Justia Agencies And Commissions Securities And Exchange Commission Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.16 (Short Sales) To Modify the Exchange's Procedures for Early Termination of the Short Sale Price Test Restrictions of Rule 201 of Regulation SHO Based on a Triggering Transaction That Another Exchange or a Self-Regulatory Organization Has Determined Was a Clearly Erroneous Execution, 24954-24956 [2011-10654]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.16 (Short Sales) To Modify the Exchange's Procedures for Early Termination of the Short Sale Price Test Restrictions of Rule 201 of Regulation SHO Based on a Triggering Transaction That Another Exchange or a Self-Regulatory Organization Has Determined Was a Clearly Erroneous Execution, 24954-24956 [2011-10654]

Download as PDF 24954 Federal Register / Vol. 76, No. 85 / Tuesday, May 3, 2011 / Notices of the Act 19 in general, and furthers the objectives of Section 6(b)(5) of the Act 20 in particular, in that it is 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. The Exchange is proposing to expand the position limit on options on SPDRs®. The Exchange believes that this proposal will be beneficial to large market makers (which generally have the greatest potential and actual ability to provide liquidity and depth in the product), as well as retail traders, investors, and public customers. 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 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 either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. srobinson on DSKHWCL6B1PROD with NOTICES 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 No. SR–Phlx–2011–58 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–Phlx–2011–58. 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 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–Phlx– 2011–58 and should be submitted on or before May 24, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Cathy H. Ahn, Deputy Secretary. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64349; File No. SR– NYSEArca–2011–22] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.16 (Short Sales) To Modify the Exchange’s Procedures for Early Termination of the Short Sale Price Test Restrictions of Rule 201 of Regulation SHO Based on a Triggering Transaction That Another Exchange or a Self-Regulatory Organization Has Determined Was a Clearly Erroneous Execution April 27, 2011. 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 April 25, 2011, 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 substantially prepared by the selfregulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Arca Equities Rule 7.16 (Short Sales) to modify the Exchange’s procedures for early termination of the short sale price test restrictions of Rule 201 of Regulation SHO (‘‘Rule 201’’) 4 under the Act based on a triggering transaction that another exchange or a self-regulatory organization (‘‘SRO’’) has determined was a clearly erroneous execution pursuant to the rules of that exchange or SRO. 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 [FR Doc. 2011–10653 Filed 5–2–11; 8:45 am] 1 15 BILLING CODE 8011–01–P U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 4 17 CFR 242.201. 2 15 19 15 20 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). VerDate Mar<15>2010 20:39 May 02, 2011 21 17 Jkt 223001 PO 00000 CFR 200.30–3(a)(12). Frm 00107 Fmt 4703 Sfmt 4703 E:\FR\FM\03MYN1.SGM 03MYN1 Federal Register / Vol. 76, No. 85 / Tuesday, May 3, 2011 / Notices 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 srobinson on DSKHWCL6B1PROD with NOTICES 1. Purpose On February 26, 2010, the Commission adopted amendments to Rule 201.5 In order to implement the provisions of revised Rule 201, the Exchange amended NYSE Arca Equities Rule 7.16 (Short Sales) to (1) Establish procedures for the Exchange, as a listing market, to determine that the short sale price test restrictions of Rule 201 have been triggered for a covered security, (2) establish the protocols for the handling of short sale orders by the Exchange, as a trading center, in the event the short sale price test restrictions of Rule 201 are triggered, including establishing what types of short sale orders will be re-priced to achieve a Permitted Price (as defined and calculated in NYSE Arca Equities Rule 7.16(f)(v)(C)), in accordance with Rule 201, during a period when the short sale price test restrictions of Rule 201 are in effect (‘‘Short Sale Period’’), (3) establish the Exchange’s procedures regarding the execution and display of permissible orders during a Short Sale Period, and the execution and display of orders marked ‘‘short exempt’’ during such a period, and (4) provide that, during a Short Sale Period, Exchange systems will not execute or display a short sale order with respect to that security at a price that is less than or equal to the current national best bid, except as otherwise provided by NYSE Arca Equities Rule 7.16(f) and consistent with Rule 201.6 Under NYSE Arca Equities Rule 7.16(f)(iii), when the Exchange is the listing market for a covered security, Exchange systems will determine whether the short sale price test restrictions of Rule 201 have been triggered (i.e., that a covered security 5 See Securities Exchange Act Release No. 61595 (February 26, 2010), 75 FR 11232 (March 10, 2010) (File No. S7–08–09; Amendments to Regulation SHO) (‘‘Rule 201 Adopting Release’’). In the Rule 201 Adopting Release, the Commission also adopted amendments to Rule 200(g) of Regulation SHO to include a ‘‘short exempt’’ marking requirement. 17 CFR 242.200(g). 6 See Securities Exchange Act Release No. 63971 (February 25, 2011), 76 FR 12157 (March 4, 2011) (SR–NYSEArca–2011–05). VerDate Mar<15>2010 20:39 May 02, 2011 Jkt 223001 has experienced a decrease in price of 10% or more from the security’s closing price as of the end of regular trading hours on the prior day) and will notify the single plan processor responsible for consolidation of information for the covered security pursuant to Rule 603(b) of Regulation NMS.7 Once the short sale price test restrictions of Rule 201 are triggered by the listing market, those restrictions will remain in effect until the close of trading on the next trading day.8 If, however, the Exchange determines that the short sale price test for a covered security was triggered because of a clearly erroneous execution on the Exchange,9 pursuant to NYSE Arca Equities Rule 7.16(f)(iv)(A), the Exchange may lift the short sale price test restrictions before the Short Sale Period ends for a security for which the Exchange is the listing market or, for a security listed on another market, notify the other market of the Exchange’s determination that the triggering transaction was a clearly erroneous execution. For securities for which the Exchange is the listing market, NYSE Arca Equities Rule 7.16 currently addresses only clearly erroneous triggering transactions deemed to be clearly erroneous executions under the Exchange’s rules, and does not address situations where another exchange or a SRO determines, under its respective rules, that a triggering transaction was a clearly erroneous execution. To address this scenario, the Exchange proposes to amend NYSE Arca Equities Rule 7.16(f)(iv)(A) 10 to provide that the Exchange may also lift the short sale price test restrictions before the Short Sale Period ends, for covered securities for which the Exchange is the listing market, if the Exchange has been informed by another exchange or a SRO that a transaction in the covered 7 See 17 CFR 242.201(b)(3); 17 CFR 242.603(b). See also Rule 201(a)(6) of Regulation SHO, which defines the term ‘‘plan processor’’ to have the same meaning as in Rule 600(b)(55) of Regulation NMS. 17 CFR 242.600(b)(55). The single plan processors are ‘‘exclusive processors’’ as defined under Section 3(a)(22) of the Act. See 15 U.S.C. 78c(a)(22). 8 The short sale price test restrictions will remain in effect at all times when quotation information and the national best bid is collected, processed and disseminated pursuant to a national market system plan. This may extend beyond regular trading hours. Division of Trading & Markets: Responses to Frequently Asked Questions Concerning Rule 201 of Regulation SHO, at Q&A 2.1. 9 Determination of a ‘‘clearly erroneous’’ execution will be made in accordance with NYSE Arca Equities Rule 7.10. 10 The Exchange is also proposing two technical amendments to NYSE Arca Equities Rule 7.16 to correct references to the Exchange (in subparagraphs (f)(iv)(A) and (f)(iv)(B) of NYSE Arca Equities Rule 7.16). PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 24955 security that occurred at the Trigger Price 11 was a clearly erroneous execution, as determined by that exchange or SRO under its rules.12 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,13 in general, and furthers the objectives of Section 6(b)(5) of the Act,14 in particular, in that it is designed to, among other things, 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. The proposal is designed to refine the Exchange’s written policies and procedures reasonably designed to prevent the execution or display of a short sale order of a covered security in violation of the short sale price test restrictions established in Rule 201. To that end, the proposed rule change expands the ability of the Exchange, as a listing market, to lift short sale price test restrictions to include situations where another exchange or a SRO has determined that a triggering transaction was a clearly erroneous execution under the rules of that exchange or SRO. 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. 11 The term ‘‘Trigger Price’’ is used in NYSE Arca Equities Rule 7.16(f) to refer to a decrease of 10% or more in a security’s price from the security’s closing price on the listing market as of the end of regular trading hours on the prior day. Under NYSE Arca Equities Rule 7.16(f)(iii), the short sale price test restrictions of Rule 201 are triggered if a transaction in a covered security occurs at a Trigger Price. 12 The Exchange will only lift the short sale price test restrictions before the Short Sale Period ends under these circumstances when informed by another exchange or a SRO that a triggering transaction has been determined to be a clearly erroneous execution under the rules of the exchange or SRO, consistent with the authority of that exchange or SRO for making such determinations. 13 15 U.S.C. 78f(b). 14 15 U.S.C. 78f(b)(5). E:\FR\FM\03MYN1.SGM 03MYN1 24956 Federal Register / Vol. 76, No. 85 / Tuesday, May 3, 2011 / Notices srobinson on DSKHWCL6B1PROD 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 15 and Rule 19b–4(f)(6) thereunder.16 Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(6)(iii) thereunder. A proposed rule change filed under Rule 19b–4(f)(6) 17 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),18 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 considered the Exchange’s request to waive the 30-day operative delay, and hereby grants the request. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest, as it will permit the Exchange to lift Rule 201’s short sale price test restrictions, in a covered security for which the Exchange is the listing market, when such restrictions were triggered by a transaction that another exchange or a SRO has determined to be a clearly erroneous execution, pursuant to the rules of that exchange or SRO.19 For this reason, the Commission designates the proposed rule change to be operative upon filing. At any time within 60 days of the filing of such 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 15 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 17 17 CFR 240.19b–4(f)(6). 18 17 CFR 240.19b–4(f)(6)(iii). 19 For the purposes only of waiving the operative delay of this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 16 17 VerDate Mar<15>2010 20:39 May 02, 2011 Jkt 223001 investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSEArca–2011–22 on the subject line. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.20 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–10654 Filed 5–2–11; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF STATE [Public Notice 7439] 30-Day Notice of Proposed Information Collection: Certificate of Eligibility for Exchange Visitor (J–1) Status; Form DS–2019, OMB No. 1405–0119. Notice of request for public comment and submission to OMB of proposed collection of information. ACTION: The Department of State has submitted the following information collection request to the Office of • Send paper comments in triplicate Management and Budget (OMB) for to Elizabeth M. Murphy, Secretary, approval in accordance with the Securities and Exchange Commission, Paperwork Reduction Act of 1995. • Title of Information Collection: 100 F Street, NE., Washington, DC Certificate of Eligibility for Exchange 20549–1090. Visitor (J–1) Status All submissions should refer to File • OMB Control Number: 1405–0119 Number SR–NYSEArca-2011–22. This • Type of Request: Extension of a file number should be included on the Currently Approved Collection subject line if e-mail is used. To help the • Originating Office: Office of Commission process and review your Exchange Coordination & Designation, ECA/EC comments more efficiently, please use • Form Number: Form DS–2019 only one method. The Commission will • Respondents: U.S. Department of post all comments on the Commission’s State Designated Sponsors Internet Web site (https://www.sec.gov/ • Estimated Number of Respondents: rules/sro.shtml). Copies of the 1460 submission, all subsequent • Estimated Number of Responses: amendments, all written statements 350,000 annually with respect to the proposed rule • Average Hours per Response: 45 change that are filed with the minutes Commission, and all written • Total Estimated Burden: 262,500 communications relating to the hours proposed rule change between the • Frequency: On occasion Commission and any person, other than • Obligation To Respond: Required to Obtain or Retain a Benefit those that may be withheld from the public in accordance with the DATES: Submit comments to the Office provisions of 5 U.S.C. 552, will be of Management and Budget (OMB) for up to 30 days from May 3, 2011. available for Web site viewing and printing in the Commission’s Public ADDRESSES: Direct comments to the Reference Room, 100 F Street, NE., Department of State Desk Officer in the Washington, DC 20549–1090. Copies of Office of Information and Regulatory Affairs at the Office of Management and the filing will also be available for Budget (OMB). You may submit inspection and copying at the principal comments by the following methods: office of the Exchange. All comments • E-mail: received will be posted without change; oira_submission@omb.eop.gov. You the Commission does not edit personal must include the DS form number, identifying information from information collection title, and OMB submissions. You should submit only control number in the subject line of information that you wish to make your message. available publicly. All submissions • Fax: 202–395–5806. Attention: Desk should refer to File Number SR– Officer for Department of State. NYSEArca-2011–22 and should be submitted on or before May 24, 2011. 20 17 CFR 200.30–3(a)(12). SUMMARY: Paper Comments PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\03MYN1.SGM 03MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 76, Number 85 (Tuesday, May 3, 2011)]
[Notices]
[Pages 24954-24956]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-10654]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64349; File No. SR-NYSEArca-2011-22]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Equities Rule 7.16 (Short Sales) To Modify the Exchange's Procedures
for Early Termination of the Short Sale Price Test Restrictions of Rule
201 of Regulation SHO Based on a Triggering Transaction That Another
Exchange or a Self-Regulatory Organization Has Determined Was a Clearly
Erroneous Execution

April 27, 2011.
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 April 25, 2011, 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 substantially prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to amend NYSE Arca Equities Rule 7.16 (Short
Sales) to modify the Exchange's procedures for early termination of the
short sale price test restrictions of Rule 201 of Regulation SHO
(``Rule 201'') \4\ under the Act based on a triggering transaction that
another exchange or a self-regulatory organization (``SRO'') has
determined was a clearly erroneous execution pursuant to the rules of
that exchange or SRO. The text of the proposed rule change is available
at the Exchange, the Commission's Public Reference Room, and https://www.nyse.com.
---------------------------------------------------------------------------

\4\ 17 CFR 242.201.
---------------------------------------------------------------------------

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

[[Page 24955]]

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
On February 26, 2010, the Commission adopted amendments to Rule
201.\5\ In order to implement the provisions of revised Rule 201, the
Exchange amended NYSE Arca Equities Rule 7.16 (Short Sales) to (1)
Establish procedures for the Exchange, as a listing market, to
determine that the short sale price test restrictions of Rule 201 have
been triggered for a covered security, (2) establish the protocols for
the handling of short sale orders by the Exchange, as a trading center,
in the event the short sale price test restrictions of Rule 201 are
triggered, including establishing what types of short sale orders will
be re-priced to achieve a Permitted Price (as defined and calculated in
NYSE Arca Equities Rule 7.16(f)(v)(C)), in accordance with Rule 201,
during a period when the short sale price test restrictions of Rule 201
are in effect (``Short Sale Period''), (3) establish the Exchange's
procedures regarding the execution and display of permissible orders
during a Short Sale Period, and the execution and display of orders
marked ``short exempt'' during such a period, and (4) provide that,
during a Short Sale Period, Exchange systems will not execute or
display a short sale order with respect to that security at a price
that is less than or equal to the current national best bid, except as
otherwise provided by NYSE Arca Equities Rule 7.16(f) and consistent
with Rule 201.\6\
---------------------------------------------------------------------------

\5\ See Securities Exchange Act Release No. 61595 (February 26,
2010), 75 FR 11232 (March 10, 2010) (File No. S7-08-09; Amendments
to Regulation SHO) (``Rule 201 Adopting Release''). In the Rule 201
Adopting Release, the Commission also adopted amendments to Rule
200(g) of Regulation SHO to include a ``short exempt'' marking
requirement. 17 CFR 242.200(g).
\6\ See Securities Exchange Act Release No. 63971 (February 25,
2011), 76 FR 12157 (March 4, 2011) (SR-NYSEArca-2011-05).
---------------------------------------------------------------------------

Under NYSE Arca Equities Rule 7.16(f)(iii), when the Exchange is
the listing market for a covered security, Exchange systems will
determine whether the short sale price test restrictions of Rule 201
have been triggered (i.e., that a covered security has experienced a
decrease in price of 10% or more from the security's closing price as
of the end of regular trading hours on the prior day) and will notify
the single plan processor responsible for consolidation of information
for the covered security pursuant to Rule 603(b) of Regulation NMS.\7\
Once the short sale price test restrictions of Rule 201 are triggered
by the listing market, those restrictions will remain in effect until
the close of trading on the next trading day.\8\
---------------------------------------------------------------------------

\7\ See 17 CFR 242.201(b)(3); 17 CFR 242.603(b). See also Rule
201(a)(6) of Regulation SHO, which defines the term ``plan
processor'' to have the same meaning as in Rule 600(b)(55) of
Regulation NMS. 17 CFR 242.600(b)(55). The single plan processors
are ``exclusive processors'' as defined under Section 3(a)(22) of
the Act. See 15 U.S.C. 78c(a)(22).
\8\ The short sale price test restrictions will remain in effect
at all times when quotation information and the national best bid is
collected, processed and disseminated pursuant to a national market
system plan. This may extend beyond regular trading hours. Division
of Trading & Markets: Responses to Frequently Asked Questions
Concerning Rule 201 of Regulation SHO, at Q&A 2.1.
---------------------------------------------------------------------------

If, however, the Exchange determines that the short sale price test
for a covered security was triggered because of a clearly erroneous
execution on the Exchange,\9\ pursuant to NYSE Arca Equities Rule
7.16(f)(iv)(A), the Exchange may lift the short sale price test
restrictions before the Short Sale Period ends for a security for which
the Exchange is the listing market or, for a security listed on another
market, notify the other market of the Exchange's determination that
the triggering transaction was a clearly erroneous execution.
---------------------------------------------------------------------------

\9\ Determination of a ``clearly erroneous'' execution will be
made in accordance with NYSE Arca Equities Rule 7.10.
---------------------------------------------------------------------------

For securities for which the Exchange is the listing market, NYSE
Arca Equities Rule 7.16 currently addresses only clearly erroneous
triggering transactions deemed to be clearly erroneous executions under
the Exchange's rules, and does not address situations where another
exchange or a SRO determines, under its respective rules, that a
triggering transaction was a clearly erroneous execution. To address
this scenario, the Exchange proposes to amend NYSE Arca Equities Rule
7.16(f)(iv)(A) \10\ to provide that the Exchange may also lift the
short sale price test restrictions before the Short Sale Period ends,
for covered securities for which the Exchange is the listing market, if
the Exchange has been informed by another exchange or a SRO that a
transaction in the covered security that occurred at the Trigger Price
\11\ was a clearly erroneous execution, as determined by that exchange
or SRO under its rules.\12\
---------------------------------------------------------------------------

\10\ The Exchange is also proposing two technical amendments to
NYSE Arca Equities Rule 7.16 to correct references to the Exchange
(in subparagraphs (f)(iv)(A) and (f)(iv)(B) of NYSE Arca Equities
Rule 7.16).
\11\ The term ``Trigger Price'' is used in NYSE Arca Equities
Rule 7.16(f) to refer to a decrease of 10% or more in a security's
price from the security's closing price on the listing market as of
the end of regular trading hours on the prior day. Under NYSE Arca
Equities Rule 7.16(f)(iii), the short sale price test restrictions
of Rule 201 are triggered if a transaction in a covered security
occurs at a Trigger Price.
\12\ The Exchange will only lift the short sale price test
restrictions before the Short Sale Period ends under these
circumstances when informed by another exchange or a SRO that a
triggering transaction has been determined to be a clearly erroneous
execution under the rules of the exchange or SRO, consistent with
the authority of that exchange or SRO for making such
determinations.
---------------------------------------------------------------------------

2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\13\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\14\ in particular, in that it is designed to, among
other things, 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. The proposal is designed to
refine the Exchange's written policies and procedures reasonably
designed to prevent the execution or display of a short sale order of a
covered security in violation of the short sale price test restrictions
established in Rule 201. To that end, the proposed rule change expands
the ability of the Exchange, as a listing market, to lift short sale
price test restrictions to include situations where another exchange or
a SRO has determined that a triggering transaction was a clearly
erroneous execution under the rules of that exchange or SRO.
---------------------------------------------------------------------------

\13\ 15 U.S.C. 78f(b).
\14\ 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.

[[Page 24956]]

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 \15\ and Rule 19b-4(f)(6) thereunder.\16\
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.
---------------------------------------------------------------------------

\15\ 15 U.S.C. 78s(b)(3)(A)(iii).
\16\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\18\ 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.
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission has considered the Exchange's request to waive the
30-day operative delay, and hereby grants the request. The Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest, as it will permit the
Exchange to lift Rule 201's short sale price test restrictions, in a
covered security for which the Exchange is the listing market, when
such restrictions were triggered by a transaction that another exchange
or a SRO has determined to be a clearly erroneous execution, pursuant
to the rules of that exchange or SRO.\19\ For this reason, the
Commission designates the proposed rule change to be operative upon
filing.
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\19\ For the purposes only of waiving the operative delay of
this proposal, 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 such 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-2011-22 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-2011-22. 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 20549-1090. Copies of the filing will also
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-2011-22 and should be submitted on or before May 24, 2011.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-10654 Filed 5-2-11; 8:45 am]
BILLING CODE 8011-01-P

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