
[Federal Register Volume 81, Number 192 (Tuesday, October 4, 2016)]
[Notices]
[Pages 68476-68479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23929]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78960; File No. SR-NSX-2016-12]


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 Regulation NMS Plan To 
Implement a Tick Size Pilot Program

September 28, 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 22 September, 2016, National Stock Exchange, Inc. (``NSX'' or 
the ``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') a proposed rule change, as described in 
Items I, and II 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 the 
Substance of the Proposed Rule Change

    The Exchange filed a proposal to amend NSX Rule 11.26 to modify 
certain data collection requirements of the Regulation NMS Plan to 
Implement a Tick Size Pilot Program (the ``Plan''). The proposed rule 
change is substantially similar to proposed rule changes recently 
approved or published by the Commission for the Financial Industry 
Regulatory Authority, Inc. (``FINRA'') to amend FINRA Rule 6191, which 
also sets forth amendments to the requirements for the collection and 
transmission of data pursuant to Appendices B and C of the Plan.\5\ The 
Exchange has designated this proposal as a ``non-controversial'' 
proposed rule change and provided the Commission with the notice 
required by Rule 19b-4(f)(6)(iii) under the Act.\6\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 78800 (September 9, 
2016), 81 FR 63565 (September 15, 2016) (SR-FINRA-2016-35).
    \6\ 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 the 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and statutory basis for the proposed rule 
change and discussed any comments it received on the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. The Exchange has prepared summaries, set 
forth in Sections A, B, and C below, of the most significant parts of 
such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On August 25, 2014, NYSE Group, Inc., on behalf of BZX, Chicago 
Stock Exchange, Inc., Bats EDGA Exchange, Inc., Bats EDGX Exchange, 
Inc., FINRA, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, the Nasdaq Stock 
Market LLC, New York Stock Exchange LLC (``NYSE''), NYSE MKT LLC, and 
NYSE Arca, Inc. (collectively ``Participants''), filed with the 
Commission, pursuant to Section 11A of the Act \7\ and Rule 608 of 
Regulation NMS thereunder,\8\ the Plan to Implement a Tick Size Pilot 
Program (``Pilot'').\9\ The Participants filed the Plan to comply with 
an order issued by the Commission on June 24, 2014.\10\ The Plan \11\ 
was published for comment in the Federal Register on November 7, 2014 
and was thereafter approved by the Commission, as modified, on May 6, 
2015.\12\ On November 6, 2015, the Commission granted the Participants 
an exemption from implementing the Plan until October 3, 2016.\13\ On 
March 3, 2016, the Commission noticed an

[[Page 68477]]

amendment to the Plan adding NSX as a Participant.\14\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78k-1.
    \8\ 17 CFR 242.608.
    \9\ See Letter from Brendon J. Weiss, Vice President, 
Intercontinental Exchange, Inc., to Secretary, Commission, dated 
August 25, 2014.
    \10\ See Securities Exchange Act Release No. 72460 (June 24, 
2014), 79 FR 36840 (June 30, 2014).
    \11\ Unless otherwise specified, capitalized terms used in this 
rule filing are based on the defined terms of the Plan.
    \12\ See Securities Exchange Act Release No. 74892 (May 6, 
2015), 80 FR 27513 (May 13, 2015) (File No. 4-657) (``Approval 
Order'').
    \13\ 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).
    \14\ 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. Each Participant is required to comply, and 
to enforce compliance by its member organizations, as applicable, with 
the provisions of the Plan. As is described more fully below, the 
proposed rules would require ETP Holders \15\ to comply with the 
applicable data collection requirements of the Plan.\16\
---------------------------------------------------------------------------

    \15\ An ``ETP Holder'' is a registrant of NSX to which NSX has 
issued an ETP. An ``ETP'' is defined as ``. . . an Equity Trading 
Permit issued by the Exchange for effecting approved securities 
transactions on the Exchange's trading facilities. . . .'' See 
Exchange Rule 1.5.E(1).
    \16\ Interpretations and Policies .11 to Rule 11.26 to [sic] 
provide that the Rule shall be in effect during a pilot period to 
coincide with the pilot period for the Plan (including any 
extensions to the pilot period for the Plan).
---------------------------------------------------------------------------

    The Pilot 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 Pilot 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 random sampling 
process).\17\ 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.\18\ 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 order exception, and a negotiated trade 
exception.\19\ Pilot Securities in the third test group (``Test Group 
Three'') will be subject to the same quoting and trading increments as 
Test Group Two and also will be subject to the ``Trade-at'' requirement 
to prevent price matching by a market participant that is not 
displaying at a Trading Center's ``Best Protected Bid'' or ``Best 
Protected Offer,'' unless an enumerated exception applies.\20\ In 
addition to the exceptions provided under Test Group Two, an exception 
for Block Size orders and exceptions that mirror those under Rule 611 
of Regulation NMS \21\ will apply to the Trade-at requirement.
---------------------------------------------------------------------------

    \17\ See Section V of the Plan for identification of Pilot 
Securities, including criteria for selection and grouping.
    \18\ See Section VI(B) of the Plan.
    \19\ See Section VI(C) of the Plan.
    \20\ See Section VI(D) of the Plan.
    \21\ 17 CFR 242.611.
---------------------------------------------------------------------------

    In approving the Plan, the Commission noted that the Trading Center 
data reporting requirements would facilitate an analysis of the effects 
of the Pilot on liquidity (e.g., transaction costs by order size), 
execution quality (e.g., speed of order executions), market maker 
activity, competition between trading venues (e.g., routing frequency 
of market orders), transparency (e.g., choice between displayed and 
hidden orders), and market dynamics (e.g., rates and speed of order 
cancellations).\22\ The Commission noted that Market Maker 
profitability data would assist the Commission in evaluating the 
effect, if any, of a widened tick increment on market marker profits 
and any corresponding changes in the liquidity of small-capitalization 
securities.\23\
---------------------------------------------------------------------------

    \22\ See Approval Order, 80 FR at 27543.
    \23\ Id.
---------------------------------------------------------------------------

Compliance With the Data Collection Requirements of the Plan
    The Plan contains requirements for collecting and transmitting data 
to the Commission and to the public.\24\ Specifically, Appendix B.I of 
the Plan (Market Quality Statistics) requires Trading Centers \25\ to 
submit variety of market quality statistics, including information 
about an order's original size, whether the order was displayable or 
not, the cumulative number of orders, the cumulative number of shares 
of orders, and the cumulative number of shares executed within specific 
time increments, e.g., from 30 seconds to less than 60 seconds after 
the time of order receipt. This information shall be categorized by 
security, order type, original order size, hidden status, and coverage 
under Rule 605.\26\ Appendix B.I of the Plan also contains additional 
requirements for market orders and marketable limit orders, including 
the share-weighted average effective spread for executions of orders; 
the cumulative number of shares of orders executed with price 
improvement; and, for shares executed with price improvement, the 
share-weighted average amount per share that prices were improved.
---------------------------------------------------------------------------

    \24\ The Exchange is also required by the Plan 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. In that regard, the Exchange 
adopted Rule 11.26(c), Compliance With Quoting and Trading 
Restrictions, describing the responsibilities of the Exchange and of 
ETP Holders in complying with the quoting and trading provisions of 
the Plan. See Securities Exchange Act Release No. 78391 (July 21, 
2016), 81 FR 49348 (July 27, 2016) (SR-NSX-2016-05).
    \25\ The Plan incorporates the definition of a ``Trading 
Center'' from Rule 600(b)(78) of Regulation NMS. Regulation NMS 
defines a ``Trading Center'' as ``a national securities exchange or 
national securities association that operates an SRO trading 
facility, an alternative trading system, an exchange market maker, 
an OTC market maker, or any other broker or dealer that executes 
orders internally by trading as principal or crossing orders as 
agent.'' See 17 CFR 242.600(b).
    \26\ 17 CFR 242.605.
---------------------------------------------------------------------------

    Appendix B.II of the Plan (Market and Marketable Limit Order Data) 
requires Trading Centers to submit information relating to market 
orders and marketable limit orders, including the time of order 
receipt, order type, the order size, the National Best Bid and National 
Best Offer (``NBBO'') quoted price, the NBBO quoted depth, the average 
execution price-share-weighted average, and the average execution time-
share-weighted average.
    The Plan requires Appendix B.I and B.II data to be submitted by 
Participants that operate a Trading Center, and by members of the 
Participants that operate Trading Centers. The Plan provides that each 
Participant that is the Designated Examining Authority (``DEA'') for a 
member of the Participant that operates a Trading Center shall collect 
such data in a pipe delimited format, beginning six months prior to the 
Pilot Period and ending six months after the end of the Pilot Period. 
The Plan also requires the Participant, operating as DEA, to transmit 
this information to the SEC within 30 calendar days following month 
end.
    Pursuant to the aforementioned requirements, the Exchange submitted 
and the Commission noticed a rule filing to adopt Exchange Rule 
11.26(b), Compliance with Data Collection Requirements.\27\ The 
Exchange now proposes to amend Rule 11.26(b) to modify certain data 
collection and reporting requirements.\28\ First,

[[Page 68478]]

Appendix B.I.a(21) through B.I.a(27) currently requires that Trading 
Centers report the cumulative number of shares of cancelled orders 
during a specified duration of time after receipt of the order that was 
cancelled. The Exchange and the other Participants believe that, for 
purposes of reporting cancelled orders, it is appropriate to categorize 
unexecuted Immediate or Cancel orders separately as one bucket 
irrespective of the duration of time after order receipt, i.e., without 
a time increment, to better differentiate orders cancelled subsequent 
to entry from those where the customer's intent prior to order entry 
was to cancel the order if no execution could be immediately obtained. 
The Exchange, therefore, proposes to modify Interpretations and 
Policies .04 to provide that unexecuted Immediate or Cancel orders 
shall be categorized separately for purposes of Appendix B.I.a(21) 
through B.I.a(27).
---------------------------------------------------------------------------

    \27\ See Securities Exchange Act Release No. 77483 (March 31, 
2016), 81 FR 20040 (April 6, 2016) (SR-NSX-2016-01).
    \28\ FINRA, on behalf of the Participants submitted a letter to 
Commission requesting an exemption from certain provisions of the 
Plan related to data collection. See letter dated August 30, 2016 
from Marcia E. Asquith, Senior Vice President and Corporate 
Secretary, FINRA to Robert W. Errett, Deputy Secretary, Commission. 
The Commission, pursuant to its authority under Rule 608(e) of 
Regulation NMS, granted each Participant a limited exemption from 
the requirement to comply with certain provisions of the Plan as 
specified in the letter and noted herein, as long as each 
Participant submits proposed rule amendments to reflect the changes. 
See, letter dated August 30, 2016 from David S. Shillman, Associate 
Director, Division of Trading and Markets, Commission to Marcia E. 
Asquith, FINRA.
---------------------------------------------------------------------------

    The second change relates to the reporting of daily market quality 
statistics pursuant to Appendix B.I. Currently, Appendix B.I sets forth 
categories of orders, including market orders, marketable limit orders, 
and inside-the-quote resting limit orders, for which daily market 
quality statistics must be reported. The Exchange and the other 
Participants have determined that it is appropriate to include an order 
type for limit orders priced more than $0.10 away from the NBBO for 
purposes of Appendix B reporting. The Exchange therefore proposes to 
amend Interpretations and Policies .06 to provide that limit orders 
priced more than $0.10 away from the NBBO shall be included as an order 
type for purposes of Appendix B reporting, and shall be assigned the 
number (22). These orders are not currently required to be reported 
pursuant to Appendix B, and the Exchange and the other Participants 
believe that requiring the reporting of such orders will produce a more 
comprehensive data set.
    The third change relates to the reporting of market quality 
statistics pursuant to Appendix B.I for a variety of order types, 
including inside-the-quote resting limit orders (12), at-the-quote 
resting limit orders (13), and near-the-quote resting limit orders 
(within $0.10 of the NBBO) (14). The Exchange and the other 
Participants believe that it is appropriate to require Trading Centers 
to report all orders that fall within these categories, and not just 
those orders that are ``resting.'' The Exchange, therefore, proposes to 
amend Interpretations and Policies .06 to make this change.
    In the fourth change, the Exchange proposes to renumber 
Interpretations and Policies .09 to .10 and add new Interpretations and 
Policies .09 to modify the manner in which market maker participation 
statistics are calculated. Currently, Appendix B.IV provides that 
market maker participation statistics shall be calculated based on 
share participation, trade participation, cross-quote share (trade) 
participation, inside-the-quote share (trade) participation, at-the-
quote share (trade) participation, and outside-the-quote share (trade) 
participation. The Exchange and the other Participants have determined 
that it is appropriate to add the count of the number of Market Makers 
used in the calculation of share (trade) participation to each 
category. The Exchange is therefore proposing this change as part of 
Interpretations and Policies .09. In addition, Appendix B.IV(b) and (c) 
currently require that, when aggregating across Market Makers, share 
participation and trade participation shall be calculated using the 
share-weighted average and trade-weighted average, respectively. The 
Exchange and the other Participants believe that it is more appropriate 
to calculate share and trade participation by providing the total count 
of shares or trades, as applicable, rather than weighted averages, and 
the Exchange is therefore proposing this change as part of 
Interpretations and Policies.
    The fifth change relates to the NBBO that a Trading Center is 
required to use when performing certain quote-related calculations. 
When calculating cross-quote share (trade) participation pursuant to 
Appendix B.IV(d) and inside-the-quote share (trade) participation 
pursuant to Appendix B.IV(e), the Plan requires the Trading Center to 
utilize the NBBO at the time of the trade for both share and trade 
participation calculations. When calculating at-the-quote share (trade) 
participation and outside-the-quote share (trade) participation 
pursuant to Appendix B.IV(f) and (g), the Plan allows the Trading 
Center to utilize the National Best Bid or National Best Offer (NBBO) 
at the time of or immediately before the trade for both share and trade 
participation calculations. The Exchange and the other Participants 
believe that it is appropriate to calculate all quote participation 
(cross-quote share (trade) participation, inside-the-quote share 
(trade) participation, at-the-quote share (trade) participation and 
outside-the-quote share (trade) participation) solely by reference to 
the NBBO in effect immediately prior to the trade. The Exchange 
therefore proposes to make this change as part of Interpretations and 
Policies .09.
    Finally, the Exchange proposes to change the end date until which 
the Pre-Pilot Data Collection Securities shall be used to fulfill the 
Plan's data collection requirements. Currently, Interpretations and 
Policies .10, which is being renumbered to .11, provides that Pre-Pilot 
Data Collection Securities are the securities designated by the 
Participants for purposes of the data collection requirements described 
in Items I, II and IV of Appendix B and Item I of Appendix C to the 
Plan for the period beginning six months prior to the Pilot Period and 
ending on the trading day immediately preceding the Pilot Period. The 
Exchange and the other Participants believe that it is appropriate to 
use the Pilot Securities to satisfy the Plan's data collection 
requirements prior to the commencement of the Pilot. Accordingly, the 
Exchange is revising Interpretations and Policies .10 (which will be 
re-numbered .11) to provide that the Pre-Pilot Data Collection 
Securities shall be used to satisfy the Plan's data collection 
requirements through thirty-one days prior to the Pilot Period, after 
which time the Pilot Securities shall be used for purposes of the data 
collection requirements.\29\ The Exchange will also renumber 
Interpretations and Policies .11 to .12.
---------------------------------------------------------------------------

    \29\ NYSE, NYSE MKT, and Nasdaq published an automated list of 
securities eligible for the Pilot on the evening of September 2, 
2016. At that time, all securities were designated for the Control 
Group. All securities will continue to be reflected as Control Group 
securities for the entire month of September 2016. On September 6, 
2016, NYSE, NYSE MKT, and Nasdaq published a manual list identifying 
the final Test Group assignment for each eligible security.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \30\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \31\ in particular, in that it is designed to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78f(b).
    \31\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that this proposal is consistent with the Act 
because it implements and clarifies the provisions of the Plan, and is 
designed to assist the Exchange in meeting its regulatory obligations 
pursuant of the

[[Page 68479]]

Plan. In approving the Plan, the SEC noted that the Pilot was an 
appropriate, data-driven test that was designed to evaluate the impact 
of a wider tick size on trading, liquidity, and the market quality of 
securities of smaller capitalization companies, and was therefore in 
furtherance of the purposes of the Act. The Exchange believes that this 
proposal is in furtherance of the objectives of the Plan, as identified 
by the SEC, and is therefore consistent with the Act because the 
proposal implements and clarifies the requirements of the Plan and 
applies specific obligations to ETP Holders in furtherance of 
compliance with the Plan.

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

    The Exchange notes that the proposed rule change implements the 
provisions of the Plan, and is designed to assist the Exchange in 
meeting its regulatory obligations pursuant to the Plan. The Exchange 
also notes that, other than the change to require use of the Pilot 
Securities beginning thirty days prior to the beginning of the Pilot 
Period, the proposed changes will not affect the data collection and 
reporting requirements for members that operate Trading Centers; the 
proposed changes will only affect how the Exchange and Participants 
that operate Trading Centers collect and report data. The Exchange 
notes that, with respect to the change to require the use of the Pilot 
Securities beginning thirty days prior to the start of the Pilot 
Period, the proposed change reduces the number of securities on which 
affected members otherwise would have been required to collect data 
pursuant to the Plan and Exchange Rule 11.26. In addition, the proposed 
rule change applies equally to all similarly situated members. 
Therefore, the Exchange 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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From ETP Holders, 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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \32\ and Rule 19b-4(f)(6) thereunder.\33\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) by its terms, become 
operative prior to 30 days from the date on which it was filed, or such 
shorter time as the Commission may designate, if consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \33\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \34\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\35\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing.
---------------------------------------------------------------------------

    \34\ 17 CFR 240.19b-4(f)(6).
    \35\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Commission believes that waiving the 30 day operative delay is 
consistent with the protection of investors and the public interest 
because it will allow the Exchange to implement the proposed rules 
immediately thereby preventing delays in the implementation of the 
Plan. The Commission notes that the Plan is scheduled to start on 
October 3, 2016. Therefore, the Commission hereby waives the 30 day 
operative delay and designates the proposed rule change to be operative 
upon filing with the Commission.\36\
---------------------------------------------------------------------------

    \36\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such 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) \37\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \37\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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 rule-comments@sec.gov. Please include 
File Number SR-NSX-2016-12 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 No. SR-NSX-2016-12. This file 
number should be included in the subject line if email is used. To help 
the Commission process and review comments more efficiently, please use 
only one method. The Commission will post all comments on the 
Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for Web site viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE., Washington, 
DC 20549, on official business days between the hours of 10 a.m. and 3 
p.m. eastern time. Copies of such filings will also 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. Interested 
persons should submit only information that they wish to make available 
publicly.
All submissions should refer to file number SR-NSX-2016-12 and should 
be submitted on or before October 25, 2016.
---------------------------------------------------------------------------

    \38\ 17 CFR 200.30-3(a)(12).

    For the Commission by the Division of Trading and Markets, 
pursuant to the delegated authority.\38\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-23929 Filed 10-3-16; 8:45 am]
 BILLING CODE 8011-01-P


