Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Rule 7.10, Clearly Erroneous Executions, To Extend the Effective Date of the Pilot Until January 31, 2012, 50502-50503 [2011-20636]
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50502
Federal Register / Vol. 76, No. 157 / Monday, August 15, 2011 / Notices
For the Nuclear Regulatory Commission.
Cynthia A. Carpenter,
Acting Director, Office of Federal and State
Materials and Environmental Management
Programs.
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.
[FR Doc. 2011–20666 Filed 8–12–11; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65065; File No. SR–
NYSEArca–2011–56]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Arca
Rule 7.10, Clearly Erroneous
Executions, To Extend the Effective
Date of the Pilot Until January 31, 2012
August 9, 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 August
5, 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 prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
srobinson on DSK4SPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Rule 7.10, which governs
clearly erroneous executions, to extend
the effective date of the pilot by which
portions of such Rule operate until
January 31, 2012. The pilot is currently
scheduled to expire on August 11, 2011.
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
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
VerDate Mar<15>2010
16:05 Aug 12, 2011
Jkt 223001
1. Purpose
The Exchange proposes to amend
NYSE Arca Equities Rule 7.10, which
governs clearly erroneous executions, to
extend the effective date of the pilot by
which portions of such Rule operate,
until January 31, 2012.4
On September 10, 2010, the
Commission approved, on a pilot basis,
market-wide amendments to exchanges’
rules for clearly erroneous executions to
set forth clearer standards and curtail
discretion with respect to breaking
erroneous trades. In connection with
this pilot initiative, the Exchange
amended NYSE Arca Equities Rule
7.10(c), (e)(2), (f), and (g). The
amendments provide for uniform
treatment of clearly erroneous execution
reviews (1) In Multi-Stock Events 5
involving twenty or more securities, and
(2) in the event transactions occur that
result in the issuance of an individual
security trading pause by the primary
market and subsequent transactions that
occur before the trading pause is in
effect on the Exchange.6 The
amendments also eliminated appeals of
certain rulings made in conjunction
with other exchanges with respect to
clearly erroneous transactions and
limited the Exchange’s discretion to
deviate from Numerical Guidelines set
forth in the Rule in the event of system
disruptions or malfunctions.
If the pilot were not extended, the
prior versions of paragraphs (c), (e)(2),
(f), and (g) of NYSE Arca Equities Rule
7.10 would be in effect, and NYSE Arca
would have different rules than other
exchanges and greater discretion in
connection with breaking clearly
4 See Securities Exchange Act Release No. 62886
(September 10, 2010), 75 FR 56613 (September 16,
2010) (SR–NYSEArca–2010–58). See also Securities
Exchange Act Release Nos. 63482 (December 9,
2010), 75 FR 78331 (December 15, 2010) (SR–
NYSEArca–2010–113) and 64234 (April 7, 2011), 76
FR 20399 (April 12, 2011) (SR–NYSEArca–2011–
15).
5 Terms not defined herein are defined in NYSE
Arca Equities Rule 7.10.
6 Separately, the Exchange has proposed extend
[sic] the effective date of the trading pause pilot
under NYSE Arca Equities Rule 7.11, which
requires to [sic] the Exchange to pause trading in
an individual security listed on the Exchange if the
price moves by a specified percentage as compared
to prices of that security in the preceding fiveminute period during a trading day. See SR–
NYSEArca–2011–55.
PO 00000
Frm 00052
Fmt 4703
Sfmt 4703
erroneous transactions. The Exchange
proposes to extend the pilot
amendments to NYSE Arca Equities
Rule 7.10 until January 31, 2012 in
order to maintain uniform rules across
markets and allow the pilot to continue
to operate without interruption during
the same period that the Rule 7.11
trading pause rule pilot is also in effect.
Extension of the pilot would permit the
Exchange, other national securities
exchanges and the Commission to
further assess the effect of the pilot on
the marketplace, including whether
additional measures should be added,
whether the parameters of the rule
should be modified or whether other
initiatives should be adopted in lieu of
the current pilot.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 7 of the Act,
in general, and furthers the objectives of
Section 6(b)(5) 8 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, 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. More specifically, the
NYSE Arca believes that the extension
of the pilot would help assure that the
determination of whether a clearly
erroneous trade has occurred will be
based on clear and objective criteria,
and that the resolution of the incident
will occur promptly through a
transparent process. The proposed rule
change would also help assure
consistent results in handling erroneous
trades across the U.S. markets, thus
furthering fair and orderly markets, the
protection of investors and the public
interest.
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.
7 15
8 15
E:\FR\FM\15AUN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
15AUN1
Federal Register / Vol. 76, No. 157 / Monday, August 15, 2011 / Notices
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 9 and Rule 19b–
4(f)(6)(iii) thereunder.10 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.11 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
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:
9 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.
11 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).
srobinson on DSK4SPTVN1PROD with NOTICES
10 17
VerDate Mar<15>2010
16:05 Aug 12, 2011
Jkt 223001
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–2011–56 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.
50503
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65061; File No. SR–ISE–
2011–51]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend ISE Rule 2128 To
Extend the Pilot Program
August 9, 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 August 5,
2011, the International Securities
All submissions should refer to File
Exchange, LLC (the ‘‘Exchange’’ or the
Number SR–NYSEArca–2011–56. This
‘‘ISE’’) filed with the Securities and
file number should be included on the
Exchange Commission (‘‘Commission’’)
subject line if e-mail is used. To help the the proposed rule change as described
Commission process and review your
in Items I and II, below, which items
comments more efficiently, please use
have been prepared by the selfonly one method. The Commission will regulatory organization. The
post all comments on the Commission’s Commission is publishing this notice to
Internet Web site (https://www.sec.gov/
solicit comments on the proposed rule
rules/sro.shtml). Copies of the
change from interested persons.
submission, all subsequent
I. Self-Regulatory Organization’s
amendments, all written statements
Statement of the Terms of Substance of
with respect to the proposed rule
the Proposed Rule Change
change that are filed with the
The Exchange proposes to amend
Commission, and all written
Rule 2128 (Clearly Erroneous Trades) to
communications relating to the
extend the expiration of the pilot rule.
proposed rule change between the
The text of the proposed rule change
Commission and any person, other than is available on the Exchange’s Internet
those that may be withheld from the
Web site at https://www.ise.com, at the
public in accordance with the
principal office of the Exchange, and at
provisions of 5 U.S.C. 552, will be
the Commission’s Public Reference
available for Web site viewing and
Room.
printing in the Commission’s Public
II. Self-Regulatory Organization’s
Reference Room, 100 F Street, NE.,
Statement of the Purpose of, and
Washington, DC 20549, on official
Statutory Basis for, the Proposed Rule
business days between the hours of 10
Change
a.m. and 3 p.m. Copies of such filing
In its filing with the Commission, the
also will be available for inspection and
self-regulatory organization included
copying at the principal office of NYSE
statements concerning the purpose of,
Arca. All comments received will be
posted without change; the Commission and basis for, the proposed rule change
and discussed any comments it received
does not edit personal identifying
on the proposed rule change. The text
information from submissions. You
of these statements may be examined at
should submit only information that
the places specified in Item IV below.
you wish to make publicly available. All
The self-regulatory organization has
submissions should refer to File
prepared summaries, set forth in
Number SR–NYSEArca–2011–56 and
sections A, B and C below, of the most
should be submitted on or before
significant aspects of such statements.
September 6, 2011.
A. Self-Regulatory Organization’s
For the Commission, by the Division of
Statement of the Purpose of, and
Trading and Markets, pursuant to delegated
Statutory Basis for, the Proposed Rule
authority.12
Change
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–20636 Filed 8–12–11; 8:45 am]
BILLING CODE 8011–01–P
1. Purpose
The Exchange proposes to amend ISE
Rule 2128 (Clearly Erroneous Trades) to
1 15
12 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00053
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\15AUN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
15AUN1
]]>Agencies
[Federal Register Volume 76, Number 157 (Monday, August 15, 2011)]
[Notices]
[Pages 50502-50503]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-20636]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65065; File No. SR-NYSEArca-2011-56]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Rule 7.10, Clearly Erroneous Executions, To Extend the Effective Date
of the Pilot Until January 31, 2012
August 9, 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 August 5, 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 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 Rule 7.10, which governs
clearly erroneous executions, to extend the effective date of the pilot
by which portions of such Rule operate until January 31, 2012. The
pilot is currently scheduled to expire on August 11, 2011. 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 Exchange proposes to amend NYSE Arca Equities Rule 7.10, which
governs clearly erroneous executions, to extend the effective date of
the pilot by which portions of such Rule operate, until January 31,
2012.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62886 (September 10,
2010), 75 FR 56613 (September 16, 2010) (SR-NYSEArca-2010-58). See
also Securities Exchange Act Release Nos. 63482 (December 9, 2010),
75 FR 78331 (December 15, 2010) (SR-NYSEArca-2010-113) and 64234
(April 7, 2011), 76 FR 20399 (April 12, 2011) (SR-NYSEArca-2011-15).
---------------------------------------------------------------------------
On September 10, 2010, the Commission approved, on a pilot basis,
market-wide amendments to exchanges' rules for clearly erroneous
executions to set forth clearer standards and curtail discretion with
respect to breaking erroneous trades. In connection with this pilot
initiative, the Exchange amended NYSE Arca Equities Rule 7.10(c),
(e)(2), (f), and (g). The amendments provide for uniform treatment of
clearly erroneous execution reviews (1) In Multi-Stock Events \5\
involving twenty or more securities, and (2) in the event transactions
occur that result in the issuance of an individual security trading
pause by the primary market and subsequent transactions that occur
before the trading pause is in effect on the Exchange.\6\ The
amendments also eliminated appeals of certain rulings made in
conjunction with other exchanges with respect to clearly erroneous
transactions and limited the Exchange's discretion to deviate from
Numerical Guidelines set forth in the Rule in the event of system
disruptions or malfunctions.
---------------------------------------------------------------------------
\5\ Terms not defined herein are defined in NYSE Arca Equities
Rule 7.10.
\6\ Separately, the Exchange has proposed extend [sic] the
effective date of the trading pause pilot under NYSE Arca Equities
Rule 7.11, which requires to [sic] the Exchange to pause trading in
an individual security listed on the Exchange if the price moves by
a specified percentage as compared to prices of that security in the
preceding five-minute period during a trading day. See SR-NYSEArca-
2011-55.
---------------------------------------------------------------------------
If the pilot were not extended, the prior versions of paragraphs
(c), (e)(2), (f), and (g) of NYSE Arca Equities Rule 7.10 would be in
effect, and NYSE Arca would have different rules than other exchanges
and greater discretion in connection with breaking clearly erroneous
transactions. The Exchange proposes to extend the pilot amendments to
NYSE Arca Equities Rule 7.10 until January 31, 2012 in order to
maintain uniform rules across markets and allow the pilot to continue
to operate without interruption during the same period that the Rule
7.11 trading pause rule pilot is also in effect. Extension of the pilot
would permit the Exchange, other national securities exchanges and the
Commission to further assess the effect of the pilot on the
marketplace, including whether additional measures should be added,
whether the parameters of the rule should be modified or whether other
initiatives should be adopted in lieu of the current pilot.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Act, in general, and furthers the objectives of Section 6(b)(5) \8\ 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, 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. More specifically, the NYSE Arca believes that the
extension of the pilot would help assure that the determination of
whether a clearly erroneous trade has occurred will be based on clear
and objective criteria, and that the resolution of the incident will
occur promptly through a transparent process. The proposed rule change
would also help assure consistent results in handling erroneous trades
across the U.S. markets, thus furthering fair and orderly markets, the
protection of investors and the public interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 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 50503]]
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 \9\ and Rule 19b-
4(f)(6)(iii) thereunder.\10\ 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.\11\ Accordingly, the
Commission waives the 30-day operative delay requirement and designates
the proposed rule change as operative upon filing with the Commission.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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.
\11\ 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-NYSEArca-2011-56 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-2011-56. 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 NYSE
Arca. 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
publicly available. All submissions should refer to File Number SR-
NYSEArca-2011-56 and should be submitted on or before September 6,
2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-20636 Filed 8-12-11; 8:45 am]
BILLING CODE 8011-01-P
