Document ID: SEC-2017-0878-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE MKT LLC
Posted Date: 2017-05-30T04:00Z

[Federal Register Volume 82, Number 102 (Tuesday, May 30, 2017)]
[Notices]
[Pages 24764-24766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-10983]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80748; File No. SR-NYSEMKT-2017-20]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Change To Amend the Rules of the 
Exchange, the NYSE MKT Equities Price List, the NYSE Amex Options Fee 
Schedule, and the NYSE Amex Options Proprietary Market Data Fees

May 23, 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 May 19, 2017, 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, II, 
and III 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, in connection with its name change to NYSE 
American LLC (``NYSE American''), to rebrand the Exchange's facility 
for trading options (``Options Market''), from ``NYSE Amex Options'' to 
``NYSE American Options'' and to amend the rules of the Exchange, the 
NYSE MKT Equities Price List (``Price List''), the NYSE Amex Options 
Fee Schedule (``Fee Schedule''), and the NYSE Amex Options Proprietary 
Market Data Fees (``Options Market Data Fees'') to reflect that 
rebranding. The Exchange also proposes to delete obsolete references in 
the rules and the NYSE MKT LLC Company Guide (``Company Guide''). 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    NYSE MKT proposes, in connection with its name change to NYSE 
American LLC (``NYSE American''),\4\ to rebrand the Exchange's Options 
Market from ``NYSE Amex Options'' to ``NYSE American Options.'' 
Therefore, the Exchange now proposes to amend the rules of the 
Exchange, Company Guide, Price List, Fee Schedule, and Options Market 
Data Fees to reflect that rebranding.
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    \4\ See Securities Exchange Act Release No. 80283 (March 21, 
2017), 82 FR 15244 (March 27, 2017) (SR-NYSEMKT-2017-14).
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    The Exchange also proposes to delete obsolete references to a 
former name from the rules and the Company Guide.\5\
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    \5\ See Securities Exchange Act Release No. 67037 (May 21, 
2012), 77 FR 31415 (May 25, 2012) (SR-NYSEAmex-2012-32).
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Background

    Option contracts may be approved for listing and trading on the 
Exchange's Options Market, which is referred to as ``NYSE Amex 
Options.'' \6\ On March 16, 2017, NYSE MKT filed rule changes with the 
Commission in connection with its name change to NYSE American LLC.\7\ 
The Exchange has now determined that for consistency and marketing 
purposes it would be

[[Page 24765]]

desirable to rebrand the Options Market from ``NYSE Amex Options'' to 
``NYSE American Options.'' \8\
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    \6\ See Rule 900.2NY(47) (Definitions) (providing that ``[t]he 
term `NYSE Amex Options' shall refer to those aspects of the Self-
Regulatory Organization and the Trading Facilities business of NYSE 
MKT LLC licensed to trade Options by the Exchange''). See also 
Section 900 NY (Rules Principally Applicable to Trading of Options 
Contracts) of the Exchange's Rules.
    \7\ See Securities Exchange Act Release No. 80283, supra note 4.
    \8\ NYSE Amex Options LLC, a Delaware limited liability company, 
operates the Options Market. See Securities Exchange Act Release No. 
64742 (June 24, 2011), 76 FR 38436 (June 30, 2011) (SR-NYSEAmex-
2011-18), at 38436. The Exchange proposes to rebrand the name of the 
Options Market, but does not propose to change the name of NYSE Amex 
Options LLC.
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    The proposed rule changes would become operative upon the 
effectiveness of the NYSE MKT name change to NYSE American, which is 
expected to be no later than July 30, 2017.
    The Exchange notes that the name change originally was expected to 
become effective no later than June 30, 2017.\9\ Because the Exchange 
now anticipates that the name change will become effective at a 
subsequent date, not only the proposed rule changes, discussed below, 
but also the rule changes filed on March 16, 2017 \10\ in connection 
with the name change to NYSE American, would become operative upon the 
effectiveness of the NYSE MKT name change to NYSE American, which is 
expected to be no later than July 30, 2017. The Exchange will announce 
via Trader Notice the effective date of the name change.
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    \9\ See Securities Exchange Act Release No. 80283, supra note 4, 
at 15246.
    \10\ See Securities Exchange Act Release No. 80283 (March 21, 
2017), 82 FR 15244 (March 27, 2017) (SR-NYSEMKT-2017-14).
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Proposed Changes

    In connection with the rebranding of the Options Market, the 
Exchange proposes to amend the rules as described below:
     The Exchange proposes to change the name of its trading 
permit from ``Amex Trading Permit'' to ``American Trading Permit.'' 
Consistent with that change, it proposes to change the terms ``Amex 
Trading Permits'' and ``Amex Trading Permit Holder'' to ``American 
Trading Permits'' and ``American Trading Permit Holder,'' respectively. 
To implement the change, it proposes to replace ``Amex'' with 
``American'' in Rule 350 (Ownership Requirements); Rule 353 (Amex 
Trading Permit Requirements); Rule 353A (Revocable Privilege; 
Termination of an Amex Trading Permit); Rule 358 (Processing Fees and 
Other Charges Associated with Amex Trading Permit); Rule 358A (Special 
Charge and Charge Upon Options Transactions); Rule 359 (Application and 
Termination Forms); Rule 359B (Limited Transferability); and, where 
applicable, in the respective title of the aforementioned rules.
     The Exchange proposes to change the term ``NYSE Amex 
Options Trading Floor'' to ``NYSE American Options Trading Floor''. To 
implement the change, it proposes to replace ``Amex'' with ``American'' 
in Rule 6A--Equities (`Trading Floor') and Rule 36--Equities 
(Communications between Exchange and Members' Offices), Supplementary 
Material .21, .23, and .70.
     In Rule 70--Equities (Execution of Floor Broker Interest), 
Supplementary Material .40, the Exchange proposes to replace ``Amex'' 
with ``American'' in the term ``NYSE Amex option.''
     In Rule 900.2NY (Definitions), the Exchange proposes to 
amend ``NYSE Amex Options'' to the term ``NYSE American Options'' and 
``Amex Trading Permit'' to the term ``American Trading Permit''. To 
implement the change, the Exchange proposes to replace ``Amex'' with 
``American'' throughout the rule.
     In Rule 902NY (Admission and Conduct on the Options 
Trading Floor), the Exchange proposes to replace ``Amex'' with 
``American'' in the terms ``Officer of NYSE Amex Options'', ``NYSE Amex 
Options automated trading system'', and ``Reserve Floor Market Maker 
Amex Trading Permit.''
     In Rule 1000--AEMI (Portfolio Depository Receipts), 
Commentary .03 and .06, and Rule 1000A-AEMI (Index Fund Shares), 
Commentary .02 and .05, the Exchange proposes to delete ``Amex'' from 
the term ``Amex Company Guide'', consistent with the definition of 
``Company Guide'' in the Exchange's rules.\11\
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    \11\ See Definition 37 (``Company Guide'') in the General and 
Floor Rules.
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    In addition, the Exchange proposes to amend the following documents 
as described below:
     Fee Schedule: The Exchange proposes to replace ``Amex'' 
with ``American'' in the references to ``NYSE Amex Options'' in the 
title and throughout the Fee Schedule. The Exchange also proposes to 
replace ``Amex'' with ``American'' in the terms ``NYSE Amex Options 
Market Maker'', ``NYSE Amex'', ``NYSE Amex Options Floor Market 
Maker'', ``NYSE Amex Options Market Making firm'' and ``Amex Customer 
Engagement (``ACE'') Program.'' Additionally, the Exchange proposes to 
make a technical correction to the term ``NYSE Amex Market Maker'' by 
adding the missing word ``Options'' and updating such reference to 
``NYSE American Options Market Maker.''
     Price List: Under ``Co-Location Fees,'' the Exchange 
proposes to replace ``Amex'' with ``American'' in the term ``NYSE Amex 
Options.''
     Options Market Data Fees: The Exchange proposes to replace 
references to ``Amex'' with ``American'' found in the title, headings, 
and product names throughout the Options Market Data Fees.
    The Exchange also proposes to clean up obsolete references to the 
Exchange's former name, Amex, as follows:
     When the Exchange's name was changed from NYSE Amex LLC to 
NYSE MKT LLC, it changed its rule naming convention by replacing ``--
NYSE Amex Equities'' with ``--Equities''.\12\ However, Rule 5210--
Equities (Publication of Transactions and Quotations), Supplementary 
Material .01, retains cross references using the old naming convention. 
The Exchange accordingly proposes to update such references to ``--NYSE 
Amex Equities'' rules to ``--Equities'' rules.
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    \12\ See Securities Exchange Act Release No. 67037 (May 21, 
2012), 77 FR 31415 (May 25, 2012) (SR-NYSEAmex-2012-32), at 31416. 
For example, Rule 0--NYSE Amex Equities became Rule 0--Equities.
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     In Sec.137 (Depository Eligibility) of the Company Guide, 
the Exchange proposes to replace ``Amex Rule 777'' with ``Rule 777.''
    None of the foregoing changes are substantive.\13\
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    \13\ The Exchange will submit subsequent rule filings as 
necessary to make any technical corrections to proposed rule changes 
that are pending as of the date of submission of this filing and 
approved by the Commission thereafter.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Exchange Act \14\ in general, and with Section 
6(b)(1) \15\ 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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    \14\ 15 U.S.C. 78f(b).
    \15\ 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 Exchange's rules, Price 
List, Fee Schedule, and Options Market Data Fees accurately reflect the 
name of the Options Market would contribute to the orderly operation of 
the Exchange by

[[Page 24766]]

adding clarity and transparency to such documents and rules.
    For similar reasons, the Exchange also believes that the proposed 
rule change is consistent with Section 6(b)(5) of the Act,\16\ 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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    \16\ 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 the Exchange's rules, Price 
List, Fee Schedule, and Options Market Data Fees. The Exchange believes 
that, by ensuring that such documents and rulebook accurately reflect 
the name of the Options Market, which aligns with the name of the 
Exchange, the proposed rule change would reduce potential investor or 
market participant confusion.
    The Exchange believes that eliminating obsolete references to the 
Exchange's previous name would not be inconsistent with the public 
interest and the protection of investors because investors will not be 
harmed and in fact would benefit from increased transparency, thereby 
reducing potential confusion. Removing such obsolete references will 
also further the goal of transparency and add clarity to the Exchange's 
rules and Company Guide.

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 Exchange's rules, Company Guide, Price List, 
Fee Schedule, and Options Market Data Fees to reflect the new name of 
the Exchange and the subsequent related rebranding of its options 
business.

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 \17\ and Rule 19b-4(f)(3) \18\ thereunder in 
that the proposed rule change is concerned solely with the 
administration of the Exchange.
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 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 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) \19\ of the Act to determine whether the proposed rule 
change should be approved or disapproved.
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    \19\ 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-2017-20 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-2017-20. 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-NYSEMKT-2017-20 and should 
be submitted on or before June 20, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-10983 Filed 5-26-17; 8:45 am]
BILLING CODE 8011-01-P