[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)]
[Notices]
[Pages 3067-3068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00220]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79736; File No. SR-NYSE-2016-44]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Designation of a Longer Period for Commission Action on 
Proceedings To Determine Whether To Approve or Disapprove a Proposed 
Rule Change, as Modified by Amendments No. 1 and 2, Allowing the 
Exchange To Trade Pursuant to Unlisted Trading Privileges any NMS Stock 
Listed on Another National Securities Exchange; Establishing Listing 
and Trading Requirements for Exchange Traded Products; and Adopting New 
Equity Trading Rules Relating To Trading Halts of Securities Traded 
Pursuant to UTP on the Pillar Platform

January 4, 2017.
    On June 30, 2016, New York Stock Exchange LLC (``Exchange'') 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) allow 
the Exchange to trade pursuant to unlisted trading privileges (``UTP'') 
any NMS Stock listed on another national securities exchange; (2) 
establish listing and trading requirements for exchange-traded products 
(``ETPs''); and (3) adopt new equity trading rules relating to trading 
halts of securities traded pursuant to UTP on the Pillar platform. The 
proposed rule change was published for comment in the Federal Register 
on July 14, 2016.\3\ On July 26, 2016, the Exchange filed Amendment

[[Page 3068]]

No. 1 to the proposed rule change.\4\ On August 23, 2016, pursuant to 
Section 19(b)(2) of the Act,\5\ the Commission designated a longer 
period within which to approve the proposed rule change, disapprove the 
proposed rule change, or institute proceedings to determine whether to 
disapprove the proposed rule change.\6\ On August 26, 2016, the 
Exchange filed Amendment No. 2 to the proposed rule change.\7\ On 
October 12, 2016, the Commission instituted proceedings under Section 
19(b)(2)(B) of the Act \8\ to determine whether to approve or 
disapprove the proposed rule change.\9\ The Commission has received no 
comments on the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 78263 (July 8, 
2016), 81 FR 45580 (July 14, 2016).
    \4\ In Amendment No. 1, the Exchange: (1) Added a bullet point 
stating that ``[b]ecause the Exchange's rules regarding the 
production of books and records are described in Rule 440, the 
Exchange is proposing to refer to Rule 440 in its proposed rules 
wherever NYSE Arca Equities Rule 4.4 is referenced in the rules of 
NYSE Arca Equities proposed in this filing;'' (2) deleted the 
sentence stating, ``If an exchange has approved trading rules, 
procedures and listing standards in place that have been approved by 
the Commission for the product class that would include a new 
derivative securities product, the listing and trading of such `new 
derivative securities product,' does not require a proposed rule 
change under Section 19b-4 of the Act'' and made conforming changes 
to the rest of that paragraph; (3) deleted the bullet point that 
stated, ``Correction of a typographical error in NYSE Arca Equities 
Rule 8.400(a) so that proposed Rule 8.400(a) reads `as such terms 
are used in Rule 5.1(b)' in the last sentence, rather than `as such 
terms are used in the Rule 5.1(b)' as is currently drafted in NYSE 
Arca Equities Rule 8.400(a)''; and (4) noted that ``for new ETPs to 
be traded pursuant to UTP, which are listed and traded on another 
exchange pursuant to Rule 19b-4(e), the Exchange would be required 
to file Form 19b-4(e) with the Commission in accordance with the 
requirements therein.'' Amendment No. 1 is available at: https://www.sec.gov/comments/sr-nyse-2016-44/nyse201644-1.pdf. Because 
Amendment No. 1 to the proposed rule change does not materially 
alter the substance of the proposed rule change or raise unique or 
novel regulatory issues, Amendment No. 1 is not subject to notice 
and comment.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 78641, 81 FR 59259 
(Aug. 29, 2016).
    \7\ In Amendment No. 2, the Exchange: (1) Added the clause 
``pursuant to UTP'' at the end of the sentence that states, ``The 
Exchange would have to file a Form 19b-4(e) with the Commission to 
trade these ETPs;'' (2) in the first footnote that follows that 
sentence, deleted the clause ``pursuant to Rule 19b-4(e);'' and (3) 
at the end of that same footnote, added the reference, ``See 
proposed Rule 5.1(a)(2); supra note 19 and accompanying text.'' 
Amendment No. 2 is available at: https://www.sec.gov/comments/sr-nyse-2016-44/nyse201644-2.pdf. Because Amendment No. 2 to the 
proposed rule change does not materially alter the substance of the 
proposed rule change or raise unique or novel regulatory issues, 
Amendment No. 2 is not subject to notice and comment.
    \8\ 15 U.S.C. 78s(b)(2)(B).
    \9\ See Securities Exchange Act Release No. 79085, 81 FR 71771 
(Oct. 18, 2016). Specifically, the Commission instituted proceedings 
to allow for additional analysis of the proposed rule change's 
consistency with Section 6(b)(5) of the Act, which requires, among 
other things, that the rules of a national securities exchange be 
``designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade,'' and 
``to protect investors and the public interest.'' See id. at 71772.
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    Section 19(b)(2) of the Act \10\ provides that, after initiating 
disapproval 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 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 July 14, 2016. January 10, 2017 is 180 days from 
that date, and March 11, 2017 is 240 days from that date.
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    \10\ 15 U.S.C. 78s(b)(2).
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    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 this proposed 
rule change. Accordingly, the Commission, pursuant to Section 19(b)(2) 
of the Act,\11\ designates March 11, 2017 as the date by which the 
Commission shall either approve or disapprove the proposed rule change 
(File No. SR-NYSE-2016-44).
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    \11\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(57).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-00220 Filed 1-9-17; 8:45 am]
 BILLING CODE 8011-01-P