Document ID: SEC-2018-1916-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2018-12-13T05:00Z

[Federal Register Volume 83, Number 239 (Thursday, December 13, 2018)]
[Notices]
[Pages 64166-64167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27018]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84761; File No. SR-NYSE-2011-55]

Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Granting an Extension to Limited Exemptions From Rule 612(c) of 
Regulation NMS in Connection With the Exchange's Retail Liquidity 
Program Until June 30, 2019

December 10, 2018.
    On July 3, 2012, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted the New 
York Stock Exchange LLC (``NYSE'') a limited exemption from the Sub-
Penny Rule in connection with the operation of the Exchange's Retail 
Liquidity Program (``Program'').\2\ The limited exemption was granted 
concurrently with the Commission's approval of the Exchange's proposal 
to adopt its Program for a one-year pilot term.\3\ The exemption was 
granted coterminous with the effectiveness of the pilot Program; both 
the pilot Program and exemption are scheduled to expire on December 31, 
2018.\4\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 67347 (July 3, 
2012), 77 FR 40673 (July 10, 2012) (SR-NYSE-2011-55; SR-NYSEAmex-
2011-84) (``Order'').
    \3\ See id.
    \4\ On July 30, 2013, the Exchange requested an extension of the 
exemption for the Program. See Letter from Janet McGinness, SVP and 
Corporate Secretary, NYSE Euronext, to Elizabeth M. Murphy, 
Secretary, Commission, dated July 30, 2013. The pilot period for the 
Program was extended until July 31, 2014. See Securities Exchange 
Act Release No. 70096 (August 2, 2013), 78 FR 48520 (August 8, 2013) 
(SR-NYSE-2013-48). On July 30, 2014, the Exchange requested another 
extension of the exemption for the Program. See Letter from Martha 
Redding, Chief Counsel, NYSE, to Kevin M O'Neill, Deputy Secretary, 
Commission, dated July 30, 2014. The pilot period for the Program 
was extended until March 31, 2015. See Securities Exchange Act 
Release No. 72629 (July 16, 2014), 79 FR 42564 (July 22, 2014) (SR-
NYSE-2014-35). On February 27, 2015, the Exchange requested another 
extension of the exemption for the Program. See Letter from Martha 
Redding, Senior Counsel, NYSE, to Brent J. Fields, Secretary, 
Commission, dated February 27, 2015. The pilot period for the 
Program was extended until September 30, 2015. See Securities 
Exchange Act Release No. 74454 (March 6, 2015), 80 FR 13054 (March 
12, 2015) (SR-NYSE-2015-10). On September 17, 2015, the Exchange 
requested another extension of the exemption for the Program. See 
Letter from Martha Redding, Senior Counsel, NYSE, to Brent J. 
Fields, Secretary, Commission, dated September 17, 2015. The pilot 
period for the Program was extended until March 31, 2016. See 
Securities Exchange Act Release No. 75993 (September 28, 2015), 80 
FR 59844 (October 2, 2015) (SR-NYSE-2015-41). On March 17, 2016, the 
Exchange requested another extension of the exemption for the 
Program. See Letter from Martha Redding, Senior Counsel, NYSE, to 
Brent J. Fields, Secretary, Commission, dated March 17, 2016. The 
pilot period for the Program was extended until August 31, 2016. See 
Securities Exchange Act Release No. 77426 (March 23, 2016), 81 FR 
17533 (March 29, 2016) (SR-NYSE-2016-25). On August 8, 2016, the 
Exchange requested another extension of the exemption for the 
Program. See Letter from Martha Redding, Associate General Counsel, 
NYSE, to Brent J. Fields, Secretary, Commission, dated August 8, 
2016. The pilot period for the Program was extended until December 
31, 2016. See Securities Exchange Act Release No. 78600 (August 17, 
2016), 81 FR 57642 (August 23, 2016) (SR-NYSE-2016-54). On November 
28, 2016, the Exchange requested another extension of the exemption 
for the Program. See Letter from Martha Redding, Associate General 
Counsel, NYSE, to Brent J. Fields, Secretary, Commission, dated 
November 28, 2016. The pilot period for the Program was extended 
until June 30, 2017. See Securities Exchange Act Release No.79493 
(December 7, 2016), 81 FR 90019 (December 13, 2016) (SR-NYSE-2016-
82). On May 23, 2017, the Exchange requested another extension of 
the exemption for the Program. See Letter from Martha Redding, 
Associate General Counsel, NYSE, to Brent J. Fields, Secretary, 
Commission, dated May 23, 2017. The pilot period for the Program was 
extended until December 31, 2017. See Securities Exchange Act 
Release No. 80844 (June 1, 2017), 82 FR 26562 (June 7, 2017) (SR-
NYSE-2017-26). On November 30, 2017, the Exchange requested another 
extension of the exemption for the Program. See Letter from Martha 
Redding, Assistant Secretary, NYSE, to Brent J. Fields, Secretary, 
Commission, dated November 30, 2017. The pilot period for the 
Program was extended until June 30, 2018. See Securities Exchange 
Act Release No. 82230 (December 7, 2017), 82 FR 58667 (December 13, 
2017) (SR-NYSE-2017-64). On June 14, 2018, the Exchange requested 
another extension of the exemption for the Program. See Letter from 
Martha Redding, Associate General Counsel and Assistant Secretary, 
NYSE to Brent J. Fields, Secretary, Commission, dated June 14, 2018. 
The pilot period for the Program was extended until December 31, 
2018. See Securities Exchange Act Release No. 83540 (June 28, 2018), 
83 FR 31234 (July 3, 2018) (SR-NYSE-2018-29).
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    The Exchange now seeks a six month extension of the exemption, 
which would be until June 30, 2019.\5\ The Exchange's request was made 
in

[[Page 64167]]

conjunction with an immediately effective filing that extends the 
operation of the Program through the same date.\6\ In its request to 
extend the exemption, the Exchange notes that the participation in the 
Program has increased more recently with additional Retail Liquidity 
Providers. Accordingly, the Exchange has asked for additional time to 
both allow for additional opportunities for greater participation in 
the Program and allow for further assessment of the results of such 
participation. For this reason and the reasons stated in the Order 
originally granting the limited exemptions, the Commission finds that 
extending the exemption, pursuant to its authority under Rule 612(c) of 
Regulation NMS, is appropriate in the public interest and consistent 
with the protection of investors.
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    \5\ See Letter from Martha Redding, Associate General Counsel 
and Assistant Secretary, NYSE to Brent J. Fields, Secretary, 
Commission, dated November 30, 2018, at 1.
    \6\ See SR-NYSE-2018-59.
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    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612 of Regulation NMS that allows it to accept and rank orders priced 
equal to or greater than $1.00 per share in increments of $0.001, in 
connection with the operation of its Retail Liquidity Program, until 
June 30, 2019.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the Federal securities 
laws must rest with the persons relying on the exemptions that are the 
subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(83).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2018-27018 Filed 12-12-18; 8:45 am]
BILLING CODE 8011-01-P