[Federal Register Volume 80, Number 235 (Tuesday, December 8, 2015)]
[Notices]
[Pages 76343-76344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30836]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76539; File No. SR-NYSE-2015-61]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending Rule 132 To Delete Supplementary Material .40 Requiring 
Members Effecting Transactions on the NYSE Trading Floor To Submit 
Certain Data Elements and Badge Information and To Make a Conforming 
Change

 December 2, 2015.
    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 November 20, 2015, 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, 
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 to amend Rule 132 to delete Supplementary 
Material .40 requiring members effecting transactions on the NYSE 
trading Floor (the ``Trading Floor'') to submit certain data elements 
and badge information and to make a conforming change. The proposed 
rule 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 to amend Rule 132 to delete Supplementary 
Material .40, which requires members to submit certain data elements 
and badge information for transactions effected on the Trading Floor 
and to make a conforming change.
    Rule 132 requires clearing member organizations submitting a 
transaction to comparison to include the audit trail data elements set 
forth in Supplementary Material .30, including a specification of the 
account type for which the transaction was effected according to 
defined account categories. Consistent with this requirement, 
Supplementary Material .40 requires members \4\ effecting transactions 
on the Trading Floor as agent or otherwise to supply these audit trail 
data elements to their clearing member organization and to promptly 
provide the reporter in the Crowd (or other designated Exchange 
representative) with the member's broker badge number or alpha symbol.
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    \4\ Under Rule 2(a), a member is a natural person associated 
with a member organization and in the context of Rule 132.40, refers 
to Floor brokers only.
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    The Exchange proposes to delete Rule 132.40 as obsolete. Rule 
132.40 was adopted at a time when manual transactions on the Trading 
Floor were recorded on paper order tickets. The rule was designed to 
improve trade documentation and ensure that broker badge information 
was captured correctly for Crowd trades (i.e., verbal executions 
between two Floor brokers or between a Floor broker and a specialist). 
Currently, however, all information regarding transactions at the 
Exchange, including the audit trail data elements of Rule 132.30 and 
badge information for manual transactions, is captured and transmitted 
electronically by Exchange systems. Because these data elements no 
longer need to be separately submitted by members, Rule 132.40 is 
obsolete and therefore can be deleted.
    The Exchange also proposes to amend Rule 9217, which sets forth the 
list of rules under which a member organization or covered person may 
be subject to a fine under a minor rule violation plan as set forth in 
Rule 9216(b). Rule 9217 permits a summary fine for failures to collect 
and/or submit all audit trail data specified in Rule 132. The Exchange 
proposes to delete the clause ``and/or submit'' to reflect elimination 
of the submission requirement set forth in Supplementary Material .40 
of Rule 132. The Exchange believes this proposed change will add 
transparency and clarity to the Exchange's rules.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\6\ in particular, because it 
is designed to prevent fraudulent and manipulative acts and practices, 
promote just and equitable principles of trade, remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system, and protect investors and the

[[Page 76344]]

public interest. In particular, the Exchange believes that deleting 
rule text relating to a requirement that is obsolete, i.e., to manually 
submit and transmit information that Exchange systems now capture and 
transmit electronically, removes impediments to and perfects the 
mechanism of a free and open market by simplifying its rulebook and 
removing confusion that may result from having obsolete rules in the 
Exchange's rulebook. The Exchange further believes that the proposal 
removes impediments to and perfects the mechanism of a free and open 
market by ensuring that persons subject to the Exchange's jurisdiction, 
regulators, and the investing public can more easily navigate and 
understand the Exchange's rulebook. The Exchange also believes that 
eliminating obsolete rules 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 as to 
which rules are operable, thereby reducing potential confusion. 
Similarly, the Exchange believes that removing a cross-reference to 
obsolete requirements would remove impediments to and perfect the 
mechanism of a free and open market because it would reduce potential 
confusion that may result from having such cross references in the 
Exchange's rulebook. Removing such obsolete cross references will also 
further the goal of transparency and add clarity to the Exchange's 
rules.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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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 to eliminate 
obsolete data submission requirements for trades on its Trading Floor.

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

    Because the foregoing proposed rule 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 if consistent with the protection of 
investors and the public interest, provided that the self-regulatory 
organization has given the Commission written notice of its intent to 
file 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,\7\ the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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    \7\ The Exchange has fulfilled this requirement.
    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of such 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 under 
Section 19(b)(2)(B)\10\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \10\ 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 [email protected]. Please include 
File Number SR-NYSE-2015-61 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2015-61. 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 will also be available 
for Web site viewing and printing at the NYSE's principal office and on 
its Internet Web site at www.nyse.com. 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-2015-61 and should be submitted on 
or before December 29, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Robert W. Errett,
Deputy Secretary.
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    \11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2015-30836 Filed 12-7-15; 8:45 am]
 BILLING CODE 8011-01-P