Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending NYSE Arca Equities Rule 7.11 To Set Forth How the Exchange Will Handle Order Flow During a Regulatory Halt for a Security Listed on an Exchange Other Than NYSE Arca, 37866-37868 [2010-15893]
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37866
Federal Register / Vol. 75, No. 125 / Wednesday, June 30, 2010 / Notices
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments relating to the
proposed rule change have not been
solicited or received. OCC will notify
the Commission of any written
comments received by OCC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within thirty-five 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
ninety 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 self-regulatory
organization consents, the Commission
will:
(A) By order approve the proposed
rule change or
(B) institute proceedings to determine
whether the proposed rule change
should be 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 (https://www.sec.gov/
rules/sro.shtml) or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–OCC–2010–04 on the
subject line.
mstockstill on DSKH9S0YB1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Secretary, Elizabeth M. Murphy,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–OCC–2010–04. 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
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16:53 Jun 29, 2010
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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, on official
business days between the hours of 10
am and 3 pm. Copies of such filings will
also be available for inspection and
copying at the principal office of the
OCC and on OCC’s Web site at https://
www.optionsclearing.com/about/
publications/bylaws.jsp. 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–OCC–
2010–04 and should be submitted on or
before July 21, 2010.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–15892 Filed 6–29–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62368; File No. SR–
NYSEARCA–2010–60]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. Amending NYSE Arca
Equities Rule 7.11 To Set Forth How
the Exchange Will Handle Order Flow
During a Regulatory Halt for a Security
Listed on an Exchange Other Than
NYSE Arca
June 23, 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 22,
2010, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) 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
11 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
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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
NYSE Arca Equities Rule 7.11 to set
forth how the Exchange will handle
order flow during a regulatory halt for
a security listed on an exchange other
than NYSE Arca. The text of the
proposed rule change is available at the
Exchange, the Commission’s Public
Reference Room, and https://
www.nyse.com.
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
NYSE Arca Equities Rule 7.11 to revise
how the Exchange will handle order
flow during a regulatory halt for a
security listed on an exchange other
than NYSE Arca.
Rule 7.11 was approved by the
Commission on June 10, 2010.4 The
Exchange filed to amend Rule 7.11 to
add subsection (f) to the Rule, which
addresses how orders will be handled
when another primary listing market
issues a trading pause or a regulatory
halt.5 Pursuant to Rule 7.11(f), upon the
receipt of a trading pause or regulatory
halt message from another primary
listing market, the Exchange will take
the following actions: (i) Maintain all
resting orders in the Book; (ii) cancel
any unexecuted portion of Market
Orders and Pegged Orders; (iii) accept
and process all cancellations; (iv) accept
and route new Market Orders to the
4 See Securities Exchange Act Release No. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR–
NYSEArca–2010–41).
5 See Securities Exchange Act Release No. 62281
(June 11, 2010), 75 FR 34504 (June 17, 2010) (SR–
NYSEArca–2010–52).
E:\FR\FM\30JNN1.SGM
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Federal Register / Vol. 75, No. 125 / Wednesday, June 30, 2010 / Notices
primary market; (v) accept and route PO
and PO+ Orders to the primary market;
and (vi) reject all other orders until the
stock has reopened.
Before the amendment to add section
(f) to the Rule, the Exchange accepted
all entry and cancellation of orders
during a regulatory halt invoked by
another market. While the Exchange
believes that it is appropriate during a
regulatory halt to take the actions set
forth in Rule 7.11(f), the Exchange notes
that not all regulatory halts have the
same basis and there are times when the
Exchange believes that trading should
continue, notwithstanding whether
another market has invoked a regulatory
halt. For example, if trading has halted
on another market because of an initial
public offering, the Exchange believes it
should be able to accept order flow
during such a halt.
To enable the Exchange to accept
order flow during certain regulatory
halts, the Exchange proposes to revert
back to how it handled order flow
during a regulatory halt before it
amended Rule 7.11. As proposed,
during a regulatory halt, the Exchange
will continue to accept all order entry
and cancellation messages and will not
reject any orders during a regulatory
halt. The Exchange therefore proposes
to amend Rule 7.11(f) to delete the
reference to regulatory halts. The
Exchange will continue to follow the
procedures set forth in Rule 7.11(f)
when another primary listing market
invokes a trading pause.
The Exchange also proposes a
technical amendment to change the
term ‘‘Corporation’’ to ‘‘Exchange’’ in
Rule 7.11(d).
mstockstill on DSKH9S0YB1PROD with NOTICES
2. Statutory Basis
The statutory basis for the proposed
rule change is Section 6(b)(5) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),6 which requires the rules of an
exchange 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 proposed rule
change also is designed to support the
principles of Section 11A(a)(1) 7 of the
Act in that it seeks to assure fair
competition among brokers and dealers
and among exchange markets. The
Exchange believes that the proposed
rule meets these requirements in that it
promotes transparency for how order
flow will be handled during a regulatory
6 15
7 15
U.S.C. 78f(b)(5).
U.S.C. 78k–1(a)(1).
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16:53 Jun 29, 2010
Jkt 220001
halt for a security listed on an exchange
other than NYSE Arca.
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 and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),11 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. The
Commission notes that the Exchange,
upon reflection, has decided to revert to
its former manner of handling orders
during regulatory halts. The proposed
rule change does not raise any new
substantive issues. For these reasons,
the Commission believes that the waiver
of the 30-day operative delay is
consistent with the protection of
investors and the public interest.12
8 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
9 17
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
37867
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 rulecomments@sec.gov. Please include File
Number SR–NYSEARCA–2010–60 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
Number SR–NYSEARCA–2010–60. 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
copying in the Commission’s Public
Reference Room. Copies of the filing
will also be available for inspection and
copying at the NYSE’s principal office
and on its Internet Web site at https://
www.nyse.com. All comments received
will be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
E:\FR\FM\30JNN1.SGM
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37868
Federal Register / Vol. 75, No. 125 / Wednesday, June 30, 2010 / Notices
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEARCA–2010–60 and should be
submitted on or before July 21, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–15893 Filed 6–29–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–62369; File No. SR–
NYSEArca–2010–59]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change by NYSE
Arca To Expand and Permanently
Establish Its Short Term Option
Program
June 23, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on June 17,
2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by NYSE Arca. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
mstockstill on DSKH9S0YB1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 5.10(b), Rule 5.19, and Rule 6.4
Commentary .07 so as to rename, make
changes to, and make permanent the
One Week Option Series Pilot Program.
The text of the proposed rule change is
attached as Exhibit 5 to the 19b–4 form.
A copy of this filing is available on the
Exchange’s Web site at https://
www.nyse.com, at the Exchange’s
principal office, on the Commission’s
Web site at https://www.sec.gov, and at
the Commission’s Public Reference
Room.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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16:53 Jun 29, 2010
Jkt 220001
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. Purpose
The purpose of this filing is to amend
Rule 6.4 Commentary .07 to increase the
number of One Week Options Series in
an underlying class from five to twenty.
The proposed change is based on an
approved rule of the Chicago Board
Options Exchange, Inc. (‘‘CBOE’’). The
Exchange is proposing to adopt the Pilot
Program on a permanent basis. In
addition, the Exchange is amending the
name of the Pilot to be the Short Term
Options Series Program and proposing,
by amending Rule 5.19, certain nonsubstantive changes to reorganize its
rule text related to Short Term Option
Series so that applicable terms are
located within a single section of the
relevant rules. The Exchange is also
amending Rule 6.4 to allow the Short
Term Option Opening Date to be either
a Thursday or Friday (or, if the
Exchange is not open for business on
the respective Thursday or Friday, the
first business day immediately prior to
that respective Thursday or Friday),
based on a rule change adopted by the
CBOE.3
On July 12, 2005, the Securities and
Exchange Commission (‘‘Commission’’)
approved the Pilot Program.4 The Pilot
Program allows NYSE Arca to list and
trade One Week Option Series, which
would expire one week after the date on
which a series is opened. Under the
Pilot Program, NYSE Arca can select up
3 See Exchange Act Release No. 62170, (May 25,
2010) 75 FR 30889 (June 2, 2010) (SR–CBOE–2010–
048).
4 See Exchange Act Release No. 52013, (July 12,
2005) 70 FR 41471 (July 19, 2005). The Pilot has
been extended each year. See Exchange Act Release
No. 54052 (June 27, 2006) 71 FR 38679 (July 7,
2006); Exchange Act Release No. 56048 (July 11,
2007) 72 FR 39653 (July 19, 2007); Exchange Act
Release No. 58085, (July 2, 2008) 73 FR 39767 (July
10, 2008); Exchange Act Release No. 60285 (July 10,
2009) 74 FR 34816 (July 17, 2009).
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
to five approved option classes on
which One Week Option Series could be
opened.
If selected for the Pilot Program, the
Exchange may open up to five One
Week Option Series for each expiration
date in that class. The strike price of
each One Week Option Series are fixed
at a price per share, with approximately
the same number of strike prices above
and below the value of the underlying
security or calculated index value at
about the time that the One Week
Option Series is opened.
The Exchange proposes to adopt the
Pilot Program on a permanent basis. The
current Pilot expires on July 12, 2010.
While NYSE Arca did not list any
Short Term Option Series during most
of the Pilot Period, it did recently list
Short Term Options Series in multiply
listed issues selected by NYSE Amex
LLC (‘‘NYSE Amex’’).5 There has been
continued investor interest in trading
short-term options at the Chicago Board
Options Exchange (‘‘CBOE’’), and
significant investor interest in Short
Term Options Series in the four issues
selected by NYSE Amex. The CBOE
adopted their Pilot Program on a
permanent basis after four years of
trading ‘‘weeklys’’ on four index
products, and found no operational or
capacity related problems.6 In order to
remain competitive in listing Short
Term Option Series in multiply listed
classes, and to have the ability to
respond to customer interests if
warranted, the Exchange proposes to
adopt its Pilot Program on a permanent
basis.
In the original proposal to establish
the Pilot Program the Exchange stated
that if it were to propose an extension
or an expansion of the program, the
Exchange would submit, along with any
filing proposing such amendments to
the program, a Pilot Program report
(‘‘Report’’). The Report would provide an
analysis of the Pilot Program covering
the entire period during which the Pilot
Program was in effect. Since the
Exchange did not have any Short Term
Options Series listed as part of the Pilot
Program until very recently, there is no
data available to compile such a report
at this time. Therefore there is no Report
associated with the program included
with this proposal to adopt the Program
on a permanent basis. NYSE Arca does
commit to providing a Report on Short
5 On June 3, 2010, NYSE Amex listed Short Term
Options Series expiring June 11, 2010 in NASDAQ
100 Tracking Stock (QQQQ); SPDR S&P 500 ETF
(SPY); iShares Russell 2000 Index Fund (IWM); and
DIAMONDS Trust (DIA).
6 See Securities Exchange Act Release No. 59824
(April 27, 2009), 74 FR 20518 (May 4, 2009) (SR–
CBOE–2009–018).
E:\FR\FM\30JNN1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 125 (Wednesday, June 30, 2010)]
[Notices]
[Pages 37866-37868]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-15893]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62368; File No. SR-NYSEARCA-2010-60]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending NYSE
Arca Equities Rule 7.11 To Set Forth How the Exchange Will Handle Order
Flow During a Regulatory Halt for a Security Listed on an Exchange
Other Than NYSE Arca
June 23, 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 22, 2010, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') 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 amend NYSE Arca Equities Rule 7.11 to set
forth how the Exchange will handle order flow during a regulatory halt
for a security listed on an exchange other than NYSE Arca. The text of
the proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and https://www.nyse.com.
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 NYSE Arca Equities Rule 7.11 to
revise how the Exchange will handle order flow during a regulatory halt
for a security listed on an exchange other than NYSE Arca.
Rule 7.11 was approved by the Commission on June 10, 2010.\4\ The
Exchange filed to amend Rule 7.11 to add subsection (f) to the Rule,
which addresses how orders will be handled when another primary listing
market issues a trading pause or a regulatory halt.\5\ Pursuant to Rule
7.11(f), upon the receipt of a trading pause or regulatory halt message
from another primary listing market, the Exchange will take the
following actions: (i) Maintain all resting orders in the Book; (ii)
cancel any unexecuted portion of Market Orders and Pegged Orders; (iii)
accept and process all cancellations; (iv) accept and route new Market
Orders to the
[[Page 37867]]
primary market; (v) accept and route PO and PO+ Orders to the primary
market; and (vi) reject all other orders until the stock has reopened.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62252 (June 10,
2010), 75 FR 34186 (June 16, 2010) (SR-NYSEArca-2010-41).
\5\ See Securities Exchange Act Release No. 62281 (June 11,
2010), 75 FR 34504 (June 17, 2010) (SR-NYSEArca-2010-52).
---------------------------------------------------------------------------
Before the amendment to add section (f) to the Rule, the Exchange
accepted all entry and cancellation of orders during a regulatory halt
invoked by another market. While the Exchange believes that it is
appropriate during a regulatory halt to take the actions set forth in
Rule 7.11(f), the Exchange notes that not all regulatory halts have the
same basis and there are times when the Exchange believes that trading
should continue, notwithstanding whether another market has invoked a
regulatory halt. For example, if trading has halted on another market
because of an initial public offering, the Exchange believes it should
be able to accept order flow during such a halt.
To enable the Exchange to accept order flow during certain
regulatory halts, the Exchange proposes to revert back to how it
handled order flow during a regulatory halt before it amended Rule
7.11. As proposed, during a regulatory halt, the Exchange will continue
to accept all order entry and cancellation messages and will not reject
any orders during a regulatory halt. The Exchange therefore proposes to
amend Rule 7.11(f) to delete the reference to regulatory halts. The
Exchange will continue to follow the procedures set forth in Rule
7.11(f) when another primary listing market invokes a trading pause.
The Exchange also proposes a technical amendment to change the term
``Corporation'' to ``Exchange'' in Rule 7.11(d).
2. Statutory Basis
The statutory basis for the proposed rule change is Section 6(b)(5)
of the Securities Exchange Act of 1934 (the ``Act''),\6\ which requires
the rules of an exchange 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 proposed rule change also is
designed to support the principles of Section 11A(a)(1) \7\ of the Act
in that it seeks to assure fair competition among brokers and dealers
and among exchange markets. The Exchange believes that the proposed
rule meets these requirements in that it promotes transparency for how
order flow will be handled during a regulatory halt for a security
listed on an exchange other than NYSE Arca.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(5).
\7\ 15 U.S.C. 78k-1(a)(1).
---------------------------------------------------------------------------
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 and Rule 19b-
4(f)(6)(iii) thereunder.
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\11\ 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. The Commission notes that
the Exchange, upon reflection, has decided to revert to its former
manner of handling orders during regulatory halts. The proposed rule
change does not raise any new substantive issues. For these reasons,
the Commission believes that the waiver of the 30-day operative delay
is consistent with the protection of investors and the public
interest.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition and capital formation. 15 U.S.C.
78c(f).
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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 Number SR-NYSEARCA-2010-60 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 Number SR-NYSEARCA-2010-60. 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 copying in the Commission's Public Reference Room. Copies
of the filing will also be available for inspection and copying at the
NYSE's principal office and on its Internet Web site at https://www.nyse.com. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only
[[Page 37868]]
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEARCA-2010-60 and should be submitted
on or before July 21, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-15893 Filed 6-29-10; 8:45 am]
BILLING CODE 8010-01-P
