Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by NYSE Amex LLC Amending NYSE Amex Equities Rule 80C To Add Additional Securities to the Pilot Rule, 39073-39074 [2010-16406]
Download as PDF
Federal Register / Vol. 75, No. 129 / Wednesday, July 7, 2010 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62412; File No. SR–
NYSEAmex–2010–63]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
NYSE Amex LLC Amending NYSE
Amex Equities Rule 80C To Add
Additional Securities to the Pilot Rule
June 30, 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 30,
2010, NYSE Amex LLC (the ‘‘Exchange’’
or ‘‘NYSE Amex’’) 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 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 amend
NYSE Amex Equities Rule 80C to add
additional securities to the pilot rule.
The text of the proposed rule change is
available at the Exchange, the
Commission’s Web site at https://
www.sec.gov, the Commission’s Public
Reference Room, and https://
www.nyse.com.
cprice-sewell on DSK8KYBLC1PROD with NOTICES
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NYSE Amex Equities Rule 80C to add
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
securities included in the Russell 1000®
Index to the pilot rule.
Rule 80C was approved by the
Commission on June 10, 2010 on a pilot
basis to end on December 10, 2010.4 As
the Exchange noted in its filing to adopt
Rule 80C, during the pilot period, the
Exchange would continue to assess
whether additional securities need to be
added and whether the parameters of
the rule would need to be modified to
accommodate trading characteristics of
different securities.
Currently, the pilot list of securities is
all securities included in the S&P 500®
Index (‘‘S&P 500’’). As noted in comment
letters to the original filing to adopt
Rule 80C, concerns were raised that
including only securities in the S&P 500
in the pilot rule was too narrow. In
particular, commenters noted that
additional equity securities that
experienced volatility on May 6, 2010
should be included in the pilot. The
Exchange agrees with the commenters
that the pilot list of securities should be
expanded.
In consultation with other markets
and staff of the Securities and Exchange
Commission, the Exchange proposes to
add the securities included in the
Russell 1000 to the pilot beginning in
July 2010, subject to Commission
approval. The Exchange believes that
adding these securities would begin to
address concerns that the scope of the
pilot may be too narrow, while at the
same time recognizing that during the
pilot period, the markets will continue
to review whether and when to add
additional securities to the pilot and
whether the parameters of the rule
should be adjusted for different
securities.
In particular, the Exchange proposes
to add securities included in the Russell
1000 because the Exchange believes that
the securities included in that index
have similar trading characteristics to
securities included in the S&P 500
(many of which are the same securities)
and therefore the existing 10% price
movement applicable before invoking a
trading pause would be appropriate for
the Russell 1000 securities. Because the
Exchange does not propose to modify
the 10% price movement at this time,
the Exchange believes that expanding to
the Russell 1000 is an appropriate next
step. Based on our analysis, the number
of times that the Trading Pause would
be triggered for Russell 1000 securities
would be similar to the instances for the
S&P 500 securities.
As noted above, during the pilot, the
Exchange will continue to re-assess
1 15
2 15
VerDate Mar<15>2010
15:28 Jul 06, 2010
4 See Securities Exchange Act Release No. 62252
(June 10, 2010) (SR–NYSEAmex–2010–46).
Jkt 220001
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
39073
whether specific securities should be
added or removed from the pilot list.
The Exchange will also assess whether
the parameters for invoking a trading
pause continue to be the appropriate
standard and whether the parameters
should be modified.
To effect this change, the Exchange
proposes to amend supplementary
material .10 to Rule 7.11 [sic] to provide
that the pilot applies to all securities in
the S&P 500, as well as securities in the
Russell 1000. Because specified
Exchange Traded Products (‘‘ETP’’),
including the Invesco PowerShares
QQQ Exchange Trading Fund (symbol:
QQQQ), will be part of the Trading
Pause rule for markets that trade ETPs,
and because the Exchange anticipates
that it will be trading QQQQ on an
unlisted trading privilege basis,5 the
Exchange also proposes to add this
security to the supplementary material.
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 uniformity across markets
concerning decisions to pause trading in
a security when there are significant
price movements.
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.
5 See Securities Exchange Release Act No. 61890
(April 12, 2010), 75 FR 20401 (April 19, 2010) (SR–
NYSEAmex–2010–31).
6 15 U.S.C. 78f(b)(5).
7 15 U.S.C. 78k–1(a)(1).
E:\FR\FM\07JYN1.SGM
07JYN1
39074
Federal Register / Vol. 75, No. 129 / Wednesday, July 7, 2010 / Notices
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 self-regulatory
organization 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.8
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning all aspects of the
foregoing, including whether the
proposed rule change is consistent with
the Act.
For markets trading exchange-traded
products,9 the Commission has solicited
comment on the implications of
including a trading pause pilot for
exchange-traded funds for broad-based
indices that also underlie options and
futures products.
In addition, the Commission solicits
comments regarding the operation of the
trading pause pilot to date with respect
to stocks in the S&P 500.
Comments may be submitted by any
of the following methods:
cprice-sewell on DSK8KYBLC1PROD with NOTICES
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–NYSEAmex–2010–63 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–NYSEAmex–2010–63. 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).
8 The Commission notes that the Exchange has
requested accelerated approval of the filing.
9 See, e.g., SR–NYSEArca–2010–61.
VerDate Mar<15>2010
15:28 Jul 06, 2010
Jkt 220001
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 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 offices 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–NYSEAmex–2010–63, and
should be submitted on or before July
19, 2010.10
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–16406 Filed 7–6–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62417; File No. SR–EDGA–
2010–05]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing of
Proposed Rule Change To Amend
EDGA Rule 11.14, Entitled ‘‘Trading
Halts Due to Extraordinary Volatility’’
June 30, 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 30,
2010, EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission
(‘‘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
10 The Commission believes that a 10-day
comment period is reasonable, given the urgency of
the matter. It will provide adequate time for
comment.
11 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
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 is proposing to amend
EDGA Rule 11.14, entitled ‘‘Trading
Halts Due to Extraordinary Volatility’’ to
add additional securities to the pilot
rule. The text of the proposed rule
change is available at the Exchange’s
Web site at https://www.directedge.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
Exchange 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 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
The Exchange proposes to amend
EDGA Rule 11.14 to add securities
included in the Russell 1000® Index
(‘‘Russell 1000’’) and specified Exchange
Traded Products (‘‘ETP’’) to the pilot
rule. For purposes of this filing, ETPs
include Exchange Traded Funds
(‘‘ETF’’),3 Exchange Traded Vehicles
(‘‘ETV’’),4 and Exchange Traded Notes
(‘‘ETN’’).5
3 An ETF is an open-ended registered investment
company under the Investment Company Act of
1940 that has received certain exemptive relief from
the SEC to allow secondary market trading in the
ETF shares. ETFs are generally index-based
products, in that each ETF holds a portfolio of
securities that is intended to provide investment
results that, before fees and expenses, generally
correspond to the price and yield performance of
the underlying benchmark index.
4 An ETV tracks the underlying performance of an
asset or index, allowing investors exposure to
underlying assets such as futures contracts,
commodities, and currency without actually trading
futures or taking physical delivery of the underlying
asset. An ETV is traded intraday like an ETF. An
ETV is an open-ended trust or partnership unit that
is registered under the Securities Act of 1933.
5 An ETN is a senior unsecured debt obligation
designed to track the total return of an underlying
index, benchmark or strategy, minus investor fees.
ETNs are registered under the Securities Act of
1933 and are redeemable to the issuer.
E:\FR\FM\07JYN1.SGM
07JYN1
Agencies
[Federal Register Volume 75, Number 129 (Wednesday, July 7, 2010)]
[Notices]
[Pages 39073-39074]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-16406]
[[Page 39073]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62412; File No. SR-NYSEAmex-2010-63]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by NYSE Amex LLC Amending NYSE Amex Equities Rule 80C To Add
Additional Securities to the Pilot Rule
June 30, 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 30, 2010, NYSE Amex LLC (the ``Exchange'' or ``NYSE
Amex'') 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 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 Amex Equities Rule 80C to add
additional securities to the pilot rule. The text of the proposed rule
change is available at the Exchange, the Commission's Web site at
https://www.sec.gov, 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend NYSE Amex Equities Rule 80C to add
securities included in the Russell 1000[supreg] Index to the pilot
rule.
Rule 80C was approved by the Commission on June 10, 2010 on a pilot
basis to end on December 10, 2010.\4\ As the Exchange noted in its
filing to adopt Rule 80C, during the pilot period, the Exchange would
continue to assess whether additional securities need to be added and
whether the parameters of the rule would need to be modified to
accommodate trading characteristics of different securities.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62252 (June 10,
2010) (SR-NYSEAmex-2010-46).
---------------------------------------------------------------------------
Currently, the pilot list of securities is all securities included
in the S&P 500[supreg] Index (``S&P 500''). As noted in comment letters
to the original filing to adopt Rule 80C, concerns were raised that
including only securities in the S&P 500 in the pilot rule was too
narrow. In particular, commenters noted that additional equity
securities that experienced volatility on May 6, 2010 should be
included in the pilot. The Exchange agrees with the commenters that the
pilot list of securities should be expanded.
In consultation with other markets and staff of the Securities and
Exchange Commission, the Exchange proposes to add the securities
included in the Russell 1000 to the pilot beginning in July 2010,
subject to Commission approval. The Exchange believes that adding these
securities would begin to address concerns that the scope of the pilot
may be too narrow, while at the same time recognizing that during the
pilot period, the markets will continue to review whether and when to
add additional securities to the pilot and whether the parameters of
the rule should be adjusted for different securities.
In particular, the Exchange proposes to add securities included in
the Russell 1000 because the Exchange believes that the securities
included in that index have similar trading characteristics to
securities included in the S&P 500 (many of which are the same
securities) and therefore the existing 10% price movement applicable
before invoking a trading pause would be appropriate for the Russell
1000 securities. Because the Exchange does not propose to modify the
10% price movement at this time, the Exchange believes that expanding
to the Russell 1000 is an appropriate next step. Based on our analysis,
the number of times that the Trading Pause would be triggered for
Russell 1000 securities would be similar to the instances for the S&P
500 securities.
As noted above, during the pilot, the Exchange will continue to re-
assess whether specific securities should be added or removed from the
pilot list. The Exchange will also assess whether the parameters for
invoking a trading pause continue to be the appropriate standard and
whether the parameters should be modified.
To effect this change, the Exchange proposes to amend supplementary
material .10 to Rule 7.11 [sic] to provide that the pilot applies to
all securities in the S&P 500, as well as securities in the Russell
1000. Because specified Exchange Traded Products (``ETP''), including
the Invesco PowerShares QQQ Exchange Trading Fund (symbol: QQQQ), will
be part of the Trading Pause rule for markets that trade ETPs, and
because the Exchange anticipates that it will be trading QQQQ on an
unlisted trading privilege basis,\5\ the Exchange also proposes to add
this security to the supplementary material.
---------------------------------------------------------------------------
\5\ See Securities Exchange Release Act No. 61890 (April 12,
2010), 75 FR 20401 (April 19, 2010) (SR-NYSEAmex-2010-31).
---------------------------------------------------------------------------
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 uniformity across
markets concerning decisions to pause trading in a security when there
are significant price movements.
---------------------------------------------------------------------------
\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.
[[Page 39074]]
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 self-regulatory organization 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.\8\
---------------------------------------------------------------------------
\8\ The Commission notes that the Exchange has requested
accelerated approval of the filing.
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning all aspects of the foregoing, including whether
the proposed rule change is consistent with the Act.
For markets trading exchange-traded products,\9\ the Commission has
solicited comment on the implications of including a trading pause
pilot for exchange-traded funds for broad-based indices that also
underlie options and futures products.
---------------------------------------------------------------------------
\9\ See, e.g., SR-NYSEArca-2010-61.
---------------------------------------------------------------------------
In addition, the Commission solicits comments regarding the
operation of the trading pause pilot to date with respect to stocks in
the S&P 500.
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-NYSEAmex-2010-63 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-NYSEAmex-2010-63. 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 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 offices 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-NYSEAmex-2010-63, and should be submitted on or before
July 19, 2010.\10\
---------------------------------------------------------------------------
\10\ The Commission believes that a 10-day comment period is
reasonable, given the urgency of the matter. It will provide
adequate time for comment.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-16406 Filed 7-6-10; 8:45 am]
BILLING CODE 8011-01-P