Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Adopting Standards for Market Maker Electronic Quotes That Are Present During an Opening Auction, 4961-4963 [2011-1725]
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mstockstill on DSKH9S0YB1PROD with NOTICES
Federal Register / Vol. 76, No. 18 / Thursday, January 27, 2011 / Notices
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating transactions in securities,
to remove impediments to and perfect
the mechanism of a free and open
market and a national market system
and, in general, to protect investors and
the public interest.
Specifically, the Commission notes
that the new BTL, pursuant to a pilot
program, may allow member
organizations to become authorized to
trade on the Exchange pursuant to a
license more specifically tailored to a
member organization’s trading.
Therefore, this aspect of the proposal
may increase efficiency, without
compromising regulatory oversight, both
for member applicants as well as the
Exchange. In addition, the Commission
notes that NYSE has represented it will
submit a separate fee filing to address
the BTL, and the Commission expects
that the costs for the BTL would be less
than the general trading license on the
Exchange. Thus, the BTL may also
decrease costs for organizations
choosing to trade just bonds on NYSE.
The Commission also notes that BLPs
would be required to have adequate
trading infrastructure and technology to
support trading in the bonds and meet
quoting requirements and be approved
by NYSE, and upon bringing liquidity to
NYSE’s bond market, BLPs would
receive a rebate based on an incentive
and quoting structure. BLPs that fail to
meet the quoting requirements set forth
in the proposed rule would no longer be
eligible for the rebate and may, in the
Exchange’s discretion, have one or more
issues revoked or be disqualified as a
BLP. The Commission believes it is
consistent with the Act for the Exchange
to provide an incentive to member
organizations bringing liquidity to the
bond marketplace, and to remove the
incentive when the BLP does not meet
its obligations. Importantly, the
Commission notes that the proposed
rules relating to BLPs would be on a
pilot basis. The Commission believes
that, while the framework proposed by
the Exchange as part of this proposed
rule change may be suitable for the
Exchange’s current level of trading
activity on its bond platform, this
framework may not be suitable in the
future should the characteristics of the
bond platform, including but not
limited to trading activity, change.
Thus, the Commission believes that it is
appropriate that the proposed rules be
approved on a pilot basis, such that the
Exchange and Commission may review
the suitability of these rules again. The
Commission notes that the Exchange
has represented that it would monitor
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the quoting and rebate structure and
may consider modifications.
The Commission understands that
one BLP would be matched to each
issuer. BLPs would be able to choose
issuers having at least one issue with an
outstanding principal of $500 million or
greater in an order determined by
lottery. Issuers not having at least one
issue with an outstanding principal of
$500 million or greater would be
matched to BLPs willing to represent
the most bonds for that given issuer, and
any tie with respect to BLPs wishing to
represent these issuers would be
resolved by allowing BLPs to choose in
the order determined by lottery. The
Commission believes that this is an
objective way to commence the pilot
program for all parties, as it is intended
by the Exchange to result in broad
coverage of issuers; however, the
Commission believes the results of the
issuer selection and assignment process
should be evaluated by the Exchange,
and the findings shared with the
Commission, prior to any proposal to
modify or permanently establish the
rules relating to the BLP selection
process.
Finally, the Commission understands
that NYSE would allow BLPs and BLP
applicants the opportunity to appeal
disapproval or disqualification
decisions, as applicable, to a BLP panel,
and that NYSE would provide a
disqualified BLP with a month’s prior
written notice of the disqualification.
This should provide transparency to the
process and an additional opportunity
for BLPs and BLP applicants to be
heard.
For the reasons discussed above, the
Commission finds that the rule change
is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,19 that the
proposed rule change (SR–NYSE–2010–
74), be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–1709 Filed 1–26–11; 8:45 am]
BILLING CODE 8011–01–P
4961
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63746; File No. SR–
NYSEAmex–2011–05]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Adopting Standards for
Market Maker Electronic Quotes That
Are Present During an Opening
Auction
January 20, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on January
14, 2011, 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 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 adopt
standards for Market Maker electronic
quotes that are present during an
opening auction. 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 filing is to adopt
rules governing quote widths for Market
19 15
20 17
PO 00000
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
Frm 00104
Fmt 4703
Sfmt 4703
1 15
2 17
E:\FR\FM\27JAN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
27JAN1
4962
Federal Register / Vol. 76, No. 18 / Thursday, January 27, 2011 / Notices
mstockstill on DSKH9S0YB1PROD with NOTICES
Maker electronic quotes that are present
during an opening auction, based on a
provision of the Rules of NASDAQ
OMX PHLX (‘‘Phlx’’), by revising the
Obligations of Market Makers in Rule
925NY.
Currently, the only restriction on
quote widths for NYSE Amex Market
Maker electronic quotes is that they be
no more than $5 wide. The Exchange
has found that the absence of more
narrow quotes during an opening
auction has prevented series from
opening promptly and is unnecessarily
delaying the execution of orders.
The Exchange proposes to adopt a
provision based on Phlx Rule
1014(c)(i)(A)(2)(a). The Phlx rule sets
the maximum bid/ask differential for
electronic quotes at $5, but also requires
electronic quotes that are submitted
during an opening rotation to have a
bid/ask differential that is consistent
with the quote width requirements for
open outcry trading. NYSE Amex
intends to modify the requirements of
NYSE Amex Rule 925NY(b) 3 to also
apply them to quotes submitted for
possible participation in a Trading
Auction as defined in Rule 952NY.
Specifically, the Exchange proposes
that an electronic quote that is
submitted for possible participation in
an opening auction must have a bid/ask
differential of no more than:
(A) .25 between the bid and the offer
for each option contract for which the
bid is less than $2,
(B) No more than .40 where the bid
is $2 or more but does not exceed $5,
(C) No more than .50 where the bid
is more than $5 but does not exceed
$10,
(D) No more than .80 where the bid
is more than $10 but does not exceed
$20, and
(E) No more than $1 when the last bid
is $20.10 or more.
These differentials are common in the
options industry,4 and are often referred
to as ‘‘legal width’’.
As is currently the case, different bid/
ask differentials would be permitted to
be established, but only with the
approval of at least two Trading
Officials.
3 While our proposed rule text is not exactly
identical to Phlx Rule 1014(c)(i)(A)(2)(a), the intent
and impact of the rule is the same—namely, to
provide for narrower quotes during an opening
auction, which in turn helps facilitate a prompt and
efficient opening. As discussed below, we believe
that this proposed rule change qualifies for
immediate effectiveness as a ‘‘non-controversial’’
rule change under paragraph (f)(6) of Rule 19b–4.
17 CFR 240.19b–4(f)(6).
4 See, e.g., Boston Options Exchange Rule Chapter
VI Sec.5(a)(vii), International Securities Exchange
Rule 803(b)(4), NASDAQ OMX PHLX Rule
1014(c)(i)(A)(1)(a).
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The Exchange believes that setting a
narrower differential for opening
auction quotes will expedite the
opening of all options series on the
Exchange promptly after the opening of
the underlying security.
NYSE Arca [sic] will implement this
rule change upon notification to OTP
Holders through the issuance of a
Regulatory Bulletin.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) 5 of the Securities Exchange Act of
1934 (the ‘‘Act’’), in general, and furthers
the objectives of Section 6(b)(5) 6 in
particular in that it is designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, to remove
impediments to and to perfect the
mechanism for a free and open market
and a national market system and, in
general, to protect investors and the
public interest, by expediting the
opening auction process and the
execution of Customer orders submitted
for the opening.
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
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, 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 7 and Rule
19b–4(f)(6) thereunder.8
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
6 15
PO 00000
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Fmt 4703
Sfmt 4703
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 rulecomments@sec.gov. Please include File
Number SR–NYSEAmex–2011–05 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–2011–05. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has fulfilled this requirement.
E:\FR\FM\27JAN1.SGM
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Federal Register / Vol. 76, No. 18 / Thursday, January 27, 2011 / Notices
Exchange.9 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–2011–05 and
should be submitted on or before
February 17, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–1725 Filed 1–26–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63753; File No. SR–
NYSEArca–2010–110]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Approving a
Proposed Rule Change To List and
Trade Shares of the Teucrium Natural
Gas Fund
January 21, 2011.
I. Introduction
On December 3, 2010, NYSE Arca,
Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to list and trade shares of the
Teucrium Natural Gas Fund under
NYSE Arca Equities Rule 8.200. The
proposed rule change was published for
comment in the Federal Register on
December 15, 2010.3 The Commission
received no comments on the proposal.
This order approves the proposed rule
change.
II. Description of the Proposal
mstockstill on DSKH9S0YB1PROD with NOTICES
The Exchange proposes to list and
trade shares (‘‘Shares’’) of the Teucrium
Natural Gas Fund (‘‘Fund’’) pursuant to
NYSE Arca Equities Rule 8.200. NYSE
Arca Equities Rule 8.200, Commentary
.02, permits the trading of Trust Issued
9 The text of the proposed rule change is available
on the Commission’s Web site at https://
www.sec.gov.
10 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 63493
(December 9, 2010), 75 FR 78290 (‘‘Notice’’).
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17:51 Jan 26, 2011
Jkt 223001
Receipts either by listing or pursuant to
unlisted trading privileges.4
The Shares represent beneficial
ownership interests in the Fund, which
is a commodity pool that is a series of
the Teucrium Commodity Trust
(‘‘Trust’’), a Delaware statutory trust.5
The Fund is managed and controlled by
Teucrium Trading, LLC (‘‘Sponsor’’).
The Sponsor is a Delaware limited
liability company that is registered as a
commodity pool operator with the
Commodity Futures Trading
Commission (‘‘CFTC’’) and is a member
of the National Futures Association.
The investment objective of the Fund
is to have the daily changes in
percentage terms of the Shares’ net asset
value (‘‘NAV’’) reflect the daily changes
in percentage terms of a weighted
average of the following: the nearest to
spot month March, April, October and
November Henry Hub Natural Gas
Futures Contracts (‘‘Natural Gas Futures
Contracts’’) traded on the NYMEX,
weighted 25% equally in each contract
month, less the Fund’s expenses.6 The
Sponsor employs a ‘‘neutral’’ investment
strategy intended to track the changes in
the Gas Benchmark regardless of
whether the Gas Benchmark goes up or
down.
The Fund seeks to achieve its
investment objective by investing under
normal market conditions in Gas
Benchmark Component Futures
Contracts or, in certain circumstances,
in other Natural Gas Futures Contracts
traded on the New York Mercantile
Exchange (‘‘NYMEX’’), Intercontinental
Exchange (‘‘ICE’’), and other foreign
exchanges. In addition, and to a limited
extent, the Fund will invest in natural
gas-based swap agreements that are
cleared through the ICE or its affiliated
provider of clearing services (‘‘Cleared
Natural Gas Swaps’’) to the extent
permitted and appropriate in light of the
liquidity in the Cleared Natural Gas
Swap market. Once position limits in
Natural Gas Futures Contracts are
4 Commentary .02 to NYSE Arca Equities Rule
8.200 applies to Trust Issued Receipts that invest
in ‘‘Financial Instruments.’’ The term ‘‘Financial
Instruments,’’ as defined in Commentary .02(b)(4) to
NYSE Arca Equities Rule 8.200, means any
combination of investments, including cash;
securities; options on securities and indices; futures
contracts; options on futures contracts; forward
contracts; equity caps, collars and floors; and swap
agreements.
5 See Amendment No. 1 to registration statement
on Form S–1 for Teucrium Commodity Trust, dated
September 7, 2010 (File No. 333–167593) relating
to the Teucrium Natural Gas Fund (‘‘Registration
Statement’’).
6 This weighted average of the four referenced
Natural Gas Futures Contracts is referred to herein
as the ‘‘Gas Benchmark,’’ and the four Natural Gas
Futures Contracts that at any given time make up
the Gas Benchmark are referred to herein as the
‘‘Gas Benchmark Component Futures Contracts.’’
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
4963
applicable, the Fund may also invest
first in Cleared Natural Gas Swaps to the
extent permitted by the position limits
applicable to Cleared Natural Gas Swaps
and appropriate in light of the liquidity
in the Cleared Natural Gas Swaps
market, and then in contracts and
instruments such as cash-settled options
on Natural Gas Futures Contracts and
forward contracts, swaps other than
Cleared Natural Gas Swaps, and other
over-the-counter transactions that are
based on the price of natural gas and
Natural Gas Futures Contracts
(collectively, ‘‘Other Natural Gas
Interests’’ and together with Natural Gas
Futures Contracts and Cleared Natural
Gas Swaps, ‘‘Natural Gas Interests’’).7
The Exchange represents that the
Fund will meet the initial and
continued listing requirements
applicable to Trust Issued Receipts in
NYSE Arca Equities Rule 8.200 and
Commentary .02 thereto. With respect to
application of Rule 10A–3 under the
Act,8 the Trust will rely on the
exception contained in Rule 10A–
3(c)(7).9 A minimum of 100,000 Shares
will be outstanding as of the start of
trading on the Exchange.
Additional details regarding the
trading policies of the Fund, creations
and redemptions of the Shares, Natural
Gas Interests and other aspects of the
natural gas and Natural Gas Interest
markets, investment risks, Benchmark
performance, NAV calculation, the
dissemination and availability of
information about the underlying assets,
trading halts, applicable trading rules,
surveillance, and the Information
Bulletin, among other things, can be
found in the Notice and/or the
Registration Statement, as applicable.10
III. Discussion and Commission’s
Findings
After careful consideration, the
Commission finds that the proposed
rule change to list and trade the Shares
of the Fund is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.11 In
particular, the Commission finds that
the proposed rule change is consistent
with the requirements of Section 6(b)(5)
of the Act,12 which requires, among
7 The Fund will invest in Natural Gas Interests in
a manner consistent with the Fund’s investment
objective and not to achieve additional leverage.
8 17 CFR 240.10A–3.
9 17 CFR 240.10A–3(c)(7).
10 See supra notes 3 and 5.
11 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
12 15 U.S.C. 78f(b)(5).
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]]>Agencies
[Federal Register Volume 76, Number 18 (Thursday, January 27, 2011)]
[Notices]
[Pages 4961-4963]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-1725]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63746; File No. SR-NYSEAmex-2011-05]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Adopting Standards
for Market Maker Electronic Quotes That Are Present During an Opening
Auction
January 20, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on January 14, 2011, 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 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\ 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 adopt standards for Market Maker
electronic quotes that are present during an opening auction. 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 filing is to adopt rules governing quote widths
for Market
[[Page 4962]]
Maker electronic quotes that are present during an opening auction,
based on a provision of the Rules of NASDAQ OMX PHLX (``Phlx''), by
revising the Obligations of Market Makers in Rule 925NY.
Currently, the only restriction on quote widths for NYSE Amex
Market Maker electronic quotes is that they be no more than $5 wide.
The Exchange has found that the absence of more narrow quotes during an
opening auction has prevented series from opening promptly and is
unnecessarily delaying the execution of orders.
The Exchange proposes to adopt a provision based on Phlx Rule
1014(c)(i)(A)(2)(a). The Phlx rule sets the maximum bid/ask
differential for electronic quotes at $5, but also requires electronic
quotes that are submitted during an opening rotation to have a bid/ask
differential that is consistent with the quote width requirements for
open outcry trading. NYSE Amex intends to modify the requirements of
NYSE Amex Rule 925NY(b) \3\ to also apply them to quotes submitted for
possible participation in a Trading Auction as defined in Rule 952NY.
---------------------------------------------------------------------------
\3\ While our proposed rule text is not exactly identical to
Phlx Rule 1014(c)(i)(A)(2)(a), the intent and impact of the rule is
the same--namely, to provide for narrower quotes during an opening
auction, which in turn helps facilitate a prompt and efficient
opening. As discussed below, we believe that this proposed rule
change qualifies for immediate effectiveness as a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4. 17
CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
Specifically, the Exchange proposes that an electronic quote that
is submitted for possible participation in an opening auction must have
a bid/ask differential of no more than:
(A) .25 between the bid and the offer for each option contract for
which the bid is less than $2,
(B) No more than .40 where the bid is $2 or more but does not
exceed $5,
(C) No more than .50 where the bid is more than $5 but does not
exceed $10,
(D) No more than .80 where the bid is more than $10 but does not
exceed $20, and
(E) No more than $1 when the last bid is $20.10 or more.
These differentials are common in the options industry,\4\ and are
often referred to as ``legal width''.
---------------------------------------------------------------------------
\4\ See, e.g., Boston Options Exchange Rule Chapter VI
Sec.5(a)(vii), International Securities Exchange Rule 803(b)(4),
NASDAQ OMX PHLX Rule 1014(c)(i)(A)(1)(a).
---------------------------------------------------------------------------
As is currently the case, different bid/ask differentials would be
permitted to be established, but only with the approval of at least two
Trading Officials.
The Exchange believes that setting a narrower differential for
opening auction quotes will expedite the opening of all options series
on the Exchange promptly after the opening of the underlying security.
NYSE Arca [sic] will implement this rule change upon notification
to OTP Holders through the issuance of a Regulatory Bulletin.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \5\ of the Securities Exchange Act of 1934 (the ``Act''),
in general, and furthers the objectives of Section 6(b)(5) \6\ in
particular in that it is designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts, to
remove impediments to and to perfect the mechanism for a free and open
market and a national market system and, in general, to protect
investors and the public interest, by expediting the opening auction
process and the execution of Customer orders submitted for the opening.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 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
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, 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 \7\ and Rule 19b-4(f)(6) thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has fulfilled this requirement.
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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-NYSEAmex-2011-05 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-2011-05. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of the filing also will be
available for inspection and copying at the principal office of the
[[Page 4963]]
Exchange.\9\ 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.
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\9\ The text of the proposed rule change is available on the
Commission's Web site at https://www.sec.gov.
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All submissions should refer to File Number SR-NYSEAmex-2011-05 and
should be submitted on or before February 17, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-1725 Filed 1-26-11; 8:45 am]
BILLING CODE 8011-01-P
