Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of Proposed Rule Change Amending NYSE Amex Equities Rule 17(c)(2)(B) 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 NYSE Amex Equities Rule 17(c)(2)(A)(ii) To More Accurately Reflect the Regulatory Services Agreement Between the Exchange and the Financial Industry Regulatory Authority, 53511-53513 [2011-21873]
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Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
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–2011–61 on the
subject line.
Paper Comments
emcdonald on DSK2BSOYB1PROD with NOTICES
• 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–2011–61. 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–
NYSEArca–2011–61 and should be
submitted on or before September 16,
2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–21874 Filed 8–25–11; 8:45 am]
[Release No. 34–65184; File No. SR–
NYSEAmex–2011–63]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing of
Proposed Rule Change Amending
NYSE Amex Equities Rule 17(c)(2)(B)
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 NYSE
Amex Equities Rule 17(c)(2)(A)(ii) To
More Accurately Reflect the Regulatory
Services Agreement Between the
Exchange and the Financial Industry
Regulatory Authority
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Amex Equities Rule 17(c)(2)(B) 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 affiliated exchanges (with
the attendant obligations and
conditions) and to clarify the text of
NYSE Amex Equities Rule 17(c)(2)(A)(ii)
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.
1 15
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
19:37 Aug 25, 2011
2 17
Jkt 223001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00115
Fmt 4703
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
August 22, 2011.
BILLING CODE P
12 17
53511
Sfmt 4703
The Exchange proposes to amend
NYSE Amex Equities Rule 17(c)(2)(B) 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 affiliated
exchanges (with the attendant
obligations and conditions) and to
clarify the text of NYSE Amex Equities
Rule 17(c)(2)(A)(ii) to more accurately
reflect the RSA between the Exchange
and FINRA.3
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 affiliated exchanges
on a pilot basis until September 30,
2011.5 On February 24, 2011, the
Exchange filed an immediately effective
proposal to extend the current pilot
program until September 30, 2011.6 On
June 16, 2011, the Exchange filed an
immediate effective proposal that
codified the inbound routing authority
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).
4 See NYSE Amex Equities Rules 13 and 17(c)(1).
5 See NYSE Amex Equities Rule 17(c)(2); see also
Securities Exchange Act Release No. 64728 (June
23, 2011) 76 FR 38223 nn. 4–7 (June 29, 2011) (SR–
NYSEAmex–2011–39) (listing prior approval orders
for outbound and inbound pilots).
6 See Securities Exchange Act Release No. 64014
(March 2, 2011), 76 FR 12773 (March 8, 2011) (SR–
NYSEAmex–2011–10) (extending pilot from March
31, 2011 to September 30, 2011).
E:\FR\FM\26AUN1.SGM
26AUN1
emcdonald on DSK2BSOYB1PROD with NOTICES
53512
Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Notices
in NYSE Amex Equities Rule 17(c)(2).7
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 affiliated exchanges.
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.8
• 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
member organizations 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 member
organization.9
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
7 See
SR–NYSEAmex–2011–39, supra note 5.
noted below, the Exchange proposes to
change this provision to more accurately reflect the
RSA with FINRA.
9 See SR–NYSEAmex–2011–39, supra note 5, and
NYSE Amex Equities Rule 17(c)(2)(A)(iv).
8 As
VerDate Mar<15>2010
19:37 Aug 25, 2011
Jkt 223001
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 Equities Rule 17(c)(2)(A)(ii) 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 Equities
Rule 17(c)(2)(A).
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 10 of the
Act, in general, and furthers the
objectives of Section 6(b)(5),11 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
affiliated exchanges, 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
10 15
11 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00116
Fmt 4703
Sfmt 4703
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 rulecomments@sec.gov. Please include File
Number SR–NYSEAmex–2011–63 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-2011–63. 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
E:\FR\FM\26AUN1.SGM
26AUN1
Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Notices
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-2011–63 and should be
submitted on or beforeSeptember 16,
2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–21873 Filed 8–25–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65183; File No. SR–NYSE–
2011–45]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change
Amending NYSE Rule 17(c)(2)(B) 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 Rule 17(c)(2)(A)(ii) To More
Accurately Reflect the Regulatory
Services Agreement Between the
Exchange and the Financial Industry
Regulatory Authority
emcdonald on DSK2BSOYB1PROD with NOTICES
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, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
19:37 Aug 25, 2011
Jkt 223001
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Rule 17(c)(2)(B) 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 affiliated exchanges (with
the attendant obligations and
conditions) and to clarify the text of
NYSE Rule 17(c)(2)(A)(ii) 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 Rule 17(c)(2)(B) 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 affiliated
exchanges (with the attendant
obligations and conditions) and to
clarify the text of NYSE Rule
17(c)(2)(A)(ii) to more accurately reflect
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
53513
the RSA between the Exchange and
FINRA.3
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 affiliated exchanges
on a pilot basis.5 On February 24, 2011,
the Exchange filed an immediately
effective proposal to extend the current
pilot program until September 30,
2011.6 On June 16, 2011, the Exchange
filed an immediate effective proposal
that codified the inbound routing
authority in NYSE Rule 17(c)(2).7 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 affiliated exchanges.
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
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).
4 See NYSE Rules 13 and 17(c)(1).
5 See NYSE Rule 17(c)(2); see also Securities
Exchange Act Release No. 64729 (June 23, 2011) 76
FR 38232, 38233 nn. 4–9 (June 29, 2011) (SR–
NYSE–2011–24) (listing prior approval orders for
outbound and inbound pilots).
6 See Securities Exchange Act Release No. 64013
(March 2, 2011), 76 FR 12774 (March 8, 2011) (SR–
NYSE–2011–08) (extending pilot from March 31,
2011 to September 30, 2011).
7 See SR–NYSE–2011–24, supra note 5.
E:\FR\FM\26AUN1.SGM
26AUN1
]]>Agencies
[Federal Register Volume 76, Number 166 (Friday, August 26, 2011)]
[Notices]
[Pages 53511-53513]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-21873]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65184; File No. SR-NYSEAmex-2011-63]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of
Proposed Rule Change Amending NYSE Amex Equities Rule 17(c)(2)(B) 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 NYSE Amex
Equities Rule 17(c)(2)(A)(ii) 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Amex Equities Rule 17(c)(2)(B)
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 affiliated exchanges
(with the attendant obligations and conditions) and to clarify the text
of NYSE Amex Equities Rule 17(c)(2)(A)(ii) 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 Equities Rule 17(c)(2)(B)
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 affiliated exchanges (with the attendant obligations and conditions)
and to clarify the text of NYSE Amex Equities Rule 17(c)(2)(A)(ii) 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 affiliated exchanges on a pilot basis
until September 30, 2011.\5\ On February 24, 2011, the Exchange filed
an immediately effective proposal to extend the current pilot program
until September 30, 2011.\6\ On June 16, 2011, the Exchange filed an
immediate effective proposal that codified the inbound routing
authority
[[Page 53512]]
in NYSE Amex Equities Rule 17(c)(2).\7\ 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 affiliated
exchanges.
---------------------------------------------------------------------------
\4\ See NYSE Amex Equities Rules 13 and 17(c)(1).
\5\ See NYSE Amex Equities Rule 17(c)(2); see also Securities
Exchange Act Release No. 64728 (June 23, 2011) 76 FR 38223 nn. 4-7
(June 29, 2011) (SR-NYSEAmex-2011-39) (listing prior approval orders
for outbound and inbound pilots).
\6\ See Securities Exchange Act Release No. 64014 (March 2,
2011), 76 FR 12773 (March 8, 2011) (SR-NYSEAmex-2011-10) (extending
pilot from March 31, 2011 to September 30, 2011).
\7\ See SR-NYSEAmex-2011-39, 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.\8\
---------------------------------------------------------------------------
\8\ 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 member organizations 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 member organization.\9\
---------------------------------------------------------------------------
\9\ See SR-NYSEAmex-2011-39, supra note 5, and NYSE Amex
Equities Rule 17(c)(2)(A)(iv).
---------------------------------------------------------------------------
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 Equities Rule 17(c)(2)(A)(ii) 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 Equities Rule 17(c)(2)(A).
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \10\ of
the Act, in general, and furthers the objectives of Section
6(b)(5),\11\ 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 affiliated exchanges, 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.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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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-2011-63 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-2011-63. 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
[[Page 53513]]
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-2011-63 and should be submitted
on or before September 16, 2011.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-21873 Filed 8-25-11; 8:45 am]
BILLING CODE 8011-01-P
