[Federal Register Volume 82, Number 226 (Monday, November 27, 2017)]
[Notices]
[Pages 56089-56093]
[FR Doc No: 2017-25471]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82127; File No. SR-IEX-2017-40]

Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Modify
Its Fee Schedule, Pursuant to IEX Rule 15.110(a) and (c), To Adopt
Pricing for Orders That Execute in an IEX Auction for IEX-Listed
Securities

November 20, 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 (date), the Investors Exchange LLC (``IEX'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II
and III 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

    Pursuant to the provisions of Section 19(b)(1) under the Securities
Exchange Act of 1934 (``Act''),\4\ and Rule 19b-4 thereunder,\5\ IEX is
filing with the Commission a proposed rule change to modify its Fee
Schedule, pursuant to IEX Rule 15.110(a) and (c), to adopt pricing for
orders that execute in an IEX Auction \6\ for IEX-listed securities
pursuant to Rule 11.350. Changes to the Fee Schedule pursuant to this
proposal are effective upon filing, and will be operative once the
Exchange begins conducting IEX Auctions in IEX-listed securities.\7\
The text of the proposed rule change is available at the Exchange's Web
site at www.iextrading.com, at the principal office of the Exchange,
and at the Commission's Public Reference Room.
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    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CRF 240.19b-4.
    \6\ IEX Auctions include the daily Opening and Closing Auctions
(Rule 11.350(c) and (d), respectively), as well as IPO Auctions
related to an initial public offering of securities (Rule
11.350(e)), Halt Auctions following a regulatory halt (Rule
11.350(e)), and Volatility Auctions following a trading pause
pursuant to the Limit Up-Limit Down Plan (Rule 11.350(f)).
    \7\ See IEX Trader Alert #2017-015, available on the Exchange
public Web site.
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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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On August 10, 2017, the Commission approved a proposed rule change
by the Exchange to adopt rules governing auctions, including
dissemination of auction-related market data, for securities listed on
the Exchange pursuant to Chapter 14 of the IEX Rule Book.\8\ The
Exchange proposes to update its Fee Schedule, pursuant to IEX Rule
15.110(a) and (c), to add new Fee Codes to identify the fees applicable
to orders that execute in IEX Auctions. The IEX Auction processes are
designed to maximize participation in the auctions in order to provide
an efficient price discovery process and greater opportunity for
execution at the official auction price. The Exchange believes that
fees are an important component of the IEX Auction processes, in that
execution fees can influence the trading behavior of Members by
creating economic incentives (and disincentives) for Members that
participate in IEX Auctions. Thus, the Exchange is proposing fees that
are similarly designed to incentivize participation in IEX Auctions in
order to further support an efficient price discovery process and
greater opportunity for execution at the official auction price.
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    \8\ See Securities and Exchange Act Release No. 81316 (August 4,
2017), 82 FR 37474 (August 10, 2017) (SR-IEX-2017-10).
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    The Exchange proposes to apply the following new Fee Codes:

 Executions in the Opening Auction \9\ will receive Fee Code
``O''
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    \9\ See Rule 11.350(c).
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 Executions in the Closing Auction \10\ will receive Fee Code
``C''
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    \10\ See Rule 11.350(d).

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 Executions in a Halt Auction \11\ or Volatility Auction \12\
will receive Fee Code ``H''
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    \11\ See Rule 11.350(e).
    \12\ See Rule 11.350(f).
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 Executions in an IPO Auction \13\ will receive Fee Code ``N''
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    \13\ See Rule 11.350(e).

    As proposed, non-displayed orders on the Continuous Book \14\ that
are executed in an IEX Auction will receive the applicable auction Fee
Code on their execution reports and will be subject to a fee of $0.0003
per share (or 0.30% of total dollar value of the transaction calculated
as the execution price multiplied by the number of shares executed in
the transaction for shares executed below $1.00) (the ``Auction Match
Fee''). Furthermore, all orders on the Auction Book \15\ that are
executed in an IEX Auction will receive the applicable auction Fee Code
on their execution reports and will also be subject to the Auction
Match Fee of $0.0003 per share (or 0.30% of total dollar value of the
transaction calculated as the execution price multiplied by the number
of shares executed in the transaction for shares executed below $1.00).
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    \14\ See Rule 11.350(a)(4).
    \15\ See Rule 11.350(a)(1).
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    The Exchange believes that the proposed Auction Match Fee for non-
displayed orders on the Continuous Book and all orders on the Auction
Book that are executed in an IEX Auction are designed to incentivize
participation in IEX Auctions by providing a cost-effective execution
mechanism that offers Members an opportunity to receive executions at
the official opening, re-opening, or closing price of an IEX-listed
security. The Exchange believes the proposed fees enhance the price
discovery process by incentivizing Members to enter interest in IEX-
listed securities into IEX Auctions, rather than investing resources
into developing and maintaining their own off-exchange internalization
mechanisms, or utilizing the internalization mechanisms of competing
brokers and alternative trading systems, and entering only the balance
to participate in an IEX Auction.\16\ The Exchange believes
incentivizing broader participation will increase overall liquidity in
the IEX Auctions, and enhance the price discovery process, particularly
in the Opening and Closing Auctions, which provide a critical price
discovery mechanism to establish the official opening and closing
prices for IEX-listed securities at the start and end of each trading
day.
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    \16\ See, e.g., Exhibit F of Instinet LLC's Form ATS, which
describes its MOC Crosses that match buy and sell orders for certain
U.S. equity securities marked ``market on close''. See also, Table 6
in Appendix A of Bats BZX Exchange's (``Bats'') response letter from
Joanne Moffic-Silver, Executive Vice President, General Counsel, and
Corporate Secretary, to Secretary Brent J. Fields, dated August 2,
2017, in support of the proposed Bats Market Close. Table 6
illustrates significant volume in shares of FedEx, Proctor & Gamble,
and Cardinal Health that was executed at the official closing price
at off exchange venues. See Securities and Exchange Act Release No.
80683 (May 16, 2017), 82 FR 23320 (May 22, 2017) (SR-BatsBZX-2017-
34).
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    Moreover, orders that were displayed on the Continuous Book during
the Pre-Market Session \17\ or Regular Market Session \18\ that are
executed in the Opening Auction or Closing Auction, respectively, will
receive the applicable auction Fee Code, as well as existing Fee Code L
(Displayed Match Fee).\19\ Thus, such orders will not be charged a fee
because, pursuant to the IEX Fee Schedule, to the extent a Member
receives multiple Fee Codes on an execution, the lower fee shall
apply.\20\ As with the existing fee structure for execution of
transactions including displayed liquidity, this fee structure is
designed to incentivize Members to send IEX aggressively priced
displayable orders, thereby contributing to price discovery leading
into IEX Auctions.
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    \17\ See Rule 1.160(z).
    \18\ See Rule 1.160(gg).
    \19\ The Exchange currently does not charge any fee to Members
for executions on IEX that provide or take resting interest with
displayed priority (i.e., an order or portion of a reserve order
that is booked and ranked with display priority on the Order Book
either as the IEX best bid or best offer (``BBO''), or at a less
aggressive price). This pricing is referred to by the Exchange as
``Displayed Match Fee'' with a Fee Code of `L' provided by the
Exchange on execution reports. See the Investors Exchange Fee
Schedule, available on the Exchange public Web site.
    \20\ See IEX Fee Schedule, Transaction Fees, bullet three. The
Exchange also notes that there is no Continuous Book prior to a
Halt, Volatility, or IPO auction, and thus no opportunity for a
Member to have a displayed order on the Continuous Book that is
executed in such auctions.
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    The Exchange notes that the Internalization Fee, Displayed Match
Fee for non-displayed orders that remove displayed liquidity,\21\ and
the exception to the Non-Displayed Match Fee for displayable orders
that remove non-displayed resting interest upon entry,\22\ are not
applicable to IEX Auctions. IEX Auctions are an aggregated match
process where only the cumulative volume to buy and sell at various
prices is considered, and thus there is no basis to distinguish between
liquidity providers and liquidity removers, rendering the
Internalization Fee, Displayed Match Fee for non-displayed orders that
remove displayed liquidity, and the exception to the Non-Displayed
Match Fee for displayable orders that remove non-displayed resting
interest upon entry, inapplicable.
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    \21\ See supra note 19.
    \22\ The Exchange does not charge any fee to Members (on a per
MPID basis) for executions on IEX that remove resting interest with
non-displayed priority where (i) the liquidity removing order was
displayable (i.e., the order would have booked and displayed if
posted to the Order Book), and (ii) on a monthly basis, at least 90%
of the liquidity removing MPID's aggregate executions of displayable
orders provided liquidity during such calendar month. In such
transactions, the liquidity providing non-displayed interest is
subject to the Non-Displayed Match Fee.
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    The following table is designed to illustrate the various Fee Codes
and execution fees that will be applied to orders that may be executed
in an IEX Auction:

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                                                                                Fee for  executions     Fee for  executions
          Order details                Opening  auction         Closing  auction        Halt/volatility  auction             IPO auction                  >=$1.00                 <$1.00
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Non-displayed orders resting on    O......................  C......................  Not applicable...............  Not applicable..............  $0.0003...............  0.30% of TDVT.\24\
 the Continuous Book that execute
 in the Opening or Closing
 Auction \23\.
Displayed orders resting on the    O, L...................  C, L...................  Not applicable...............  Not applicable..............  FREE..................  FREE.
 Continuous Book that execute in
 the Opening or Closing Auction.
All orders on the Auction Book     O......................  C......................  H............................  N...........................  $0.0003...............  0.30% of TDVT
 that execute in an IEX Auction.
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2. Statutory Basis
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    \23\ The Exchange notes that non-displayed orders resting on the
Continuous Book that execute in the auction will no longer receive
Fee Code ``I'', and will instead receive the applicable auction Fee
Code. Orders taking or adding non-displayed liquidity prior to or
after an IEX Auction, will continue to receive Fee Code I, either
alone or in conjunction with other applicable Fee Codes.
    \24\ ``TDVT'' means the total dollar value of the transaction
calculated as the execution price multiplied by the number of shares
executed in the transaction. See IEX Fee Schedule, Definitions,
bullet five.
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    IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \25\ of the Act in general, and furthers the
objectives of Sections 6(b)(4) \26\ of the Act, in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees and other charges among its Members and other persons using
its facilities.
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    \25\ 15 U.S.C. 78f.
    \26\ 15 U.S.C. 78f(b)(4).
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    IEX believes that its proposed pricing for orders executed in an
IEX Auction is reasonable and equitable because, as discussed above,
the proposed fees are designed to incentivize participation in IEX
Auctions by providing a cost-effective execution mechanism that offers
Members an opportunity to receive executions at the official opening,
re-opening, or closing price of an IEX-listed security. The Exchange
believes the proposed fees may also incentivize Members to enter more
interest into IEX Auctions, rather than investing resources into
developing and maintaining their own off-exchange internalization
mechanisms, or utilizing the internalization mechanisms of competing
brokers and alternative trading systems. The Exchange notes that it
operates in a highly competitive market in which market participants
can readily direct order flow to competing venues if they deem fee
levels at a particular venue to be excessive. However, in the case of
auctions, the primary listing market receives the majority of order
flow seeking execution at the official opening, re-opening, and closing
prices of its listed securities, because such price is generally
established by its auction processes. As a result, the Exchange
believes that, to date, the Nasdaq Stock Market (``Nasdaq'') and the
New York Stock Exchange (``NYSE'') charge auction fees that are
considerably higher than those charged during continuous trading, when
accounting for the fact that fees for executions in the auction
processes are assessed on both sides of each transaction, and a large
portion of the fees collected for removing liquidity during continuous
trading are largely earmarked to pay rebates to liquidity
providers.\27\ Consequently, the Exchange believes there is
considerable demand from market participants seeking an alternative to
the primary market's auction processes, as evidenced by the recent
proposal from Bats BZX Exchange, Inc. (``Bats'') to offer a closing
process to match orders in non-listed securities at the official
closing price published by the primary listing market (the ``Bats
Market Close'').\28\ Therefore, the Exchange has designed its proposed
fees to meet the demands of market participants by offering competitive
pricing to compete for auction order flow with trading centers such as
Bats (if the Bats Market Close is approved), as well as other off-
exchange facilities.\29\
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    \27\ For example, the Nasdaq Stock Market charges fees ranging
between $0.0008-$0.0016 for orders executed in the Nasdaq Closing
Cross, resulting in net fee capture ranging between $0.0016-$0.0032
per share executed. In contrast, during continuous trading, Nasdaq
pays rebates ranging between $0.0015-$0.00305 to liquidity providing
orders, and charges a fee of $0.0030 to liquidity taking orders,
resulting in net fee capture ranging between -$0.00005-$0.0015 per
share executed. Similarly, NYSE charges fees ranging between
$0.0008-$0.0011 for MOC and LOC orders executed in the NYSE Closing
Auction, resulting in net fee capture ranging between $0.0016 and
$0.0022 per share executed. In contrast, during continuous trading,
NYSE pays a rebate ranging between $0.0010-$0.0022 to liquidity
providing orders for non-market makers and non-Supplemental
Liquidity providers, and assuming a member qualifies for the highest
removal tier, NYSE charges $0.00275 to liquidity taking orders,
resulting in net fee capture ranging between $0.00055-$0.00175 per
share executed.
    \28\ See Securities and Exchange Act Release No. 80683 (May 16,
2017), 82 FR 23320 (May 22, 2017) (SR-BatsBZX-2017-34).
    \29\ See supra note 16.
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    As discussed above, IEX also believes that it is appropriate,
reasonable, and consistent with the Act not to charge a fee for an
order executed in an IEX Auction that was displayed on the Continuous
Book prior to the Opening or Closing Auction. As with the existing fee
structure for the execution of transactions including displayed
liquidity, this fee structure is designed to incentivize Members to
send IEX aggressively priced displayable orders, thereby contributing
to price discovery, consistent with the overall goal of enhancing
market quality. IEX believes that, as with the existing Displayed Match
Fee, not charging a fee for the execution of a previously displayed
order is equitable and not unfairly discriminatory because it is
designed to facilitate the entry of, and enhance execution
opportunities for, displayable orders, thereby further incentivizing
entry of displayed orders.
    Furthermore, the Exchange notes that the proposed fees are
nondiscriminatory because they will apply uniformly to all Members, and
all Members have an equal opportunity to submit any type of Auction
Eligible Order,\30\--including both displayed and non-displayed orders
on the Continuous Book, or orders that queue on the Auction Book--for
execution in an IEX Auction, using the order types made available to
all Members on a fair and equal basis. In addition, the Exchange
believes that the proposed fees for IEX Auctions are appropriate,
reasonable, and consistent with the Act, because such fees are within
the range of transaction fees charged by other exchanges for their

respective Auction processes.\31\ Furthermore, although orders that
execute in IEX Auctions may be subject to different fees than similar
orders executed during continuous trading, the Exchange notes that
other exchanges also charge differential pricing for orders that
execute in their opening process.\32\ Moreover, as described above, the
Exchange believes the proposed fees for orders executed in an IEX
Auction are appropriate, reasonable, and consistent with the Act,
because such fees are designed to incentivize participation in IEX
Auctions, in order to provide an efficient price discovery process and
greater opportunity for execution at the official auction price.
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    \30\ See Rule 11.350(a)(2).
    \31\ For example, the Nasdaq Stock Market charges fees ranging
from $0.00085-$0.0015 for orders executed in the Nasdaq Opening
Cross, including capping such fees at $35,000 per month for certain
members, which includes crosses for listed and non-listed
securities. Similarly, NYSE charges fees ranging from $0 for closing
off-set orders and orders on the continuous book that are executed
in the auction, to $0.0011 for MOC and LOC orders (for members that
don't qualify for MOC/LC Tier 1 or 2).
    \32\ See id.
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    Additionally, the Exchange believes that its proposed Fee Codes for
orders executed in an IEX Auction, which will be provided on execution
reports, will provide transparency and predictability to Members as to
the applicable transaction fees, because Members can determine which
Fee Code is applicable to the execution of a particular order in an IEX
Auction.
    As discussed above, the Exchange does not believe that it is
appropriate to provide the Internalization Fee, or the Displayed Match
Fee to non-displayed orders that execute in an IEX Auction, because IEX
Auctions are an aggregated match process where only the cumulative
volume to buy and sell at various prices is considered, and thus there
is no basis to distinguish between liquidity providers and liquidity
removers. Similarly, the Exchange does not believe that the exception
to the Non-Displayed Match Fee for displayable orders that take resting
interest upon entry is applicable in the context of an IEX Auction,
since such orders are not able to remove resting interest on entry in
an IEX Auction, because they are either queued on the Auction Book and
not displayed, or resting displayed on the Continuous Book.\33\
Moreover, as noted above, the IEX Auctions are an aggregated match
process where only the cumulative volume to buy and sell at various
prices is considered, and thus there is no basis to distinguish between
liquidity providers and liquidity removers, or their respective display
status on the Auction Book.
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    \33\ The Exchange notes that it is of course possible for a
displayed order to remove non-displayed liquidity during continuous
trading on the Continuous Book; however, such execution would not be
part of an IEX Auction, and would be subject to the Exchange's
existing Fee Schedule.
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    In conclusion, the Exchange also submits that its proposed fee
structure satisfies the requirements of Sections 6(b)(4) and 6(b)(5) of
the Act for the reasons discussed above in that it does not permit
unfair discrimination between customers, issuers, brokers, or dealers,
and is designed to promote just and equitable principles of trade, 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. Further, IEX believes that its proposal does
not raise any new or novel issues that have not previously been
considered by the Commission when approving the existing IEX fees, or
the auction fees of other national securities exchanges.

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

    IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed rule change will impose any burden on intermarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. To the contrary, the Exchange believes that the
proposed pricing structure will increase competition and draw
additional volume to the Exchange for IEX Auctions. The Exchange
operates in a highly competitive market in which market participants
can readily favor competing venues if fee schedules at other venues are
viewed as more favorable. Consequently, the Exchange believes that the
degree to which IEX fees could impose any burden on competition is
extremely limited, and does not believe that such fees would burden
competition between Members or competing venues in a manner that is not
necessary or appropriate in furtherance of the purposes of the Act.
    The Exchange does not believe that the proposed rule change will
impose any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because, while
different fees are assessed in some circumstances, these different fees
are not based on the type of Member entering the orders that execute in
an IEX Auction, but based on the type of order entered, and all Members
can submit any of IEX's permissible order types.

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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) \34\ of the Act.
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    \34\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \35\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \35\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-IEX-2017-40 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-IEX-2017-40. This file
number should be included in 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 Section, 100 F Street NE.,
Washington, DC 20549-1090. Copies of the filing will also be available
for inspection and copying at the IEX's principal office and on its
Internet Web site at www.iextrading.com. All comments received will be
posted without change. Persons submitting comments are cautioned that
we do not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-IEX-
2017-40 and should be submitted on or before December 18, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
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    \36\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-25471 Filed 11-24-17; 8:45 am]
BILLING CODE 8011-01-P


Kathy Kaufman/RTP/USEPA/US

04/28/2008 10:47 AM

To

Tricia Crabtree/RTP/USEPA/US@EPA

cc

Subject

next batch for Pb RIA docket

Kathy Kaufman

EPA/OAQPS Mail Code C539-03

Research Triangle Park, NC 27711

Phone<PHONE_NUMBER>

Fax<PHONE_NUMBER>

----- Forwarded by Kathy Kaufman/RTP/USEPA/US on 04/28/2008 10:46 AM -----

Kathy Kaufman/RTP/USEPA/US

03/28/2008 09:32 AM

To

"King, Heidi R."<EMAIL_ADDRESS> cc

Lydia Wegman/RTP/USEPA/US@EPA

Subject

Re: Did EPA identify a time for Ap 10 interagency Pb RIA mtg?

I believe Margaret is blocking Lydia's calendar for that time.

Kathy Kaufman

EPA/OAQPS Mail Code C539-03

Research Triangle Park, NC 27711

Phone<PHONE_NUMBER>

Fax<PHONE_NUMBER>

"King, Heidi R."<EMAIL_ADDRESS> 03/28/2008 09:24 AM

To

Kathy Kaufman/RTP/USEPA/US@EPA

cc

Lydia Wegman/RTP/USEPA/US@EPA

Subject

Did EPA identify a time for Ap 10 interagency Pb RIA mtg?

Kathy,

We spoke of identifying a time for interagency briefing on the Pb NAAQS RIA on the morning of 4/10, ending by 11:30.  Would 10 - 11:30 work for your team?  I'd like to update the interagency mtg invitation today if possible.

Thanks very much, I hope all is well,

heidi

----- Forwarded by Kathy Kaufman/RTP/USEPA/US on 04/28/2008 10:46 AM -----

Kathy Kaufman/RTP/USEPA/US

03/28/2008 09:34 AM

To

"King, Heidi R."<EMAIL_ADDRESS> cc

Subject

Re: Did EPA identify a time for Ap 10 interagency Pb RIA mtg?

PS -- looks good -- please let us know when it is definite.  We're planning on that time from this end.

Kathy Kaufman

EPA/OAQPS Mail Code C539-03

Research Triangle Park, NC 27711

Phone<PHONE_NUMBER>

Fax<PHONE_NUMBER>

"King, Heidi R."<EMAIL_ADDRESS> 03/28/2008 09:24 AM

To

Kathy Kaufman/RTP/USEPA/US@EPA

cc

Lydia Wegman/RTP/USEPA/US@EPA

Subject

Did EPA identify a time for Ap 10 interagency Pb RIA mtg?

Kathy,

We spoke of identifying a time for interagency briefing on the Pb NAAQS RIA on the morning of 4/10, ending by 11:30.  Would 10 - 11:30 work for your team?  I'd like to update the interagency mtg invitation today if possible.

Thanks very much, I hope all is well,

heidi

----- Forwarded by Kathy Kaufman/RTP/USEPA/US on 04/28/2008 10:46 AM -----

Kathy Kaufman/RTP/USEPA/US

04/03/2008 05:16 PM

To

"King, Heidi R."<EMAIL_ADDRESS> cc

Ron Evans/RTP/USEPA/US@EPA, Neal Fann/RTP/USEPA/US@EPA

Subject

tomorrow's 1:00 meeting

Heidi -- just to get on the same page for tomorrow's 1:00 meeting -- our plan is to discuss process and benefits methodology tomorrow.  That seems like plenty to start out with.

Thanks!

-- Kathy

Kathy Kaufman

EPA/OAQPS Mail Code C539-03

Research Triangle Park, NC 27711

Phone<PHONE_NUMBER>

Fax<PHONE_NUMBER>


[Federal Register Volume 77, Number 91 (Thursday, May 10, 2012)]
[Notices]
[Pages 27444-27445]
[FR Doc No: 2012-11324]

=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

 COMMODITY FUTURES TRADING COMMISSION

[Release Nos. 34-66932; File No. 265-26]

Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues

AGENCIES: Securities and Exchange Commission (``SEC'') and Commodity
Futures Trading Commission (``CFTC'') (each, an ``Agency,'' and
collectively, ``Agencies'').

ACTION: Notice of Federal Advisory Committee Renewal.

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SUMMARY: The Chairmen of the SEC and CFTC, with the concurrence of the
other SEC and CFTC Commissioners, respectively, intend to renew the
charter of the Joint CFTC-SEC Advisory Committee on Emerging Regulatory
Issues (the ``Committee'').

Comments

    Because the Agencies will jointly review all comments submitted,
interested parties may send comments

to either Agency and need not submit responses to both Agencies.
Respondents are encouraged to use the title ``Joint CFTC-SEC Advisory
Committee'' to facilitate the organization and distribution of comments
between the Agencies. Interested parties are invited to submit
responses to:
    Securities and Exchange Commission: Written comments may be
submitted by the following methods:

Electronic Comments

     Use the SEC's Internet submission form (http://www.sec.gov/rules/other/shtml); or
     Send an email to<EMAIL_ADDRESS>    Please include File No. 265-26 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F St. NE.,
Washington 20549. All submissions should refer to File No. 265-26.
    To help the SEC process and review your comments more efficiently,
please use only one method. The SEC staff will post all comments on the
SEC's Internet Web site (http://www.sec.gov/rules/shtml). Comments will
also be available for Web site viewing and printing in the SEC's Public
Reference Room, 100 F St. NE., Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. All
comments received will be posted without change; we do not edit
personal identifying information from your submissions. You should
submit only information that you wish to make available publicly.

Commodity Futures Trading Commission

     Written comments may be mailed to the Commodity Futures
Trading Commission, Three Lafayette Center, 1155 21st Street NW.,
Washington, DC 20581, attention Office of the Secretary; transmitted by
facsimile to the CFTC at<PHONE_NUMBER>; or transmitted electronically
to<EMAIL_ADDRESS>Reference should be made to ``Joint CFTC-
SEC Advisory Committee.''

FOR FURTHER INFORMATION CONTACT: Ronesha Butler, Special Counsel, at
(202) 551-5629, Division of Trading and Markets, Securities and
Exchange Commission, 100 F St. NE., Washington DC 20549, or Gail Scott,
Committee Management Officer, at<PHONE_NUMBER>, Commodity Futures
Trading Commission, Three Lafayette Center, 1155 21st Street, NW.,
Washington, DC 20581.

SUPPLEMENTARY INFORMATION: In accordance with the requirements of the
Federal Advisory Committee Act, 5 U.S.C. App. 2, the Agencies are
publishing this notice that the Chairmen of the SEC and CFTC, with the
concurrence of the other SEC and CFTC Commissioners, intend to renew
the charter of the Committee. The Committee was originally established
on May 10, 2010, to operate for a term of two years.\1\ The Committee's
objectives and scope of activities are to conduct public meetings,
submit reports and recommendations to the CFTC and the SEC and
otherwise to serve as a vehicle for discussion and communication on
regulatory issues of mutual concern and their effect on the CFTC's and
SEC's statutory responsibilities. Subjects to be addressed by the
Committee will include, but will not be limited to, identification of
emerging regulatory risks, assessment and quantification of the impact
of such risks and their implications for investors and market
participants, and to further the Agencies' efforts on regulatory
harmonization. The Committee will work to develop clear and specific
goals toward identifying and addressing emerging regulatory risks,
protecting investors and customers, and furthering regulatory
harmonization, and to recommend processes and procedures for achieving
and reporting on those goals.
---------------------------------------------------------------------------

    \1\ See Securities Act Release No. 9123, 75 FR 27028 (May 13,
2010) (File No. 265-26).
---------------------------------------------------------------------------

    To achieve the Committee's goals, the Chairmen of the SEC and CFTC
may appoint approximately 10-15 members. There will be two co-
designated federal officers of the Committee. The Chairman of the CFTC
will appoint a CFTC employee to serve as one co-designated federal
officer of the Committee and the Chairman of the SEC will appoint an
SEC employee to serve as the other co-designated federal officer of the
Committee. The co-designated federal officers jointly call all of the
Committee's and subcommittees' meetings, prepare and jointly approve
all meeting agendas, adjourn any meeting when they jointly determine
adjournment to be in the public interest, and chair meetings when
directed to do so. The co-designated federal officers also will attend
all Committee and subcommittee meetings. The Chairmen of the CFTC and
of the SEC continue to serve as Co-Chairmen of the Committee. The
Committee's membership will be fairly balanced in terms of points of
view represented and the functions to be performed.
    The Committee's charter will be filed with the Senate Committee on
Agriculture, Nutrition and Forestry; the House of Representatives
Committee on Agriculture; the Senate Committee on Banking, Housing, and
Urban Affairs; the House Committee on Financial Services; and U.S.
General Services Administration Committee Management Secretariat
(``Secretariat''). A copy of the charter also will be filed with the
SEC, CFTC and the Library of Congress. The charter will be available
for Web site viewing and printing in the Public Reference Room at the
SEC's headquarters and posted on the SEC's Web site at www.sec.gov and
the CFTC's Web site at www.cftc.gov.
    The Committee will continue to operate for an additional two years
from the date of renewal of the charter unless, before the expiration
of that time period, its charter is re-established or renewed in
accordance with the Federal Advisory Committee Act or unless either the
Chairman of the SEC or the Chairman of the CFTC determines that the
Committee's continuance is no longer in the public interest.
    The Committee will meet at such intervals as are necessary to carry
out its functions. It is estimated that the meetings will occur six
times per year. Meetings of subgroups or subcommittees of the full
Committee may occur more frequently.
    The charter will provide that the duties of the Committee are to be
solely advisory. Each Agency alone will make any determinations of
action to be taken and policy to be expressed with respect to matters
within their respective authority as to which the Committee provides
advice or makes recommendations.
    The Chairmen of the Agencies affirm that the renewal of the
Committee is necessary and in the public interest.

    By the Securities and Exchange Commission.
Elizabeth M. Murphy,
Secretary.
    By the Commodity Futures Trading Commission.

    Dated: May 7, 2012.
David A. Stawick,
Secretary.
[FR Doc. 2012-11324 Filed 5-9-12; 8:45 am]
BILLING CODE P


[Federal Register Volume 87, Number 205 (Tuesday, October 25, 2022)]
[Notices]
[Pages 64504-64505]
[FR Doc No: 2022-23143]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4671-DR; Docket ID FEMA-2022-0001]

Puerto Rico; Amendment No. 11 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster declaration
for the Commonwealth of Puerto Rico (FEMA-4671-DR), dated September 21,
2022, and related determinations.

DATES: This amendment was issued October 7, 2022.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration
for the Commonwealth of Puerto Rico is hereby amended to include
permanent work under the Public Assistance program for those areas
determined to have been adversely affected by the event declared a
major disaster by the President in his declaration of September 21,
2022.

    The municipalities of Adjuntas, Aguada, Aguas Buenas, Aibonito,
A[ntilde]asco, Barranquitas, Caguas, Can[oacute]vanas, Ciales,
Cidra, Comer[iacute]o, Fajardo, Humacao, Juana D[iacute]az, Lares,
Las Mar[iacute]as, Las Piedras, Manati, Maricao, Moca, Morovis,
Naguabo, Naranjito, San Lorenzo, Santa Isabel, and Vega Alta for
permanent work [Categories C-G] (already designated for Individual
Assistance and assistance for debris removal and emergency
protective measures [Categories A and B], including direct federal
assistance, under the Public Assistance program).

    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households In Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050, Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance

(Presidentially Declared Disasters); 97.039, Hazard Mitigation
Grant.

Deanne Criswell,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2022-23143 Filed 10-24-22; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 81, Number 144 (Wednesday, July 27, 2016)]
[Notices]
[Pages 49348-49353]
[FR Doc No: 2016-17677]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78391; File No. SR-NSX-2016-05]

Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend Exchange Rule 11.26 To Implement the Quoting and Trading
Provisions of the Regulation NMS Plan To Implement a Tick Size Pilot
Program

July 21, 2016.
    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 July 11, 2016, National Stock Exchange, Inc. (``NSX'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change, as described in
Items I, II, and III below, which Items have been substantially
prepared by the Exchange. The Exchange has designated this proposal as
a ``non-controversial'' proposed rule change pursuant to Section
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)(iii) \4\ thereunder,
which renders it effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

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

    The Exchange filed a proposal to amend Exchange Rule 11.26 to
implement the quoting and trading provisions of the Regulation NMS Plan
to Implement a Tick Size Pilot Program (the ``Plan'').\5\ The proposed
rule change is substantially similar to proposed rule changes recently
approved or published by the Commission by New York Stock Exchange LLC
to adopt NYSE Rules 67(a) and 67(c)-(e), which also implemented the
quoting and trading provisions of the Plan.\6\ Therefore, the Exchange
has designated this proposal as ``non-controversial'' and provided the
Commission with the notice required by Rule 19b-4(f)(6)(iii) under the
Act.\7\
---------------------------------------------------------------------------

    \5\ 17 CFR 242.608.
    \6\ See Securities Exchange Act Release No. 76229 (October 22,
2015), 80 FR 66065 (October 28, 2015) (SR-NYSE-2015-46), as amended
by Partial Amendments No. 1 and No. 2 to the Quoting & Trading Rules
Proposal. See Securities Exchange Act Release No. 77703 (April 25,
2016), 81 FR 25725 (April 29, 2016) (SR-NYSE-2015-46).
    \7\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The text of the proposed rule change is available at the Exchange's
Web site at www.nsx.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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to establish rules to require its ETP Holders
\8\ to comply with the requirements of the Plan,\9\ which is designed
to study and assess the impact of increment conventions on the
liquidity and trading of the common stocks of small capitalization
companies. The Exchange proposes changes to its rules for a two-year
pilot period that coincides with the pilot period for the Plan, which
is

currently scheduled as a two-year pilot to begin on October 3, 2016.
---------------------------------------------------------------------------

    \8\ Rule 1.5E(1) defines the term ``ETP'' as an Equity Trading
Permit issued by the Exchange for effecting approved securities
transactions on the Exchange's trading facilities.
    \9\ See Securities and Exchange Act Release No. 74892 (May 6,
2015), 80 FR 27513 (May 13, 2015) (File No. 4-657) (``Plan Approval
Order'').
---------------------------------------------------------------------------

Background
    On August 25, 2014, NYSE Group, Inc., on behalf of Bats BZX
Exchange, Inc. (f/k/a BATS Exchange, Inc.), Bats BYX Exchange, Inc. (f/
k/a BATS Y-Exchange, Inc.), Chicago Stock Exchange, Inc., EDGA
Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory
Authority, Inc. (``FINRA''), NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC,
the Nasdaq Stock Market LLC, New York Stock Exchange LLC, the NYSE MKT,
LLC (``NYSE MKT''), and NYSE Arca, Inc. (collectively
``Participants''), filed the Plan with the Commission, pursuant to
Section 11A of the Act \10\ and Rule 608 of Regulation NMS
thereunder.\11\ The Participants filed the Plan to comply with an order
issued by the Commission on June 24, 2014 (the ``June 2014
Order'').\12\ The Plan \13\ was published for comment in the Federal
Register on November 7, 2014,\14\ and approved by the Commission, as
modified, on May 6, 2015.\15\ On November 6, 2015, the Commission
granted the Participants an exemption from implementing the Plan until
October 3, 2016.\16\ On March 6, 2016, the Commission noticed an
amendment to the Plan adding NSX as a Participant.\17\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78k-1.
    \11\ See Letter from Brendon J. Weiss, Vice President,
Intercontinental Exchange, Inc., to Secretary, Commission, dated
August 25, 2014.
    \12\ See Securities Exchange Act Release No. 72460 (June 24,
2014), 79 FR 36840 (June 30, 2014).
    \13\ Unless otherwise specified, capitalized terms used in this
rule filing are based on the defined terms of the Plan.
    \14\ See Securities and Exchange Act Release No. 73511 (November
3, 2014), 79 FR 66423 (November 7, 2015) (File No. 4-657) (Plan
Filing).
    \15\ See Plan Approval Order, note 9, supra.
    \16\ See Securities Exchange Act Release No. 76382 (November 6,
2015), 80 FR 70284 (November 13, 2015) (File No. 4-657) (Order
Granting Exemption From Compliance With the National Market System
Plan To Implement a Tick Size Pilot Program).
    \17\ See Securities Exchange Act Release No. 77277 (March 3,
2016), 81 FR 12162 (March 8, 2016).
---------------------------------------------------------------------------

    The Plan is designed to allow the Commission, market participants,
and the public to study and assess the impact of increment conventions
on the liquidity and trading of the common stocks of small
capitalization companies. The Commission plans to use the Plan to
assess whether wider tick sizes enhance the market quality of Pilot
Securities for the benefit of issuers and investors. Each Participant
is required to comply with, and to enforce compliance by its members,
as applicable, with the provisions of the Plan.
    The Plan will include stocks of companies with $3 billion or less
in market capitalization, an average daily trading volume of one
million shares or less, and a volume weighted average price of at least
$2.00 for every trading day. The Plan will consist of a control group
of approximately 1,400 Pilot Securities and three test groups with 400
Pilot Securities in each, selected by a stratified sampling.\18\ During
the pilot, Pilot Securities in the control group will be quoted at the
current tick size increment of $0.01 per share and will trade at the
currently permitted increments. Pilot Securities in the first test
group (``Test Group One'') will be quoted in $0.05 minimum increments
but will continue to trade at any price increment that is currently
permitted.\19\ Pilot Securities in the second test group (``Test Group
Two'') will be quoted in $0.05 minimum increments and will trade at
$0.05 minimum increments subject to a midpoint exception, a retail
investor exception, and a negotiated trade exception.\20\ Pilot
Securities in the third test group (``Test Group Three'') will be
subject to the same terms as Test Group Two and also will be subject to
the ``Trade-at'' requirement to prevent price matching by a person not
displaying at a price of a Trading Center's ``Best Protected Bid'' or
``Best Protected Offer,'' unless an enumerated exception applies.\21\
In addition to the exceptions provided under Test Group Two, an
exception for Block Size orders and exceptions that closely resemble
those under Rule 611 of Regulation NMS \22\ will apply to the Trade-at
requirement.
---------------------------------------------------------------------------

    \18\ See Section V of the Plan for identification of Pilot
Securities, including criteria for selection and grouping.
    \19\ See Section VI(B) of the Plan. Pilot Securities in Test
Group One will be subject to a midpoint exception and a retail
investor exception.
    \20\ See Section VI(C) of the Plan.
    \21\ See Section VI(D) of the Plan.
    \22\ 17 CFR 242.611.
---------------------------------------------------------------------------

    The Plan also contains requirements for the collection and
transmission of data to the Commission and the public. A variety of
data generated during the Plan will be released publicly on an
aggregated basis to assist in analyzing the impact of wider tick sizes
on smaller capitalization stocks.\23\
---------------------------------------------------------------------------

    \23\ See Section VII of the Plan.
---------------------------------------------------------------------------

Amendments to Rule 11.26
    The Plan requires the Exchange to establish, maintain, and enforce
written policies and procedures that are reasonably designed to comply
with applicable quoting and trading requirements specified in the
Plan.\24\ Accordingly, the Exchange is proposing to amend Rule 11.26 to
require its ETP Holders to comply with the quoting and trading
provisions of the Plan. The proposed Rule is also designed to ensure
the Exchange's compliance with the Plan.
---------------------------------------------------------------------------

    \24\ The Exchange was also required by the Plan to develop
appropriate policies and procedures that provide for data collection
and reporting to the Commission of data described in Appendixes B
and C of the Plan. NSX has adopted Rule 11.26(b), Compliance with
Data Collection Requirements, to implement those requirements. See
Securities Exchange Act Release No. 77483 (March 31, 2016), 81 FR
20040 (April 6, 2016) (SR-NSX-2016-01).
---------------------------------------------------------------------------

    Proposed paragraph (a)(1) of Rule 11.26 would establish the
following defined terms:
     ``Plan'' means the Tick Size Pilot Plan submitted to the
Commission pursuant to Rule 608(a)(3) of Regulation NMS under the Act;
     ``Pilot Test Groups'' means the three test groups
established under the Plan, consisting of 400 Pilot Securities each,
which satisfy the respective criteria established by the Plan for each
such test group.
     ``Trade-at Intermarket Sweep Order'' \25\ would mean a
limit order for a Pilot Security that meets the following requirements:
---------------------------------------------------------------------------

    \25\ The Plan defines a Trade-at Intermarket Sweep Order
(``ISO'') as a limit order for a Pilot Security that, when routed to
a Trading Center, is identified as an ISO and, simultaneous with the
routing of the limit order identified as an ISO, one or more
additional limit orders, as necessary, are routed to execute against
the full displayed size of any protected bid (in the case of a limit
order to sell) or the full displayed size of any protected offer (in
the case of a limit order to buy) for the Pilot Security with a
price that is equal to the limit price of the limit order identified
as an ISO. These additional routed orders also must be marked as
ISOs. See Plan, Section I(MM).
    The Plan allows (i) an order that is identified as an ISO to be
executed at the price of a Protected Quotation (see Plan, Section
VI(D)(8) and proposed Rule 11.26(c)(3)(D)(iii)j.; and (ii) an order
to execute at the price of a Protected Quotation that ``is executed
by a trading center that simultaneously routed Trade-at ISO to
execute against the full displayed size of the Protected Quotation
that was traded at.'' See Plan, Section VI(D)(9) and proposed Rule
11.26(c)(3)(D)(iii)i. Accordingly, the Exchange proposes to clarify
the use of an ISO in connection with the Trade-at requirement by
adopting, as part of proposed Rule 11.26(a)(1), a comprehensive
definition of ``Trade-at ISO.'' As set forth in the Plan and as
noted above, the definition of a Trade-at ISO used in the Plan does
not distinguish ISOs that are compliant with Rule 611 or Regulation
NMS from ISOs that are compliant with Trade-at. The Exchange
therefore proposes the separate definition of Trade-at ISO contained
in proposed Rule 11.26(a). The Exchange believes that this proposed
definition will further clarify to recipients of ISOs in Test Group
Three securities whether the ISO satisfies the requirements of Rule
611 of Regulation NMS or Trade-at.
---------------------------------------------------------------------------

     When routed to a Trading Center, the limit order is
identified as a Trade-at Intermarket Sweep Order; and
     Simultaneously with the routing of the limit order
identified as a Trade-at

Intermarket Sweep Order, one or more additional limit orders, as
necessary, are routed to execute against the full size of any protected
bid, in the case of a limit order to sell, or the full displayed size
of any protected offer, in the case of a limit order to buy, for the
Pilot Security with a price that is better than or equal to the limit
price of the limit order identified as a Trade-at Intermarket Sweep
Order. These additional routed orders also must be marked as Trade-at
Intermarket Sweep Orders.
    Paragraph (a)(1)(E) of Rule 11.26 would provide that all
capitalized terms not otherwise defined in this rule shall have the
meanings set forth in the Plan, Regulation NMS under the Act, or
Exchange rules, as applicable.
    Proposed Paragraph (a)(2) would state that the Exchange is a
Participant in, and subject to the applicable requirements of, the
Plan; proposed Paragraph (a)(3) would require ETP Holders to establish,
maintain and enforce written policies and procedures that are
reasonably designed to comply with the applicable requirements of the
Plan, which would allow the Exchange to enforce compliance by its ETP
Holders with the provisions of the Plan, as required pursuant to
Section II(B) of the Plan.
    In addition, Paragraph (a)(4) would provide that the NSX's trading
system (the ``System'') \26\ would not display, quote or trade in
violation of the applicable quoting and trading requirements for a
Pilot Security specified in the Plan and this proposed rule, unless
such quotation or transaction is specifically exempted under the
Plan.\27\
---------------------------------------------------------------------------

    \26\ Rule 1.5S(4) defines the term ``System'' as `` . . . the
electronic securities communications and trading facility designated
by the Board through which the orders of Users are consolidated for
ranking and execution.
    \27\ The Exchange is evaluating its internal policies and
procedures to ensure its compliance with the Plan. Violations of the
Plan by ETP Holders will be addressed through the Exchange's current
ruleset and its disciplinary process. See Chapter VIII of the
Exchange's rule book and Rule 3.2, Violations Prohibited.
---------------------------------------------------------------------------

    The Exchange also proposes to add Rule 11.26(a)(5) to provide for
the treatment of Pilot Securities that drop below a $1.00 value during
the Pilot Period.\28\ The Exchange proposes that if the price of a
Pilot Security drops below $1.00 during regular trading on any given
business day, such Pilot Security would continue to be subject to the
Plan and the requirements described below that necessitate ETP Holders
to comply with the specific quoting and trading obligations for each
respective Pilot Test Group under the Plan, and would continue to trade
in accordance with the proposed rules below as if the price of the
Pilot Security had not dropped below $1.00.
---------------------------------------------------------------------------

    \28\ New York Stock Exchange LLC, on behalf of the Participants,
submitted a letter to Commission requesting exemption from certain
provisions of the Plan related to quoting and trading. See letter
from Elizabeth K. King, NYSE, to Brent J. Fields, Secretary,
Commission, dated October 14, 2015 (the ``October Exemption
Request''). FINRA, also on behalf of the Plan Participants,
submitted a separate letter to Commission requesting additional
exemptions from certain provisions of the Plan related to quoting
and trading. See letter from Marcia E. Asquith, Senior Vice
President and Corporate Secretary, FINRA, to Robert W. Errett,
Deputy Secretary, Commission, dated February 23, 2016 (the
``February Exemption Request,'' and together with the October
Exemption Request, the ``Exemption Request Letters''). The
Commission, pursuant to its authority under Rule 608(e) of
Regulation NMS, granted New York Stock Exchange LLC a limited
exemption from the requirement to comply with certain provisions of
the Plan as specified in the Exemption Request Letters and noted
herein. See letter from David Shillman, Associate Director, Division
of Trading and Markets, Commission to Sherry Sandler, Associate
General Counsel, New York Stock Exchange LLC, dated April 25, 2016
(the ``Exemption Letter''). The Exchange is seeking the same
exemptions as requested in the Exemption Request Letters, including
without limitation, an exemption relating to proposed Rule
11.26(a)(5).
---------------------------------------------------------------------------

    However, if the Closing Price of a Pilot Security on any given
business day is below $1.00, such Pilot Security would be moved out of
its respective Pilot Test Group into the control group (which consists
of Pilot Securities not placed into a Pilot Test Group), and may then
be quoted and traded at any price increment that is currently permitted
by Exchange rules for the remainder of the Pilot Period.
Notwithstanding anything contained herein to the contrary, the Exchange
proposes that, at all times during the Pilot Period, Pilot Securities
(whether in the control group or any Pilot Test Group) would continue
to be subject to the data collection rules, which are enumerated in
Rule 11.26(b).
    The Exchange proposes Rules 11.26(c)(1) through (3), which would
require ETP Holders to comply with the specific quoting and trading
obligations for each Pilot Test Group under the Plan. With regard to
Pilot Securities in Test Group One, proposed 11.26(c)(1) would provide
that no ETP Holder may display, rank, or accept from any person any
displayable or non-displayable bids or offers, orders, or indications
of interest in increments other than $0.05. However, orders priced to
trade at the midpoint of the National Best Bid and National Best Offer
(``NBBO'') or Best Protected Bid and Best Protect Offer (``PBBO'') and
orders entered in a Participant-operated retail liquidity program may
be ranked and accepted in increments of less than $0.05.\29\ Pilot
Securities in Test Group One may continue to trade at any price
increment that is currently permitted by permitted by applicable
Participant, SEC and Exchange Rules.
---------------------------------------------------------------------------

    \29\ Section VI.(B) of the the Plan provides that orders for
Test Group One securities entered into a Participant-operated retail
liquidity program may also be ranked and accepted in increments of
less than $0.05. NSX does not currently operate a retail liquidity
program.
---------------------------------------------------------------------------

    With regard to Pilot Securities in Test Group Two, proposed Rule
11.26(c)(2) would provide that such Pilot Securities would be subject
to all of the same quoting requirements as described above for Pilot
Securities in Test Group One, along with the applicable quoting
exceptions. In addition, proposed Rule 11.26(c)(2)(B) would provide
that, absent one of the listed exceptions in proposed Rule
11.26(c)(2)(C) enumerated below, no ETP Holder may execute orders in
any Pilot Security in Test Group Two in price increments other than
$0.05. The $0.05 trading increment would apply to all trades, including
Brokered Cross Trades.\30\
---------------------------------------------------------------------------

    \30\ Section I.(G) of the Plan defines a ``Brokered Cross
Trade'' as a trade that a broker-dealer that is a member of a
Participant executes directly by matching simultaneous buy and sell
orders for a Pilot Security. The Exchange notes that it does not
currently offer the functionality to execute Brokered Cross Trades
on NSX's trading system.
---------------------------------------------------------------------------

    Paragraph (c)(2)(C) would set forth further requirements for Pilot
Securities in Test Group Two. Specifically, ETP Holders trading Pilot
Securities in Test Group Two would be allowed to trade in increments
less than $0.05 under the following circumstances: \31\
---------------------------------------------------------------------------

    \31\ Section VI.(C)(2) of the Plan provides that Retail Investor
Orders, as defined in Section I (DD) of the Plan, may trade in
increments less than $0.05 where such an order is provided with
price improvement that is at least $0.005 better than the best
protected bid or best protected offer. Section I. (EE) defines a
``retail liquidity providing order'' as an order entered into a
Participant-operated retail liquidity program to execute against
Retail Investor Orders. As noted in note 29, supra, NSX does not
currently operate a retail liquidity program and therefore Section
VI.(C)(2) of the Plan does not apply with respect to the quoting and
trading of Test Group Two Pilot Securities on NSX.
---------------------------------------------------------------------------

    (i) Trading may occur at the midpoint between the NBBO or PBBO;
    (ii) Retail Investor Orders may be provided with price improvement
that is at least $0.005 better than the PBBO;
    (ii) Negotiated Trades may trade in increments less than $0.05; and
    (iii) Execution of a customer order to comply with Rule 12.6
following the execution of a proprietary trade by the member
organization at an increment other than $0.05, where such proprietary
trade was permissible pursuant to an exception under the Plan.\32\
---------------------------------------------------------------------------

    \32\ NSX Rule 12.6, Customer Priority, generally prohibits an
ETP Holder from buying or selling, or initiating the purchase or
sale of any security traded on the Exchange for its own account or
for any account in which the ETP Holder or any associated person of
the ETP Holder is directly or indirectly interested while it holds,
or has knowledge of, an unexecuted market order for a customer in
that security. With respect to limit orders, such an execution of an
order for the account of the ETP Holder or an associated person is
prohibited if it is at the same price or a better price than the
customer order, Rule 12.6(d) contains an exception to these
requirements for purposes of facilitating the execution of a
customer order on a riskless principal basis.

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

    Paragraph (c)(3)(A)-(c)(3)(C) would set forth the requirements for
Pilot Securities in Test Group Three. ETP Holders quoting or trading
such Pilot Securities would be subject to all of the same quoting and
trading requirements as described above for Pilot Securities in Test
Group Two, including the quoting and trading exceptions applicable to
Test Group Two Pilot Securities. In addition, proposed Paragraph
(c)(3)(D) would provide for an additional prohibition on Pilot
Securities in Test Group Three referred to as the ``Trade-at
Prohibition.'' \33\ Paragraph (c)(3)(D)(ii) would provide that, absent
one of the listed exceptions in proposed Rule 11.26(c)(3)(D)(iii)
enumerated below, no ETP Holder may execute a sell order for a Pilot
Security in Test Group Three at the price of a Protected Bid or execute
a buy order for a Pilot Security in Test Group Three at the price of a
Protected Offer.
---------------------------------------------------------------------------

    \33\ Proposed Rule 11.26(c)(3)(D)(i) would define the ``Trade-at
Prohibition'' to mean the prohibition against executions by a
Trading Center of a sell order for a Pilot Security at the price of
a Protected Bid or the execution of a buy order for a Pilot Security
at the price of a Protected Offer during regular trading hours.
---------------------------------------------------------------------------

    Proposed Rule 11.26(c)(3)(D)(iii) would allow ETP Holders to
execute a sell order for a Pilot Security in Test Group Three at the
price of a Protected Bid or execute a buy order for a Pilot Security in
Test Group Three at the price of a Protected Offer if any of the
following circumstances exist: \34\
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    \34\ Section VI.(D)(3) of the Plan provides that an order in a
Test Group 3 stock may execute at the trade-at price if the order is
a Retail Investor Order and is executed with at least $0.005 price
improvement. NSX currently does not offer a Retail Investor Order.
---------------------------------------------------------------------------

    a. The order is executed as agent or riskless principal by an
independent trading unit, as defined under Rule 200(f) of Regulation
SHO,\35\ of a Trading Center within a member organization that has a
displayed quotation as agent or riskless principal, via either a
processor or an SRO Quotation Feed, at a price equal to the traded-at
Protected Quotation, that was displayed before the order was
received,\36\ but only up to the full displayed size of that
independent trading unit's previously displayed quote; \37\
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    \35\ The Exchange is proposing that, for proposed Rules
11.26(c)(3)(D)(iii)a.-b., a Trading Center operated by a broker-
dealer would mean an independent trading unit, as defined under Rule
200(f) of Regulation SHO, within such broker-dealer. See 17 CFR
242.200.
    Independent trading unit aggregation is available if traders in
an aggregation unit pursue only the particular trading objective(s)
or strategy(s) of that aggregation unit and do not coordinate that
strategy with any other aggregation unit. Therefore, a Trading
Center cannot rely on quotations displayed by that broker dealer
from a different independent trading unit. As an example, an agency
desk of a broker-dealer cannot rely on the quotation of a
proprietary desk in a separate independent trading unit at that same
broker-dealer.
    \36\ The Exchange is proposing to adopt this limitation to
ensure that a Trading Center does not display a quotation after the
time of order receipt solely for the purpose of trading at the price
of a protected quotation without routing to that protected
quotation.
    \37\ This proposed exception to Trade-at would allow a Trading
Center to execute an order at the Protected Quotation in the same
capacity in which it has displayed a quotation at a price equal to
the Protected Quotation and up to the displayed size of such
displayed quotation.
---------------------------------------------------------------------------

    b. The order is executed by an independent trading unit, as defined
under Rule 200(f) of Regulation SHO, of a Trading Center within an ETP
Holder's organization that has a displayed quotation for the account of
that Trading Center on a principal (excluding riskless principal \38\)
basis, via either a processor or an SRO Quotation Feed, at a price
equal to the traded-at Protected Quotation, that was displayed before
the order was received, but only up to the full displayed size of that
independent unit's previously displayed quote; \39\
---------------------------------------------------------------------------

    \38\ As described above, proposed Rule 11.26(c)(3)(D)(iii)a.
would establish the circumstances in which a Trading Center
displaying an order as riskless principal would be permitted to
Trade-at the Protected Quotation. Accordingly, proposed Rule
11.26(c)(3)(D)(iii)b. would exclude such circumstances.
    \39\ The display exceptions to Trade-at set forth in proposed
Rules 11.26(c)(3)(D)(iii)a. and b. would not permit a broker-dealer
to trade on the basis of interest it is not responsible for
displaying. In particular, a broker-dealer that matches orders in
the over-the-counter market shall be deemed to have ``executed''
such orders as a Trading Center for purposes of proposed Rule 11.26.
Accordingly, if a broker-dealer is not displaying a quotation at a
price equal to the Protected Quotation, it could not submit matched
trades to an alternative trading center (``ATS'') that was
displaying on an agency basis the quotation of another ATS
subscriber. However, a broker-dealer that is displaying, as
principal, via either a processor or an SRO Quotation Feed, a buy
order at the protected bid, could internalize a customer sell order
up to its displayed size. The display exceptions would not permit a
non-displayed Trading Center to submit matched trades to an ATS that
was displaying on an agency basis the quotation of another ATS
subscriber and confirmed that a broker-dealer would not be permitted
to trade on the basis of interest that it is not responsible for
displaying.
---------------------------------------------------------------------------

    c. The order is of Block Size \40\ at the time of origin and may
not be:
---------------------------------------------------------------------------

    \40\ ``Block Size'' is defined in the Plan as an order (1) of at
least 5,000 shares or (2) for a quantity of stock having a market
value of at least $100,000.
---------------------------------------------------------------------------

    A. an aggregation of non-block orders; or
    B. broken into orders smaller than Block Size prior to submitting
the order to a Trading Center for execution.\41\
---------------------------------------------------------------------------

    \41\ If a Block Size order or portion of such Block Size order
is routed from one Trading Center to another Trading Center in
compliance with Rule 611 of Regulation NMS, the Block Size order
would retain the Trade-at exemption provided under proposed Rule
11.26(c)(3)(D)(iii)c. For example, if an exchange has a Protected
Bid of 3,000 shares, with 2,000 shares in reserve, and receives a
5,000 share order to sell, the exchange would be able to execute the
entire 5,000 share order without having to route to an away market
at any other Protected Bid at the same price. If, however, that
exchange only has 1,000 shares in reserve, the entire order would
not be able to be executed on that exchange, and the exchange would
only be able to execute 3,000 shares and route the rest to away
markets at other Protected Bids at the same price, before executing
the 1,000 shares in reserve. The same analysis would hold true at
the next price point, if the size of the incoming order would exceed
all available shares at the first price, and the remaining shares to
be executed would be 5,000 shares or more.
---------------------------------------------------------------------------

    d. The order is a Retail Investor Order executed with at least
$0.005 price improvement;
    e. The order is executed when the Trading Center displaying the
Protected Quotation that was traded at was experiencing a failure,
material delay, or malfunction of its systems or equipment;
    f. The order is executed as part of a transaction that was not a
``regular way'' contract;
    g. The order is executed as part of a single-priced opening,
reopening, or closing transaction on the Exchange;
    h. The order is executed when a Protected Bid was priced higher
than a Protected Offer in the Pilot Security in Test Group Three;
    i. The order is identified as a Trade-at Intermarket Sweep Order;
\42\
---------------------------------------------------------------------------

    \42\ The Exchange has defined a Trade-at ISO in proposed Rule
11.26(a)(1)(D); this exception refers to the ISO that is received by
a Trading Center.
---------------------------------------------------------------------------

    j. The order is executed by a Trading Center that simultaneously
routed Trade-at Intermarket Sweep Orders or Intermarket Sweep Orders as
defined in Rule 600(b)(3) of Regulation NMS under the Act \43\ to
execute against the full

displayed size of the Protected Quotation that was traded at; \44\
---------------------------------------------------------------------------

    \43\ 17 CFR 242.600(b)(30). The Exchange notes that it is
permitting the use of Trade-at ISOs and ISOs, either alone or
combined, to allow for ease of implementation of the Trade-at
provisions by using existing routing processes to the extent
possible. An ETP Holder sending a TAISO represents that it
simultaneously routed orders to execute against all Protected
Quotations priced better than or equal to the Trade-At price, while
an ETP Holder sending an order marked as ISO only represents that it
simultaneously routed orders to execute against all Protected
Quotations at prices superior to the Trade-At price. ETP Holders
that route orders marked ISO instead of Trade-at ISO for a test
Group Three stock must satisfy all at-priced protected quotations
and not just those at superior prices.
    \44\ In connection with the definition of a Trade-at ISO
proposed in Rule 11.26(a)(1)(D), this exception refers to the
Trading Center that routed the ISO.
---------------------------------------------------------------------------

    k. The order is executed as part of a Negotiated Trade;
    l. The order is executed when the Trading Center displaying the
Protected Quotation that was traded at had displayed, within one second
prior to execution of the transaction that constituted the Trade-at, a
Best Protected Bid or Best Protected Offer, as applicable, for the
Pilot Security in Test Group Three with a price that was inferior to
the price of the Trade-at transaction;
    m. The order is executed by a Trading Center which, at the time of
order receipt, the Trading Center had guaranteed an execution at no
worse than a specified price (a ``stopped order''), where:
    A. The stopped order was for the account of a customer;
    B. The customer agreed to the specified price on an order-by-order
basis; and
    C. The price of the Trade-at transaction was, for a stopped buy
order, equal to or less than the National Best Bid in the Pilot
Security in Test Group Three at the time of execution or, for a stopped
sell order, equal to or greater than the National Best Offer in the
Pilot Security in Test Group Three at the time of execution, as long as
such order is priced at an acceptable increment; \45\
---------------------------------------------------------------------------

    \45\ The stopped order exemption in Rule 611 of Regulation NMS
applies where ``[t]he price of the trade-through transaction was,
for a stopped buy order, lower than the national best bid in the NMS
stock at the time of execution or, for a stopped sell order, higher
than the national best offer in the NMS stock at the time of
execution.'' See 17 CFR 242.611(b)(9). The Trade-at stopped order
exception applies where ``the price of the Trade-at transaction was,
for a stopped buy order, equal to the national best bid in the Pilot
Security at the time of execution or, for a stopped sell order,
equal to the national best offer in the Pilot Security at the time
of execution'' See Plan, Section VI(D)(12).
    To illustrate the application of the stopped order exemption as
it currently operates under Rule 611 of Regulation NMS and as it is
currently proposed for Trade-at, assume the National Best Bid is
$10.00 and another protected quote is at $9.95. Under Rule 611 of
Regulation NMS, a stopped order to buy can be filled at $9.95 and
the firm does not have to send an ISO to access the protected quote
at $10.00 since the price of the stopped order must be lower than
the National Best Bid. For the stopped order to also be executed at
$9.95 and satisfy the Trade-at requirements, the Trade-at exception
would have to be revised to allow an order to execute at the price
of a protected quote which, in this case, could be $9.95.
    Based on the fact that a stopped order would be treated
differently under the Rule 611 of Regulation NMS exception than
under the Trade-at exception in the Plan, the Exchange believes that
it is appropriate to amend the Trade-at stopped order exception in
the Plan to ensure that the application of this exception would
produce a consistent result under both Regulation NMS and the Plan.
Therefore, the Exchange proposes in this proposed
11.26(c)(3)(D)(iii)m. to allow a transaction to satisfy the Trade-at
requirement if the stopped order price, for a stopped buy order, is
equal to or less than the National Best Bid, and for a stopped sell
order, is equal to or greater than the National Best Offer, as long
as such order is priced at an acceptable increment. The Commission
granted New York Stock Exchange LLC an exemption from Rule 608(c)
related to this provision. See the Exemption Letter, note 28, supra.
The Exchange is seeking the same exemptions as requested in the
Exemption Request Letters.
---------------------------------------------------------------------------

    n. The order is for a fractional share of a Pilot Security in Test
Group Three, provided that such fractional share order was not the
result of breaking an order for one or more whole shares of a Pilot
Security in Test Group Three into orders for fractional shares or was
not otherwise effected to evade the requirements of the Trade-at
Prohibition or any other provisions of the Plan; or
    o. The order is to correct a bona fide error, which is recorded by
the Trading Center in its error account.\46\ A bona fide error is
defined as:
---------------------------------------------------------------------------

    \46\ The exceptions to the Trade-at requirement set forth in the
Plan and in the Exchange's proposed Rule 11.26(c)(3)(D)(iii) are, in
part, based on the exceptions to the trade-through requirement set
forth in Rule 611 of Regulation NMS, including exceptions for an
order that is executed as part of a transaction that was not a
``regular way'' contract, and an order that is executed as part of a
single-priced opening, reopening, or closing transaction by the
Trading Center See 17 CFR 242.611(b)(2) and (b)(3). Following the
adoption of Rule 611 of Regulation NMS and its exceptions, the
Commission issued exemptive relief that created exceptions from Rule
611 of Regulation NMS for certain error correction transactions. See
Securities Exchange Act Release No. 55884 (June 8, 2007), 72 FR
32926 (June 14, 2007); Securities Exchange Act Release No. 55883
(June 8, 2007), 72 FR 32927 (June 14, 2007). The Exchange has
determined that it is appropriate to incorporate this additional
exception to the Trade-at Prohibition, as this exception is equally
applicable in the Trade-at context.
    Accordingly, the Exchange is proposing to exempt certain
transactions to correct bona fide errors in the execution of
customer orders from the Trade-at Prohibition, subject to the
conditions set forth by the SEC's order exempting these transactions
from Rule 611 of Regulation NMS. The Commission granted New York
Stock Exchange LLC an exemption from Rule 608(c) related to this
provision. See the Exemption Letter, note 28, supra. The Exchange is
seeking the same exemptions as requested in the Exemption Request
Letters.
    As with the corresponding exception under Rule 611 of Regulation
NMS, the bona fide error would have to be evidenced by objective
facts and circumstances, the Trading Center would have to maintain
documentation of such facts and circumstances and record the
transaction in its error account. To avail itself of the exemption,
the Trading Center would be required to establish, maintain, and
enforce written policies and procedures reasonably designed to
address the occurrence of errors and, in the event of an error, the
use and terms of a transaction to correct the error in compliance
with this exemption. Finally, the Trading Center would have to
regularly surveil to ascertain the effectiveness of its policies and
procedures to address errors and transactions to correct errors and
take prompt action to remedy deficiencies in such policies and
procedures. See Securities Exchange Act Release No. 55884 (June 8,
2007), 72 FR 32926 (June 14, 2007).
---------------------------------------------------------------------------

    A. The inaccurate conveyance or execution of any term of an order
including, but not limited to, price, number of shares or other unit of
trading; identification of the security; identification of the account
for which securities are purchased or sold; lost or otherwise misplaced
order tickets; short sales that were instead sold long or vice versa;
or the execution of an order on the wrong side of a market;
    B. The unauthorized or unintended purchase, sale, or allocation of
securities, or the failure to follow specific client instructions;
    C. The incorrect entry of data into relevant systems, including
reliance on incorrect cash positions, withdrawals, or securities
positions reflected in an account; or
    D. A delay, outage, or failure of a communication system used to
transmit market data prices or to facilitate the delivery or execution
of an order.
    Finally, Proposed Rule 11.26(c)(3)(D)(iv) would prevent member
organizations from breaking an order into smaller orders or otherwise
effecting or executing an order to evade the requirements of the Trade-
at Prohibition or any other provisions of the Plan.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\47\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\48\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, 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. The
Exchange believes that the proposed rule change is consistent with the
Act because it ensures that the Exchange and its member organizations
would be in compliance with a Plan approved by the Commission pursuant
to an order issued by the Commission in reliance on Section 11A of the
Act.\49\ Such approved Plan gives the Exchange authority to establish,
maintain, and enforce written policies and procedures that are
reasonably designed to comply with applicable quoting and trading
requirements specified in the Plan. The Exchange believes that the
proposed rule change is consistent with the

authority granted to it by the Plan to establish specifications and
procedures for the implementation and operation of the Plan that are
consistent with the provisions of the Plan. Likewise, the Exchange
believes that the proposed rule change provides interpretations of the
Plan that are consistent with the Act, in general, and furthers the
objectives of the Act, in particular.
---------------------------------------------------------------------------

    \47\ 15 U.S.C. 78f(b).
    \48\ 15 U.S.C. 78f(b)(5).
    \49\ 15 U.S.C. 78k-1.
---------------------------------------------------------------------------

    Furthermore, the Exchange is a Participant under the Plan and
subject, itself, to the provisions of the Plan. The proposed rule
change ensures that the Exchange's systems would not display or execute
trading interests outside the requirements specified in such Plan. The
proposal would also help allow market participants to continue to trade
NMS Stocks within quoting and trading requirements that are in
compliance with the Plan, with certainty on how certain orders and
trading interests would be treated. This, in turn, will help encourage
market participants to continue to provide liquidity in the
marketplace.
    Because the Plan supports further examination and analysis on the
impact of tick sizes on the trading and liquidity of the securities of
small capitalization companies, and the Commission believes that
altering tick sizes could result in significant market-wide benefits
and improvements to liquidity and capital formation, adopting rules
that enforce compliance by its member organizations with the provisions
of the Plan would help promote liquidity in the marketplace and perfect
the mechanism of a free and open market and national market system.

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 are
being made to establish, maintain, and enforce written policies and
procedures that are reasonably designed to comply with the trading and
quoting requirements specified in the Plan, of which other equities
exchanges are also Participants. Other competing national securities
exchanges are subject to the same trading and quoting requirements
specified in the Plan. Therefore, the proposed changes would not impose
any burden on competition, while providing certainty of treatment and
execution of trading interests on the Exchange to market participants
in NMS Stocks that are acting in compliance with the requirements
specified in the Plan.

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 comments on the
proposed rule change.

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

    Because the foregoing proposed rule change does not:
    A. significantly affect the protection of investors or the public
interest;
    B. impose any significant burden on competition; and
    C. 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) \50\ of the
Exchange Act and Rule 19b-4(f)(6) thereunder.\51\ Because the proposed
rule is designed to conform the Exchange's rules to a Commission rule,
the proposal qualifies for immediate effectiveness as a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4.\52\
---------------------------------------------------------------------------

    \50\ 15 U.S.C. 78(s)(b)(3)(A).
    \51\ 17 CFR 240.19b-4(f)(6).
    \52\ 17 CFR 240.19b-4(f)(6). See Securities Exchange Act Release
No. 58092 (July 3, 2008), 73 FR 40144 (July 11, 2008) (``Commission
Guidance and Amendment to the Rule Relating to Organization and
Program Management Concerning Proposed Rule Changes by Self-
Regulatory Organizations'') (the ``Streamlining Release''). As set
forth in the Streamlining Release, Rule 19b-4(f)(6) permits a
proposed rule change to become immediately effective to the extent
such proposal is a proposed rule change to implement provisions of
an approved national market system plan or a Commission rule. Id. at
40148.
---------------------------------------------------------------------------

    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: (i)
necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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 email to<EMAIL_ADDRESS>Please include
File Number SR-NSX-2016-05 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-NSX-2016-05. 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-NSX-2016-05, and should be
submitted on or before August 17, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\53\
---------------------------------------------------------------------------

    \53\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17677 Filed 7-26-16; 8:45 am]
 BILLING CODE 8011-01-P