Document ID: SEC-2017-1513-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange, LLC
Posted Date: 2017-09-13T04:00Z

[Federal Register Volume 82, Number 176 (Wednesday, September 13, 2017)]
[Notices]
[Pages 43057-43058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19377]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81548; File No. SR-NYSE-2017-44]

Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Change To 
Amend Its Rules To Make Technical and Conforming Updates, in Connection 
With the Merger of NYSE Arca Equities, Inc. With and Into the 
Exchange's Affiliate NYSE Arca, Inc. and the Name Change of NYSE 
National, Inc.

September 7, 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 August 25, 2017, New York Stock Exchange LLC (``NYSE'' 
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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 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 amend its rules to make technical and 
conforming updates in connection with (a) the merger of NYSE Arca 
Equities, Inc. with and into the Exchange's affiliate NYSE Arca, Inc. 
and (b) the name change of NYSE National, Inc. 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 Exchange proposes to amend its rules to make technical and 
conforming updates in connection with (a) the merger of NYSE Arca 
Equities, Inc. (``NYSE Arca Equities'') with and into the Exchange's 
affiliate NYSE Arca, Inc. (``NYSE Arca''), and (b) the name change of 
NYSE National, Inc.
Background
    On June 2, 2017, the Exchange's affiliate, NYSE Arca, filed rule 
changes with the Commission in connection with the proposed merger of 
NYSE Arca's wholly-owned subsidiary, NYSE Arca Equities, with and into 
NYSE Arca (the ``Merger'').\4\ The proposed changes were approved by 
the Commission on August 17, 2017, and the Merger occurred on that same 
date.\5\
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    \4\ See Securities Exchange Act Release No. 80929 (June 14, 
2017), 82 FR 28157 (June 20, 2017) (SR-NYSEArca-2017-40).
    \5\ See Securities Exchange Act Release No. 81419 (August 17, 
2017), 82 FR 40044 (August 23, 2017) (SR-NYSEArca-2017-40).
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    Prior to the Merger, NYSE Arca had two rulebooks: the NYSE Arca 
rules for its options market and the NYSE Arca Equities rules for its 
equities market. At the Merger, the NYSE Arca Equities rules were 
integrated into the NYSE Arca rules, so that there is now one NYSE Arca 
rulebook.\6\ As part of such integration, some of the NYSE Arca rules 
were renumbered. Accordingly, the Exchange proposes to amend certain of 
its rules, as detailed below, to make technical and conforming updates 
to its rules that cross reference the NYSE Arca rules and delete 
references to the NYSE Arca Equities.
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    \6\ See id. at 40044.
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    In January 2017, the Exchange's parent NYSE Group, Inc. acquired 
all the capital stock of National Stock Exchange, Inc., which was 
renamed ``NYSE National, Inc.'' \7\ The Exchange proposes to update a 
reference to National Stock Exchange, Inc. found in the Exchange's 
rules to reflect the new name of such entity, NYSE National, Inc.
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    \7\ See Securities Exchange Act Release No. 79902 (January 30, 
2017), 82 FR 9258 (February 3, 2017) (SR-NSX-2016-16).
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Proposed Rule Changes
     In Exchange Rule 5.2(j) (Exchange Traded Products), the 
Exchange proposes to update the cross references to NYSE Arca Equities 
Rule 5.2(j)(1) by deleting the word ``Equities'' from the term ``NYSE 
Arca Equities Rule'' and appending an ``-E'' to the end of the rule 
number. The new cross reference would be to ``NYSE Arca Rule 5.2-
E(j)(1).'' Similarly, the Exchange proposes to update the cross 
references to subsections of NYSE Arca Options Rule 5.13 and to NYSE 
Arca Options Rule 5.3 by deleting the word ``Options'' form the term 
``NYSE Arca Options Rule'' and appending an ``-O'' to the end of the 
rules number. The new cross references would be to ``NYSE Arca Rule 
5.13-O'' and ``NYSE Arca Rule 5.3-O,'' respectively, followed by any 
relevant subsection of the rule.
     In Exchange Rules 8.4 (Account Approval), 8.5 
(Suitability), 8.6 (Discretionary Accounts), 8.7 (Supervision of 
Accounts), 8.8 (Customer Complaints), the Exchange proposes to update 
the references to NYSE Arca Equities Rules 9.18 by deleting the word 
``Equities'' from the term ``NYSE Arca Equities Rules'' and appending 
an ``-E'' to the end of the rule number. The new cross references would 
be to ``NYSE Arca Rule 9.18-E,'' followed by any relevant subsection of 
the rule.
     In Exchange Rule 8.9 (Prior Approval of Certain 
Communications to Customers) the Exchange proposes to update the cross 
references to NYSE Arca Equities Rule 9.28 by deleting the

[[Page 43058]]

word ``Equities'' from the term ``NYSE Arca Equities Rule'' and 
appending an ``-E'' to the end of the rule number. The new cross 
reference would be to ``NYSE Arca Rule 9.28-E.''
     Finally, in Exchange Rule 19, Supplementary Material .01 
(Locking or Crossing Protected Quotations in NMS Stocks), the Exchange 
proposes to replace ``NYSE Arca Equities, Inc.'' with ``NYSE Arca, 
Inc.'' and replace ``National Stock Exchange, Inc.'' with ``NYSE 
National, Inc.''.
    None of the foregoing changes are substantive.

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)(1) \9\ in particular, in that it enables the Exchange to be so 
organized as to have the capacity to be able to carry out the purposes 
of the Exchange Act and to comply, and to enforce compliance by its 
exchange members and persons associated with its exchange members, with 
the provisions of the Exchange Act, the rules and regulations 
thereunder, and the rules of the Exchange.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(1).
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    The proposed rule change is a non-substantive change and does not 
impact the governance or ownership of the Exchange. The Exchange 
believes that the proposed rule change would enable the Exchange to 
continue to be so organized as to have the capacity to carry out the 
purposes of the Exchange Act and comply and enforce compliance with the 
provisions of the Exchange Act by its members and persons associated 
with its members, because ensuring that the rules accurately cross 
reference the rules of NYSE Arca and the name of NYSE National, Inc. 
would contribute to the orderly operation of the Exchange by adding 
clarity and transparency to its rules.
    For similar reasons, the Exchange also believes that the proposed 
rule change is consistent with section 6(b)(5) of the Act,\10\ 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.
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    \10\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change would remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system by ensuring that market participants can more 
easily navigate, understand and comply with its rules. The Exchange 
believes that, by ensuring that such rules accurately cross-reference 
the rules of NYSE Arca and the name of NYSE National, Inc., the 
proposed rule change would reduce potential investor or market 
participant confusion.

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 is concerned 
solely with updating the rules to reflect its affiliate's merger and 
integrated rulebook.

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 proposed rule change has become effective pursuant to section 
19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(3) \12\ thereunder.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(3).
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    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 under 
section 19(b)(2)(B) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \13\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSE-2017-44 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-NYSE-2017-44. 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-NYSE-2017-44 and should be 
submitted on or before October 4, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19377 Filed 9-12-17; 8:45 am]
 BILLING CODE 8011-01-P