[Federal Register Volume 84, Number 192 (Thursday, October 3, 2019)]
[Notices]
[Pages 52920-52921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21493]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87150; File No. SR-NYSEArca-2013-107]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an 
Extension to Limited Exemptions From Rule 612(c) of Regulation NMS in 
Connection With the Exchange's Retail Liquidity Programs Until October 
31, 2019

September 27, 2019.
    On December 23, 2013, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted NYSE 
Arca, Inc. (``Exchange'') a limited exemption from the Sub-Penny Rule 
in connection with the operation of the Exchange's Retail Liquidity 
Program (``Program'').\2\ The limited exemption was granted 
concurrently with the Commission's

[[Page 52921]]

approval of the Exchange's proposal to adopt its Program for a one-year 
pilot term.\3\ The exemption was granted coterminous with the 
effectiveness of the pilot Program; both the pilot Program and 
exemption are scheduled to expire on September 30, 2019.\4\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 71176 (December 23, 
2013), 78 FR 79524 (December 30, 2013) (SR-NYSEArca-2013-107) 
(``Order'').
    \3\ See id.
    \4\ On March 19, 2015, the Exchange requested an extension of 
the exemption for the Program. See letter from Martha Redding, 
Senior Counsel and Assistant Secretary, to Brent J. Fields, 
Secretary, Commission, dated March 19, 2015. The pilot period for 
the Program was extended until September 30, 2015. See Securities 
Exchange Act Release No. 74572 (Mar. 24, 2015), 80 FR 16705 (Mar. 
30, 2015) (SR-NYSEArca-2015-22).
    On September 17, 2015, the Exchange requested another extension 
of the exemption for the Program. See letter from Martha Redding, 
Senior Counsel and Assistant Secretary, to Brent J. Fields, 
Secretary, Commission, dated September 17, 2015. The pilot period 
for the Program was extended until March 31, 2016. See Securities 
Exchange Act Release Nos. 75994 (Sept. 28, 2015), 80 FR 59834 (Oct. 
2, 2015) (SR-NYSEArca-2015-84) and 77236 (Feb. 25, 2016), 81 FR 
10943 (Mar. 2, 2016) (SR-NYSEArca-2016-30). On March 17, 2016, the 
Exchange requested another extension of the exemption for the 
Program. See letter from Martha Redding, Senior Counsel and 
Assistant Secretary, to Brent J. Fields, Secretary, Commission, 
dated March 17, 2016. The pilot period for the Program was extended 
until August 31, 2016. See Securities Exchange Act Release No. 77425 
(Mar. 23, 2016), 81 FR 17523 (Mar. 29, 2016) (SR-NYSEArca-2016-47). 
On August 8, 2016, the Exchange requested another extension of the 
exemption for the Program. See Letter from Martha Redding, Associate 
General Counsel and Assistant Secretary, to Brent J. Fields, 
Secretary, Commission, dated August 8, 2016. The pilot period for 
the Program was extended until December 31, 2016. See Securities 
Exchange Act Release No. 78601 (Aug. 17, 2016), 81 FR 57632 (Aug. 
23, 2016) (SR-NYSEArca-2016-113). On November 28, 2016, the Exchange 
requested another extension of the exemption for the program. See 
Letter from Martha Redding, Associate General Counsel and Assistant 
Secretary, to Brent J. Fields, Secretary, Commission, dated November 
28, 2016. The pilot period for the Program was extended until June 
30, 2017. See Securities Exchange Act Release No. 79495 (Dec. 7, 
2016), 81 FR 90033 (Dec. 13, 2016) (SR-NYSEArca-2016-157). On May 
23, 2017, the Exchange requested another extension of the exemption 
for the program. See Letter from Martha Redding, Associate General 
Counsel and Assistant Secretary, to Brent J. Fields, Secretary, 
Commission, dated May 23, 2017. The pilot period for the Program was 
extended until December 31, 2017. See Securities Exchange Act 
Release No.80851 (June 2, 2017), 82 FR 26722 (June 8, 2017) (SR-
NYSEArca-2017-63). On November 30, 2017, the Exchange requested 
another extension of the exemption to the program. See Letter from 
Martha Redding, Assistant Secretary, NYSE, to Brent J. Fields, 
Secretary, Commission, dated November 30, 2017. The pilot period for 
the Program was extended until June 30, 2018. See Securities 
Exchange Act Release No. 82289 (December 11, 2017), 82 FR 59677 
(December 15, 2017) (SR-NYSEArca-2017-137). On June 14, 2018, the 
Exchange requested another extension of the exemption for the 
Program. See Letter from Martha Redding, Associate General Counsel 
and Assistant Secretary, NYSE to Brent J. Fields, Secretary, 
Commission, dated June 14, 2018. The pilot period for the Program 
was extended until December 31, 2018. See Securities Exchange Act 
Release No. 83538 (June 28, 2018), 83 FR 31210 (July 3, 2018) (SR-
NYSEArca-2018-46). On November 30, 2018, the Exchange requested 
another extension of the exemption for the Program. See Letter from 
Martha Redding, Associate General Counsel and Assistant Secretary, 
NYSE to Brent J. Fields, Secretary, Commission, dated November 30, 
2018. The pilot period for the Program was extended until June 30, 
2019. See Securities Exchange Act Release No. 84773 (December 10, 
2018), 83 FR 64419 (December 14, 2018) (SR-NYSEArca-2018-89). On 
June 19, 2019, the Exchange requested another extension of the 
exemption for the Program. See Letter from Martha Redding, Associate 
General Counsel and Assistant Secretary, NYSE to Vanessa Countryman, 
Secretary, Commission, dated June 19, 2019. The pilot period for the 
Program was extended until September 30, 2019. See Securities 
Exchange Act Release No. 86198 (June 26, 2019), 84 FR 31648 (July 2, 
2019) (SR-NYSEArca-2019-45).
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    The Exchange now seeks to extend the exemptions until October 31, 
2019.\5\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the Program 
through the same date.\6\ In its request to extend the exemption, the 
Exchange notes that the participation in the Program has increased more 
recently with additional Retail Liquidity Providers. Accordingly, the 
Exchange has asked for additional time to both allow for additional 
opportunities for greater participation in the Program and allow for 
further assessment of the results of such participation. For this 
reason and the reasons stated in the Order originally granting the 
limited exemptions, the Commission finds that extending the exemption, 
pursuant to its authority under Rule 612(c) of Regulation NMS, is 
appropriate in the public interest and consistent with the protection 
of investors.
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    \5\ See Letter from Martha Redding, Associate General Counsel 
and Assistant Secretary, NYSE to Vanessa Countryman, Secretary, 
Commission, dated September 26, 2019.
    \6\ See SR-NYSEArca-2019-67.
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    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612 of Regulation NMS that allows it to accept and rank orders priced 
equal to or greater than $1.00 per share in increments of $0.001, in 
connection with the operation of its Retail Liquidity Program, until 
October 31, 2019.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the Federal securities 
laws must rest with the persons relying on the exemptions that are the 
subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(83).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-21493 Filed 10-2-19; 8:45 am]
BILLING CODE 8011-01-P