[Federal Register Volume 81, Number 237 (Friday, December 9, 2016)]
[Notices]
[Pages 89166-89167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29464]



[[Page 89166]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79466; File No. SR-NYSEArca-2016-154]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Its Rules 
Governing Business Continuity and Disaster Recovery Planning

December 5, 2016.
    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 22, 2016, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') 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 Exchange. 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 its rules governing business 
continuity and disaster recovery planning to delete Rule 2.100 
(Emergency Powers) as obsolete. 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 its rules governing business 
continuity and disaster recovery planning to delete Rule 2.100 
(Emergency Powers) (``Rule 2.100'') as obsolete.
    Rule 2.100 provides that if a qualified officer of an Affiliated 
Exchange declares an emergency condition under the rules of that 
Affiliated Exchange, a qualified Exchange officer may authorize the 
Exchange to perform the functions specified in the rule. Specifically, 
on the next trading day following the declaration of the Emergency 
Condition, the Exchange will, on behalf of and at the direction of the 
Affiliated Exchange, disseminate: (i) The official opening, re-opening, 
and closing trades of Affiliated Exchange-listed securities as messages 
of the Affiliated Exchange; and (ii) any notification for Affiliated 
Exchange-listed securities to the Consolidated Quotation System of a 
regulatory halt and resumption of trading thereafter, trading pause and 
resumption of trading thereafter, and Short Sale Price Test trigger and 
lifting thereafter, as messages of the Affiliated Exchange.
    On September 29, 2016, the Commission approved amendments to the 
Affiliated Exchanges' business continuity and disaster recovery plans, 
as described in NYSE Rule 49 and NYSE MKT Rule 49--Equities.\4\ On 
November 5 and 19, 2016, the Affiliated Exchanges held the mandatory 
testing sessions for the operation of New Rule 49.\5\ NYSE and NYSE MKT 
have determined that those tests were successful and are simultaneously 
filing proposed rule changes to delete the versions of NYSE Rule 49 and 
NYSE MKT Rule 49--Equities that reference Rule 2.100.\6\ The Exchange 
therefore proposes to delete Rule 2.100 as obsolete, operative for 
November 23, 2016, the same day that NYSE and NYSE MKT propose as the 
operative date for New Rule 49.
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    \4\ See Securities Exchange Act Release No. 78916 (September 23, 
2016), 81 FR 67029 (September 29, 2016) (SR-NYSE-2016-48) and No. 
78917 (September 23, 2016), 81 FR 67036 (September 29, 2016) (SR-
NYSEMKT-2016-68) (approval orders).
    \5\ The Affiliated Exchanges announced by Trader Update that 
industry tests would be held on November 5, 2016 and November 19, 
2016. See NYSE Trader Updates, dated September 9 and 16, 2016, 
available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_and_NYSE_MKT_DR_Trader_Update_Final.pdf and https://www.nyse.com/publicdocs/nyse/markets/nyse/DR_Testing.pdf.
    \6\ The Affiliated Exchanges have submitted proposed rule 
changes to amend their rules governing business continuity and 
disaster recovery. See SR-NYSE-2016-81 and SR-NYSEMKT-2016-109.
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    In addition to this proposed rule change, the Exchange proposes to 
announce the operative date of November 23, 2016 via Trader Update.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\7\ in general, and furthers the objectives of Section 6(b)(5) of 
the Act,\8\ in particular, 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, and 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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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    In particular, the Exchange believes that amending its rules to 
remove an obsolete rule that is no longer operative after the 
Affiliated Exchanges have implemented New Rule 49 would promote the 
protection of investors and the public interest because it would 
promote clarity and transparency on the Exchange rules governing the 
Exchange's and the Affiliated Exchanges' business continuity and 
disaster recovery planning. The Exchange further believes that deleting 
the obsolete rule would remove impediments to and perfect the mechanism 
of a national market system because these proposed changes would add 
greater clarity to the Exchange's rules and promote market transparency 
and efficiency.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
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 designed to address competitive issues but rather is designed to 
delete a rule that is obsolete now that the Affiliated Exchanges have 
implemented New Rule 49.

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 proposed rule change does not: (i) Significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become

[[Page 89167]]

operative prior to 30 days from the date on which it was filed, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) 
thereunder.\9\
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    \9\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \10\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. According to 
the Exchange, the proposal would delete an obsolete rule that 
corresponded to rules that have been deleted by the Affiliated 
Exchanges. The Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Therefore, the Commission hereby waives the 30-day operative 
delay and designates the proposed rule change to be operative upon 
filing with the Commission.\12\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 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 to 
determine whether the proposed rule change should be approved or 
disapproved.

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-NYSEArca-2016-154 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-NYSEArca-2016-154. 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-NYSEArca-2016-154 and should 
be submitted on or before December 30, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-29464 Filed 12-8-16; 8:45 am]
 BILLING CODE 8011-01-P