
[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Notices]
[Pages 88304-88306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29288]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79443; File No. SR-NYSEMKT-2016-109]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Amending Its Rules 
Governing Business Continuity and Disaster Recovery Planning

December 1, 2016.
    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 November 22, 2016, NYSE MKT LLC (the ``Exchange'' or 
``NYSE MKT'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the Exchange. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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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

    The Exchange proposes to amend its rules governing business 
continuity and disaster recovery to delete Rule 49--Equities (Emergency 
Powers) and set an operative date for Rule 49--Equities (Exchange 
Business Continuity and Disaster Recovery Plans and Mandatory Testing). 
The proposed rule change is available on the Exchange's Web site at 
www.nyse.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 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 those 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 amend its rules governing business 
continuity and disaster recovery to delete Rule 49--Equities (Emergency 
Powers) (``Print as P Rule'') and set an operative date for Rule 49--
Equities (Exchange Business Continuity and Disaster Recovery Plans and 
Mandatory Testing) (``Rule 49''). The Exchange proposes to make these 
changes because the Exchange has completed testing of the operation of 
Rule 49 in its Disaster Recovery ``DR'' facility and therefore plans to 
implement it. Accordingly, the Exchange proposes to delete its Print as 
P Rule as obsolete, with an operative date of November 23, 2016.
    On September 29, 2016, the Commission approved amendments to the 
Exchange's business continuity and disaster recovery plans.\4\ In that 
filing, the Exchange added the following preamble to the Print as P 
Rule:
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    \4\ See Securities Exchange Act Release No. 78917 (September 23, 
2016), 81 FR 67036 (September 29, 2016) (SR-NYSEMKT-2016-68) (order 
granting approval of proposed rule change, as modified by Amendment 
No. 1 and Partial Amendment No. 2).
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    This version of Rule 49--Equities will remain operative until the 
proposed rule changes described in SR-NYSEMKT-2016-68 are approved and 
the Exchange files a separate proposed rule change to delete this 
version of Rule 49--Equities and preamble and to establish the 
operative date of paragraph (a) of ``Rule 49--Equities. Exchange 
Business Continuity and Disaster Recovery Plans and Mandatory 
Testing.'' Subject to such separate proposed rule change, the Exchange 
will announce via Trader

[[Page 88305]]

Update the operative date of the deletion of this Rule and 
implementation of paragraph (a) of Rule 49--Equities. Exchange Business 
Continuity and Disaster Recovery Plans and Mandatory Testing.
    In addition, the Exchange added the following preamble to Rule 49 
and added an ``N'' modifier to Rule 49(b), to distinguish it from 
paragraph (b) of the Print as P Rule.
    The Exchange will file a separate proposed rule change to establish 
the operative date of paragraph (a) of this version of Rule 49--
Equities and to delete ``Rule 49--Equities. Emergency Powers'' and this 
preamble. Until such time, ``Rule 49--Equities. Emergency Powers'' will 
remain operative. Subject to such separate proposed rule change, the 
Exchange will announce via Trader Update the operative date of 
paragraph (a) of this Rule and deletion of ``Rule 49--Equities. 
Emergency Powers.''
    Member organizations required to test Exchange Backup Systems under 
paragraph (b)(N) of this Rule will be required to test trading on the 
Exchange's Disaster Recovery Facility under paragraph (a) of this Rule 
on date(s) to be determined by the Exchange. Such mandatory testing 
dates will be announced by Trader Update.
    On November 5 and 19, 2016, the Exchange held the mandatory testing 
sessions for the operation of Rule 49 in the DR facility.\5\ The 
Exchange has determined that these tests were successful because all 
member organizations required to test trading on the Exchange's DR 
facility, as specified in the second paragraph of the preamble to Rule 
49, participated in the tests and the DR facility operated as provided 
for in Rule 49. Accordingly, the Exchange proposes to retire its Print 
as P Rule and implement Rule 49 operative November 23, 2016.
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    \5\ The Exchange announced by Trader Update that industry tests 
would be held on November 5, 2016 and November 19, 2016. See NYSE 
Trader Updates, dated September 9 and 16, 2016, available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_and_NYSE_MKT_DR_Trader_Update_Final.pdf and https://www.nyse.com/publicdocs/nyse/markets/nyse/DR_Testing.pdf.
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    The Exchange therefore proposes to:
     Delete the Print as P Rule, including the preamble;
     Delete the explanatory preamble to Rule 49; and
     Delete the ``N'' modifier to new Rule 49(b), which 
distinguished new Rule 49(b) from the Print as P Rule 49(b).
    In addition to this proposed rule change, the Exchange proposes to 
announce the operative date of November 23, 2016 via Trader Update.\6\
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    \6\ New York Stock Exchange LLC, the Exchange's affiliate, has 
also submitted substantially the same proposed rule change to 
propose the same changes as described herein. See SR-NYSE-2016-81. 
In addition, NYSE Arca, Inc., the Exchange's affiliate, has 
submitted a proposed rule change to delete NYSE Arca Equities Rule 
2.100, which allowed it to act on behalf of and at the direction of 
the Exchange if the Exchange invoked its Print as P Rule. See SR-
NYSEArca-2016-154.
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2. Statutory Basis
    The proposed rule changes are consistent with Section 6(b) of the 
Act,\7\ in general, and further the objectives of Section 6(b)(5) of 
the Act,\8\ in particular, in that they are designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and 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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    In particular, the Exchange believes that amending its rules to 
delete the Print as P Rule, which is no longer operative after the 
successful completion of mandatory testing by the Exchange's member 
organizations of the operation of Rule 49, would promote the protection 
of investors and the public interest because it would promote clarity 
and transparency on the Exchange rules governing the Exchange's 
business continuity and disaster recovery planning. The Exchange 
further believes that deleting the superseded rule that was applicable 
only to the prior disaster recovery plan, deleting the preamble to Rule 
49, and deleting the ``N'' modifier that distinguished the new rule 
from the now obsolete rule would remove impediments to and perfect the 
mechanism of a national market system because these proposed changes 
would add greater clarity to the Exchange's rules and promote market 
transparency and efficiency.

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

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change is 
not designed to address competitive issues but rather is designed to 
facilitate trading in Exchange-listed securities on its DR facility. As 
such, the Exchange believes that the proposed rule change would promote 
competition for the benefit of market participants and investors 
generally because it provides transparency on the Exchange rules which 
would govern trading in Exchange traded securities if they trade on the 
Exchange's DR facility and greater efficiency and transparency 
concerning trading on the Exchange in the event of a disaster.

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

    No written comments were solicited or received with respect to 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 \9\ and Rule 19b-4(f)(6) thereunder.\10\ 
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) 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, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\12\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest 
because doing so would allow the Exchange to more quickly implement a 
business continuity and disaster recovery plan under which the Exchange 
no longer relies on the facilities of an affiliated exchange. 
Therefore, the Commission hereby

[[Page 88306]]

waives the 30-day operative delay and designates the proposed rule 
change to be operative upon filing with the Commission.\13\
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    \13\ 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).
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    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) \14\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \14\ 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 rule-comments@sec.gov. Please include 
File Number SR-NYSEMKT-2016-109 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-NYSEMKT-2016-109. 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-NYSEMKT-2016-109 and should 
be submitted on or before December 28, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-29288 Filed 12-6-16; 8:45 am]
 BILLING CODE 8011-01-P


