Document ID: SEC-2017-0301-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE MKT LLC
Posted Date: 2017-02-27T05:00Z

[Federal Register Volume 82, Number 37 (Monday, February 27, 2017)]
[Notices]
[Page 11959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03797]

[[Page 11959]]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80077; File No. SR-NYSEMKT-2016-63]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of 
Designation of Longer Period for Commission Action on Proceedings To 
Determine Whether To Approve or Disapprove a Proposed Rule Change, as 
Modified by Amendment Nos. 1-4, To Amend the Co-location Services 
Offered by the Exchange To Add Certain Access and Connectivity Fees

February 22, 2017.
    On August 16, 2016, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
(1) provide additional information regarding access to various NYSE 
trading and execution services and establish fees for connectivity to 
certain NYSE market data feeds; and (2) provide and establish fees for 
connectivity to data feeds from third party markets and other content 
service providers; access to the trading and execution services of 
Third Party markets and other content service providers; connectivity 
to Depository Trust & Clearing Corporation services; connectivity to 
third party testing and certification feeds; and the use of virtual 
control circuits by Users in the Data Center.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    The Commission published the proposed rule change for comment in 
the Federal Register on August 26, 2016.\3\ The Commission received no 
comments in response to the proposed rule change.\4\ On October 4, 
2016, the Commission extended the time period within which to approve 
the proposed rule change, disapprove the proposed rule change, or 
institute proceedings to determine whether to approve or disapprove the 
proposed rule change to November 24, 2016.\5\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 34-78629 (August 22, 
2016), 81 FR 58992 (``Notice'').
    \4\ The Commission notes that it did receive one comment letter 
on a related filing, NYSE-2016-45 (the ``NYSE Companion Filing''), 
which is equally relevant to this filing. See letter to Brent J. 
Fields, Secretary, Commission, from John Ramsay, Chief Market Policy 
Officer, Investors Exchange LLC (IEX), dated September 9, 2016 
(``IEX Letter I'').
     On September 23, 2016, the NYSE submitted a response 
(``Response Letter I'').
    \5\ See Securities Exchange Act Release No. 34-78968 (September 
28, 2016), 81 FR 68493.
---------------------------------------------------------------------------

    On November 2, 2016, the Exchange filed Amendment No. 1 to the 
proposed rule change.\6\ On November 29, 2016, the Commission 
instituted proceedings to determine whether to approve or disapprove 
the proposed rule change, as modified by Amendment No. 1.\7\ Following 
the Order Instituting Proceedings, the Commission received several 
additional comment letters regarding the proposed rule change.\8\
---------------------------------------------------------------------------

    \6\ Amendment No. 1 is available on the Commission's Web site at 
https://www.sec.gov/comments/sr-nysemkt-2016-63/nysemkt201663-1.pdf.
    \7\ See Securities Exchange Act Release 34-79378 (November 22, 
2016), 81 FR 86050.
    \8\ See letter to Brent J. Fields, Commission, from Melissa 
MacGregor, Managing Director and Associate General Counsel, SIFMA, 
dated December 12, 2016 (``SIFMA Letter I''); letter to Brent J. 
Fields, Commission, from Joe Wald, Chief Executive Officer, 
Clearpool Group, dated December 16, 2016 (``Clearpool Letter''); 
letter to Brent J. Fields, Secretary, Commission, from John Ramsay, 
Chief Market Policy Officer, Investors Exchange LLC (IEX), dated 
December 21, 2016 (``IEX Letter II''); letter to Brent J. Fields, 
Commission, from Melissa MacGregor, Managing Director and Associate 
General Counsel, SIFMA, dated February 6, 2017 (``SIFMA Letter 
II''). All comments received by the Commission on the proposed rule 
change are available on the Commission's Web site at: https://www.sec.gov/comments/sr-nysemkt-2016-63/nysemkt201663.shtml.
     The Commission notes that it did receive additional comment 
letters on the NYSE Companion Filing which are equally relevant to 
this filing. See letter to Brent J. Fields, Commission, from Adam C. 
Cooper, Senior Managing Director and Chief Legal Officer, Citadel 
Securities, dated December 12, 2016 (``Citadel Letter''); letter to 
Brent J. Fields, Commission, from David L. Cavicke, Chief Legal 
Officer, Wolverine LLC (``Wolverine Letter''); letter to Bent J. 
Fields, Secretary, Commission, from Stefano Durdic, Managing 
Director, R2G Services, LLC, dated January 21, 2017 (``R2G 
Letter''). All comments received by the Commission on the NYSE 
Companion Filing are available on the Commission's Web site at: 
https://www.sec.gov/comments/sr-nyse-2016-45/nyse201645.shtml.
---------------------------------------------------------------------------

    On December 9, 2016, the Exchange filed Amendment No. 2 to the 
proposed rule change and on December 13, 2016 also filed Amendment No. 
3 to the proposed rule change.\9\ Amendment Nos. 2 and 3, which, 
together supersede and replace the proposed rule change, as modified by 
Amendment No. 1, in its entirety, were published for comment in the 
Federal Register on December 29, 2016.\10\ On January 17, 2017, the 
Exchange responded to the comment letters submitted after the OIP and 
prior to January 17, 2017.\11\ On February 7, 2017, the Exchange filed 
Amendment No. 4 to the proposed rule change.\12\ On February 13, 2017, 
the Exchange responded to a comment letter submitted after January 17, 
2017.\13\
---------------------------------------------------------------------------

    \9\ The Commission notes that the Exhibit 5 filed with Amendment 
No. 2 contained erroneous rule text and therefore was corrected in 
Amendment No. 3. Amendment Nos. 2 and 3 are available at https://www.sec.gov/comments/sr-nysemkt-2016-63/nysemkt201663.shtml.
    \10\ See Securities Exchange Act Release No. 34-79672 (December 
22, 2016), 81 FR 96080 (``Notice of Current Proposal'').
    \11\ See NYSE Response Letter II (``Response Letter II''), 
available at https://www.sec.gov/comments/sr-nyse-2016-45/nyse201645-1502013-130586.pdf. The R2G and SIFMA II Letters, supra 
note 8, were submitted after the Response Letter II. The Commission 
notes that in footnote 4 of Response Letter II the Exchange notes 
that its response to commenters on the NYSE Companion Filing applies 
equally to this filing.
    \12\ Amendment No. 4, as filed by the Exchange, is available at 
https://www.sec.gov/comments/sr-nysemkt-2016-63/nysemkt201663-1570727-131699.pdf.
    \13\ See NYSE Response Letter III (``Response Letter III''), 
available at https://www.sec.gov/comments/sr-nyse-2016-45/nyse201645-1580192-131885.pdf.
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \14\ provides that, after initiating 
proceedings, the Commission shall issue an order approving or 
disapproving the proposed rule change not later than 180 days after the 
date of publication of notice of the filing of the proposed rule 
change. The Commission may extend the period for issuing an order 
approving or disapproving the proposed rule change, however, by not 
more than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for such determination. The 
proposed rule change was published for notice and comment in the 
Federal Register on August 26, 2016.\15\ February 22, 2017 is 180 days 
from that date, and April 23, 2017 is an additional 60 days from that 
date.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(2).
    \15\ See supra note 3.
---------------------------------------------------------------------------

    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider the proposed 
rule change, as modified by Amendment Nos. 1-4, the issues raised in 
the comment letters that have been submitted in connection therewith, 
and the Exchange's response to the comments.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\16\ designates April 23, 2017 as the date by which the Commission 
should either approve or disapprove the proposed rule change, as 
modified by Amendments Nos. 1-4.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

    \17\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03797 Filed 2-24-17; 8:45 am]
 BILLING CODE 8011-01-P