
[Federal Register Volume 81, Number 169 (Wednesday, August 31, 2016)]
[Notices]
[Pages 60031-60032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20891]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78678; File Nos. SR-NYSE-2011-55; SR-NYSEAmex-2011-84]


Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE 
MKT LLC; Order Granting an Extension to Limited Exemptions From Rule 
612(c) of Regulation NMS in Connection With the Exchanges' Retail 
Liquidity Programs Until December 31, 2016

August 25, 2016.
    On July 3, 2012, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted the New 
York Stock Exchange LLC (``NYSE'') and NYSE MKT LLC \2\ (``NYSE MKT'' 
and, together with NYSE, the ``Exchanges'') limited exemptions from the 
Sub-Penny Rule in connection with the operation of the Exchanges' 
respective Retail Liquidity Programs (``Programs'').\3\ The limited 
exemptions were granted concurrently with the Commission's approval of 
the Exchanges' proposals to adopt their respective Programs for one-
year pilot terms.\4\ The exemptions were granted coterminous with the 
effectiveness of the pilot Programs; both the pilot Programs and 
exemptions are scheduled to expire on August 31, 2016.\5\
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    \1\ 17 CFR 242.612(c).
    \2\ At the time it filed the original proposal to adopt the 
Retail Liquidity Program, NYSE MKT went by the name NYSE Amex LLC. 
On May 14, 2012, the Exchange filed a proposed rule change, 
immediately effective upon filing, to change its name from NYSE Amex 
LLC to NYSE MKT LLC. See Securities Exchange Act Release No. 67037 
(May 21, 2012), 77 FR 31415 (May 25, 2012) (SR-NYSEAmex-2012-32).
    \3\ See Securities Exchange Act Release No. 67347 (July 3, 
2012), 77 FR 40673 (July 10, 2012) (SR-NYSE-2011-55; SR-NYSEAmex-
2011-84) (``Order'').
    \4\ See id.
    \5\ The pilot terms of the Programs were originally scheduled to 
end on July 31, 2013, but the Exchanges initially extended the terms 
for an additional year, through July 31, 2014, see Securities 
Exchange Act Release Nos. 70096 (August 2, 2013), 78 FR 48520 
(August 8, 2013) (SR-NYSE-2013-48), and 70100 (August 2, 2013), 78 
FR 48535 (August 8, 2013) (SR-NYSEMKT-2013-60), and then 
subsequently extended the terms again through March 31, 2015, see 
Securities Exchange Act Release Nos. 72629 (July 16, 2014), 79 FR 
42564 (July 22, 2014) (SR-NYSE-2014-35), and 72625 (July 16, 2014), 
79 FR 42566 (July 22, 2014) (SR-NYSEMKT-2014-60), September 30, 
2015, see Securities Exchange Act Release Nos. 74454 (March 6, 
2015), 80 FR 13054 (March 12, 2015) (SR-NYSE-2015-10), and 74455 
(March 6, 2015), 80 FR 13047 (March 12, 2015) (SR-NYSEMKT-2015-14), 
March 31, 2016, see Securities Exchange Act Release Nos. 75993 
(September 28, 2015), 80 FR 59844 (October 2, 2015) (SR-NYSE-2015-
41), and 75995 (September 28, 2015), 80 FR 59836 (October 2, 2015) 
(SR-NYSEMKT-2015-69), and August 31, 2016, see Securities Exchange 
Act Release Nos. 77426 (March 23, 2016), 81 FR 17533 (March 29, 
2016) (SR-NYSE-2016-25), and 77424 (March 23, 2016), 81 FR 17522 
(March 29, 2016) (SR-NYSEMKT-2016-39). Each time the pilot terms of 
the Programs were extended, the Commission granted the Exchanges' 
requests to also extend the Sub-Penny exemptions through July 31, 
2014, see Securities Exchange Act Release No. 70085 (July 31, 2013), 
78 FR 47807 (August 6, 2013), March 31, 2015, see Securities 
Exchange Act Release No. 72732 (July 31, 2014), 79 FR 45851 (August 
6, 2014), September 30, 2015, see Securities Exchange Act Release 
No. 74507 (March 13, 2015), 80 FR 14421 (March 19, 2015), March 31, 
2016, see Securities Exchange Act Release No. 76020 (September 29, 
2015), 80 FR 60201 (October 5, 2015), and August 31, 2016, see 
Securities Exchange Act Release No. 77438 (March 24, 2016), 81 FR 
17752 (March 30, 2016).
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    The Exchanges now seek to extend the exemptions until December 31, 
2016.\6\ The Exchanges' request was made in conjunction with 
immediately effective filings that extend the operation of the Programs 
through the same date.\7\ In their request to extend the exemptions, 
the Exchanges note that the participation in the Programs has increased 
more recently. Accordingly, the Exchanges have asked for additional 
time to allow themselves and the Commission to analyze more robust data 
concerning the Programs, which the Exchanges committed to provide to 
the

[[Page 60032]]

Commission.\8\ For this reason and the reasons stated in the Order 
originally granting the limited exemptions, the Commission finds that 
extending the exemptions, pursuant to its authority under Rule 612(c) 
of Regulation NMS, is appropriate in the public interest and consistent 
with the protection of investors.
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    \6\ See Letter from Martha Redding, Assistant Secretary, NYSE, 
to Brent J. Fields, Secretary, Securities and Exchange Commission, 
dated August 8, 2016.
    \7\ See Securities Exchange Act Release Nos. 78600 (August 17, 
2016), 81 FR 57642 (August 23, 2016) (SR-NYSE-2016-54), and 78602 
(August 17, 2016), 81 FR 57639 (August 23, 2016) (SR-NYSEMKT-2016-
76).
    \8\ See Order, supra note 3, 77 FR at 40681.
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    THEREFORE, IT IS HEREBY ORDERED that, pursuant to Rule 612(c) of 
Regulation NMS, each Exchange is granted a limited exemption from Rule 
612 of Regulation NMS that allows it to accept and rank orders priced 
equal to or greater than $1.00 per share in increments of $0.001, in 
connection with the operation of its Retail Liquidity Program, until 
December 31, 2016.
    The limited and temporary exemptions extended by this Order are 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the Federal securities 
laws must rest with the persons relying on the exemptions that are the 
subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(83).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-20891 Filed 8-30-16; 8:45 am]
BILLING CODE 8011-01-P


