[Federal Register Volume 75, Number 240 (Wednesday, December 15, 2010)]
[Notices]
[Pages 78296-78297]
[FR Doc No: 2010-31454]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63492; File No. SR-Phlx-2010-172]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating
To Changing the Starting Time for NASDAQ OMX PSX

December 9, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 3, 2010, NASDAQ OMX PHLX LLC (``Phlx'' or the ``Exchange'')
filed with the Securities and Exchange Commission (``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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend certain rules of NASDAQ OMX PSX, the
Exchange's equity trading facility (``PSX''), to change the starting
time from 9 a.m. Eastern Time (``ET'') to 8 a.m. ET. The Exchange
proposes to amend provisions of PSX Rules 3100, 3217, 3301, 3302 and
3306 to reflect the proposed amended starting time.
    The text of the proposed rule change is available on the Exchange's
Web site at http://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings,
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 Exchange 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 these 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 aspects 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 purpose of the proposed rule change is to amend certain rules
of PSX to change the starting time from 9 a.m. ET to 8 a.m. ET. More
specifically, the Exchange proposes to amend the following PSX rules in
the following manner:
    i. PSX Rule 3100 (b)(4)(B) to reflect that the trading session
begins at 8 a.m. instead of 9 a.m.
    ii. PSX Rule 3217 to reflect that the normal business hours for the
automated system for order execution and trade reporting owned and
operated by the Exchange for the purpose of trading securities on PSX
(``System'') operates from 8 a.m. ET instead of 9 a.m. ET.
    iii. PSX Rule 3301(h)(1) to reflect that System Hours Immediate or
Cancel \3\ orders must be will be available for entry and execution
from 8 a.m. ET instead of 9 a.m. ET.
---------------------------------------------------------------------------

    \3\ ``System Hours Immediate or Cancel'' shall mean, for orders
so designated, that if after entry into the System the order (or a
portion thereof) is not marketable, the order (or unexecuted portion
thereof) shall be canceled and returned to the entering Participant.
See PSX Rule 3301(h)(1).
---------------------------------------------------------------------------

    iv. PSX Rule 3301(h)(2) to reflect that System Hours Day \4\ orders
must remain available for potential display and/or execution from 8
a.m. ET instead of 9 a.m. ET.
---------------------------------------------------------------------------

    \4\ ``System Hours Day'' shall mean, for orders so designated,
that if after entry into the System, the order is not fully
executed, the order (or the unexecuted portion thereof) shall remain
available for potential display and/or execution from 9 a.m. until 5
p.m. Eastern Time on the day it was submitted unless cancelled by
the entering party. See PSX Rule 3301(h)(2).
---------------------------------------------------------------------------

    v. PSX Rule 3301(h)(4) to reflect that System Hours Expire Time \5\
orders must remain for entry and execution from 8 a.m. ET instead of 9
a.m. ET.
---------------------------------------------------------------------------

    \5\ ``System Hours Expire Time'' or ``SHEX'' shall mean, for
orders so designated, that if after entry into the System, the order
is not fully executed, the order (or the unexecuted portion thereof)
shall remain available for potential display and/or execution for
the amount of time specified by the entering Participant (up to 5
p.m. on the day entered) unless canceled by the entering
Participant. See PSX Rule 3301(h)(4).
---------------------------------------------------------------------------

    vi. PSX Rule 3301(h)(8) to reflect that ``good-til-market close''
\6\ orders must be available for entry and potential execution from 8
a.m. ET instead of 9 a.m. ET.
---------------------------------------------------------------------------

    \6\ ``Good-til-market close'' shall mean for orders so
designated, that if after entry into the System, the order is not
fully executed, the order (or unexecuted portion thereof) shall
remain available for potential display and/or execution until
cancelled by the entering party, or until 4 p.m., after which it
shall be returned to the entering party. See PSX Rule 3301(h)(8).
---------------------------------------------------------------------------

    vii. PSX Rule 3302 to reflect that the System will be opened for
order entry at 8 a.m. instead of 9 a.m.
    viii. PSX Rule 3306(a)(3) to reflect that orders can be entered
into the System (or previously entered orders cancelled) from 8 a.m. ET
instead of 9 a.m. ET.
    PSX is a fully electronic system that accommodates diverse business
models and trading preferences. PSX utilizes technology to aggregate
and display liquidity and make it available for execution of orders.
PSX is proposing to expand its operational hours to open the System
earlier so that firms can enter orders and execute beginning at 8 a.m.
rather than 9 a.m.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\7\ in general, and with
Sections 6(b)(1) and 6(b)(5) of the Act,\8\ in particular, in that the
proposal enables the Exchange to be so organized as to have the
capacity to be able to carry out the purposes of the Act and to comply
with and enforce compliance by members, member organizations, and
persons associated with members and member organizations with
provisions of the Act, the rules and regulations thereunder, and the
rules of the Exchange. The proposal is also consistent with Section 6
of the Act in that the proposal 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 regulating, clearing, settling, processing
information with respect to, and 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. An earlier open will enhance
the national market system by providing market participants increased
opportunity to more effectively carryout the execution of orders in the
manner addressed by PSX rules. Such improvements will enhance the
protection of investors and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(1), (5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
result in any burden on competition not

necessary or appropriate in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing 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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the Exchange Act \9\ and Rule 19b-
4(f)(6) \10\ thereunder.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give 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.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\11\
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest.\12\ The Exchange has requested that
the Commission waive the 30-day operative delay. The Commission notes
that Phlx's proposal is substantially similar to the rules of other
national securities exchanges and does not raise any new substantive
issues. In addition, Phlx notes that other exchanges open their markets
for entry of orders prior to 9 a.m.,\13\ and, in order to be
competitive, the Exchange would like to extend the same opportunity to
its market participants. The Exchange would like to implement this
proposed rule on December 13, 2010. Based on the foregoing, the
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest and
hereby designates the proposal operative upon filing.\14\
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ Id.
    \13\ See The NASDAQ Stock Market LLC Rule 4617 (opens at 7 a.m.
EST). See also NASDAQ OMX BX Rule 4617 (opens at 8 a.m. EST), and
NYSE Arca Equities Rule 7.34 (opens at 1 a.m. Pacific Time).
    \14\ For the 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).
---------------------------------------------------------------------------

    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 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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2010-172 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2010-172. This file
number should be included on the subject line if e-mail 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 a.m. and 3
p.m. Copies of such 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-Phlx-2010-172 and should be submitted on
or before January 5, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-31454 Filed 12-14-10; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 87 (Tuesday, May 6, 2014)]
[Notices]
[Pages 25919-25923]
[FR Doc No: 2014-10280]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72044; File No. SR-BATS-2014-014]

Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing of a Proposed Rule Change To Amend Rule 11.17, Entitled
``Clearly Erroneous Executions''

April 30, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 17, 2014, BATS Exchange, Inc. (the ``Exchange'' or
``BATS'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange filed a proposal to add new paragraphs (i) and (j) to
Rule 11.17, entitled ``Clearly Erroneous Executions.''
    The text of the proposed rule change is available at the Exchange's
Web site at http://www.batstrading.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 Exchange 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 these 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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to add new paragraph (i) to Rule
11.17 to provide the Exchange with authority to nullify transactions
that were effected based on the same fundamentally incorrect or grossly
misinterpreted issuance information even if such transactions occur
over a period of several days, as further described below. An example
of fundamentally incorrect and grossly misinterpreted issuance
information that led to a severe valuation error is included below for
illustrative purposes.
    The Exchange also proposes to add new paragraph (j) to Rule 11.17
to make clear that in the event of any disruption or malfunction in the
operation of the electronic communications and trading facilities of
the Exchange, another market center or responsible single plan
processor in connection with the transmittal or receipt of a regulatory
trading halt, suspension or pause (hereafter generally referred to as a
``trading halt'' for ease of reference), the Exchange will nullify any
transaction that occurs after the primary listing market for a security
declares a trading halt with respect to such security. In the event a
trading halt is declared, then prematurely lifted in error, and then
re-instituted, proposed paragraph (j) would also result in
nullification of any transactions that occur before the official, final
end of the trading halt according to the primary listing market.
    The Exchange also proposes a change to certain cross-references in
Rule 11.17, due to the addition of paragraphs (i) and (j).
Specifically, the Exchange proposes to update cross-references in
existing

paragraph (h) of Rule 11.17 in order to make clear that the provisions
of paragraph (h) do not alter the application of other provisions of
Rule 11.17, including new paragraphs (i) and (j).
Background
    On September 10, 2010, the Commission approved, on a pilot basis,
changes to Rule 11.17 to provide for uniform treatment: (1) Of clearly
erroneous execution reviews in multi-stock events involving twenty or
more securities; and (2) in the event transactions occur that result in
the issuance of an individual stock trading pause by the primary
listing market and subsequent transactions that occur before the
trading pause is in effect on the Exchange.\3\ The Exchange also
adopted additional changes to Rule 11.17 that reduced the ability of
the Exchange to deviate from the objective standards set forth in Rule
11.17,\4\ and in 2013, adopted a provision designed to address the
operation of the Plan to Address Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS under the Act (the ``Limit Up-
Limit Down Plan'' or the ``Plan'').\5\ The Exchange recently removed
the specific provisions related to individual stock trading pauses and
extended to April 8, 2014 the pilot program applicable to certain
provisions of Rule 11.17.\6\ More recently, the Exchange further
extended the pilot program to coincide with the pilot period for the
Plan, including any extensions to the pilot period for the Plan.\7\
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 62886 (Sept. 10, 2010),
75 FR 56613 (Sept. 16, 2010) (SR-BATS-2010-016).
    \4\ Id.
    \5\ See Securities Exchange Act Release No. 68797 (Jan. 31,
2013), 78 FR 8635 (Feb. 6, 2013) (SR-BATS-2013-008); Securities
Exchange Act Release No. 67091 (May 31, 2012), 77 FR 33498 (June 6,
2012) (the ``Limit Up-Limit Down Release''); see also BATS Rule
11.17(h).
    \6\ Paragraphs (c), (e)(2), (f), (g), and (h) of Rule 11.17 are
subject to the pilot program. See Securities Exchange Act Release
No. 70513 (September 26, 2013), 78 FR 60973 (October 2, 2013) (SR-
BATS-2013-053).
    \7\ See Securities Exchange Act Release No. 71795 (March 25,
2013 [sic]), 79 FR 18089 (March 31, 2014) (SR-BATS-2014-008).
---------------------------------------------------------------------------

    As proposed, similar to other provisions added in recent years, as
described above, both paragraph (i) and paragraph (j) would be subject
to the pilot period, and thus, would coincide with the pilot period for
the Plan, including any extensions to the pilot period for the Plan.\8\
---------------------------------------------------------------------------

    \8\ Id.
---------------------------------------------------------------------------

Executions Based on Incorrect or Grossly Misinterpreted Issuance
Information
    The Exchange proposes to adopt a new provision, paragraph (i), to
Rule 11.17, which would provide that a series of transactions in a
particular security on one or more trading days may be viewed as one
event if all such transactions were effected based on the same
fundamentally incorrect or grossly misinterpreted issuance information
(e.g., with respect to a stock split or corporate dividend) resulting
in a severe valuation error for all such transactions (the ``Event'').
    As proposed, an Officer of the Exchange or senior level employee
designee, acting on his or her own motion, would be required to take
action to declare all transactions that occurred during the Event null
and void not later than the start of trading on the day following the
last transaction in the Event. If trading in the security is halted
before the valuation error is corrected, the Officer of the Exchange or
senior level employee designee would be required to take action to
declare all transactions that occurred during the Event null and void
prior to the resumption of trading. The Exchange proposes to make clear
that no action can be taken pursuant to proposed paragraph (i) with
respect to any transactions that have reached settlement date for the
security or that result from an initial public offering of a security.
The Exchange believes that declaring a trade null and void after
settlement date would be complex to administer and unfair to the
affected parties. The Exchange also believes that excluding IPOs from
the proposed rule will ensure that transactions in a new security for
which there is no benchmark information are not called into question,
as it is the IPO process itself, including the extensive public
disclosure associated with IPOs, that is intended to drive price
formation.
    Further, the Exchange proposes that to the extent transactions
related to an Event occur on one or more other market centers, the
Exchange will promptly coordinate with such other market center(s) to
ensure consistent treatment of the transactions related to the Event,
if practicable. The Exchange also proposes to state in the Rule that
any action taken in connection with paragraph (i) will be taken without
regard to the Numerical Guidelines set forth in paragraph (c)(1) of
Rule 11.17. In particular, the Exchange believes that there could be
scenarios where there are erroneous transactions related to an Event
that do not meet applicable Numerical Guidelines but that are, upon
review, clearly erroneous. One example of a situation that could occur
is a corporate action, such as a stock split, that results in the
dissemination of fundamentally incorrect or grossly misinterpreted
issuance information and leads to erroneous transactions at a price
that is close to the price at which the security was previously
trading. Even if such trading is consistent with prior trading activity
for the security, and thus would not meet applicable Numerical
Guidelines, the Exchange would have the authority to nullify such
transactions if they were affected based on the same fundamentally
incorrect or grossly misinterpreted issuance information and there was
a severe valuation error as a result (i.e., although the security
should be trading at a price further away from its previous range, due
to fundamentally incorrect or grossly misinterpreted issuance
information with respect to the corporate action the security continues
to trade at a price that does not meet applicable Numerical
Guidelines).
    The Exchange also proposes to include a provision, as it does in
many other sub-paragraphs of Rule 11.17, stating that each Member
involved in a transaction subject to proposed paragraph (i) shall be
notified as soon as practicable by the Exchange, and that the party
aggrieved by the action may appeal such action in accordance with
Exchange Rule 11.17(e)(2).
    In particular, the Exchange believes it is necessary to have
authority to nullify trades that occur in an event similar to an event
involving an exchange offer (``Exchange Offer'') made by U.S. Bancorp
on the New York Stock Exchange (``NYSE'') in 2010 in which there were a
series of executions based on incorrect or grossly misinterpreted
issuance information. As a result of such information, the securities
traded at severely dislocated prices. At the time, the NYSE filed an
emergency rule filing in order to respond to that event.\9\ With the
filing the NYSE interpreted the rule applicable to clearly erroneous
executions as permitting the NYSE to nullify all trades resulting after
the Exchange Offer at severely dislocated prices.\10\ The Exchange
believes it is important to have in place a rule to break such trades
if an event like the U.S. Bancorp event occurs again in the future. The
U.S. Bancorp event is described in further detail below and is intended
to be illustrative of the manner

in which the Exchange proposes to utilize proposed paragraph (i), if
necessary.
---------------------------------------------------------------------------

    \9\ Securities Exchange Act Release No. 62609 (July 30, 2010),
75 FR 47327 (August 5, 2010) (SR-NYSE-2010-55).
    \10\ Id.
---------------------------------------------------------------------------

    In May 2010, U.S. Bancorp commenced an offer to exchange up to
1,250,000 Depositary Shares, each representing a 1/100 interest in a
share of Series A Non-Cumulative Perpetual Preferred Stock, $100,000
liquidation preference per share (the ``Depositary Shares'') for any
and all of the 1,250,000 outstanding 6.189% Fixed-to-Floating Rate
Normal ITS issued by U.S. Bancorp Capital IX, each with a liquidation
amount of $1,000 (the ``Normal ITS''). The Depositary Shares were
approved for listing on the NYSE under the symbol USB PRA. On June 11,
2010, the NYSE opened the shares on a quote, but trading did not
commence until June 16, 2010 at prices in the range of $79.00 per
share. There were additional executions on the NYSE in that price range
on June 17 and 18, 2010. On June 18, 2010, NYSE staff learned that the
prices at which trades had executed were not consistent with the value
of the security, which was closer to an $800 price. Upon learning of
the pricing disparity, NYSE immediately halted trading in the
Depositary Shares on all markets and alerted U.S. Bancorp and other
exchanges that traded the Depositary Shares of the pricing discrepancy.
    In order to address the situation, the NYSE filed a proposal to
interpret its existing clearly erroneous execution rule such that the
trading in Depository Shares from June 16 to June 18 constituted a
single event because that trading was based on incorrect or grossly
misinterpreted issuance information that resulted in severe price
dislocation (the ``U.S. Bancorp Event'').\11\ Because the Depository
Shares were halted before the price of the Depository Shares ceased to
be dislocated, and remain halted, the NYSE was able to review trading
in Depository Shares and declare null and void all trading in the U.S.
Bancorp Event before the security resumed trading.
---------------------------------------------------------------------------

    \11\ Id.
---------------------------------------------------------------------------

    Rather than filing a proposal in response to a similar event
happening again, the Exchange proposes to add paragraph (i) in order to
nullify transactions consistent with the description of the proposed
Rule above.
Executions After a Trading Halt Has Been Declared
    The Exchange proposes to add new paragraph (j) to Rule 11.17 to
make clear that in the event of any disruption or malfunction in the
operation of the electronic communications and trading facilities of
the Exchange, another market center or responsible single plan
processor in connection with the transmittal or receipt of a trading
halt, the Exchange will nullify any transaction that occurs after the
primary listing market for a security declares a trading halt and
before such trading halt with respect to such security has officially
ended according to the primary listing market. In addition, proposed
paragraph (j) will make clear that in the event a trading halt is
declared, then prematurely lifted in error and then re-instituted, the
Exchange will nullify transactions that occur before the official,
final end of the trading halt according to the primary listing market.
    As with other provisions in Rule 11.17, including proposed
paragraph (i) as discussed above, the authority to nullify transactions
pursuant to paragraph (j) would be vested in an officer of the Exchange
or other senior level employee designee, acting on his or her own
motion. Any action taken in connection with paragraph (j) would be
taken in a timely fashion, generally within thirty (30) minutes of the
detection of the erroneous transaction and in no circumstances later
than the start of Regular Trading Hours \12\ on the trading day
following the date of execution(s) under review. The Exchange also
proposes to specify that any action taken in connection with proposed
paragraph (j) will be taken without regard to the Numerical Guidelines
set forth in paragraph (c)(1) of Rule 11.17. The Exchange believes it
is appropriate to act to nullify transactions pursuant to proposed
paragraph (j) without regard to applicable Numerical Guidelines because
in the situations covered by paragraph (j), such transactions should
not have occurred in the first instance, and thus, their nullification
does not put parties in any different position than they should have
been. The Exchange also believes that the certainty that the proposed
rule provides is critical in situations involving trading halts.
---------------------------------------------------------------------------

    \12\ Regular Trading Hours are defined in Exchange Rule 1.5(w)
as the time between 9:30 a.m. to 4:00 p.m. E.T.
---------------------------------------------------------------------------

    As it has proposed for paragraph (i), as described above, the
Exchange also proposes to include a provision stating that each Member
involved in a transaction subject to proposed paragraph (j) shall be
notified as soon as practicable by the Exchange, and that the party
aggrieved by the action may appeal such action in accordance with
Exchange Rule 11.17(e)(2).
    The Exchange notes that trading in a security is typically halted
immediately on the Exchange when the primary listing market issues a
trading halt in such security. However, in certain circumstances, due
to a technical issue related to the transmission or receipt of the
electronic message instituting such trading halt or due to other
extraordinary circumstances, executions can occur on the Exchange
following the declaration of such a trading halt. Similarly, although
rare, the Exchange has witnessed scenarios where due to extraordinary
circumstances a trading halt is declared, then prematurely lifted in
error and then re-instituted. It is these types of extraordinary
circumstances that the Exchange believes require certainty, and thus,
the Exchange believes it necessary to make clear that in such a
circumstance any transactions after a trading halt has been declared
will be nullified. In the event that a trading halt is declared as of a
future time (i.e., if the primary listing exchange declares a trading
halt as of a specific, future time in order to ensure coordination
amongst market participants), the Exchange would only nullify
transactions occurring after the time the trading halt was supposed to
be in place until the official end of the trading halt according to the
primary listing market.
    The Exchange also notes that it currently has authority pursuant to
paragraph (f) of Rule 11.17 to review and nullify transactions that
arise during a disruption or malfunction in the operation of any
electronic communications and trading facilities of the Exchange.
Further, paragraph (f) of Rule 11.17 gives the Exchange authority to
use a lower numerical guideline than is set forth in paragraph (c)(1)
of the Rule when necessary to maintain a fair and orderly market and to
protect investors and the public interest. Thus, while the Exchange
believes that paragraph (f) does give the Exchange the authority to
nullify transactions occurring when there is an Exchange technical
issue related to the transmission or receipt of the electronic message
instituting a trading halt or with respect to a technical issue related
to a prematurely lifted trading halt, the Exchange believes that
proposed paragraph (j) will provide appropriate authority for the
Exchange to nullify all such transactions whether or not the systems
problem occurs on the Exchange with respect to trading halts and
explicit clarity for market participants that such transactions will be
nullified. The Exchange believes that such authority is appropriate
because

when relied upon the Exchange will be cancelling trades that should not
have occurred in the first instance. Finally, the Exchange believes
that such authority is appropriate because a trading halt declared by
the primary listing market is indicative of an issue with respect to
the applicable security or a larger set of securities.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\13\ In particular,
the proposal is consistent with Section 6(b)(5) of the Act,\14\ because
it would 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.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that it is appropriate to adopt a provision
granting the Exchange authority to nullify trades that occur if an
Event similar to the U.S. Bancorp Event occurs again. The Exchange
believes that this provision will allow the Exchange to act in the
event of such a severe valuation error, that such action would promote
just and equitable principles of trade and that the proposal is
therefore consistent with the Act. Similarly, the Exchange believes
that adding a provision allowing the Exchange to nullify transactions
that occur when a trading halt is declared, then prematurely lifted in
error and then reinstituted, and providing that in the event of any
disruption or malfunction in the operation of the electronic
communications and trading facilities of the Exchange, another market
center or responsible single plan processor in connection with the
transmittal or receipt of a trading halt the Exchange will nullify
trades occurring after a trading halt has been declared by the primary
listing market for the security will help to avoid confusion amongst
market participants, which is consistent with the protection of
investors and the public interest and therefore consistent with the
Act. The Exchange further believes that the proposal is appropriate and
consistent with the Act because when relied upon the Exchange will be
cancelling trades that should not have occurred in the first instance.
The Exchange also believes that the proposal is appropriate because a
trading halt declared by the primary listing market is indicative of an
issue with respect to the applicable security or a larger set of
securities.
    The Exchange believes that the proposal to update cross-references
in existing paragraph (h) of Rule 11.17 to include new paragraphs (i)
and (j) is consistent with the Act because, as is the case with respect
to the current rule, this change makes clear that the provisions of
paragraph (h) do not alter the application of other provisions of Rule
11.17.
    The Exchange believes that the Financial Industry Regulatory
Authority (``FINRA'') and other national securities exchanges are also
filing similar proposals to add provisions similar to the provisions
proposed by the Exchange above. Therefore, the proposal promotes just
and equitable principles of trade in that it promotes transparency and
uniformity across markets concerning treatment of transactions as
clearly erroneous. The proposed rule change would also help to assure
consistent results in handling erroneous trades across the U.S.
markets, thus furthering fair and orderly markets, the protection of
investors and the public interest.

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

    The Exchange does not believe that the proposed rule change
implicates any competitive issues. To the contrary, as noted above, the
Exchange believes FINRA and other national securities exchanges are
also filing similar proposals, and thus, that the proposal will help to
ensure consistency across market centers.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) by order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be 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_ADDRESS>Please include
File Number SR-BATS-2014-014 on the subject line.
Paper Comments
     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-BATS-2014-014. 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 such 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-BATS-2014-014, and should be
submitted on or before May 27, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-10280 Filed 5-5-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 110 (Friday, June 9, 2017)]
[Notices]
[Pages 26823-26824]
[FR Doc No: 2017-11965]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[[Release No. 34-80860; File No. SR-NYSEArca-2013-107]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an
Extension to Limited Exemption From Rule 612(c) of Regulation NMS In
Connection With the Exchange's Retail Liquidity Program Until December
31, 2017

June 5, 2017.
    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 approval of the Exchange's proposal
to adopt the 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 June 30,
2017.\4\
---------------------------------------------------------------------------

    \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\ The pilot term of the Program was originally scheduled to
end on April 14, 2015, but the Exchange initially extended the term
through September 30, 2015, see Securities Exchange Act Release No.
74572 (March 24, 2015), 80 FR 16705 (March 30, 2015) (NYSEArca-2015-
22), and then subsequently extended the term again through June 30,
2017, see Securities Exchange Act Release Nos. 75994 (September 28,
2015), 80 FR 59834 (October 2, 2015) (SR-NYSEArca-2015-84), 77236
(Feb. 25, 2016), 81 FR 10943 (March 2, 2016) (SR-NYSEArca-2016-30),
77425 (March 23, 2016), 81 FR 17523 (March 29, 2016) (SR-NYSEArca-
2016-47), 78601 (August 17, 2016), 81 FR 57632 (August 23, 2016)
(SR-NYSEArca-2016-113), and 79495 (December 7, 2016), 81 FR 90033
(December 13, 2016) (SR-NYSEArca-2016-157). Each time the pilot term
of the Program was extended, the Commission granted the Exchange's
request to also extend the Sub-Penny exemption through September 30,
2015, see Securities Exchange Act Release No. 74609 (March 30,
2015), 80 FR 18272 (April 3, 2015), March 31, 2016, see Securities
Exchange Act Release No. 76021 (September 29, 2015), 80 FR 60207
(October 5, 2015), August 31, 2016, see Securities Exchange Act
Release No. 77437 (March 24, 2016), 81 FR 17752 (March 30, 2016),
December 31, 2016, see Securities Exchange Act Release No. 78677
(August 25, 2016), 81 FR 60037 (August 31, 2016), and June 30, 2017,
see Securities Exchange Act Release No. 79586 (December 16, 2016),
81 FR 93719 (December 21, 2016).
---------------------------------------------------------------------------

    The Exchange now seeks to extend the exemption until June 30,
2017.\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. Accordingly, the Exchange has asked for additional time to
allow itself and the Commission to analyze more robust data concerning
the Program, which the Exchange committed to provide to the
Commission.\7\ For this reason and the reasons stated in the Order
originally granting the limited exemption, 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.
---------------------------------------------------------------------------

    \5\ See Letter from Martha Redding, Assistant Secretary, NYSE,
to Brent J. Fields, Secretary, Securities and Exchange Commission,
dated May 23, 2017.
    \6\ See Securities Exchange Act Release No. 80851 (June 2, 2017)
(SR-NYSEArca-2017-63).
    \7\ See Order, supra note 2, 78 FR at 79529.
---------------------------------------------------------------------------

    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
June 30, 2017.
    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
exemption that is the subject of this Order.
    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(83).

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-11965 Filed 6-8-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 224 (Tuesday, November 20, 2012)]
[Notices]
[Pages 69616-69617]
[FR Doc No: 2012-28151]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 4815-010]

EWP LLC; Notice of Application for Amendment of Exemption and
Soliciting Comments, Motions To Intervene, and Protests

    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection:
    a. Application Type: Amendment of Exemption.
    b. Project No.: P-4815-010.
    c. Date Filed: October 3, 2012.
    d. Applicant: EWP LLC.
    e. Name of Project: Eury Dam Project.
    f. Location: The existing project is located on the Little River in
Montgomery County, North Carolina. The project does not affect federal
lands.
    g. Filed Pursuant to: Federal Power Act, 16 U.S.C. 791(a)-825(r).
    h. Applicant Contact: J. Scott Hale, Manager, EWP LLC, 125 South
Elm Street, Suite 400, Greensboro, North Carolina 27401; Telephone:
(336) 272-3706.
    i. FERC Contact: Any questions on this notice should be addressed
to Kim Carter, Telephone<PHONE_NUMBER> or<EMAIL_ADDRESS>    j. Deadline for filing comments, motions to intervene, and
protests: December 20, 2012.
    Comments, protests, and interventions may be filed electronically
via the Internet in lieu of paper. See 18 CFR 385.2001(a)(1)(iii) and
the instructions on the Commission's Web site (http://www.ferc.gov/docs-filing/efiling.asp). Commenters can submit brief comments up to
6,000 characters, without prior registration, using the eComment system
(http://www.ferc.gov/docs-filing/ecomment.asp) and must include name
and contact information at the end of comments. The Commission strongly
encourages electronic filings.
    All documents (original and seven copies) filed by paper should be
sent to: Secretary, Federal Energy Regulatory Commission, 888 First
Street NE., Washington, DC 20426. Please include the project number (P-
4815-010) on any comments or motions filed.
    The Commission's Rules of Practice and Procedure require all
interveners filing documents with the Commission to serve a copy of
that document on each person whose name appears on the official service
list for the project. Further, if an intervener files comments or
documents with the Commission relating to the merits of an issue that
may affect the responsibilities of a particular resource agency, they
must also serve a copy of the document on that resource agency. A copy
of any motion to intervene must also be served upon each representative
of the

Applicant specified in the particular application.
    k. Description of Application: The exemptee proposes to replace two
400-kW existing submersible generating units with two Leffel Francis
type generating units rated at 156 kW and 636 kW. In addition, the
exemptee proposes to rebuild the existing trash racks, repair and
install draft tubes, install new switch gear and new control system to
ensure accurate pond level control, optimal load sharing and unit
switching with minimal downtime.
    l. Locations of the Application: A copy of the application is
available for inspection and reproduction at the Commission's Public
Reference Room, located at 888 First Street NE., Room 2A, Washington,
DC 20426, or by calling<PHONE_NUMBER>. This filing may also be viewed
on the Commission's Web site using the ``eLibrary'' link at http://elibrary.ferc.gov/idmws/search/fercgensearch.asp. Enter the docket
number excluding the last three digits (P-4815) in the docket number
field to access the document. You may also register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of
new filings and issuances related to this or other pending projects.
For assistance, call 1-866-208-3676 or email
<EMAIL_ADDRESS>for TTY, call<PHONE_NUMBER>. A copy is
also available for inspection and reproduction at the address in item
(h) above.
    m. Individuals desiring to be included on the Commission's mailing
list should so indicate by writing to the Secretary of the Commission.
    n. Comments, Protests, or Motions to Intervene: Anyone may submit
comments, a protest, or a motion to intervene in accordance with the
requirements of Rules of Practice and Procedure, 18 CFR 385.210, .211,
.214. In determining the appropriate action to take, the Commission
will consider all protests or other comments filed, but only those who
file a motion to intervene in accordance with the Commission's Rules
may become a party to the proceeding. Any comments, protests, or
motions to intervene must be received on or before the specified
comment date for the particular application.
    o. Any filings must bear in all capital letters the title
``COMMENTS'', ``PROTEST'', or ``MOTION TO INTERVENE'', as applicable,
and the Project Number of the particular application to which the
filing refers.
    p. Agency Comments: Federal, state, and local agencies are invited
to file comments on the described application. A copy of the
application may be obtained by agencies directly from the Applicant. If
an agency does not file comments within the time specified for filing
comments, it will be presumed to have no comments. One copy of an
agency's comments must also be sent to the Applicant's representatives.

    Dated: November 14, 2012.
Kimberly D. Bose,
 Secretary.
[FR Doc. 2012-28151 Filed 11-19-12; 8:45 am]
BILLING CODE 6717-01-P