Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Various NYSE Arca Equities Rules To Harmonize Them With Financial Industry Regulatory Authority Rules, 81685-81687 [2010-32607]

Download as PDF emcdonald on DSK2BSOYB1PROD with NOTICES Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices to the PCAOB. The PCAOB approved its 2011 budget during an open meeting on November 23, 2010 and submitted that budget for Commission approval on November 29, 2010. After considering the above, the Commission did not identify any proposed disbursements in the 2011 budget adopted by the PCAOB that are not properly recoverable through the annual accounting support fee, and the Commission believes that the aggregate proposed 2011 annual accounting support fees do not exceed the PCAOB’s aggregate recoverable budget expenses for 2011. The Commission looks forward to the PCAOB’s annual updating of its strategic plan and the opportunity for the Commission to review and provide views to the PCAOB on a draft of the updated plan. In its role as the oversight body of the PCAOB, the Commission is aware of the various uncertainties the PCAOB faces with respect to budgeting its resources and the potential impact if actual experience deviates from budget assumptions. Further, the Commission believes that the 2011 budget approved and submitted by the Board provides sufficient resources and flexibility for the PCAOB to continue to fulfill its mandate and to respond to changes in the assumptions upon which the budget is based. Should the PCAOB find the need to reallocate resources, the PCAOB should work closely with Commission staff on whether any reprogramming efforts result in the need for a supplemental budget request under the Commission’s budget rule. In considering any reallocation that may be necessary in 2011, the Commission encourages the Board to identify expenditures in its 2011 budget where flexibility exists. As part of its review of the PCAOB’s 2011 budget, the Commission notes that there are certain budget-related matters that should be addressed or more closely monitored during 2011 related to: (1) The PCAOB’s inspections program; (2) its information technology programs; and (3) the impact of implementing legislative and other actions on the PCAOB. Accordingly, the Commission directs the PCAOB during the 2011 budget cycle to: (1) Continue to include in its quarterly reports to the Commission information about the PCAOB’s inspections program. Such information will include (a) statistics relative to the numbers and types of firms budgeted and expected to be inspected in 2011, including by location and by year the inspections that are required to be conducted in accordance with the Sarbanes-Oxley Act and PCAOB rules, VerDate Mar<15>2010 22:37 Dec 27, 2010 Jkt 223001 (b) information about the timing of the issuance of inspections reports for domestic and non-U.S. inspections, and (c) updates on the PCAOB’s efforts to establish cooperative arrangements with respective non-U.S. authorities for inspections required in those countries. (2) Continue to include detailed information about the state of the PCAOB’s information technology in its quarterly reports to the Commission, including planned, estimated, and actual costs for information technology projects. Such information should also include project plans, life cycle costs and progress, and provide an indication of the level and nature of involvement of consultants. (3) Consult with the Commission about the PCAOB’s plans for implementing changes in response to legislative actions, advisory committees, or consultant reports. The Commission has determined that the PCAOB’s 2011 budget and annual accounting support fee are consistent with Section 109 of the Act. Accordingly, It is ordered, pursuant to Section 109 of the Act, that the PCAOB budget and annual accounting support fee for calendar year 2011 are approved. By the Commission. Elizabeth M. Murphy, Secretary. [FR Doc. 2010–32650 Filed 12–27–10; 8:45 am] BILLING CODE 8011–01–P 81685 The subject matter of the Closed Meeting scheduled for Wednesday, December 29, 2010 will be: Institution and settlement of injunctive actions; institution and settlement of administrative proceedings; consideration of amicus participation; and other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. Dated: December 22, 2010. Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–32727 Filed 12–23–10; 11:15 am] BILLING CODE P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63584; File No. SR– NYSEArca–2010–88] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Various NYSE Arca Equities Rules To Harmonize Them With Financial Industry Regulatory Authority Rules December 21, 2010. SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold a Closed Meeting on Wednesday, December 29, 2010 at 2 p.m. Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matters also may be present. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the scheduled matters at the Closed Meeting. Commissioner Casey, as duty officer, voted to consider the items listed for the Closed Meeting in a closed session. PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 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 December 13, 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend various NYSE Arca Equities rules in order to (1) harmonize them with Financial Industry Regulatory Authority (‘‘FINRA’’) rules and (2) make certain administrative changes that include, but are not limited to, correcting spelling 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 E:\FR\FM\28DEN1.SGM 28DEN1 81686 Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices errors and eliminating confusing or duplicative language and unnecessary references to terms or systems that are now obsolete. 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 emcdonald on DSK2BSOYB1PROD with NOTICES 1. Purpose The purpose of this rule filing is (1) to make minor substantive amendments to NYSE Arca Equities Rule 2.16 in order to harmonize it with Article V, Section 3 and Article IV, Section 1(c) of FINRA’s By-Laws and (2) to make certain administrative changes to various NYSE Arca Equities rules in order to remove confusing or duplicative language and unnecessary references to terms or systems that are now obsolete. By making such administrative changes, the Exchange is not changing or altering any obligations, rights, policies, or practices enumerated within its rules. NYSE Arca Equities Rule 2.16(b) requires an ETP Holder to electronically file amendments to any document in connection with an application for an ETP within ten business days of the occurrence requiring the amendment. Article IV, Section 1(c) of FINRA’s ByLaws permits thirty days for such filing. Similarly, NYSE Arca Equities Rule 2.16(c) requires an ETP Holder to electronically file within ten business days the Uniform Termination Notice for Securities Industry Registration (Form U–5) with FINRA’s Web CRD when a person associated with the ETP Holder terminates his or her affiliation with the ETP Holder. Article V, Section 3 of FINRA’s By-Laws permits thirty days for such filing. Accordingly, the Exchange proposes to extend the ten business day requirement in the above VerDate Mar<15>2010 22:37 Dec 27, 2010 Jkt 223001 rules to thirty days in order to harmonize with FINRA’s By-Laws. Administrative Changes In July, 2007, the NASD and certain departments within NYSE Regulation were consolidated into FINRA. However, some NYSE Arca Equities rules still incorrectly reference the NASD. Where appropriate, the Exchange proposes to replace references to NASD with FINRA. The following NYSE Arca Equities rules will reflect this change: Rule 1.1, Rule 2.3, Rule 6.18, Rule 9.13, and Rule 12. These changes are administrative in nature and do not impose any new regulatory requirements on ETP Holders or other market participants on NYSE Arca Equities. The SEC’s Regulation NMS, which became effective in August, 2005, was designed to modernize and strengthen the national market system for equities and replace the outdated Intermarket Trading System (‘‘ITS’’). However, several NYSE Arca Equities rules still reference ITS. Accordingly, the Exchange proposes to eliminate all outdated references to ITS. The following NYSE Arca Equities rules will reflect this change: Rule 1.1, Rule 3.5, Rule 6.8, Rule 6.10, Rule 6.12, Rule 7.31, Rule 7.37, Rule 9.14, and Rule 10.12. Additionally, before Regulation NMS and before Nasdaq became a national securities exchange, the NBBO price protection provision set forth in NYSE Arca Equities Rule 7.37 did not apply to orders in Nasdaq securities. The Exchange proposes to eliminate all language in NYSE Arca Equities Rule 7.31 that states the NBBO price protection provision set forth in Rule 7.37 will not apply to orders in Nasdaq securities. Finally, because no securities are trade-through exempt under Regulation NMS, the Exchange proposes to eliminate all references to tradethrough exempt securities in NYSE Arca Equities Rule 7.31. NYSE Arca Equities Rule 1.1(z) provides that ‘‘[t]he term ‘Nasdaq Market Maker’ shall mean (1) a Nasdaq market maker as defined in NASD Rule 4200(a)(22), as amended from time to time, or (2) an electronic communications network (‘‘ECN’’).’’ On August 1, 2006, NASDAQ ceased operations as an ECN and began operations as a national securities exchange, rendering the ‘‘Nasdaq Market Maker’’ concept obsolete. As a result, NASD Rule 4200(a)(22) was replaced by FINRA Rule 6320A(a)(4), which does not contain any reference to ‘‘Nasdaq Market Makers.’’ Therefore, the Exchange proposes to eliminate existing NYSE Arca Equities Rule 1.1(z) in order PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 to remove outdated and unnecessary references to terms and systems that are now obsolete. Similarly, because Rule 7.18(a) is concerned only with access to the NYSE Arca Marketplace by ‘‘Nasdaq Market Makers,’’ the Exchange proposes to eliminate Rule 7.18(a) and change the title of NYSE Arca Equities Rule 7.18 from ‘‘Trading in Nasdaq Securities’’ to ‘‘UTP Regulatory Halts.’’ Such change in title is appropriate because the only remaining rule text under Rule 7.18, which is currently contained in Rule 7.18(b), will provide that the Exchange will halt trading in a Nasdaq security when the UTP Listing Market for such security determines that a UTP Regulatory Halt is appropriate. Finally, because the title of Nasdaq’s Unlisted Trading Privileges Plan no longer includes the term ‘‘OTC,’’ the Exchange proposes to remove ‘‘OTC’’ from the following NYSE Arca Equities Rule 1.1(hh)–(kk) and Rule 7.18. Stop Orders and Stop Limit Orders are no longer a valid order types on the NYSE Arca Marketplace. Accordingly, the Exchange proposes to eliminate all outdated references to Stop Orders and Stop Limit Orders. The following NYSE Arca Equities rules will reflect this change: Rule 1.1, Rule 7.31, Rule 7.34, Rule 7.35, Rule 7.37, Rule 7.39, and Rule 7.63. Because Discretion Limit Orders may be entered in any security, the Exchange proposes to eliminate the language ‘‘A Discretionary Order may be designated as a Discretion Limit Order for Nasdaq securities only’’ from NYSE Arca Equities Rule 7.31(h)(2)(B). The Exchange proposes to amend NYSE Arca Equities Rule 7.7 to correct a spelling error. NYSE Arca Equities Rules 2.24 and 9.17 both require ETP Holders to maintain books and records pursuant to SEC Rules 17a–3 and 17a–4. Because Rule 9.17 also requires that ETP Holders maintain books and records as prescribed by the rules and regulations of other Self Regulatory Organizations and other governmental bodies, and because the Exchange only requires one such rule, the Exchange proposes to replace the text of Rule 2.24 with the text of Rule 9.17 and eliminate Rule 9.17. NYSE Arca Equities Rule 7.17(b) requires that all bids and offers made shall be in accordance with the provisions of Rule 11Ac1–1 of the Securities Exchange Act of 1934. When Regulation NMS became effective in August, 2005, Rule 11Ac1–1 was redesignated as Rule 602 of Regulation NMS. Accordingly, the Exchange proposes to replace the reference to Rule E:\FR\FM\28DEN1.SGM 28DEN1 Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices 11Ac1–1 within Rule 7.17(b) with Rule 602. 2. Statutory Basis The proposed rule changes are consistent with Section 6(b) 4 of the Securities Exchange Act of 1934 (the ‘‘Act’’), in general, and further the objectives of Section 6(b)(5),5 in particular. By amending various NYSE Arca Equities rules in order to harmonize them with FINRA rules and federal rules and to eliminate confusing or duplicative language and unnecessary references to terms or systems that are now obsolete, the proposed rule changes are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanisms of a free and open market and a national market system. 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. emcdonald on DSK2BSOYB1PROD with NOTICES 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 6 and Rule 19b–4(f)(6) thereunder.7 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. U.S.C. 78f(b). 5 15 U.S.C. 78f(b)(5). 6 15 U.S.C. 78s(b)(3)(A)(iii). 7 17 CFR 240.19b–4(f)(6). VerDate Mar<15>2010 22:37 Dec 27, 2010 A proposed rule change filed under Rule 19b–4(f)(6) 8 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),9 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 has determined that waiving the 30-day operative delay of the Exchange’s proposal is consistent with the protection of investors and the public interest because such waiver will allow the Exchange to promptly harmonize its rules with FINRA rules and and to correct non-substantive changes, thereby avoiding further potential confusion and ensuring that the rule text of the Exchange is accurate.10 Therefore, the Commission designates the proposed rule change to be operative upon filing. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 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 office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NYSEArca–2010–88 and should be submitted on or before January 18, 2011. 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.11 Florence E. Harmon, Deputy Secretary. 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–2010–88 on the subject line. 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 Number SR–NYSEArca–2010–88. This file number should be included on the 8 17 CFR 240.19b–4(f)(6). CFR 240.19b–4(f)(6)(iii). 10 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 9 17 4 15 Jkt 223001 81687 PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 [FR Doc. 2010–32607 Filed 12–27–10; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–63591; File No. SR–BX– 2010–091] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Continue the Practice Governing the Directed Order Process on BOX December 21, 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 December 16, 2010, NASDAQ OMX BX, Inc. (the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\28DEN1.SGM 28DEN1

Agencies

[Federal Register Volume 75, Number 248 (Tuesday, December 28, 2010)]
[Notices]
[Pages 81685-81687]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32607]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63584; File No. SR-NYSEArca-2010-88]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending 
Various NYSE Arca Equities Rules To Harmonize Them With Financial 
Industry Regulatory Authority Rules

December 21, 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 December 13, 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 various NYSE Arca Equities rules in 
order to (1) harmonize them with Financial Industry Regulatory 
Authority (``FINRA'') rules and (2) make certain administrative changes 
that include, but are not limited to, correcting spelling

[[Page 81686]]

errors and eliminating confusing or duplicative language and 
unnecessary references to terms or systems that are now obsolete. 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 purpose of this rule filing is (1) to make minor substantive 
amendments to NYSE Arca Equities Rule 2.16 in order to harmonize it 
with Article V, Section 3 and Article IV, Section 1(c) of FINRA's By-
Laws and (2) to make certain administrative changes to various NYSE 
Arca Equities rules in order to remove confusing or duplicative 
language and unnecessary references to terms or systems that are now 
obsolete. By making such administrative changes, the Exchange is not 
changing or altering any obligations, rights, policies, or practices 
enumerated within its rules.
    NYSE Arca Equities Rule 2.16(b) requires an ETP Holder to 
electronically file amendments to any document in connection with an 
application for an ETP within ten business days of the occurrence 
requiring the amendment. Article IV, Section 1(c) of FINRA's By-Laws 
permits thirty days for such filing. Similarly, NYSE Arca Equities Rule 
2.16(c) requires an ETP Holder to electronically file within ten 
business days the Uniform Termination Notice for Securities Industry 
Registration (Form U-5) with FINRA's Web CRD when a person associated 
with the ETP Holder terminates his or her affiliation with the ETP 
Holder. Article V, Section 3 of FINRA's By-Laws permits thirty days for 
such filing. Accordingly, the Exchange proposes to extend the ten 
business day requirement in the above rules to thirty days in order to 
harmonize with FINRA's By-Laws.
Administrative Changes
    In July, 2007, the NASD and certain departments within NYSE 
Regulation were consolidated into FINRA. However, some NYSE Arca 
Equities rules still incorrectly reference the NASD. Where appropriate, 
the Exchange proposes to replace references to NASD with FINRA. The 
following NYSE Arca Equities rules will reflect this change: Rule 1.1, 
Rule 2.3, Rule 6.18, Rule 9.13, and Rule 12. These changes are 
administrative in nature and do not impose any new regulatory 
requirements on ETP Holders or other market participants on NYSE Arca 
Equities.
    The SEC's Regulation NMS, which became effective in August, 2005, 
was designed to modernize and strengthen the national market system for 
equities and replace the outdated Intermarket Trading System (``ITS''). 
However, several NYSE Arca Equities rules still reference ITS. 
Accordingly, the Exchange proposes to eliminate all outdated references 
to ITS. The following NYSE Arca Equities rules will reflect this 
change: Rule 1.1, Rule 3.5, Rule 6.8, Rule 6.10, Rule 6.12, Rule 7.31, 
Rule 7.37, Rule 9.14, and Rule 10.12. Additionally, before Regulation 
NMS and before Nasdaq became a national securities exchange, the NBBO 
price protection provision set forth in NYSE Arca Equities Rule 7.37 
did not apply to orders in Nasdaq securities. The Exchange proposes to 
eliminate all language in NYSE Arca Equities Rule 7.31 that states the 
NBBO price protection provision set forth in Rule 7.37 will not apply 
to orders in Nasdaq securities. Finally, because no securities are 
trade-through exempt under Regulation NMS, the Exchange proposes to 
eliminate all references to trade-through exempt securities in NYSE 
Arca Equities Rule 7.31.
    NYSE Arca Equities Rule 1.1(z) provides that ``[t]he term `Nasdaq 
Market Maker' shall mean (1) a Nasdaq market maker as defined in NASD 
Rule 4200(a)(22), as amended from time to time, or (2) an electronic 
communications network (``ECN'').'' On August 1, 2006, NASDAQ ceased 
operations as an ECN and began operations as a national securities 
exchange, rendering the ``Nasdaq Market Maker'' concept obsolete. As a 
result, NASD Rule 4200(a)(22) was replaced by FINRA Rule 6320A(a)(4), 
which does not contain any reference to ``Nasdaq Market Makers.'' 
Therefore, the Exchange proposes to eliminate existing NYSE Arca 
Equities Rule 1.1(z) in order to remove outdated and unnecessary 
references to terms and systems that are now obsolete. Similarly, 
because Rule 7.18(a) is concerned only with access to the NYSE Arca 
Marketplace by ``Nasdaq Market Makers,'' the Exchange proposes to 
eliminate Rule 7.18(a) and change the title of NYSE Arca Equities Rule 
7.18 from ``Trading in Nasdaq Securities'' to ``UTP Regulatory Halts.'' 
Such change in title is appropriate because the only remaining rule 
text under Rule 7.18, which is currently contained in Rule 7.18(b), 
will provide that the Exchange will halt trading in a Nasdaq security 
when the UTP Listing Market for such security determines that a UTP 
Regulatory Halt is appropriate. Finally, because the title of Nasdaq's 
Unlisted Trading Privileges Plan no longer includes the term ``OTC,'' 
the Exchange proposes to remove ``OTC'' from the following NYSE Arca 
Equities Rule 1.1(hh)-(kk) and Rule 7.18.
    Stop Orders and Stop Limit Orders are no longer a valid order types 
on the NYSE Arca Marketplace. Accordingly, the Exchange proposes to 
eliminate all outdated references to Stop Orders and Stop Limit Orders. 
The following NYSE Arca Equities rules will reflect this change: Rule 
1.1, Rule 7.31, Rule 7.34, Rule 7.35, Rule 7.37, Rule 7.39, and Rule 
7.63.
    Because Discretion Limit Orders may be entered in any security, the 
Exchange proposes to eliminate the language ``A Discretionary Order may 
be designated as a Discretion Limit Order for Nasdaq securities only'' 
from NYSE Arca Equities Rule 7.31(h)(2)(B).
    The Exchange proposes to amend NYSE Arca Equities Rule 7.7 to 
correct a spelling error.
    NYSE Arca Equities Rules 2.24 and 9.17 both require ETP Holders to 
maintain books and records pursuant to SEC Rules 17a-3 and 17a-4. 
Because Rule 9.17 also requires that ETP Holders maintain books and 
records as prescribed by the rules and regulations of other Self 
Regulatory Organizations and other governmental bodies, and because the 
Exchange only requires one such rule, the Exchange proposes to replace 
the text of Rule 2.24 with the text of Rule 9.17 and eliminate Rule 
9.17.
    NYSE Arca Equities Rule 7.17(b) requires that all bids and offers 
made shall be in accordance with the provisions of Rule 11Ac1-1 of the 
Securities Exchange Act of 1934. When Regulation NMS became effective 
in August, 2005, Rule 11Ac1-1 was re-designated as Rule 602 of 
Regulation NMS. Accordingly, the Exchange proposes to replace the 
reference to Rule

[[Page 81687]]

11Ac1-1 within Rule 7.17(b) with Rule 602.
2. Statutory Basis
    The proposed rule changes are consistent with Section 6(b) \4\ of 
the Securities Exchange Act of 1934 (the ``Act''), in general, and 
further the objectives of Section 6(b)(5),\5\ in particular. By 
amending various NYSE Arca Equities rules in order to harmonize them 
with FINRA rules and federal rules and to eliminate confusing or 
duplicative language and unnecessary references to terms or systems 
that are now obsolete, the proposed rule changes are designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, and to remove impediments to and perfect the mechanisms of 
a free and open market and a national market system.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 \6\ and Rule 19b-4(f)(6) thereunder.\7\ 
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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\9\ 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 has 
determined that waiving the 30-day operative delay of the Exchange's 
proposal is consistent with the protection of investors and the public 
interest because such waiver will allow the Exchange to promptly 
harmonize its rules with FINRA rules and and to correct non-substantive 
changes, thereby avoiding further potential confusion and ensuring that 
the rule text of the Exchange is accurate.\10\ Therefore, the 
Commission designates the proposed rule change to be operative upon 
filing.
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    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

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-2010-88 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-2010-88. 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 office of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-NYSEArca-2010-88 and should be submitted on or before 
January 18, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32607 Filed 12-27-10; 8:45 am]
BILLING CODE 8011-01-P
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