Document ID: SEC-2017-1429-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2017-08-23T04:00Z

[Federal Register Volume 82, Number 162 (Wednesday, August 23, 2017)]
[Notices]
[Pages 40055-40057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17809]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81420; File No. SR-NYSE-2017-41]

Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Change in 
Connection With the Name Change of Its Affiliate, From NYSE MKT LLC to 
NYSE American LLC

August 17, 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 August 9, 2017, New York Stock Exchange LLC (``NYSE'' or 
the ``Exchange'') 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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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes in connection with the name change of its 
affiliate, from NYSE MKT LLC to NYSE American LLC, to amend certain 
rules, the Independence Policy of the Board of Directors 
(``Independence Policy''), the New York Stock Exchange Price List 
(``Price List''), and the NYSE Proprietary Market Data Fees (``Market 
Data Fees'') to reflect that name change. 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes, in connection with the name change of its 
affiliate, from NYSE MKT LLC (``NYSE MKT'') to NYSE American LLC 
(``NYSE American''), to amend certain rules of the Exchange, the 
Independence Policy, Price List, and Market Data Fees to reflect that 
name change.\4\
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    \4\ The Exchange originally filed the proposed changes on July 
21, 2017 (SR-NYSE-2017-37), withdrew such filing on July 27 and 
refiled the same day (SR-NYSE-2017-39). The Exchange subsequently 
withdrew SR-NYSE-2017-39 and refiled on August 2, 2017 (SR-NYSE-
2017-40). SR-NYSE-2017-40 was subsequently withdrawn and replaced by 
this filing.
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Background
    On March 16, 2017, NYSE MKT filed rule changes with the Commission 
in connection with its name change to NYSE American.\5\ In addition, on 
May 19, 2017, NYSE MKT filed rule changes with the Commission 
associated with the rebranding of NYSE Amex Options, the Exchange's 
facility for trading options, to NYSE American Options.\6\ The NYSE MKT 
name change to NYSE American became operative on July 24, 2017. 
Accordingly, the Exchange proposes to amend the Independence Policy, 
Price List, Market Data Fees, and certain rules to [sic] as detailed 
below to reflect the new name of its affiliate, NYSE American.
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    \5\ See Securities Exchange Act Release No.80283 (March 21, 
2017), 82 FR 15244 (March 27, 2017) (SR-NYSEMKT-2017-14).
    \6\ See Securities Exchange Act Release No. 80748 (May 23, 
2017), 82 FR 24764 (May 30, 2017) (SR-NYSEMKT 2017-20).
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Proposed Rule Changes
     The Exchange proposes to replace ``NYSE MKT LLC'' with 
``NYSE American LLC'' in Rule 2, Supplementary Material .10 
(``Member'', ``Membership'', ``Member Firm'', etc.); Rule 17(c)(2) (Use 
of Exchange Facilities and Vendor Services); Rule 18, Supplementary 
Material .10(a) (Compensation in Relation to Exchange System Failure); 
Rule 70, Supplementary Material .40(3) (Execution of Floor Broker 
Interest); Rule 98 (c)(6) (Operation of a DMM Unit); Rule 103, 
Supplementary Material .20(b)(6) (Registration and Capital Requirements 
of DMMs and DMM Units); and Rule 103B(IX) (Security Allocation and 
Reallocation).
     The Exchange proposes to replace ``NYSE MKT'' with ``NYSE 
American'' in Rule 2, Supplementary Material .10 and .20; Rule 
17(c)(2); Rule 18, Supplementary Material .10; Rule 36, Supplementary 
Material .70(a)(iii) (Communications Between Exchange and Members' 
Officers); Rule 70, Supplementary Material .40(3); Rule 103, 
Supplementary Material .20(b)(6); and Rule 103B(IX).
     The Exchange proposes to replace ``NYSE Amex Options 
Trading Floor'' with ``NYSE American Options Trading Floor'' in Rule 
6A(b)(``Trading Floor'') and Rule 36, Supplementary Material .23 and 
.70(a).
     The Exchange proposes to replace ``NYSE Amex'' with ``NYSE 
American'' in Rule 36, Supplementary Material .23 and .70(a).
     The Exchange proposes to replace ``NYSE Amex-listed'' with 
``NYSE American-listed'' in Rule 6A.

[[Page 40056]]

     In Rule 70, Supplementary Material .40(3), the Exchange 
proposes to replace ``NYSE Amex option'' with ``NYSE American option.''
     In Rule 300, Supplementary Material .10T (Trading 
Licenses), the Exchange proposes to replace ``NYSE Amex LLC'' and 
``NYSE Amex'' with ``NYSE American LLC'' and ``NYSE American'', 
respectively.
Proposed Changes to Independence Policy, Price List, and Market Data
     Independence Policy: The Exchange proposes to replace 
``NYSE MKT LLC'' with ``NYSE American LLC'' throughout the Independence 
Policy.\7\ Additionally, the Exchange proposes to replace ``[Insert 
name of relevant NYSE U.S. Regulated Subsidiary]'' with ``New York 
Stock Exchange LLC.'' The text being replaced was used in prior filings 
because several entities used the same Independence Policy.\8\
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    \7\ In addition, the Exchange proposes to delete footnote 2 of 
the Independence Policy, which has an obsolete reference to NYSE 
Regulation, Inc. (``NYSE Regulation''). NYSE Regulation and NYSE 
Market (DE), Inc. (``NYSE Market (DE)'') were previously parties to 
a Delegation Agreement whereby the Exchange delegated certain 
regulatory functions to NYSE Regulation and certain market functions 
to NYSE Market (DE). The Delegation Agreement was terminated when 
the Exchange re-integrated its regulatory and market functions. As a 
result, the two entities ceased being regulated subsidiaries, and 
NYSE Regulation was merged out of existence. See Securities Exchange 
Act Release No. 75991 (September 28, 2015), 80 FR 59837.
    \8\ Prior to the termination of the Delegation Agreement, the 
same Independence Policy applied to the Exchange, NYSE MKT LLC, NYSE 
Market (DE), and NYSE Regulation. See Securities Exchange Act 
Release Nos. 72156 (May 13, 2014), 79 FR 28782 (May 19, 2014) (SR-
NYSEMKT-2014-41); 67564 (August 1, 2012), 77 FR 47161 (August 7, 
2012) (SR-NYSE-2012-17; SR-NYSEArca-2012-59; SR-NYSEMKT-2012-07).
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     Price List: The Exchange proposes to replace ``NYSE MKT'' 
with ``NYSE American'' throughout the Price List. Additionally, under 
``Co-Location Fees,'' the Exchange proposes to replace ``NYSE MKT LLC'' 
with ``NYSE American LLC'' in General Note 1. The Exchange also 
proposes to replace ``NYSE Amex Options'' with ``NYSE American 
Options'' in the chart in General Note 4.
     Market Data Fees: In footnote 5, the Exchange proposes to 
replace ``NYSE MKT BBO'' and ``NYSE MKT Trades'' with ``NYSE American 
BBO'' and ``NYSE American Trades,'' respectively, and to replace ``NYSE 
MKT Proprietary Market Data Fees'' with ``NYSE American Proprietary 
Market Data Fees.''
    None of the foregoing changes are substantive.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Exchange Act,\9\ in general, and with Section 
6(b)(1) \10\ 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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    \9\ 15 U.S.C. 78f(b).
    \10\ 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, 
Independence Policy, Price List, and Market Data Fees accurately 
reflect the name change of its affiliate from NYSE MKT to NYSE American 
would contribute to the orderly operation of the Exchange by adding 
clarity and transparency to such rules, Independence Policy, Price 
List, and Market Data Fees.
    For similar reasons, the Exchange also believes that the proposed 
rule change is consistent with Section 6(b)(5) of the Act,\11\ 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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    \11\ 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, 
Independence Policy, Price List, and Market Data Fees. The Exchange 
believes that, by ensuring that such documents and rulebook accurately 
reflect the name change of its affiliate from NYSE MKT to NYSE 
American, the proposed rule change would reduce potential investor or 
market participant confusion.
    The Exchange believes that the proposed changes to replace 
``[Insert name of relevant NYSE U.S. Regulated Subsidiary]'' with ``New 
York Stock Exchange LLC'' in the Independence Policy would contribute 
to the orderly operation of the Exchange by adding clarity and 
transparency to such document.
    Further, the Exchange believes that the proposed deletion of 
footnote two of the Independence Policy would remove impediments to, 
and perfect the mechanism of a free and open market and a national 
market system and, in general, protect investors and the public 
interest because the change would eliminate an obsolete reference to 
NYSE Regulation, thereby reducing potential confusion. Market 
participants and investors would not be harmed and in fact could 
benefit from the increased clarity and transparency in the Independence 
Policy, ensuring that market participants could more easily understand 
the Independence Policy.

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, Independence Policy, Price 
List, and Market Data Fees to reflect its affiliates [sic] name change 
from NYSE MKT to NYSE American and NYSE Amex Options to NYSE American 
Options.

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 \12\ and Rule 19b-4(f)(3) \13\ thereunder. 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

[[Page 40057]]

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) \14\ of the Act to determine whether the proposed rule 
change should be approved or disapproved.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(3).
    \14\ 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-NYSE-2017-41 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-NYSE-2017-41. 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-NYSE-2017-41 and should be 
submitted on or before September 13, 2017.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-17809 Filed 8-22-17; 8:45 am]
BILLING CODE 8011-01-P