Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend Pilot Program Related to Clearly Erroneous Execution Reviews, 20739-20741 [2011-8848]
Download as PDF
Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
markets concerning review of
transactions as clearly erroneous.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–4
(f)(6)(iii) thereunder.8 The Exchange has
asked the Commission to waive the 30day operative delay so that the proposal
may become operative immediately
upon filing. The Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest
because such waiver will allow the pilot
program to continue uninterrupted and
help ensure uniformity among the
national securities exchanges and
FINRA with respect to the treatment of
clearly erroneous transactions.9
Accordingly, the Commission waives
the 30-day operative delay requirement
and designates the proposed rule change
as operative upon filing with the
Commission.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4 (f)(6)(iii). In addition, Rule
19b–4 (f)(6)(iii) requires that a self- regulatory
organization submit to the Commission 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 filing of the proposed rule change, or
such shorter time as designated by the Commission.
The Commission notes that the Exchange has
satisfied this requirement.
9 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).
mstockstill on DSKH9S0YB1PROD with NOTICES
8 17
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18:37 Apr 12, 2011
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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–EDGX–2011–11 on the
subject line.
20739
2011–11 and should be submitted on or
before May 4, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8806 Filed 4–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64236; File No. SR–BYX–
2011–006]
Self-Regulatory Organizations; BATS
Y–Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend Pilot Program
Related to Clearly Erroneous
Execution Reviews
April 7, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on April 1,
to Elizabeth M. Murphy, Secretary,
2011, BATS Y–Exchange, Inc. (the
Securities and Exchange Commission,
‘‘Exchange’’ or ‘‘BYX’’) filed with the
100 F Street, NE., Washington, DC
Securities and Exchange Commission
20549–1090.
(‘‘Commission’’) the proposed rule
All submissions should refer to File
change as described in Items I and II
Number SR–EDGX–2011–11. This file
below, which Items have been prepared
number should be included on the
subject line if e-mail is used. To help the by the Exchange. The Commission is
publishing this notice to solicit
Commission process and review your
comments on the proposed rule change
comments more efficiently, please use
only one method. The Commission will from interested persons.
post all comments on the Commission’s I. Self-Regulatory Organization’s
Internet Web site (https://www.sec.gov/
Statement of the Terms of Substance of
rules/sro.shtml). Copies of the
the Proposed Rule Change
submission, all subsequent
The Exchange is filing with the
amendments, all written statements
Commission a proposal to extend a pilot
with respect to the proposed rule
program related to Rule 11.17, entitled
change that are filed with the
‘‘Clearly Erroneous Executions.’’ The
Commission, and all written
text of the proposed rule change is
communications relating to the
available at the Exchange’s Web site at
proposed rule change between the
https://www.batstrading.com, at the
Commission and any person, other than
principal office of the Exchange, and at
those that may be withheld from the
the Commission’s Public Reference
public in accordance with the
Room.
provisions of 5 U.S.C. 552, will be
II. Self-Regulatory Organization’s
available for Web site viewing and
Statement of the Purpose of, and
printing in the Commission’s Public
Statutory Basis for, the Proposed Rule
Reference Room, 100 F Street, NE.,
Change
Washington, DC 20549, on official
business days between the hours of 10
In its filing with the Commission, the
a.m. and 3 p.m. Copies of such filing
Exchange included statements
also will be available for inspection and concerning the purpose of and basis for
copying at the principal office of the
the proposed rule change and discussed
Exchange. All comments received will
any comments it received on the
be posted without change; the
proposed rule change. The text of these
Commission does not edit personal
statements may be examined at the
identifying information from
places specified in Item IV below. The
submissions. You should submit only
information that you wish to make
10 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
publicly available. All submissions
2 17 CFR 240.19b–4.
should refer to File Number SR–EDGX–
Paper Comments
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
E:\FR\FM\13APN1.SGM
13APN1
20740
Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
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
mstockstill on DSKH9S0YB1PROD with NOTICES
1. Purpose
The purpose of this filing is to extend
the effectiveness of the Exchange’s
current rule applicable to Clearly
Erroneous Executions, Rule 11.17. The
rule, explained in further detail below,
was approved to operate under a pilot
program set to expire on April 11, 2011.
The Exchange proposes to extend the
pilot program to the earlier of August
11, 2011 or the date on which a limit
up/limit down mechanism to address
extraordinary market volatility, if
adopted, applies.
On October 4, 2010, the Exchange
filed an immediately effective filing to
adopt various rule changes to bring BYX
Rules up to date with the changes that
had been made to the rules of BATS
Exchange, Inc., the Exchange’s affiliate,
while BYX’s Form 1 Application to
register as a national security exchange
was pending approval. Such changes
included changes to the Exchange’s
Rule 11.17, on a pilot basis, to provide
for uniform treatment: (1) Of clearly
erroneous execution reviews in multistock events involving twenty or more
securities; and (2) in the event
transactions occur that result in the
issuance of an individual stock trading
pause by the primary market and
subsequent transactions that occur
before the trading pause is in effect on
the Exchange.3 The Exchange also
adopted additional changes to Rule
11.17 that reduced the ability of the
Exchange to deviate from the objective
standards set forth in Rule 11.17.4 The
Exchange believes the benefits to market
participants from the more objective
clearly erroneous executions rule
should be approved to continue on a
pilot basis.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the Act.5
In particular, the proposal is consistent
3 Securities Exchange Act Release No. 63097
(October 13, 2010), 75 FR 64767 (October 20, 2010)
(SR–BYX–2010–002).
4 Id.
5 15 U.S.C. 78f(b).
VerDate Mar<15>2010
18:37 Apr 12, 2011
Jkt 223001
with Section 6(b)(5) of the Act,6 because
it would promote just and equitable
principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system. The
Exchange believes that the pilot
program promotes just and equitable
principles of trade in that it promotes
transparency and uniformity across
markets concerning review of
transactions as clearly erroneous.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6)(iii) thereunder.8 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 believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because such waiver will
allow the pilot program to continue
uninterrupted and help ensure
uniformity among the national
securities exchanges and FINRA with
respect to the treatment of clearly
erroneous transactions.9 Accordingly,
6 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission 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 filing of the proposed rule change, or
such shorter time as designated by the Commission.
The Commission notes that the Exchange has
satisfied this requirement.
9 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).
7 15
PO 00000
Frm 00118
Fmt 4703
Sfmt 4703
the Commission waives the 30-day
operative delay requirement and
designates the proposed rule change as
operative upon filing with the
Commission.
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–BYX–2011–006 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–BYX–2011–006. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
E:\FR\FM\13APN1.SGM
13APN1
Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
publicly available. All submissions
should refer to File Number SR–BYX–
2011–006 and should be submitted on
or before May 4, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8848 Filed 4–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64226; File No. SR–FINRA–
2011–005]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Granting
Approval of a Proposed Rule Change
Relating to Promissory Note
Proceedings
April 7, 2011.
mstockstill on DSKH9S0YB1PROD with NOTICES
I. Introduction
On February 4, 2011, the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) 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 amend Rule
13806 of the Code of Arbitration
Procedure for Industry Disputes
(‘‘Industry Code’’) to provide that FINRA
will appoint a chair-qualified public
arbitrator also qualified to resolve
statutory discrimination cases. The
proposed rule change was published for
comment in the Federal Register on
February 22, 2011.3 The Commission
did not receive any comments on the
proposal. This order approves the
proposed change.
II. Description of the Proposal
In 2009, FINRA implemented new
procedures to expedite the
administration of cases that solely
involve a broker-dealer’s claim that an
associated person failed to pay money
owed on a promissory note.4 Under
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities and Exchange Act Release No.
63909 (February 15, 2011), 76 FR 9838 (February
22, 2011) (‘‘Notice’’).
4 See Securities Exchange Act Rel. No. 60132
(June 17, 2009), 74 FR 30191 (June 24, 2009) (File
1 15
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18:37 Apr 12, 2011
Jkt 223001
these procedures, FINRA appoints a
single chair-qualified public arbitrator
from the roster of arbitrators approved
to hear statutory discrimination claims
(a statutory discrimination qualified
arbitrator) 5 to resolve the dispute.6
These specially qualified arbitrators are
public chair-qualified arbitrators who
also are attorneys familiar with
employment law and have at least ten
years of legal experience. In addition,
they may not have represented
primarily the views of employers or of
employees within the last five years.
FINRA proposed using statutory
discrimination qualified arbitrators
because of the depth of their experience
and their familiarity with employment
law. At the time that FINRA filed the
proposed rule change, these arbitrators
were underutilized at the forum.
Since implementing the new
procedures, FINRA has found that
promissory note cases do not require
extensive experience or depth of
knowledge (or the limitation on
representation of employers or of
employees within the last five years). In
a majority of completed cases,
arbitrators decided the case on the
pleadings and the respondent broker did
not appear.7 Experience with the new
procedures led FINRA to propose
amending the Industry Code to provide
that FINRA will appoint a chairqualified public arbitrator to a panel
resolving a promissory note dispute
instead of appointing a statutory
discrimination qualified arbitrator.
Chair-qualified arbitrators have
completed chair training and are
attorneys who have served through
award on at least two cases, or, if not
attorneys, are arbitrators who have
served through award on at least three
cases.8
No. SR–FINRA–2009–015). FINRA announced
implementation of New Rule 13806 (Promissory
Note Proceedings) in Regulatory Notice 09–48
(August 2009). The effective date was September
14, 2009.
5 See Rule 13802(c)(3).
6 Under Rule 13806, if an associated person does
not file an answer, or files an answer but does not
assert any counterclaims or third party claims,
regardless of the amount in dispute, a single
statutory discrimination qualified arbitrator decides
the case. If an associated person files a counterclaim
or third party claim, FINRA bases panel
composition on the amount of the counterclaim or
third party claim. For counterclaims and third party
claims that are not more than $100,000, FINRA
appoints a single statutory discrimination qualified
arbitrator. For counterclaims and third party claims
of more than $100,000, FINRA appoints a threearbitrator panel comprised of a statutory
discrimination qualified arbitrator, a public
arbitrator, and a non-public arbitrator.
7 Of the first 175 promissory note cases
completed, arbitrators decided the case on the
pleadings 76 percent of the time (unless the case
concluded by settlement or some other means).
8 See Rule 12400(c).
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
20741
In addition, the number of promissory
note cases has more than doubled in the
past two years. As a result of this
substantial increase, it is becoming more
difficult to appoint panels solely with
statutory discrimination qualified
arbitrators to these cases. Under the
proposed rule change, the number of
arbitrators available for appointment in
promissory note cases would increase
significantly. The proposed rule change
would ensure that FINRA has a
sufficient number of qualified
arbitrators readily available to resolve
these matters.
As explained in the Notice, FINRA
believes that the proposed rule change
is consistent with the provisions of
Section 15A(b)(6) of the Act,9 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA believes that the
proposed rule change is consistent with
the provisions of the Act noted above
because it would ensure that FINRA has
a sufficient number of qualified
arbitrators readily available to resolve
promissory note cases.
III. Discussion of Comment Letters
The Commission did not receive any
comment letters regarding the proposed
rule change.
IV. Commission Findings
The Commission has carefully
reviewed the proposed rule change and
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities association.10 In particular,
the Commission finds that the proposed
rule change is consistent with Section
15A(b)(6) of the Act,11 which requires,
among other things, that FINRA rules
must be designed to prevent fraudulent
and manipulative acts and practices, to
promote just and equitable principles of
trade, and, in general, to protect
investors and the public interest. More
specifically, the Commission finds that
the proposed rule change to allow chairqualified arbitrators to hear promissory
note cases would help to ensure that
there are sufficient number of qualified
arbitrators readily available to resolve
such cases.
9 15
U.S.C. 78o–3(b)(6).
approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
11 15 U.S.C. 78o–3(b)(6).
10 In
E:\FR\FM\13APN1.SGM
13APN1
Agencies
[Federal Register Volume 76, Number 71 (Wednesday, April 13, 2011)]
[Notices]
[Pages 20739-20741]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8848]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64236; File No. SR-BYX-2011-006]
Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend
Pilot Program Related to Clearly Erroneous Execution Reviews
April 7, 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 April 1, 2011, BATS Y-Exchange, Inc. (the ``Exchange'' or
``BYX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\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 is filing with the Commission a proposal to extend a
pilot program related to Rule 11.17, entitled ``Clearly Erroneous
Executions.'' The text of the proposed rule change is available at the
Exchange's Web site at https://www.batstrading.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
[[Page 20740]]
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 purpose of this filing is to extend the effectiveness of the
Exchange's current rule applicable to Clearly Erroneous Executions,
Rule 11.17. The rule, explained in further detail below, was approved
to operate under a pilot program set to expire on April 11, 2011. The
Exchange proposes to extend the pilot program to the earlier of August
11, 2011 or the date on which a limit up/limit down mechanism to
address extraordinary market volatility, if adopted, applies.
On October 4, 2010, the Exchange filed an immediately effective
filing to adopt various rule changes to bring BYX Rules up to date with
the changes that had been made to the rules of BATS Exchange, Inc., the
Exchange's affiliate, while BYX's Form 1 Application to register as a
national security exchange was pending approval. Such changes included
changes to the Exchange's Rule 11.17, on a pilot basis, to provide for
uniform treatment: (1) Of clearly erroneous execution reviews in multi-
stock events involving twenty or more securities; and (2) in the event
transactions occur that result in the issuance of an individual stock
trading pause by the primary market and subsequent transactions that
occur before the trading pause is in effect on the Exchange.\3\ The
Exchange also adopted additional changes to Rule 11.17 that reduced the
ability of the Exchange to deviate from the objective standards set
forth in Rule 11.17.\4\ The Exchange believes the benefits to market
participants from the more objective clearly erroneous executions rule
should be approved to continue on a pilot basis.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 63097 (October 13,
2010), 75 FR 64767 (October 20, 2010) (SR-BYX-2010-002).
\4\ Id.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\5\ In particular, the
proposal is consistent with Section 6(b)(5) of the Act,\6\ because it
would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system. The Exchange believes that the pilot
program promotes just and equitable principles of trade in that it
promotes transparency and uniformity across markets concerning review
of transactions as clearly erroneous.
---------------------------------------------------------------------------
\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 imposes
any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6)(iii) thereunder.\8\ 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 believes that waiving
the 30-day operative delay is consistent with the protection of
investors and the public interest because such waiver will allow the
pilot program to continue uninterrupted and help ensure uniformity
among the national securities exchanges and FINRA with respect to the
treatment of clearly erroneous transactions.\9\ Accordingly, the
Commission waives the 30-day operative delay requirement and designates
the proposed rule change as operative upon filing with the Commission.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission 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 filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Commission notes that the Exchange has satisfied
this requirement.
\9\ 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).
---------------------------------------------------------------------------
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-BYX-2011-006 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-BYX-2011-006. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will
[[Page 20741]]
be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make publicly available. All submissions
should refer to File Number SR-BYX-2011-006 and should be submitted on
or before May 4, 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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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8848 Filed 4-12-11; 8:45 am]
BILLING CODE 8011-01-P