Justia Agencies And Commissions Securities And Exchange Commission Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of Proposed Rule Change Amending NYSE Amex Options Rule 993NY(b)(2) To Make Permanent the Pilot Program That Permits the Exchange To Accept Inbound Orders Routed by Archipelago Securities LLC in Its Capacity as a Facility of Affiliated Exchanges and To Clarify the Text of NYSE Amex Options Rule 993NY(b)(1)(B) To More Accurately Reflect the Regulatory Services Agreement Between the Exchange and the Financial Industry Regulatory Authority, 53516-53518 [2011-21870]

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of Proposed Rule Change Amending NYSE Amex Options Rule 993NY(b)(2) To Make Permanent the Pilot Program That Permits the Exchange To Accept Inbound Orders Routed by Archipelago Securities LLC in Its Capacity as a Facility of Affiliated Exchanges and To Clarify the Text of NYSE Amex Options Rule 993NY(b)(1)(B) To More Accurately Reflect the Regulatory Services Agreement Between the Exchange and the Financial Industry Regulatory Authority, 53516-53518 [2011-21870]

Download as PDF 53516 Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Notices relationship. The Exchange also proposes to clarify the text of NYSE Arca Options Rule 6.96(b)(1)(B) to more accurately reflect the RSA between the Exchange and FINRA and specify that the quarterly report of Exceptions shall be provided to the Exchange’s Chief Regulatory Officer. Upon approval of the proposed rule change, the Exchange will continue to comply with the obligations and conditions as set forth in proposed NYSE Arca Options Rule 6.96(b). 2. Statutory Basis The proposed rule change is consistent with Section 6(b) 9 of the Act, in general, and furthers the objectives of Section 6(b)(5),10 in particular, in that the proposal 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 regulating, clearing, settling, processing information with respect to, and 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. Specifically, the proposed rule change will allow the Exchange to continue receiving inbound routes of orders from Arca Securities, acting in its capacity as a facility of an affiliated exchange, in a manner consistent with prior approvals and established protections. The Exchange believes that meeting the commitments established during the pilot program demonstrates that the Exchange has mechanisms that protect the independence of the Exchange’s regulatory responsibility with respect to Arca Securities, as well as demonstrate that Arca Securities cannot use any information it may have because of its affiliation with the Exchange to its advantage. emcdonald on DSK2BSOYB1PROD with NOTICES 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. 9 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 10 15 VerDate Mar<15>2010 19:37 Aug 25, 2011 Jkt 223001 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. 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–2011–62 on the subject line. 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 publicly available. All submissions should refer to File Number SR– NYSEArca–2011–62 and should be submitted on or before September 16, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–21871 Filed 8–25–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65181; File No. SR– NYSEAmex–2011–64] Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of Proposed Rule Change Amending NYSE Amex Options Rule 993NY(b)(2) To Make Permanent the Pilot Program That Permits the Exchange To Accept Paper Comments Inbound Orders Routed by • Send paper comments in triplicate Archipelago Securities LLC in Its to Elizabeth M. Murphy, Secretary, Capacity as a Facility of Affiliated Securities and Exchange Commission, Exchanges and To Clarify the Text of 100 F Street, NE., Washington, DC NYSE Amex Options Rule 20549–1090. 993NY(b)(1)(B) To More Accurately All submissions should refer to File Reflect the Regulatory Services Number SR–NYSEArca–2011–62. This Agreement Between the Exchange and file number should be included on the the Financial Industry Regulatory subject line if e-mail is used. To help the Authority Commission process and review your August 22, 2011. comments more efficiently, please use only one method. The Commission will Pursuant to Section 19(b)(1) of the post all comments on the Commission’s Securities Exchange Act of 1934 Internet Web site (https://www.sec.gov/ (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 rules/sro.shtml). Copies of the notice is hereby given that on August submission, all subsequent 18, 2011, NYSE Amex LLC (‘‘NYSE amendments, all written statements Amex’’ or the ‘‘Exchange’’) filed with with respect to the proposed rule the Securities and Exchange change that are filed with the Commission (‘‘Commission’’) the Commission, and all written proposed rule change as described in communications relating to the Items I, II, and III below, which Items proposed rule change between the have been prepared by the Exchange. Commission and any person, other than The Commission is publishing this those that may be withheld from the notice to solicit comments on the public in accordance with the proposed rule change from interested provisions of 5 U.S.C. 552, will be persons. available for Web site viewing and printing in the Commission’s Public 11 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). Reference Room, 100 F Street, NE., 2 17 CFR 240.19b–4. Washington, DC 20549, on official PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 E:\FR\FM\26AUN1.SGM 26AUN1 Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Amex Options Rule 993NY(b)(2) to make permanent the pilot program that permits the Exchange to accept inbound orders routed by Archipelago Securities LLC (‘‘Arca Securities’’) in its capacity as a facility of an affiliated exchange (with the attendant obligations and conditions) and to clarify the text of NYSE Amex Options Rule 993NY(b)(1)(B) to more accurately reflect the regulatory services agreement (‘‘RSA’’) between the Exchange and the Financial Industry Regulatory Authority (‘‘FINRA’’). The text of the proposed rule change is available at the Exchange, at the Exchange’s Web site at https:// www.nyse.com, at the Commission’s Public Reference Room, and at the Commission’s Web site at https:// www.sec.gov. 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. emcdonald on DSK2BSOYB1PROD with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend NYSE Amex Options Rule 993NY(b)(2) to make permanent the pilot program that permits the Exchange to accept inbound orders routed by Arca Securities in its capacity as a facility of an affiliated exchange (with the attendant obligations and conditions) and to clarify the text of NYSE Amex Options Rule 993NY(b)(1)(B) to more accurately reflect the RSA between the Exchange and FINRA.3 Currently, Arca Securities is an approved outbound routing facility of 3 The change to the rule text to more accurately reflect the RSA between the Exchange and FINRA is similar to language that NASDAQ OMX BX, Inc. uses to describe its relationship with FINRA. See Securities Exchange Act Release No. 64896 (July 15, 2011), 76 FR 43740 (July 21, 2011) (SR–BX–2011– 045). VerDate Mar<15>2010 19:37 Aug 25, 2011 Jkt 223001 the Exchange, providing outbound routing from the Exchange to other market centers.4 The Exchange also has been previously approved to receive inbound routes of orders by Arca Securities in its capacity as an order routing facility of an affiliated exchange on a pilot basis until September 30, 2011.5 On June 16, 2011, the Exchange filed an immediate effective proposal that codified the inbound routing authority in NYSE Amex Options Rule 993NY(b).6 The Exchange hereby seeks permanent approval to permit the Exchange to accept inbound orders that Arca Securities routes in its capacity as a facility of an affiliated exchange. Under the pilot, the Exchange is committed to the following obligations and conditions: • The Exchange will maintain an agreement pursuant to Rule 17d–2 under the Exchange Act with FINRA to relieve the Exchange of regulatory responsibilities for Arca Securities with respect to rules that are common rules between the Exchange and FINRA, and maintain an RSA with FINRA to perform regulatory responsibilities for Arca Securities for unique Exchange rules. • The RSA will require the Exchange to provide FINRA with information, in an easily accessible manner, regarding all exception reports, alerts, complaints, trading errors, cancellations, investigations, and enforcement matters (collectively ‘‘Exceptions’’) in which Arca Securities is identified as a participant that has potentially violated Exchange or SEC Rules and of which the Exchange becomes aware, and shall require that FINRA provide a report, at least quarterly, to the Exchange quantifying all Exceptions in which Arca Securities is identified as a participant that has potentially violated Exchange or SEC Rules.7 • The Exchange, on behalf of its parent, NYSE Euronext, will establish and maintain procedures and internal controls reasonably designed to prevent Arca Securities from receiving any benefit, taking any action or engaging in any activity based on non-public information regarding planned changes to Exchange systems, obtained as a result of its affiliation with the Exchange, until such information is 4 See NYSE Amex Options Rules 900.2NY(69) and 993NY(a). 5 See NYSE Amex Options Rule 993NY(b); see also Securities Exchange Act Release No. 64732 (June 23, 2011) 76 FR 38240 (June 29, 2011) (SR– NYSEAmex–2011–40). 6 See SR–NYSEAmex–2011–40, supra note 5. 7 As noted below, the Exchange proposes to change this provision to more accurately reflect the RSA with FINRA. PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 53517 available generally to similarly situated ATP Holders of the Exchange in connection with the provision of inbound order routing to the Exchange. • The Exchange may furnish to Arca Securities the same information on the same terms that the Exchange makes available in the normal course of business to any other ATP Holder.8 The Exchange is in compliance with the above-listed obligations and conditions. In meeting them, the Exchange has set up mechanisms that protect the independence of the Exchange’s regulatory responsibility with respect to Arca Securities, as well as demonstrate that Arca Securities cannot use any information it may have because of its affiliation with the Exchange to its advantage. Since the Exchange has met all the above-listed obligations and conditions, it now seeks permanent approval of the Exchange and Arca Securities’ inbound routing relationship. The Exchange also proposes to clarify the text of NYSE Amex Options Rule 993NY(b)(1)(B) to more accurately reflect the RSA between the Exchange and FINRA and specify that the quarterly report of Exceptions shall be provided to the Exchange’s Chief Regulatory Officer. Upon approval of the proposed rule change, the Exchange will continue to comply with the obligations and conditions as set forth in proposed NYSE Amex Options Rule 993NY(b)(1). 2. Statutory Basis The proposed rule change is consistent with Section 6(b) 9 of the Act, in general, and furthers the objectives of Section 6(b)(5),10 in particular, in that the proposal 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 regulating, clearing, settling, processing information with respect to, and 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. Specifically, the proposed rule change will allow the Exchange to continue receiving inbound routes of orders from Arca Securities, acting in its capacity as a facility of an affiliated exchange, in a manner consistent with prior approvals and established protections. The Exchange believes that meeting the 8 See SR–NYSEAmex–2011–40, supra note 5, and NYSE Amex Options Rule 993NY(b)(1)(D). 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). E:\FR\FM\26AUN1.SGM 26AUN1 53518 Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Notices commitments established during the pilot program demonstrates that the Exchange has mechanisms that protect the independence of the Exchange’s regulatory responsibility with respect to Arca Securities, as well as demonstrate that Arca Securities cannot use any information it may have because of its affiliation with the Exchange to its advantage. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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. emcdonald on DSK2BSOYB1PROD 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 Number SR–NYSEAmex–2011–64 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. VerDate Mar<15>2010 19:37 Aug 25, 2011 Jkt 223001 All submissions should refer to File Number SR–NYSEAmex–2011–64. 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 publicly available. All submissions should refer to File Number SR– NYSEAmex–2011–64 and should be submitted on or before September 16, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–21870 Filed 8–25–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION 12, 2011, The NASDAQ Stock Market LLC (the ‘‘Exchange’’ or ‘‘NASDAQ’’), 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 NASDAQ. 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 NASDAQ proposes to extend the pilot period of Rule 4753(c), NASDAQ’s ‘‘Volatility Guard,’’ so that the pilot will now expire on the earlier of January 31, 2012 or the date on which, if approved, a limit up/limit down mechanism to address extraordinary market volatility, is approved. The text of the proposed rule change is below. Proposed new language is italicized; proposed deletions are in brackets. * * * * * 4753. Nasdaq Halt and Imbalance Crosses (a)–(b) No change. (c) For a pilot period ending the earlier of January 31, 2012 or the date on which, if approved, a limit up/limit down mechanism to address extraordinary market volatility, is approved [six months after the date of Commission approval of SR–NASDAQ– 2010–074], between 9:45 a.m. and 3:35 p.m. EST, the System will automatically monitor System executions to determine whether the market is trading in an orderly fashion and whether to conduct an Imbalance Cross in order to restore an orderly market in a single Nasdaq Security. (1) An Imbalance Cross shall occur if the System executes a transaction in a Nasdaq Security at a price that is beyond the Threshold Range away from the Triggering Price for that security. The Triggering Price for each Nasdaq Security shall be the price of any execution by the System in that security within the prior 30 seconds. The Threshold Range shall be determined as follows: [Release No. 34–65176; File No. SR– NASDAQ–2011–117] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period of Rule 4753(c) August 19, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on August 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 Execution price $1.75 and under ................... Over $1.75 and up to $25 .... Over $25 and up to $50 ....... Over $50 ............................... Threshold range away from triggering price (percent) 15 10 5 3 (2) If the System determines pursuant to subsection (1) above to conduct an Imbalance Cross in a Nasdaq Security, the System shall automatically cease executing trades in that security for a 60-second Display Only Period. During that 60-second Display Only Period, the System shall: E:\FR\FM\26AUN1.SGM 26AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 76, Number 166 (Friday, August 26, 2011)]
[Notices]
[Pages 53516-53518]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-21870]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65181; File No. SR-NYSEAmex-2011-64]

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of
Proposed Rule Change Amending NYSE Amex Options Rule 993NY(b)(2) To
Make Permanent the Pilot Program That Permits the Exchange To Accept
Inbound Orders Routed by Archipelago Securities LLC in Its Capacity as
a Facility of Affiliated Exchanges and To Clarify the Text of NYSE Amex
Options Rule 993NY(b)(1)(B) To More Accurately Reflect the Regulatory
Services Agreement Between the Exchange and the Financial Industry
Regulatory Authority

August 22, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 18, 2011, NYSE Amex LLC (``NYSE Amex'' or the ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III 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.

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

[[Page 53517]]

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

The Exchange proposes to amend NYSE Amex Options Rule 993NY(b)(2)
to make permanent the pilot program that permits the Exchange to accept
inbound orders routed by Archipelago Securities LLC (``Arca
Securities'') in its capacity as a facility of an affiliated exchange
(with the attendant obligations and conditions) and to clarify the text
of NYSE Amex Options Rule 993NY(b)(1)(B) to more accurately reflect the
regulatory services agreement (``RSA'') between the Exchange and the
Financial Industry Regulatory Authority (``FINRA''). The text of the
proposed rule change is available at the Exchange, at the Exchange's
Web site at https://www.nyse.com, at the Commission's Public Reference
Room, and at the Commission's Web site at https://www.sec.gov.

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
Statutory Basis for, the Proposed Rule Change

1. Purpose
The Exchange proposes to amend NYSE Amex Options Rule 993NY(b)(2)
to make permanent the pilot program that permits the Exchange to accept
inbound orders routed by Arca Securities in its capacity as a facility
of an affiliated exchange (with the attendant obligations and
conditions) and to clarify the text of NYSE Amex Options Rule
993NY(b)(1)(B) to more accurately reflect the RSA between the Exchange
and FINRA.\3\
---------------------------------------------------------------------------

\3\ The change to the rule text to more accurately reflect the
RSA between the Exchange and FINRA is similar to language that
NASDAQ OMX BX, Inc. uses to describe its relationship with FINRA.
See Securities Exchange Act Release No. 64896 (July 15, 2011), 76 FR
43740 (July 21, 2011) (SR-BX-2011-045).
---------------------------------------------------------------------------

Currently, Arca Securities is an approved outbound routing facility
of the Exchange, providing outbound routing from the Exchange to other
market centers.\4\ The Exchange also has been previously approved to
receive inbound routes of orders by Arca Securities in its capacity as
an order routing facility of an affiliated exchange on a pilot basis
until September 30, 2011.\5\ On June 16, 2011, the Exchange filed an
immediate effective proposal that codified the inbound routing
authority in NYSE Amex Options Rule 993NY(b).\6\ The Exchange hereby
seeks permanent approval to permit the Exchange to accept inbound
orders that Arca Securities routes in its capacity as a facility of an
affiliated exchange.
---------------------------------------------------------------------------

\4\ See NYSE Amex Options Rules 900.2NY(69) and 993NY(a).
\5\ See NYSE Amex Options Rule 993NY(b); see also Securities
Exchange Act Release No. 64732 (June 23, 2011) 76 FR 38240 (June 29,
2011) (SR-NYSEAmex-2011-40).
\6\ See SR-NYSEAmex-2011-40, supra note 5.
---------------------------------------------------------------------------

Under the pilot, the Exchange is committed to the following
obligations and conditions:
The Exchange will maintain an agreement pursuant to Rule
17d-2 under the Exchange Act with FINRA to relieve the Exchange of
regulatory responsibilities for Arca Securities with respect to rules
that are common rules between the Exchange and FINRA, and maintain an
RSA with FINRA to perform regulatory responsibilities for Arca
Securities for unique Exchange rules.
The RSA will require the Exchange to provide FINRA with
information, in an easily accessible manner, regarding all exception
reports, alerts, complaints, trading errors, cancellations,
investigations, and enforcement matters (collectively ``Exceptions'')
in which Arca Securities is identified as a participant that has
potentially violated Exchange or SEC Rules and of which the Exchange
becomes aware, and shall require that FINRA provide a report, at least
quarterly, to the Exchange quantifying all Exceptions in which Arca
Securities is identified as a participant that has potentially violated
Exchange or SEC Rules.\7\
---------------------------------------------------------------------------

\7\ As noted below, the Exchange proposes to change this
provision to more accurately reflect the RSA with FINRA.

The Exchange, on behalf of its parent, NYSE Euronext, will
establish and maintain procedures and internal controls reasonably
designed to prevent Arca Securities from receiving any benefit, taking
any action or engaging in any activity based on non-public information
regarding planned changes to Exchange systems, obtained as a result of
its affiliation with the Exchange, until such information is available
generally to similarly situated ATP Holders of the Exchange in
connection with the provision of inbound order routing to the Exchange.
The Exchange may furnish to Arca Securities the same
information on the same terms that the Exchange makes available in the
normal course of business to any other ATP Holder.\8\
---------------------------------------------------------------------------

\8\ See SR-NYSEAmex-2011-40, supra note 5, and NYSE Amex Options
Rule 993NY(b)(1)(D).
---------------------------------------------------------------------------

The Exchange is in compliance with the above-listed obligations and
conditions. In meeting them, the Exchange has set up mechanisms that
protect the independence of the Exchange's regulatory responsibility
with respect to Arca Securities, as well as demonstrate that Arca
Securities cannot use any information it may have because of its
affiliation with the Exchange to its advantage. Since the Exchange has
met all the above-listed obligations and conditions, it now seeks
permanent approval of the Exchange and Arca Securities' inbound routing
relationship. The Exchange also proposes to clarify the text of NYSE
Amex Options Rule 993NY(b)(1)(B) to more accurately reflect the RSA
between the Exchange and FINRA and specify that the quarterly report of
Exceptions shall be provided to the Exchange's Chief Regulatory
Officer. Upon approval of the proposed rule change, the Exchange will
continue to comply with the obligations and conditions as set forth in
proposed NYSE Amex Options Rule 993NY(b)(1).
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \9\ of the
Act, in general, and furthers the objectives of Section 6(b)(5),\10\ in
particular, in that the proposal 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 regulating, clearing, settling, processing
information with respect to, and 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. Specifically, the proposed
rule change will allow the Exchange to continue receiving inbound
routes of orders from Arca Securities, acting in its capacity as a
facility of an affiliated exchange, in a manner consistent with prior
approvals and established protections. The Exchange believes that
meeting the

[[Page 53518]]

commitments established during the pilot program demonstrates that the
Exchange has mechanisms that protect the independence of the Exchange's
regulatory responsibility with respect to Arca Securities, as well as
demonstrate that Arca Securities cannot use any information it may have
because of its affiliation with the Exchange to its advantage.
---------------------------------------------------------------------------

\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

No written comments were solicited or received with respect to the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

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.

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEAmex-2011-64 on the subject line.

Paper Comments

Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAmex-2011-64. 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
publicly available. All submissions should refer to File Number SR-
NYSEAmex-2011-64 and should be submitted on or before September 16,
2011.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-21870 Filed 8-25-11; 8:45 am]
BILLING CODE 8011-01-P

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