Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish New Rule 6.89, 34192-34194 [2010-14444]
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34192
Federal Register / Vol. 75, No. 115 / Wednesday, June 16, 2010 / Notices
Act and to comply with and enforce
compliance by members and persons
associated with members with
provisions of the Act, the rules and
regulations thereunder, and SRO rules,
and is designed to prevent fraudulent
and manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule does not impose
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
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
sroberts on DSKD5P82C1PROD with NOTICES
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:
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–EDGA–2010–02 on the
subject line.
Paper Comments
[Release No. 34–62259; File No. SR–
NYSEArca–2010–47]
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Establish New Rule
6.89
All submissions should refer to File
Number SR–EDGA–2010–02. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of EDGA.
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–EDGA–2010–02 and should
be submitted on or before July 7, 2010.
June 10, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.38
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–14443 Filed 6–15–10; 8:45 am]
BILLING CODE 8010–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
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SECURITIES AND EXCHANGE
COMMISSION
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 June 2,
2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) 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 self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to establish
new procedures to account for
erroneous trades occurring from
disruptions and/or malfunctions of
Exchange systems. The changes
described in this proposal would
establish new NYSE Arca Rule 6.89. The
text of the proposed rule change is
available at the Commission’s Web site
at https://www.sec.gov. A copy of this
filing is available on the Exchange’s
Web site at https://www.nyse.com, at the
Exchange’s principal office 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
38 17
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 75, No. 115 / Wednesday, June 16, 2010 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
sroberts on DSKD5P82C1PROD with NOTICES
The Exchange is proposing to
establish NYSE Arca Rule 6.89, in order
to adopt new procedures regarding
system disruptions and malfunctions.
Specifically, the Exchange proposes to
include ‘‘verifiable systems disruptions
and malfunctions which the
nullification or modification of
transactions may be necessary’’ as a
condition in which a designated
Trading Official 4 may act, on its own
motion, to review erroneous
transactions. The Exchange believes that
it is appropriate to provide this
flexibility and authority so as not to
limit the Exchange’s ability to plan for
and respond to unforeseen system’s
problems. Proposed Rule 6.89 is similar
to rules in effect at other options
exchanges that allow for the
nullification or modification of
transactions that resulted from verifiable
disruptions and/or malfunctions of
Exchanges systems.5
According to the proposal, in the
event of any verifiable disruption or
malfunction in the use or operation of
any electronic communications and
trading facilities of the Exchange, in
which the nullification or modification
of transactions may be necessary for the
maintenance of a fair and orderly
market or the protection of investors
and the public interest exist, a Trading
Official, on his or her own motion, may
review such transactions and declare
such transactions arising out of the use
or operation of such facilities during
such period null and void or modify the
terms of these transactions, in
accordance with the guidelines
contained in sections (a)(3)(C)(i)(aa)–
(bb) of Rule 6.87. Pursuant to the
proposal, the Trading Official, absent
extraordinary circumstances, must
initiate action under this authority
within sixty (60) minutes of the
occurrence of the erroneous transaction
that was a result of the verifiable
disruption or malfunction. Each OTP
Holder involved in the transaction shall
be notified as soon as practicable, and
any OTP Holder aggrieved by the action
may appeal such action in accordance
4 See NYSE Arca Rule 6.1(b)(34). Trading
Officials are employees or officers of the Exchange
and are not affiliated with OTP Holders or OTP
Firms.
5 Proposed Rule 6.89 is based in part on NASDAQ
OMX PHLX Rule 1092(c)(ii)(A), and in addition is
substantially similar to Chicago Board Options
Exchange Rule 6.25(a)(3).
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with the provisions of subsection (b) of
Rule 6.89.
Appeal Process
If a Trading Official determines that a
transaction(s) is erroneous pursuant to
Rule 6.89(a) as described above, any
OTP Holder aggrieved by the action may
appeal such action in accordance with
the provisions provided in Rule 6.89(b).
The Exchange plans to utilize a
Review Panel (‘‘Panel’’) to review
decisions made by the Exchange Officer,
under this Rule.
Once an OTP Holder has properly
notified the Exchange that it wishes to
appeal the decision of the Exchange
Officer, a three person Panel will review
and make a determination as to the
appeal. The Panel as described in
proposed Rule 6.89(b)(1)(A) will be
comprised of the NYSE Arca Chief
Regulatory Officer (‘‘CRO’’), or a
designee of the CRO, and a
representative from two (2) different
OTP Firms. One representative on the
Panel will always be from an OTP Firm
directly engaged in market making
activities and one representative on the
Panel will always be from an OTP Firm
directly engaged in the handling of
options orders for public customers.6
The Exchange feels that by having a
three person panel, of which the
majority is made up of individuals from
member firms, will help to ensure that
determinations regarding erroneous
transactions resulting from system
malfunctions or extraordinary market
conditions are made by a diverse
representative group in a manner that
will help to ensure fairness and
impartiality.
The Exchange shall designate at least
ten (10) OTP Firm representatives to be
called upon to serve on the Panel as
needed. In no case shall a Panel include
a person related to a party to the trade
in question. To the extent reasonably
possible, the Exchange shall call upon
the designated representatives to
participate in a Panel on an equally
frequent basis.
2. Statutory Basis
The Exchange believes that the
proposed rule change will allow the
Exchange, in extraordinary market
conditions, to maintain a fair and
orderly market. The Exchange believes
the proposed rule change is consistent
with the Act and the rules and
regulations thereunder and, in
particular, the requirements of section
6(b) of the Act. Specifically, the
6 The composition of the Review Panel, is similar
to that of the NYSE Arca Obvious Error Panel, as
defined in Rule 6.87(a)(4)(A)(i). [sic]
PO 00000
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Fmt 4703
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34193
Exchange believes the proposed rule
change is consistent with the section
6(b)(5) 7 requirements that the rules of
an exchange be designed to promote just
and equitable principles of trade, to
prevent fraudulent and manipulative
acts, to remove impediments to and
perfect the mechanism for a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Allowing for the nullification or
modification of transactions that result
from verifiable disruptions and/or
malfunctions of Exchanges systems will
offer market participants on NYSE Arca
a level of relief presently not available.
The rule changes proposed in this filing
are consistent with the rules governing
verifiable systems disruptions
malfunctions at other options exchanges
and are designed to protect investors
and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
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
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 8 and Rule
19b–4(f)(6) thereunder.9 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 10 and Rule 19b–4(f)(6)(iii)
thereunder.11
7 15
U.S.C. 78(f)(b)(5).
U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(6).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
8 15
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16JNN1
34194
Federal Register / Vol. 75, No. 115 / Wednesday, June 16, 2010 / Notices
Arca. 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 No.
SR–NYSEArca–2010–47 and should be
submitted on or before July 7, 2010.
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.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–NYSEArca–2010–47 on the
subject line.
sroberts on DSKD5P82C1PROD with NOTICES
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
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.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File No.
SR–NYSEArca–2010–47. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of NYSE
to file the proposed rule change along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied the pre-filing requirement.
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[FR Doc. 2010–14444 Filed 6–15–10; 8:45 am]
BILLING CODE 8010–01–P
[Release No. 34–62248; File No. SR–
NYSEAmex–2010–51]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Bid-Ask
Parameters During Auctions
June 9, 2010.
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 May 28,
2010, NYSE Amex LLC (‘‘NYSE Amex’’
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 Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 925NY and Rule 952NY. The text
of the proposed rule change is available
on NYSE Amex’s Web site at https://
www.nyse.com, on the Commission’s
Web site at https://www.sec.gov, at the
principal office of NYSE Amex, 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,
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00102
Fmt 4703
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1. Purpose
The purpose of the proposed rule
change is to: (i) Amend Rule 925NY to
differentiate the bid-ask differentials for
Market Maker open outcry quotations
from the requirements for electronically
submitted quotations, and (ii) amend
Rule 952NY by establishing guidelines
for the use of bid-ask parameters in the
NYSE Amex System to be used during
the opening auction process
(‘‘Auction’’).3
Currently, Rule 925NY specifies the
bid-ask differential requirements
applicable to Market Maker quotations
when electronically bidding and
offering on the NYSE Amex System
during an Auction and in open outcry.
With respect to bidding and offering
during an Auction, the bid-ask
differentials 4 vary depending on the
price of the bid. Rule 925NY(b)(4)(A)–
(E) states that the quote widths shall not
be more than: $0.25 if the bid is less
than $2; $0.40 where the bid is at least
$2 but does not exceed $5; $0.50 where
the bid is more than $5 but does not
exceed $10; $0.80 where the bid is more
than $10 but does not exceed $20; and
$1 where the bid is more than $20. With
respect to electronic quoting on the
NYSE Amex System, after an Auction,
the bid-ask differential requirement is
$5. The Exchange now proposes to
replace the applicable bid-ask
differentials for Market Maker quoting
obligations during an Auction, with the
$5 quote differential that is in place at
all other times.
At the time Rule 925NY was adopted,
the obligation for Specialists and Market
Makers to provide opening quotes at the
described widths was both a
longstanding NYSE Amex requirement,
and also based on the model of NYSE
Arca, Inc., which uses the same
underlying technology as the NYSE
Amex System.
3 An Auction is the process by which trading is
initiated in a specified options class on NYSE
Amex. Auctions are conducted automatically by the
NYSE Amex system, NYSE Amex’s electronic
system for order handling, execution, and reporting.
4 The Auction bid-ask differentials are known in
common parlance as ‘‘legal-width quotes.’’
E:\FR\FM\16JNN1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 115 (Wednesday, June 16, 2010)]
[Notices]
[Pages 34192-34194]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-14444]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62259; File No. SR-NYSEArca-2010-47]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Establish New
Rule 6.89
June 10, 2010.
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 June 2, 2010, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') 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 self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to establish new procedures to account for
erroneous trades occurring from disruptions and/or malfunctions of
Exchange systems. The changes described in this proposal would
establish new NYSE Arca Rule 6.89. The text of the proposed rule change
is available at the Commission's Web site at https://www.sec.gov. A copy
of this filing is available on the Exchange's Web site at https://www.nyse.com, at the Exchange's principal office 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.
[[Page 34193]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to establish NYSE Arca Rule 6.89, in
order to adopt new procedures regarding system disruptions and
malfunctions. Specifically, the Exchange proposes to include
``verifiable systems disruptions and malfunctions which the
nullification or modification of transactions may be necessary'' as a
condition in which a designated Trading Official \4\ may act, on its
own motion, to review erroneous transactions. The Exchange believes
that it is appropriate to provide this flexibility and authority so as
not to limit the Exchange's ability to plan for and respond to
unforeseen system's problems. Proposed Rule 6.89 is similar to rules in
effect at other options exchanges that allow for the nullification or
modification of transactions that resulted from verifiable disruptions
and/or malfunctions of Exchanges systems.\5\
---------------------------------------------------------------------------
\4\ See NYSE Arca Rule 6.1(b)(34). Trading Officials are
employees or officers of the Exchange and are not affiliated with
OTP Holders or OTP Firms.
\5\ Proposed Rule 6.89 is based in part on NASDAQ OMX PHLX Rule
1092(c)(ii)(A), and in addition is substantially similar to Chicago
Board Options Exchange Rule 6.25(a)(3).
---------------------------------------------------------------------------
According to the proposal, in the event of any verifiable
disruption or malfunction in the use or operation of any electronic
communications and trading facilities of the Exchange, in which the
nullification or modification of transactions may be necessary for the
maintenance of a fair and orderly market or the protection of investors
and the public interest exist, a Trading Official, on his or her own
motion, may review such transactions and declare such transactions
arising out of the use or operation of such facilities during such
period null and void or modify the terms of these transactions, in
accordance with the guidelines contained in sections (a)(3)(C)(i)(aa)-
(bb) of Rule 6.87. Pursuant to the proposal, the Trading Official,
absent extraordinary circumstances, must initiate action under this
authority within sixty (60) minutes of the occurrence of the erroneous
transaction that was a result of the verifiable disruption or
malfunction. Each OTP Holder involved in the transaction shall be
notified as soon as practicable, and any OTP Holder aggrieved by the
action may appeal such action in accordance with the provisions of
subsection (b) of Rule 6.89.
Appeal Process
If a Trading Official determines that a transaction(s) is erroneous
pursuant to Rule 6.89(a) as described above, any OTP Holder aggrieved
by the action may appeal such action in accordance with the provisions
provided in Rule 6.89(b).
The Exchange plans to utilize a Review Panel (``Panel'') to review
decisions made by the Exchange Officer, under this Rule.
Once an OTP Holder has properly notified the Exchange that it
wishes to appeal the decision of the Exchange Officer, a three person
Panel will review and make a determination as to the appeal. The Panel
as described in proposed Rule 6.89(b)(1)(A) will be comprised of the
NYSE Arca Chief Regulatory Officer (``CRO''), or a designee of the CRO,
and a representative from two (2) different OTP Firms. One
representative on the Panel will always be from an OTP Firm directly
engaged in market making activities and one representative on the Panel
will always be from an OTP Firm directly engaged in the handling of
options orders for public customers.\6\ The Exchange feels that by
having a three person panel, of which the majority is made up of
individuals from member firms, will help to ensure that determinations
regarding erroneous transactions resulting from system malfunctions or
extraordinary market conditions are made by a diverse representative
group in a manner that will help to ensure fairness and impartiality.
---------------------------------------------------------------------------
\6\ The composition of the Review Panel, is similar to that of
the NYSE Arca Obvious Error Panel, as defined in Rule
6.87(a)(4)(A)(i). [sic]
---------------------------------------------------------------------------
The Exchange shall designate at least ten (10) OTP Firm
representatives to be called upon to serve on the Panel as needed. In
no case shall a Panel include a person related to a party to the trade
in question. To the extent reasonably possible, the Exchange shall call
upon the designated representatives to participate in a Panel on an
equally frequent basis.
2. Statutory Basis
The Exchange believes that the proposed rule change will allow the
Exchange, in extraordinary market conditions, to maintain a fair and
orderly market. The Exchange believes the proposed rule change is
consistent with the Act and the rules and regulations thereunder and,
in particular, the requirements of section 6(b) of the Act.
Specifically, the Exchange believes the proposed rule change is
consistent with the section 6(b)(5) \7\ requirements that the rules of
an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts, to remove
impediments to and perfect the mechanism for a free and open market and
a national market system, and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78(f)(b)(5).
---------------------------------------------------------------------------
Allowing for the nullification or modification of transactions that
result from verifiable disruptions and/or malfunctions of Exchanges
systems will offer market participants on NYSE Arca a level of relief
presently not available. The rule changes proposed in this filing are
consistent with the rules governing verifiable systems disruptions
malfunctions at other options exchanges and are designed to protect
investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose 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 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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
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 \10\ and Rule 19b-
4(f)(6)(iii) thereunder.\11\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied the pre-filing requirement.
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[[Page 34194]]
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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.
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 (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-NYSEArca-2010-47 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-NYSEArca-2010-47. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of NYSE Arca. 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 No. SR-NYSEArca-2010-47 and should be
submitted on or before July 7, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-14444 Filed 6-15-10; 8:45 am]
BILLING CODE 8010-01-P
