Document ID: SEC-2015-1387-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE MKT LLC
Posted Date: 2015-08-19T04:00Z

[Federal Register Volume 80, Number 160 (Wednesday, August 19, 2015)]
[Notices]
[Pages 50350-50354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20415]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75696; File No. SR-NYSEMKT-2015-58]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Amending Rule 79A--
Equities To Delete Supplementary Material .20 Requiring Prior Floor 
Official Approval Before a Designated Market Maker Can Initiate Certain 
Trades More Than One or Two Dollars Away From the Last Sale

August 13, 2015.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on July 29, 2015, NYSE MKT LLC (``Exchange'' or ``NYSE MKT'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the self-regulatory organization. The 
Commission is publishing this notice to solicit

[[Page 50351]]

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 Rule 79A--Equities to delete 
Supplementary Material .20 requiring prior Floor Official approval 
before a Designated Market Maker (``DMM'') can initiate certain trades 
more than one or two dollars away from the last sale. 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 79A--Equities (``Rule 79A'') to 
delete Supplementary Material .20, which requires prior Floor Official 
approval for certain DMM dealer trades more than one or two dollars 
away from the last sale, and to make conforming amendments to Rules 
48--Equities (``Rule 48''), 80C--Equities (``Rule 80C'') and Rule 476A 
to delete references to Rule 79A.20.
    Background
    Currently, except with respect to inactively traded securities the 
Exchange shall from time to time identify, Rule 79A.20(a) requires DMMs 
to obtain prior Floor Official approval for all transactions in stocks 
by the DMM as dealer (when the market is slow) \4\ or transactions in 
which the DMM as dealer is reaching across the market \5\ (when the 
market is fast) that are made at (i) $1.00 or more away from the last 
sale when such last sale is under $20 per share or (ii) $2.00 or more 
away from the last sale when such last sale is at $20 per share or 
over. The Rule also provides that in unusual market situations, a Floor 
Governor, Senior Floor Official, or Executive Floor Official \6\ has 
the discretion to determine that a different price parameter other than 
that required in subdivision (a) of the Rule is appropriate when the 
last sale is at $100 per share or over.\7\
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    \4\ For purposes of the Rule, the Exchange is considered a 
``slow'' market when displaying a bid or offer (or both) that is not 
entitled to protection of Rule 611 under Regulation NMS. See Rule 
79A.20(a). DMM dealer transactions in slow markets include the 
opening, reopening, and closing transactions.
    \5\ A DMM reaches across the market when the DMM buys from the 
Exchange offer or sells to the Exchange bid.
    \6\ Pursuant to Rules 46--Equities and 46A--Equities, Floor 
Governors, Senior Floor Officials and Executive Floor Officials are 
one of several ranks of the broader category of Floor Officials, 
including, in order of increasing seniority, Floor Officials, Senior 
Floor Officials, Executive Floor Officials, Floor Governors and 
Executive Floor Governors.
    \7\ See Rule 79A.20(b).
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    The principles embodied in Rule 79A.20 are based on New York Stock 
Exchange LLC (``NYSE'') Rule 79A.20 and were originally aimed at 
preventing undue price dislocation by the specialist at the opening.\8\ 
Gradually, the NYSE rule was extended to all trades significantly away 
from the last sale.\9\ The NYSE rule also functioned in part as a 
safeguard against market manipulation by specialists and Floor brokers 
as well as a control on price volatility by requiring a Floor Official 
who was not party to the transaction to review and approve all proposed 
transactions exceeding the rule's parameters before the trade was 
published to the consolidated tape, thereby ensuring that specialists 
were maintaining appropriate price continuity and depth, and that Floor 
brokers were not transacting in the trading crowd at unduly wide 
variations from the last sale.\10\
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    \8\ On October 1, 2008, the Commission approved the Exchange's 
rule proposal to establish new membership, member firm conduct, and 
equity trading rules that were based on the existing NYSE rules to 
reflect that equities trading on the Exchange would be supported by 
the NYSE's trading system. See Securities Exchange Act Release Nos. 
58705 (Oct. 1, 2008), 73 FR 58995 (Oct. 8. 2008) (SR-Amex-2008-63) 
(approval order) and 59022 (Nov. 26, 2008), 73 FR 73683 (Dec. 3, 
2008) (SR-NYSEALTR-2008-10) (amending equity rules to conform to 
NYSE New Market Model Pilot rules) (``Release No. 59022''). Because 
the Exchange's rules are based on the existing NYSE rules, the 
Exchange believes that pre-October 1, 2008 NYSE rule filings provide 
guidance concerning Exchange equity rules.
    \9\ See Securities Exchange Act Release No. 56209 (August 6, 
2007), 72 FR 45290, 45291 (August 13, 2007) (SR-NYSE-2007-65) 
(``Release No. 56209'').
    \10\ See id.
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    In 2006, the Commission approved the NYSE's adoption of a ``hybrid 
market'' under which NYSE systems assumed the function of matching and 
executing electronically-entered orders but specialists remained the 
responsible broker-dealer for orders on the Exchange's limit order 
book.\11\ In 2007, as a result of the increasing automation of trading 
and the accompanying decentralization of pricing decisions away from 
specialists, the NYSE comprehensively amended Rule 79A.20. In that 
filing, the NYSE virtually eliminated Rule 79A.20 approvals in all 
situations except those prescribed in the current Rule.\12\
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    \11\ See Securities Exchange Act Release No. 53539 (March 22, 
2006), 71 FR 16353 (March 31, 2006) (SR-NYSE-2004-05).
    \12\ See Release No. 56209, supra note 9, at 45291. At the time, 
the rule was set forth in Supplementary Material .30 of Rule 79A. 
The rule was re-numbered as Supplementary Material .20 in 2008. See 
Securities Exchange Act Release No. 58184 (July 17, 2008), 73 FR 
42853 (July 23, 2008) (SR-NYSE-2008-46); see also Release No. 59022, 
supra note 8.
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    Since that time, additional, significant market structure changes 
have continued to obviate the need for Rule 79A.20. In particular, in 
2008, the NYSE and the Exchange adopted the New Market Model, which 
transformed specialists into DMMs, who are no longer agents for the 
Exchange's limit order book and whose trading activity on the Exchange 
is limited to proprietary trading.\13\ Also in 2008, the NYSE greatly 
enhanced the transparency of its marketplace and improved the quality 
of the opening and closing auctions by introducing a real-time order 
imbalance information data feed (``Order Imbalance Information'').\14\ 
Further, DMMs now also have the ability to electronically open and 
close trading on the Exchange, which was not available to specialists 
in 2007.\15\ In 2015, the Exchange eliminated Liquidity Replenishment 
Points (``LRP'') and the Gap Quote Policy and amended Rule

[[Page 50352]]

79A.20 to remove references to these Exchange-specific volatility 
mechanisms. Rule 79A.20 had previously required Floor Official review 
and approval of DMMs dealer trades one or two points away from the last 
sale following these intra-day ``slow'' market scenarios.\16\ Finally, 
also in 2015, the Exchange amended Rule 1000 to reject marketable 
orders of over 1,000,000 shares upon arrival. Such orders were 
ineligible for automatic execution and caused the Exchange to suspend 
automatic executions and disseminate a ``slow'' quote condition.\17\
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    \13\ See Securities Exchange Act Release No. 58845(October 24, 
2008), 73 FR 64379, 64381 (October 29, 2008) (SR-NYSE-2008-46). See 
also Release No. 59022, supra note 8.
    \14\ See Securities Exchange Act Release No. 57861 (May 23, 
2008), 73 FR 31905 (June 4, 2008) (SR-NYSE-2008-42). See also 
Securities Exchange Act Release No. 59816 (April 23, 2009), 74 FR 
19614 (April 29, 2009) (SR-NYSEAmex-2009-13) (modifying the 
reference price at which the Exchange reports Order Imbalance 
Information and clarifying what information is included in and 
excluded from the Order Imbalance Information Reports). In 2009, the 
Exchange further enhanced the transparency of its informational data 
feed for imbalances by including d-Quotes and all other e-Quotes 
containing pegging instructions eligible to participate in the 
closing transaction in the Order Imbalance Information data feed. 
See Rule 70(1)--Equities & Supplementary Material .25; Securities 
Exchange Act Release No. 60151 (June 19, 2009), 74 FR 30653 (June 
26, 2009) (SR-NYSEAmex-2009-29).
    \15\ See Rule 123D--Equities (openings); Rule 123C.10--Equities 
(closings). See generally Rule 104(b)--Equities.
    \16\ See Securities Exchange Act Release No. 74064 (January 15, 
2015), 80 FR 3273 (January 22, 2015) (SR-NYSEMKT-2015-02). See also 
note 4, supra.
    \17\ See Securities Exchange Act Release No. 74650 (April 6, 
2015), 80 FR 19389 (April 10, 2015) (SR-NYSEMKT-2015-21).
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Proposed Rule Change
    The Exchange proposes to delete Rule 79A.20. As discussed below, 
the situations where the Rule would be invoked are now limited to the 
open, reopenings and the close, where market transparency and existing 
safeguards render the Rule unnecessary and duplicative of other rules 
requiring Floor Official approval.
    As noted above, the recent elimination of LRPs and the Gap Quote 
Policy removed the remaining intra-day events when the Exchange's 
market was ``slow'' and DMM pricing decisions that could trigger Rule 
79A.20 approvals. As such, trading circumstances warranting Rule 79A.20 
review are now limited to manual DMM participation when a security 
moves one or two dollars from the last sale (based on whether the 
security is under $20 or $20 and over) at either the open, close or, 
more rarely, intraday during reopenings.
    In light of the transparency surrounding the open and close and the 
involvement of Floor Officials in those processes, the Exchange 
believes that there is no longer a need for Floor Officials to 
separately approve individual DMM transactions under Rule 79A.20. 
First, as described above, the NYSE significantly enhanced the 
transparency surrounding the open and close with the introduction of a 
real-time Order Imbalance Information data feed in 2008, which the 
Exchange adopted. This proprietary data feed, disseminated prior to the 
open pursuant to Rule 15(c)(1)--Equities \18\ and prior to close 
pursuant to Rule 123C(6)--Equities,\19\ reflects real-time order 
imbalances that accumulate prior to the opening and closing 
transactions on the Exchange and the price at which interest eligible 
to participate in the opening or closing transactions may be executed 
in full.
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    \18\ Pursuant to Rule 15(c)(1)--Equities, Order Imbalance 
Information disseminated prior to the open includes all interest 
eligible for execution in the opening transaction of the security in 
Exchange systems, i.e., electronic interest, including Floor broker 
electronic interest, entered into Exchange systems prior to the 
opening. Pre-opening Order Imbalance Information is disseminated 
approximately every five minutes between 8:30 a.m. Eastern Time 
(``ET'') and 9:00 a.m. ET.; approximately every minute between 9:00 
a.m. ET and 9:20 a.m. ET; and approximately every 15 seconds between 
9:20 a.m. ET and the opening of trading in that security. See Rule 
15(c)(3)--Equities.
    \19\ Pursuant to Rule 123C(6)--Equities, Order Imbalance 
Information disseminated prior to the close includes, among other 
things: (1) The Mandatory Market on Close (``MOC'')/Limit on Close 
(``LOC'') Imbalance Publication; (2) a data field indicating the 
price at which closing-only interest (i.e., MOC orders, marketable 
LOC orders, and CO orders opposite the imbalance) may be executed in 
full; and, (3) a data field indicating the price at which interest 
in the Display Book (e.g., Minimum Display Reserve Orders, Floor 
broker reserve e-Quotes not designated to be excluded from the 
aggregated agency interest information available to the DMM, d-
Quotes and pegged e-Quotes at the price indicated on the order as 
the base price to be used to calculate the range of discretion and 
Stop orders) as well as all closing-only orders (MOC, marketable 
LOC, and CO orders opposite the imbalance) may be executed in full. 
Pre-closing Order Imbalance Information is disseminated every 
fifteen seconds between 3:40 p.m. and 3:50 p.m.; thereafter, it is 
disseminated every five seconds between 3:50 p.m. and 4:00 p.m. 
Commencing at 3:55 p.m., the Order Imbalance Information 
disseminated by the Exchange also includes d-Quotes and all other e-
Quotes containing pegging instructions eligible to participate in 
the closing transaction and Stop orders.
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    Second, in addition to disseminating Order Imbalance Information, 
the Exchange's Rules require the timely communication of price 
dislocations and unusual market situations, including delayed openings, 
to the marketplace. Rule 15(a)--Equities provides that if the opening 
transaction in a security will be at a price that represents a change 
of more than the ``applicable price change'' specified in the Rule 
(representing a numerical or percentage change from the security's 
closing price per share or, in the case of an IPO, the security's 
offering price), the DMM arranging the opening transaction or the 
Exchange must issue a pre-opening indication (a ``Rule 15 
Indication''), which represents a range of where a security may open. 
The Rule 15 Indication is a price range that is published on the 
Exchange's proprietary data feeds prior to the scheduled opening time. 
A Rule 15 Indication includes the security and the price range within 
which the DMM anticipates the opening transaction will occur, and would 
include any orally-represented Floor broker interest for the open.
    Similarly, Rule 123D--Equities Mandatory Indications are required 
for an opening that will result in a ``significant'' price change from 
the previous close. For securities priced under $10, indications are 
required under Rule 123D(1) if the price change is one dollar or more; 
for securities between $10 and $99.99, indications are required for 
price movements of the lesser of 10% or three dollars; and for 
securities over $100, indications are required for price movements of 
five dollars or more. Rule 123D(1)--Equities requires DMMs to 
disseminate one or more indications in connection with any delayed 
opening where a security has not opened or been quoted by 10 a.m. 
(``Rule 123D Mandatory Indication''). The DMM is responsible for 
publishing the Rule 123D Mandatory Indication and, when determining the 
price range for the indication, take into consideration Floor broker 
interest that has been orally entered and what, at a given time, the 
DMM anticipates the dealer participation in the opening transaction 
would be. Rule 123D Mandatory Indications are published to the 
Consolidated Tape.
    Importantly, all Rule 123D Mandatory Indications require the 
supervision and approval of a Floor Official. Rule 123D approvals are 
therefore similar to Rule 79A.20 approvals. In fact, on NYSE, almost 
half of Floor Official approvals under Rule 79A.20 also occur in 
situations where a mandatory indication was published pursuant to Rule 
123D. In these circumstances, requiring the Floor Official to 
separately approve a price movement under Rule 79A.20 would be 
duplicative.
    The Exchange further notes that the Floor Official approval 
requirements of Rule 79A.20 impede the ability of a DMM to open or 
close a security electronically at the Exchange if the security were to 
open one or two points away from the last sale. As a practical matter, 
the only way for Floor Officials to approve trades more than one or two 
dollars away from the last sale in the case of an electronic open or 
close would be to turn a fast market into a ``slow'' one and 
potentially open the security after 9:30 a.m., which was one of the 
rationales for eliminating virtually all Rule 79A.20 approvals in 2007 
on the NYSE.\20\
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    \20\ See Release No. 56209, supra note 9, at 45291.
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    With respect to the separate Rule 79A.20 requirement that the DMM 
obtain Floor Official approvals when the market is fast and the DMM as 
dealer is reaching across the market, i.e., selling at the bid and 
buying at the offer, the Exchange similarly believes that such 
approvals are unnecessary and duplicative of other safeguards. As

[[Page 50353]]

noted above, the application of Rule 79A.20 is limited to the opening, 
reopenings and the close, where this scenario would not arise. 
Moreover, the Exchange believes that obtaining Floor Official approval 
when a DMM is reaching across a fast market is impractical in today's 
market place because, especially in the most actively traded Exchange 
securities, the automated marketplace simply moves too fast.
    Even if obtaining Floor Official approvals were practical, the 
Exchange believes that the combination of volatility and system 
controls in place that were unavailable in 2007 render such approvals 
unnecessary. DMM dealer trades one or two points away from the last 
sale that reach across the market would continue to be subject to the 
Limit Up/Limit Down (``LULD'') price controls, as provided for in Rule 
80C(a)(4)--Equities, the Trading Collars, as provided for in Rule 
1000(c)--Equities, and the numerical guidelines for determining whether 
a clearly erroneous execution has occurred under Rule 128--Equities. In 
addition, as the NYSE noted in a different context,\21\ as the 
marketplace has become more electronic, DMM units have increased their 
utilization of technology to reduce risk exposure by using algorithms 
to adjust prices quickly in response to market dynamics, which in turn 
has contributed to reducing the potential for significant and/or rapid 
movements in the market and help DMMs satisfy their obligation to 
maintain a fair and orderly market in assigned securities pursuant to 
Rule 104--Equities, particularly in times of market stress. The 
Exchange believes that these risk controls provide a further 
significant limitation on the ability of DMMs to initiate a move of 
more than one or two dollars away from the last sale trade in fast 
markets, especially in light of the tight spreads on the NYSE, which is 
similarly proposing to delete Rule 79A.20.\22\
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    \21\ See Securities Exchange Act Release No. 71360 (January 21, 
2014), 79 FR 4366, 4367 (January 27, 2014) (SR-NYSE-2014-02).
    \22\ For instance, in May 2015, the quoted spread on the NYSE 
for stocks below $20 a share was $0.048; the quoted spread for 
stocks above $20 was $0.466. For all NYSE-listed securities, the 
quoted spread in May 2015 was $0.314. See SR-NYSE-2015-33.
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    Finally, DMM pricing decisions at the open and close and during 
fast markets are subject to specific DMM obligations with respect to 
the quality of the markets in securities to which they are assigned. In 
general, transactions on the Exchange by a DMM for the DMM's account 
must be effected in a reasonable and orderly manner in relation to the 
condition of the general market and the market in the particular stock.
    As noted, DMMs have affirmative obligations under Rule 104(a)--
Equities to engage in a course of dealings for their own account to 
assist in the maintenance of a fair and orderly market insofar as 
reasonably practicable. Specifically, Rule 104(f)(ii)--Equities sets 
forth the DMM's obligation to act as reasonably necessary to ensure 
appropriate depth and maintain reasonable price variations between 
transactions (also known as price continuity) and prevent unexpected 
variations in trading. Further, under Rule 123D(1)--Equities, openings 
and reopenings must be fair and orderly, reflecting the DMM's 
professional assessment of market conditions at the time, and 
appropriate consideration of the balance of supply and demand as 
reflected by orders represented in the market. The Exchange also 
supplies DMMs with suggested Depth Guidelines for each security in 
which a DMM is registered, and DMMs are expected to quote and trade 
with reference to the Depth Guidelines. Further, the DMM's affirmative 
obligation includes obligations to re-enter the market when reaching 
across to execute against available interest. For instance, under Rule 
104(h)--Equities, DMMs can engage in conditional transactions that 
establish or increase a position and that reach across the market 
without restriction provided such transactions are followed by 
appropriate re-entry on the opposite side of the market commensurate 
with the size of the DMM's transaction.\23\ The Exchange issues 
guidelines, called price participation points (``PPP''), that identify 
the price at or before which a DMM is expected to re-enter the market 
after effecting a conditional transaction.\24\ DMM trading activity on 
the Exchange is actively monitored for compliance with each of these 
obligations.
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    \23\ See Rule 104(h)(iii)--Equities. Immediate re-entry is 
required after certain Conditional Transactions.
    \24\ See Rule 104(h)(iii)(A)--Equities.
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    The Exchange believes that the availability and dissemination of 
Order Imbalance Information, Rule 15 Indications and 123D Mandatory 
Indications, together with the DMM's existing affirmative and other 
obligations pursuant to Rule 104, provide an appropriate framework in 
today's market structure for ensuring that opening or closing 
transactions that occur at a price significantly away from the last 
sale price are communicated to all market participants. In particular, 
because of this transparency, the open and close are subject to greater 
scrutiny by all market participants, which in of itself serves as a 
check on where a DMM opens or closes a security. The Exchange therefore 
believes that the need for a Floor Official to review a DMM's actions 
at the open or close, which was adopted in a time when there was no 
market-wide transparency regarding pricing of the open or close, is 
redundant of existing oversight of the open and close.
    For all of these reasons, the Exchange believes that requiring 
separate Floor Official approvals for one and two dollar price 
movements is no longer necessary.
    The Exchange also proposes to delete references to Rule 79A.20 from 
Rules 48, 80C and 476A. In the case of Rule 48, the reference to be 
removed would be to Rule 79A.30--Equities. Rule 48 was not updated when 
the text of the Rule was moved from Supplementary Material .30 to 
.20.\25\ The Exchange believes these proposed changes will add 
transparency and clarity to the Exchange's rules.
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    \25\ See note 12 supra.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\26\ in general, and furthers the 
objectives of section 6(b)(5) of the Act,\27\ in particular, because it 
is designed to prevent fraudulent and manipulative acts and practices, 
promote just and equitable principles of trade, remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system, and protect investors and the public interest. In 
particular, the Exchange believes that eliminating Rule 79A.20 would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system by eliminating redundant approvals 
from the remaining manual processes at the open and close of trading. 
The Exchange believes that eliminating Rule 79A.20 approvals would not 
be inconsistent with the public interest and the protection of 
investors because the transparency surrounding the open and close and 
the information available to the marketplace enables investors and the 
public to assess whether a security would open or close outside the one 
or two point parameter, thereby obviating the need for a single Floor 
Official to oversight the open and close. Further, the Exchange 
believes that eliminating Rule

[[Page 50354]]

79A.20 approvals would not be inconsistent with the public interest and 
the protection of investors because other safeguards will remain in 
place to ensure that DMMs maintain appropriate price continuity and 
depth and do not transact at unduly wide price variations, thereby 
establishing substantially the same result. As noted above, pursuant to 
Rule 123D--Equities, Floor Officials would remain involved in 
supervising when the open would occur at a price significantly away 
from the last sale, which is when the majority of Rule 79A.20 approvals 
currently occur, and DMM trading will also remain subject to Exchange 
rules, including the obligation to maintain a fair and orderly market 
under Rule 104--Equities.
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    \26\ 15 U.S.C. 78f(b).
    \27\ 15 U.S.C. 78f(b)(5).
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    The Exchange further believes that deleting corresponding 
references to Rule 79A.20 in other rules would remove impediments to 
and perfects the mechanism of a free and open market by reducing 
potential confusion and adding transparency and clarity to the 
Exchange's rules, thereby ensuring that members, regulators and the 
public can more easily navigate and understand the Exchange's rulebook.

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 to eliminate 
redundant approvals of manual trades on its trading Floor.

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 \28\ and Rule 19b-4(f)(6) thereunder.\29\ 
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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    \28\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \29\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \30\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\31\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \30\ 17 CFR 240.19b-4(f)(6).
    \31\ 17 CFR 240.19b-4(f)(6)(iii).
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    At any time within 60 days of the filing of such 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) \32\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \32\ 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-NYSEMKT-2015-58 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-NYSEMKT-2015-58. 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 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-NYSEMKT-2015-58 and should 
be submitted on or before September 9, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\33\
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    \33\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-20415 Filed 8-18-15; 8:45 am]
BILLING CODE 8011-01-P