Document ID: SEC-2015-0514-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE MKT LLC
Posted Date: 2015-03-25T04:00Z

[Federal Register Volume 80, Number 57 (Wednesday, March 25, 2015)]
[Notices]
[Pages 15829-15831]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-06713]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74535; File No. SR-NYSEMKT-2015-18]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Amending Rule 
900.3NY(w) and Rule 980NY(d)(1) to Delete the PNP Plus Designation for 
Electronic Complex Orders From Its Rules

March 19, 2015.
    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 March 12, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE 
MKT'') 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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[[Page 15830]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 900.3NY(w) (Orders Defined) and 
Rule 980NY(d)(1) (Complex Order Trading) to delete the PNP Plus 
designation for Electronic Complex Orders from its rules. 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 900.3NY(w) and Rule 980NY(d)(1) 
to delete the PNP Plus designation for Electronic Complex Orders from 
its rules.
PNP Plus Orders
    The PNP Plus order type was designed to provide ATP Holders with 
additional processing capability in order to control the circumstances 
under which their Electronic Complex Orders are executed. However, due 
to little demand for PNP Plus orders, the Exchange proposes to 
discontinue functionality supporting the order type.
    Pursuant to Rule 900.3NY(w), an Electronic Complex Order designated 
as PNP Plus (``PNP Plus'') is automatically re-priced by the Exchange 
at an MPV greater (less than) the contra-side Complex BBO (as defined 
in Rule 900.2NY(7)) for any or all of the order that remains unexecuted 
and would otherwise lock or cross the Complex BBO should it be 
displayed in the Consolidated Book. The re-priced PNP Plus is then 
posted in the Consolidated Book. The Electronic Complex Order 
designated as PNP Plus continues to be re-priced at an MPV greater 
(less than) than the Complex BBO and re-posted in the Consolidated 
Book, with each change in the Complex BBO, until such time as the 
Complex BBO has moved to a price where the original limit price of the 
order no longer locks or crosses the Complex BBO, at which time the 
Electronic Complex Order designated as PNP Plus will revert to its 
original limit price. PNP Plus orders are ranked in the Consolidated 
Book pursuant to Rule 980NY(b) and assigned a new price time priority 
as of the time of each re-posting.
    Given the lack of demand for PNP Plus orders, the Exchange proposes 
to decommission the order type and delete the definition of PNP Plus 
from Rule 900.3NY(w). The Exchange proposes to hold Rule 900.3NY(w) as 
Reserved. Similarly, the Exchange proposes to delete the reference to 
``Limit Orders designated as PNP Plus'' from Rule 980NY(d)(1) regarding 
the types of allowable Electronic Complex Orders. As proposed Rule 
980NY(d)(1) would state that ``Electronic Complex Order must be 
designated as Limit Orders.''
    The Exchange believes the proposed change would assist with the 
maintenance of fair and orderly markets because it would reduce the 
complexity of order types available to market participants and would 
help clarify the nature of order types available for trading on the 
Exchange.
Implementation
    The Exchange will announce the implementation date of this change 
through a Trader Update.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\4\ in general, and 
furthers the objectives of Section 6(b)(5),\5\ in particular, 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, and to remove impediments to and perfect 
the mechanism of a free and open market and a national market system. 
Specifically, the Exchange believes that by eliminating a little-used 
order type the proposal would assist with the maintenance of fair and 
orderly markets because it would reduce the complexity of order types 
available to market participants, thereby adding transparency and 
clarity to the Exchange's rules, and would help clarify the nature of 
order types available for trading on the Exchange. The Exchange further 
believes that deleting an order type rarely used by investors also 
removes impediments to and perfects the mechanism of a free and open 
market by ensuring that members, regulators and the public can more 
easily navigate the Exchange's rulebook and better understand the order 
types available for trading on the Exchange. Moreover, the Exchange 
believes that the elimination of the PNP Plus order type would simplify 
order processing and reduce the burden on system capacity, which the 
Exchange believes is consistent with promoting just and equitable 
principles of trade as well as protecting 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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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. Specifically, the Exchange 
believes that the proposed rule change would relieve a burden on 
competition by eliminating an order type and streamlining the 
Exchange's rules. In doing so, the proposed rule change would also 
serve to promote regulatory clarity and consistency, thereby reducing 
burdens on the marketplace and facilitating investor protection.

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)

[[Page 15831]]

of the Act and Rule 19b-4(f)(6) thereunder.\8\
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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the 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.
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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) of the Act \9\ to determine whether the proposed 
rule change should be approved or disapproved.
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    \9\ 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-2015-18 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEMKT-2015-18. 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 NYSE's principal office and on its 
Internet Web site at www.nyse.com. 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-2015-18 and should be submitted on or before 
April 15, 2015.
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    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Brent J. Fields,
Secretary.
[FR Doc. 2015-06713 Filed 3-24-15; 8:45 am]
 BILLING CODE 8011-01-P