Document ID: SEC-2016-1925-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Stock Exchange, Inc.
Posted Date: 2016-11-02T04:00Z

[Federal Register Volume 81, Number 212 (Wednesday, November 2, 2016)]
[Notices]
[Pages 76393-76395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26403]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79174; File No. SR-NSX-2016-14]

Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing of a Proposed Rule Change To Amend Exchange Rule 11.26 
To Correct Defective Numbering in the Interpretations and Policies of 
the Rule

October 27, 2016.
    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 October 13, 2016, National Stock Exchange, Inc. (``NSX'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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 comment 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 is proposing to amend Exchange Rule 11.26, Compliance 
with Regulation NMS Plan to Implement a Tick Size Pilot to correct 
defective numbering under the Interpretations and Policies of the rule. 
The Exchange

[[Page 76394]]

is not proposing any substantive amendments to the rule text.
    The Exchange has designated this proposal as a ``non-
controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of 
the Act \3\ and provided the Commission with the notice required by 
Rule 19b-4(f)(6)(iii) under the Act.\4\
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    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nsx.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 Exchange 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 these 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 make ministerial non-substantive 
changes to the numbering of the Interpretations and Policies sections 
of Rule 11.26. The changes are intended to address incorrect numbering 
that resulted from two recent amendments [sic] the rule filed by the 
Exchange. On September 28, 2016 the Commission noticed a proposed rule 
change filed by the Exchange to amend Rule 11.26, including certain 
sections of the Interpretations and Policies.\5\ As part of these 
amendments, the Exchange proposed new text for section .09, which 
resulted a renumbering of former section .09 as .10. Section .10, with 
certain text proposed to be amended, was renumbered to .11; former .11 
was renumbered as section .12, with no changes proposed to the text.
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    \5\ See Securities Exchange Act Release No. 78960 (September 28, 
2016), 81 FR 68476 (October 4, 2016) (SR-NSX-2016-12).
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    On September 29, 2016, the SEC noticed a proposed rule change filed 
by the Exchange to make further rule changes in connection with the 
Regulation NMS Plan to Implement a Tick Size Pilot, including an 
amendment to Rule 11.26, Interpretations and Policies.\6\ The filing 
should have reflected that the language of Interpretations and Polices 
.12 was being replaced and that the former language of Interpretations 
and Policies .12 was being added as Interpretations and Policies .13. 
However, the Exchange, in its filing incorrectly assigned the number 
.11 where it should have used .12 and incorrectly assigned the number 
.12 where it should have used .13. As a result, two separate sections 
of the Interpretations and Policies are designated as number .11. The 
Exchange proposes to correct this error by amending the numbering 
associated with these sections. The section that was incorrectly 
numbered .11 will become .12 and the section previously incorrectly 
numbered .12 will become .13.
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    \6\ See Securities Exchange Act Release No. 78987 (September 29, 
2016), 81 FR 69123 (October 5, 2016) (SR-NSX-2016-13).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \8\ in particular, in that it is designed 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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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    Specifically, the proposal is designed to correct an administrative 
error from a previous filing that resulted in incorrect numbering of 
certain sections of Rule 11.26, Interpretations and Policies. 
Correcting these errors will avoid confusion and will promote clarity 
and ease of reference in the Exchange's rules and is consistent with 
Section 6(b)(5) of the Act in that it will promote just and equitable 
principles of trade and the protection of investors and the public 
interest.

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
rule change is intended to correct defective numbering in the 
Interpretations and Policies of Rule 11.26 and raises no competitive 
issues.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing 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 for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) \9\ of the Act and Rule 19b-
4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \11\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the 
Commission to 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 upon filing. The Exchange believes 
that waiver of the 30-day operative delay is consistent with the 
protection of investors and the public interest because the proposed 
changes are ministerial and the Commission granted a similar waiver of 
the 30-day operative delay in its notice of the rule changes that 
contained the original incorrect numbering.\13\ The Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest because the proposed 
changes are non-substantive and will provide clarity to the Exchange's 
rules. Therefore, the Commission hereby waives the operative delay and 
designates the proposed rule change operative upon filing.\14\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ See supra notes 5 and 6.
    \14\ 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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[[Page 76395]]

    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 to 
determine whether the proposed rule should be approved or disapproved.

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-NSX-2016-14 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 No. SR-NSX-2016-14. This file 
number should be included in the subject line if email is used. To help 
the Commission process and review 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 a.m. and 3 
p.m. eastern time. Copies of such filings 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-NSX-2016-14 and should be 
submitted on or before November 23, 2016.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission by the Division of Trading and Markets, 
pursuant to the delegated authority.\15\
Brent J. Fields,
Secretary.
[FR Doc. 2016-26403 Filed 11-1-16; 8:45 am]
 BILLING CODE 8011-01-P