboe BZX Exchange, Inc., Cboe BYX Exchange, Inc., Cboe EDGA 
Exchange, Inc., Cboe EDGX Exchange, Inc., Chicago Stock Exchange, 
Inc., the Financial Industry Regulatory Authority, Inc. (``FINRA''), 
Investors Exchange LLC, NASDAQ BX, Inc., NASDAQ PHLX LLC, The NASDAQ 
Stock Market LLC (``Nasdaq''), New York Stock Exchange LLC 
(``NYSE''), NYSE Arca, Inc., NYSE National Inc., and NYSE American 
LLC (collectively, the ``Participants'').
    \2\ 15 U.S.C. 78k-1.
    \3\ 17 CFR 242.608.
    \4\ See Letter from Elizabeth King, General Counsel and 
Corporate Secretary, NYSE, to Brent Fields, Secretary, Commission, 
dated February 23, 2018. (``Transmittal Letter'').
    \5\ See Securities Exchange Act Release No. 82888 (March 15, 
2018), 83 FR 12432.
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II. Description of the Proposal

    In the Seventeenth Amendment, the Participants propose to extend 
the pilot period of the Plan from April 16, 2018 to April 15, 2019.

III. Discussion and Commission Findings

    The Commission finds that the Seventeenth Amendment is consistent 
with the requirements of the Act and the rules and regulations 
thereunder. Specifically, the Commission finds that the Seventeenth 
Amendment is consistent with Section 11A of the Act \6\ and Rule 608 
thereunder \7\ in that 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.
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    \6\ 15 U.S.C. 78k-1.
    \7\ 17 CFR 242.608.
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    The Participants propose to extend the pilot period for an 
additional year to April 15, 2019. As the Participants note, the 
twelfth and thirteenth amendments to the Plan \8\ as well as the 
associated amendments to the Primary Listing Exchanges' \9\ reopening 
procedures were implemented on November 20, 2017. The Participants 
state that an extension of the pilot period would provide additional 
time for the public, the Participants, and the Commission to assess the 
impact of modifications from the twelfth and thirteenth amendments

[[Page 17206]]

to the Plan on market operations as well as to consider other potential 
modifications to the Plan including how NMS Stocks are tiered under the 
Plan and the applicable percentage parameters associated with such 
tiers, the elimination of double-wide Price Bands at the open and close 
of trading, and recommendations made by the Equity Market Structure 
Advisory Committee with respect to Plan operations.\10\
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    \8\ See Securities Exchange Act Release Nos. 79845 (January 19, 
2017), 82 FR 8551 (January 26, 2017) (approving the twelfth 
amendment to the Plan), 80455 (April 13, 2017), 82 FR 18519 (April 
19, 2017) (approving the thirteenth amendment to the Plan).
    \9\ Unless otherwise specified, the terms used herein have the 
same meaning as set forth in the Plan.
    \10\ See U.S. Securities and Exchange Commission Equity Market 
Structure Advisory Committee, Recommendations for Rulemaking on 
Issues of Market Quality, dated November 29, 2016, available here: 
https://www.sec.gov/spotlight/emsac/emsac-recommendations-rulemaking-market-quality.pdf.
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    The Commission believes that a one-year extension of the Plan will 
allow the Participants to continue their examination and analysis of 
the Plan's operation. Accordingly, the Commission believes that it is 
appropriate in the public interest, for the protection of investors and 
the maintenance of a fair and orderly market to approve the amendment 
to extend the pilot period until April 15, 2019.
    For the reasons noted above, the Commission finds that the 
Seventeenth Amendment to the Plan is consistent with Section 11A of the 
Act \11\ and Rule 608 thereunder.\12\ The Commission reiterates its 
expectation that the Participants will continue to monitor the scope 
and operation of the Plan and study the data produced, and will propose 
any modifications to the Plan that may be necessary or appropriate.\13\
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    \11\ 15 U.S.C. 78k-1.
    \12\ 17 CFR 242.608.
    \13\ See Securities Exchange Act Release No. 67091 (May 31, 
2012), 77 FR 33498 (June 6, 2012).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act \14\ 
and Rule 608 thereunder,\15\ that the Seventeenth Amendment to the Plan 
(File No. 4-631) be, and it hereby is, approved.
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    \14\ 15 U.S.C. 78k-1.
    \15\ 17 CFR 242.608.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(29).
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Brent J. Fields,
Secretary.
[FR Doc. 2018-08080 Filed 4-17-18; 8:45 am]
BILLING CODE 8011-01-P