[Federal Register Volume 82, Number 135 (Monday, July 17, 2017)]
[Notices]
[Pages 32745-32749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14885]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81115; File No. SR-NYSEMKT-2017-38]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change To Amend Exchange Rules 
To Eliminate ALO and Day ISO Orders and Related Functionality, Provide 
That All Pegged Orders Would Be Non-Displayed Orders, Change References 
From ``NYSE MKT'' to ``NYSE American,'' and Add the Definition of 
``NYSE American Marketplace''

July 11, 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 June 29, 2017, NYSE MKT LLC (the ``Exchange'' or ``NYSE 
MKT'') 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 to amend Exchange rules to (1) eliminate ALO 
and Day ISO orders and related functionality; (2) provide that all 
Pegged Orders would be non-displayed orders; (3) change references from 
``NYSE MKT'' to ``NYSE American''; (4) add the definition of ``NYSE 
American Marketplace''; and (5) make other conforming rule changes. 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 these 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 Exchange rules to (1) eliminate Add 
Liquidity Only (``ALO'') Orders and Day Intermarket Sweep Orders 
(``ISO'') and related functionality; (2) provide that all Pegged Orders 
would be non-displayed orders; (3) change references from ``NYSE MKT'' 
to ``NYSE American''; (4) add the definition of ``NYSE American 
Marketplace''; and (5) make other conforming rule changes.
    To effect its transition to Pillar, the Exchange has adopted the 
rule numbering framework of the NYSE Arca Equities, Inc. (``NYSE Arca 
Equities'') rules for Exchange cash equities trading on the Pillar 
trading platform.\4\ As described in the Framework Filing, the Exchange 
is denoting the rules applicable to cash equities trading on Pillar 
with the letter ``E'' to distinguish such rules from current Exchange 
rules with the same numbering. The Exchange's trading rules for cash 
equity trading on Pillar are also based on the trading rules of NYSE 
Arca Equities.\5\ As described in the Trading Rules Filing, with 
Pillar, the Exchange will transition its cash equities trading platform 
from a Floor-based market with a parity allocation model to a fully 
automated price-time priority allocation model that trades all NMS 
Stocks. In addition, the Exchange will introduce a delay mechanism on 
Pillar that will add the equivalent of 350 microseconds of latency to 
inbound and outbound order messages, as described in greater detail in 
Rules 1.1E(y) and 7.29E(b).\6\
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    \4\ See Securities Exchange Act Release No. 79242 (November 4, 
2016), 81 FR 79081 (November 10, 2016) (SR-NYSEMKT-2016-97) (Notice 
and Filing of Immediate Effectiveness of Proposed Rule Change) (the 
``Framework Filing''). In addition, the Exchange has filed a 
proposed rule change to support Exchange trading of securities 
listed on other national securities exchanges on an unlisted trading 
privileges basis, including Exchange Traded Products (``ETP'') 
listed on other exchanges. See Securities Exchange Act Release Nos. 
79400 (November 25, 2016), 81 FR 86750 (December 1, 2016) (SR-
NYSEMKT-2016-103) (Notice) and 81038 (June 28, 2017) (SR-NYSEMKT-
2016-103) (Approval Order) (the ``ETP Listing Rules Filing'').
    \5\ See Securities Exchange Act Release Nos. 80590 (May 4, 
2017), 82 FR 21843 (May 10, 2017) (Approval Order) and 79993 
(February 9, 2017), 82 FR 10814 (February 15, 2017) (SR-NYSEMKT-
2017-01) (Notice) (``Trading Rules Filing''). The Exchange also has 
established market maker obligations when trading on the Pillar 
trading platform. See Securities Exchange Act Release No. 80577 (May 
2, 2017), 82 FR 21446 (May 8, 2017) (SR-NYSEMKT-2017-04) (Approval 
Order).
    \6\ See Securities Exchange Act Release Nos. 80700 (May 16, 
2017), 82 FR 23381 (May 22, 2017) (SR-NYSEMKT-2017-05) (Approval 
Order) and 79998 (February 9, 2017), 82 FR 10828 (February 15, 2017) 
(SR-NYSEMKT-2017-05) (Notice) (``Delay Mechanism Filing'').
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    In the Delay Mechanism Filing, the Exchange represented that in 
conjunction with implementing the Delay Mechanism, it would no longer 
offer ALO or Day ISO functionality and all Pegged Orders would not be 
displayed.\7\ Because the Exchange has

[[Page 32746]]

not yet transitioned to Pillar, the Exchange proposes to amend its 
rules relating to ALO, Day ISO, and Pegged Orders before transitioning 
to Pillar, as described in the Delay Mechanism Filing, so that it can 
implement the Delay Mechanism when it transitions to Pillar. The 
Exchange proposes additional amendments to its rules, described below, 
before implementing the Pillar trading platform.
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    \7\ Rule 7.31E (Orders and Modifiers) currently describes ALO 
Orders, Day ISO Orders, and Pegged Orders. These order types are 
based on NYSE Arca Equities ALO, Day ISO, and Pegged Orders, 
including that Primary Pegged Orders are required to have a minimum 
display quantity. In the Delay Mechanism Filing, the Exchange 
represented that, before implementing the Delay Mechanism, the 
Exchange would file a separate proposed rule change to eliminate ALO 
and Day ISO Orders and related functionality and to provide that 
Primary Pegged Orders would not be displayed.
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Proposed Rule Changes
    To eliminate ALO Orders, the Exchange proposes to delete rule text 
relating to ALO Orders and Non-Display Remove Modifiers, which is 
functionality that is operative only in conjunction with a contra-side 
incoming ALO Order. The Exchange would make the following changes to 
its rules:
     Delete Rule 7.31E(e)(2) and its subparagraphs, which 
describe ALO Orders, and replace that section of the Rule with the term 
``Reserved.''
     Delete Rule 7.31E(d)(2)(B), which provides that Limit Non-
Display Orders may be designated with a Non-Display Remove Modifier.
     Delete the last sentence of Rule 7.31E(d)(3)(E) and Rules 
7.31E(d)(3)(F) and (G), which describe MPL-ALO Orders and related Non-
Display Remove Modifier functionality.
     Delete Rule 7.31E(e)(1)(C), which provides that an MKT 
Only Order may be designated with a Non-Display Remove Modifier.
     Amend Rule 7.31E(j)(1) to delete the reference to ``ALO 
Order.''
     Amend Rules 7.46E(f)(5)(F)(ii) and (iii) to delete 
references to ALO Orders.
    To effect the changes described in the Delay Mechanism Filing to 
eliminate Day ISO Orders, the Exchange proposes to delete text relating 
to Day ISOs and amend its rules as follows:
     Delete Rules 7.31E(e)(3)(C) and (D), which describe Day 
ISO and Day ISO ALO Orders. The Exchange also proposes to amend Rule 
7.31E(e)(3) to provide that an ISO must be designated IOC and to delete 
the specific reference to ``IOC ISO'' in Rule 7.31E(e)(3)(B).
     Amend Rules 7.11E(a)(5P)(A) and 7.11E(a)(5P)(A)(ii) to 
delete references to ``Day ISO'' and make related conforming changes.
     Amend Rule 7.31E(a)(2)(C) to delete the last two 
sentences, which describes how Limit Orders are repriced upon arrival 
of a Day ISO.
     Amend Rule 7.35E(h)(3)(C) to delete the last sentence, 
which describes how Day ISOs are processed when transitioning to 
continuous trading.
     Delete current Rule 7.46E(f)(5)(F)(i)(a), which relates to 
Day ISO Orders, and the designation of subparagraph (b). The text of 
current Rule 7.46E(f)(5)(F)(i)(b) would become the last sentence of 
7.46E(f)(5)(F)(i).
    To effect the changes described in the Delay Mechanism to make all 
Pegged Orders non-displayed, the Exchange proposes to amend its rules 
to provide for Primary Pegged Orders to operate similarly to Market 
Pegged Orders and Discretionary Pegged Orders not only in that they 
would not be displayed, but also with respect to how they would 
function (i) when the PBBO is locked or crossed, (ii) in different 
trading sessions, and (iii) in auctions. To effect these changes, the 
Exchange proposes to amend its rules as follows:
     Amend Rule 7.31E(h) to move rule text that is currently 
applicable to Market Pegged Orders and make it applicable to all Pegged 
Orders, as follows (new text italicized):
    (h) Pegged Orders. A Limit Order that does not route with a working 
price that is pegged to a dynamic reference price. If the designated 
reference price is higher (lower) than the limit price of a Pegged 
Order to buy (sell), the working price will be the limit price of the 
order. Pegged Orders are not displayed, are ranked Priority 3--Non-
Displayed Orders, and are not eligible to participate in auctions. If 
the PBBO is locked or crossed, both an arriving and resting Pegged 
Order will wait for a PBBO that is not locked or crossed before the 
working price is adjusted and the order becomes eligible to trade. A 
Pegged Order will be rejected on arrival, or cancelled when resting, if 
there is no PBO (PBB) against which to peg.
     Amend Rule 7.31E(h)(1) describing Market Pegged Orders to 
delete, as duplicative of proposed Rule 7.31E(h), the second sentence, 
sub-paragraphs (A) and (B) of that Rule, and the designation of 
subparagraph (C). The text of current Rule 7.31E(h)(1)(C) would become 
the second sentence of Rule 7.31E(h)(1).
     Amend Rule 7.31E(h)(2) defining and describing Primary 
Pegged Orders to delete the last two sentences and sub-paragraphs (A) 
and (B) of that Rule as no longer applicable.
     Delete reference to Primary Pegged Orders in Rule 
7.31E(d)(1)(C) because Primary Pegged Orders would not include a 
display quantity and therefore would no longer be able to be combined 
with Reserve Orders.
     Make conforming changes to Rule 7.31E(h)(3) defining and 
describing Discretionary Pegged Orders by deleting rule text in Rules 
7.31E(h)(3)(A) and (E) that would be duplicative of the proposed new 
rule text in Rule 7.31E(h), described above.
     Amend Rule 7.18E(c)(4) governing halts in Exchange-listed 
securities to replace the term ``Market Pegged Orders'' with ``Pegged 
Orders'' because all Pegged Orders would function similarly to Market 
Pegged Orders during a halt or pause in an Exchange-listed security.\8\ 
With this proposed change, all Pegged Orders, including Primary Pegged 
Orders and Discretionary Pegged Orders, would be processed in the same 
manner as Market Pegged Orders during a halt or pause in trading of an 
Exchange-listed security.
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    \8\ The Exchange also proposes to amend Rule 7.18E(c)(4) to 
delete references to ``Retail Orders.'' The Exchange will not offer 
a Retail Liquidity Program on its Pillar trading platform, and 
therefore references to Retail Orders are moot. See Trading Rules 
Filing Notice supra note 5 at 10815.
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     Replace the term ``Market Pegged Order'' with ``Pegged 
Order'' and delete reference to ``Discretionary Pegged Orders'' in Rule 
7.34E(c)(1)(A) because all Pegged Orders would be rejected when entered 
during the Early Trading Session, regardless of the session designation 
on the order.
    In addition to the proposed amendments that the Exchange described 
in the Delay Mechanism Filing, the Exchange also proposes to amend its 
Pillar rules to replace references to ``NYSE MKT'' with references to 
``NYSE American.'' These proposed changes are consistent with the 
Exchange's proposed name change to NYSE American LLC (``NYSE 
American''), which will become operative upon effectiveness of an 
amendment to the Exchange's Certificate of Formation.\9\ Because the 
Exchange will implement the Pillar trading platform to coincide with 
the effectiveness of the name change to NYSE American, the Exchange 
believes that amending the rules governing trading on the Pillar 
trading platform to use the term ``NYSE American'' instead of ``NYSE 
MKT'' would be appropriate.
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    \9\ See Securities Exchange Act Release No. 80283 (March 21, 
2017), 82 FR 15244 (March 27, 2017) (SR-NYSEMKT-2017-14).
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    To effect the name change, the Exchange proposes to amend Rule 
1.1E(k), which defines the term ``Exchange,'' to replace the term 
``NYSE MKT'' with ``NYSE American.'' The Exchange also proposes to 
rename the order type ``MKT Only Order'' as an ``Non-routable Limit 
Order,'' and would amend Rules 7.31E(d)(1)(C), (e)(1), (j)(1), and 
7.46E(f)(5)(F)(ii) and (iii) accordingly. The Exchange believes that 
the proposed new name for the ``MKT Only Order'' describes the 
functionality

[[Page 32747]]

associated with this order type because it is not eligible to route. 
The Exchange would also amend Rule 7.45E(a) to replace references to 
the term ``NYSE MKT LLC'' with the term ``the Exchange.''
    The Exchange also proposes to add to Exchange rules the definition 
of ``NYSE American Marketplace,'' which would be defined in Rule 
1.1E(e) as ``the electronic securities communications and trading 
facility of the Exchange through which orders are processed or are 
consolidated for execution and/or display.'' This proposed definition 
is based in part on NYSE Arca Equities Rule 1.1(e), which defines the 
term ``NYSE Arca Marketplace'' as ``the electronic securities 
communications and trading facility designated by the Board of 
Directors through which orders of Users are consolidated for execution 
and/or display.'' The Exchange proposes a non-substantive difference 
from NYSE Arca Equities Rule 1.1(e) not to include reference to the 
phrase ``designated by the Board of Directors'' because the Exchange's 
Board of Directors does not designate which technology at the Exchange 
performs the various functions of the Exchange. The Exchange also 
proposes not to use the term ``Users'' as moot. The Exchange further 
proposes a difference to add that the term ``NYSE American 
Marketplace'' includes the facility where orders are processed, in 
addition to the facility where orders are consolidated for execution 
and/or display.
    The Exchange believes that adding the term ``NYSE American 
Marketplace'' to Exchange rules provides for a term that describes the 
Exchange's facilities where orders are processed or are consolidated 
for execution and/or display. The Exchange proposes to amend Rule 
7.29E(a) and Rule 7.29E(b)(1)(C) to replace the term ``Exchange'' with 
``NYSE American Marketplace'' because the Exchange believes that the 
term ``NYSE American Marketplace'' in this context is more descriptive.
    The Exchange also proposes to amend Rule 7.29E(b)(1)(A) and (B) to 
add the term ``NYSE American Marketplace'' in order to provide 
specificity that the Delay Mechanism would be operative for inbound and 
outbound communications to and from ETP Holders. Inbound and outbound 
communications from ETP Holders, that are processed through the same 
electronic securities communications and trading facilities as orders, 
such as log on or log out messages, would be subject to the Delay 
Mechanism. The Exchange believes that this proposed rule change is 
consistent with the rules governing the Delay Mechanism. Specifically, 
in the Delay Mechanism Filing, the Exchange described that the Delay 
Mechanism functionality is designed to provide for additional latency 
under the same circumstances as the intentional latency on Investors 
Exchange LLC (``IEX'').\10\ IEX Rule 11.510, upon which Rule 7.29E is 
based, specifies that the IEX intentional delay is for inbound and 
outbound communications to IEX's ``System.'' IEX defines ``System'' to 
mean ``the electronic communications and trading facility designated by 
the Board through which securities orders of Members are consolidated 
for ranking, execution, and when applicable, routing.'' \11\ The 
Exchange believes that its proposed definition of ``NYSE American 
Marketplace'' describes facilities that provide similar functionality 
as the facilities defined in the IEX term ``System.'' As such, the 
Exchange's proposal to add the phrase ``the NYSE American Marketplace'' 
in Rule 7.29E(b) would make clear that the Delay Mechanism would be 
added to all inbound and outbound communications to and from facilities 
where orders are processed or are consolidated for execution and/or 
display. Accordingly, the Exchange believes that adding the term ``NYSE 
American Marketplace'' to Rule 7.29E(b) is consistent with the original 
intent of the rule and provides greater specificity and transparency in 
Exchange rules regarding how the Delay Mechanism would function, 
without any differences.
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    \10\ See Delay Mechanism Filing Notice, supra note 6 at 10829.
    \11\ See IEX Rule 1.160(nn).
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    Finally, the Exchange proposes to update Exchange rules to reflect 
recent changes to Supplementary Material .70 to Rule 67--Equities that 
amended the date when certain data would be published by the 
Exchange.\12\ The Exchange proposes to amend Commentary .70 to Rule 
7.46E to make the same date change.
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    \12\ See Securities Exchange Act Release No. 80648 (May 10, 
2017), 82 FR 22590 (May 16, 2017) (SR-NYSEMKT-2017-24) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change).
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* * * * *
    The Exchange will announce the implementation of its transition to 
Pillar, and thus when these proposed rule changes would be implemented, 
by Trader Update, which the Exchange anticipates will be in the third 
quarter of 2017.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\13\ in general, and 
furthers the objectives of Section 6(b)(5),\14\ in particular, because 
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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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposed rule change to eliminate 
ALO Orders, Day ISOs, and related functionality would remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system because the proposed deletions are designed to 
work in conjunction with the Exchange's Delay Mechanism, as described 
in the Delay Mechanism Filing. The proposed changes would also remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system because they would simplify the Exchange's 
trading model on Pillar and operate more similarly to IEX, which also 
does not offer ALO, Day ISO, or related functionality. The Exchange 
further believes that deleting these order types and related 
functionality would be consistent with the protection of investors and 
the public interest because the Exchange has not implemented Pillar and 
therefore these order types are not yet available for trading on 
Pillar. Deleting these order types before implementation therefore 
would not impact any market participants.
    The Exchange believes that its proposed rule change to make all 
Pegged Orders be non-displayed is consistent with the purpose of the 
Delay Mechanism, which is to allow non-displayed Pegged Orders to 
update in real-time based on changes to the PBBO before a new, incoming 
order generated in response to the same PBBO change can access the 
resting order. By changing Primary Pegged Orders to be non-displayed, 
Primary Pegged Orders would be able to be re-priced in real-time as 
well. The Exchange therefore believes that this proposed change would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system because it would allow for Primary 
Pegged Orders to benefit from a market structure that includes a Delay

[[Page 32748]]

Mechanism. The proposed changes would also remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system because the proposed functionality is based on how IEX operates, 
which also does not offer displayed pegging functionality.\15\ In 
addition, the Exchange believes that the proposed change is consistent 
with the protection of investors and the public interest because the 
Exchange has not implemented its Pillar trading platform and therefore 
a displayed Primary Pegged Order is not yet available for trading on 
Pillar. Amending Primary Pegged Order functionality before 
implementation would therefore not impact any market participants 
trading.
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    \15\ See IEX Rule 11.190(a)(3) (defining Pegged Order on IEX).
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    The Exchange believes that the proposed amendment to change 
references from ``NYSE MKT'' to ``NYSE American'' is designed to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system because it would ensure that the Exchange's 
rules accurately reflects the name of the Exchange that will be in 
effect when it transitions to Pillar, which will make the rule book 
easier to navigate.
    The Exchange believes that adding to Exchange rules the term ``NYSE 
American Marketplace,'' which is based in part on the term ``NYSE Arca 
Marketplace'' in NYSE Arca Equities Rule 1.1(k), would remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system because it would add a term designed to 
describe with greater specificity the Exchange's facility that 
processes or executes and/or displays orders. The Exchange further 
believes that amending Rules 7.29E(a) and (b) to add the term ``NYSE 
American Marketplace'' would remove impediments to and perfect the 
mechanism of a free and open market and a national market system by 
providing specificity of which communications would be subject to the 
Delay Mechanism. The Exchange believes that the proposed amendment to 
use this term in Rule 7.29E(b) is a non-substantive change that is 
consistent with the original intent of the rule to provide for 
additional latency under the same circumstances as IEX. As such, the 
proposed change is designed to provide greater specificity and 
transparency in Exchange rules regarding how the Delay Mechanism would 
function, without any differences.
    Finally, the Exchange believes that the proposed change to 
Commentary .70 to Rule 7.46E would remove impediments to and perfect 
the mechanism of a free and open market and a national market system by 
updating Rule 7.46E to reflect recent changes to Supplementary Material 
.70 to Rule 67--Equities that amended the date when certain data would 
be published by the Exchange.

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 changes to ALO, 
Day ISO, and Pegged Orders are designed to implement changes previously 
described in the Delay Mechanism Filing. As such, these proposed 
changes are designed to provide a competitive trading model to IEX by 
offering similar order type functionality as IEX in combination with 
the Exchange's Delay Mechanism. The Exchange's proposal is therefore 
designed to promote competition by offering a choice of exchanges to 
those ETP Holders and issuers that prefer to trade or list on an 
exchange that offers a delay mechanism and the related order type 
offerings. The proposed changes to change the name of the Exchange to 
``NYSE American'' and add the term ``NYSE American Marketplace'' are 
not designed to address any competitive issues but rather are designed 
to provide greater specificity in Exchange rules regarding the name of 
the Exchange and a term to define the Exchange's facility that executes 
and/or displays orders.

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 operative for 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 \16\ and Rule 19b-4(f)(6) thereunder.\17\
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 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 \18\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \19\ 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. The Exchange 
states that waiver of the operative delay would be consistent with the 
protection of investors and the public interest because it would allow 
the proposed rule change to be operative at the same time that the 
Exchange begins its transition to Pillar and implements the Delay 
Mechanism, which the Exchange anticipates will be on July 24, 2017. The 
Exchange states that a waiver will thereby reduce any potential for 
confusion of how orders would be processed when the Exchange 
transitions to Pillar and implements the Delay Mechanism. The 
Commission believes that waiver of the operative delay is consistent 
with the protection of investors and the public interest. Therefore, 
the Commission hereby waives the operative delay and designates the 
proposal operative upon filing.\20\
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    \18\ 17 CFR 240.19b-4(f)(6).
    \19\ 17 CFR 240.19b-4(f)(6)(iii).
    \20\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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 the 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

[[Page 32749]]

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-NYSEMKT-2017-38 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-NYSEMKT-2017-38. 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-NYSEMKT-2017-38, and should 
be submitted on or before August 7, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017-14885 Filed 7-14-17; 8:45 am]
BILLING CODE 8011-01-P