Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Deleting NYSE Arca Equities Rule 7.31(w)(1) to Remove the PNP Plus Order Type, 313-315 [2011-33715]
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Federal Register / Vol. 77, No. 2 / Wednesday, January 4, 2012 / Notices
While this situation was adequately
addressed under the current rule
structure, the Exchange is concerned
that there may be situations in which
the CRO may be unavailable to issue the
suspension order if NSCC signals its
intention to cease to act for a CHX
Participant. This concern is particularly
true if the Qualified Clearing Agency
were to cease to act on an intraday
basis.5 The Exchange therefore proposes
that any Officer of the Exchange
designated by the CRO may suspend the
trading privileges on the Exchange of a
Participant in the limited circumstance
in which a Qualified Clearing Agency
refuses to act to clear and settle the
trades of that Participant. The proposal
requires that the CRO approve this
action within two (2) days. Any such
suspensions of trading privileges would
be otherwise governed by the provisions
of Rule 2.
The Exchange also proposes to
eliminate a reference to the Chief
Executive Officer in Section (c) of Rule
2 and replace it with a reference to the
CRO regarding appeals of suspensions
under Rule 2. Before it was amended in
2006, emergency suspensions were
authorized by the Chief Executive
Officer.6 The Exchange believes that the
continued reference to the Chief
Executive Officer in Rule 2(c) represents
a simple oversight in the 2006
amendments and seeks to correct it as
part of this proposal.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act in general,7 and
furthers the objectives of Section 6(b)(5)
in particular,8 in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transaction in securities, to
remove impediments and perfect the
mechanisms of a free and open market,
and, in general, to protect investors and
the public interest by allowing CHX to
amend its rules to permit any Officer of
the Exchange designated by the Chief
Regulatory Officer to suspend the
trading privileges of a Participant on the
Exchange’s facilities if a Qualified
Clearing Agency refuses to act to clear
and settle the trades of that Participant.
The Exchange believes that this measure
serves the public interest by giving the
CHX more flexibility to prevent the
execution of trades on our facilities
which could not ultimately be cleared
and settled if the Qualified Clearing
Agency refuses to act.
B. Self-Regulatory Organization’s
Statement of 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 Regarding the
Proposed Rule Changes Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Changes 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
such 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:
313
subject line if email 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 the filing
also will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CHX–
2011–34 and should be submitted on or
before January 25, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Elizabeth M Murphy,
Secretary.
[FR Doc. 2011–33714 Filed 1–3–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66062; File No. SR–
NYSEArca–2011–98]
Electronic Comments
wreier-aviles on DSK3TPTVN1PROD with NOTICES
NSCC has normally ceased to act
for one of its Participants only after the close of
trading. The Exchange understands, however, that
NSCC reserves the right to act on an intraday basis
if necessary and appropriate.
6 See Securities Exchange Act Release No. 54437
(Sept. 13, 2006), 71 FR 55037 (Sept. 20, 2006) (SR–
CHX–2005–06).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
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Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Deleting NYSE Arca
Equities Rule 7.31(w)(1) to Remove the
PNP Plus Order Type
Paper Comments
5 Historically,
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–CHX–2011–34 on the
subject line.
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 December
21, 2011, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
• 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–CHX–2011–34. This file
number should be included on the
PO 00000
Frm 00054
Fmt 4703
Sfmt 4703
December 28, 2011.
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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314
Federal Register / Vol. 77, No. 2 / Wednesday, January 4, 2012 / Notices
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 delete
NYSE Arca Equities Rule 7.31(w)(1) to
remove the PNP Plus Order type. The
text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room,
and 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.
wreier-aviles on DSK3TPTVN1PROD with NOTICES
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 delete
NYSE Arca Equities Rule 7.31(w)(1) to
remove the PNP (Post No Preference)
Plus order type.
By its terms, a PNP Order is a limit
order to buy or sell that is to be
executed in whole or in part on the
Exchange, and the portion that is not
executed is ranked on the Exchange’s
order book without routing any portion
of the order to another market center.3
Pursuant to NYSE Arca Equities Rule
7.31(w)(1), for any portion of a PNP
Order designated as a PNP Plus Order
that remains unexecuted and would
otherwise lock or cross the best
protected bid or offer (‘‘PBBO’’),
Exchange systems would automatically
re-price the PNP Plus Order to a penny
better than the Best Protected Bid (for
sell orders) or a penny lower than the
Best Protected Offer (for buy orders).
Exchange systems would continue to reprice a PNP Plus Order with each
3 See
NYSE Arca Equities Rule 7.31(w).
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change of the PBBO until such time that
the PBBO has moved to a price where
the original price of the PNP Plus Order
would no longer result in a locked or
crossed market, at which time the PNP
Plus Order would revert to the original
price of the order.
The Exchange proposes to delete Rule
7.31(w)(1) and all references to the PNP
Plus Order type. The rule was adopted,
in part, to provide ETP Holders with an
additional processing capability for PNP
Orders.4 However, since it was adopted,
the PNP Plus Order type has not been
used by ETP Holders. In addition, the
functionality associated with PNP Plus
Orders causes system instability, and as
a result, the system functionality has not
been operable.
In reviewing this system
functionality, the Exchange has also
identified that the operation of the PNP
Plus Order may conflict with the
proposed Plan pursuant to Rule 608 of
Regulation NMS to Address
Extraordinary Market Volatility (the
‘‘Limit Up-Limit Down Plan’’ or
‘‘Plan’’), which the equities exchanges
and the Financial Industry Regulatory
Authority, Inc., filed with the Securities
and Exchange Commission in April
2011.5 The Limit Up-Limit Down Plan
is designed to prevent trades from
occurring outside of specified price
bands. The Exchange believes that if the
best protected bid (offer) is below
(above) the Lower (Upper) Price Band,
as defined in the Plan, the automatic repricing of PNP Plus Orders may result
in an offer (bid) being repriced either at
the Lower (Upper) Price Band,
potentially causing the market to enter
a Limit State, as defined in the Plan, or
below (above) the Lower (Upper) Price
Band, in violation of the Plan.
Accordingly, as part of the Exchange’s
system development efforts for the Limit
Up-Limit Down Plan, the Exchange has
determined to remove the PNP Plus
Order functionality.
2. Statutory Basis
The statutory basis for the proposed
rule change is Section 6(b)(5) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),6 which requires the rules of an
exchange to promote just and equitable
principles of trade, 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
4 See Securities Exchange Act Release No.49942
(June 29, 2004), 69 FR 41005 (July 7, 2004)
(SR–PCX–2004–12).
5 See Securities Exchange Act Release No. 64547
(May 25, 2011), 76 FR 31647 (June 1, 2011) (File
No. 4–631).
6 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00055
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Sfmt 4703
public interest. The proposed rule
change also is designed to support the
principles of Section 11A(a)(1) 7 of the
Act in that it seeks to assure fair
competition among brokers and dealers
and among exchange markets. The
Exchange believes that the proposed
rule change will perfect the mechanism
of a free and open market because it
removes an order type that is not used
by ETP Holders and that causes system
function instability. In addition, the
Exchange believes it is appropriate and
desireable to remove the PNP Plus
Order type because it would further the
Exchange’s system development effort
in support of the proposed Limit UpLimit Down Plan. By eliminating this
order type and the system functionality
that supports it, the Exchange will be
better positioned to meet the target
implementation date for the Plan, and
assure that the Exchange’s systems will
operate in a manner that effectively and
efficiently implements the Limit UpLimit-Down Rule. As such, this
proposed rule change furthers the goal
of a free and open market and national
market system.
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and Rule
19b–4(f)(6) thereunder.9 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
7 15
U.S.C. 78k–1(a)(1).
U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(6).
8 15
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Federal Register / Vol. 77, No. 2 / Wednesday, January 4, 2012 / Notices
of the Act 10 and Rule 19b–4(f)(6) 11
thereunder.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or 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
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 the filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2011–98 and should be
submitted on or before January 25, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2011–98 on the
subject line.
[FR Doc. 2011–33715 Filed 1–3–12; 8:45 am]
Paper Comments
[Release No. 34–66063; File No. SR–DTC–
2011–13]
wreier-aviles on DSK3TPTVN1PROD 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–2011–98. This
file number should be included on the
subject line if email 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
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule
19b–4(f)(6) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change at least five business
days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
11 17
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Revise Fees
for Equity and Debt Derivatives
December 28, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–42 thereunder,
notice is hereby given that on December
15, 2011, The Depository Trust
Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II,
which Items have been prepared
primarily by DTC. DTC filed the
proposed rule change pursuant to
Section 19(b)(3)(A)(ii) of the Act and
Rule 19b–4(f)(2) thereunder so that the
proposed rule change was effective
upon filing with the Commission.3 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii) and 17 CFR 240.19b–
4(f)(2).
1 15
PO 00000
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315
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change would
revise fees for equity and debt
derivatives.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
DTC included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. DTC has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.4
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
There are certain types of equity and
debt derivatives, as they are classified at
DTC, that represent debt of an issuer
whose coupon and yield are derived
from the performance of an underlying
stock, basket of stock, commodity or
other index. Due to the unique nature of
equity and debt derivatives, as opposed
to the typical common stock or
corporate bond (which are considered
‘‘Basic’’ at DTC), DTC currently assesses
Participants a ‘‘Complex Eligibility Fee’’
as part of the DTC eligibility process.5
As more fully described below, the
purpose of this rule change is to provide
a reduction in the complex eligibility
processing fee on equity and debt
derivatives based on volume.
Recent demand has changed the
dynamics of the market for equity and
debt derivatives. The asset servicing setup is becoming more standardized as
issuers are limiting the corporate action
variations in order to realize operational
efficiencies through economies of scale.
For example, some issuers are choosing
two or three basic payment structures
with similar call features for all the
equity or debt derivatives they issue.
The ability to issue these products
under a ‘‘program-like’’ structure has
created a variation of a debt and equity
derivative that requires an eligibility
review more similar to that of products
currently considered ‘‘Basic’’ at DTC.
4 The Commission has modified the text of the
summaries prepared by DTC.
5 DTC’s eligibility process typically involves a
legal review of registration exemptions and
evaluation of asset servicing requirements that are
not standardized.
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]]>Agencies
[Federal Register Volume 77, Number 2 (Wednesday, January 4, 2012)]
[Notices]
[Pages 313-315]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-33715]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66062; File No. SR-NYSEArca-2011-98]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Deleting NYSE Arca
Equities Rule 7.31(w)(1) to Remove the PNP Plus Order Type
December 28, 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 December 21, 2011, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') filed with
[[Page 314]]
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 delete NYSE Arca Equities Rule 7.31(w)(1)
to remove the PNP Plus Order type. The text of the proposed rule change
is available at the Exchange, the Commission's Public Reference Room,
and 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 delete NYSE Arca Equities Rule 7.31(w)(1)
to remove the PNP (Post No Preference) Plus order type.
By its terms, a PNP Order is a limit order to buy or sell that is
to be executed in whole or in part on the Exchange, and the portion
that is not executed is ranked on the Exchange's order book without
routing any portion of the order to another market center.\3\ Pursuant
to NYSE Arca Equities Rule 7.31(w)(1), for any portion of a PNP Order
designated as a PNP Plus Order that remains unexecuted and would
otherwise lock or cross the best protected bid or offer (``PBBO''),
Exchange systems would automatically re-price the PNP Plus Order to a
penny better than the Best Protected Bid (for sell orders) or a penny
lower than the Best Protected Offer (for buy orders). Exchange systems
would continue to re-price a PNP Plus Order with each change of the
PBBO until such time that the PBBO has moved to a price where the
original price of the PNP Plus Order would no longer result in a locked
or crossed market, at which time the PNP Plus Order would revert to the
original price of the order.
---------------------------------------------------------------------------
\3\ See NYSE Arca Equities Rule 7.31(w).
---------------------------------------------------------------------------
The Exchange proposes to delete Rule 7.31(w)(1) and all references
to the PNP Plus Order type. The rule was adopted, in part, to provide
ETP Holders with an additional processing capability for PNP Orders.\4\
However, since it was adopted, the PNP Plus Order type has not been
used by ETP Holders. In addition, the functionality associated with PNP
Plus Orders causes system instability, and as a result, the system
functionality has not been operable.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No.49942 (June 29,
2004), 69 FR 41005 (July 7, 2004) (SR-PCX-2004-12).
---------------------------------------------------------------------------
In reviewing this system functionality, the Exchange has also
identified that the operation of the PNP Plus Order may conflict with
the proposed Plan pursuant to Rule 608 of Regulation NMS to Address
Extraordinary Market Volatility (the ``Limit Up-Limit Down Plan'' or
``Plan''), which the equities exchanges and the Financial Industry
Regulatory Authority, Inc., filed with the Securities and Exchange
Commission in April 2011.\5\ The Limit Up-Limit Down Plan is designed
to prevent trades from occurring outside of specified price bands. The
Exchange believes that if the best protected bid (offer) is below
(above) the Lower (Upper) Price Band, as defined in the Plan, the
automatic re-pricing of PNP Plus Orders may result in an offer (bid)
being repriced either at the Lower (Upper) Price Band, potentially
causing the market to enter a Limit State, as defined in the Plan, or
below (above) the Lower (Upper) Price Band, in violation of the Plan.
Accordingly, as part of the Exchange's system development efforts for
the Limit Up-Limit Down Plan, the Exchange has determined to remove the
PNP Plus Order functionality.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 64547 (May 25,
2011), 76 FR 31647 (June 1, 2011) (File No. 4-631).
---------------------------------------------------------------------------
2. Statutory Basis
The statutory basis for the proposed rule change is Section 6(b)(5)
of the Securities Exchange Act of 1934 (the ``Act''),\6\ which requires
the rules of an exchange to promote just and equitable principles of
trade, 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. The proposed rule change also is
designed to support the principles of Section 11A(a)(1) \7\ of the Act
in that it seeks to assure fair competition among brokers and dealers
and among exchange markets. The Exchange believes that the proposed
rule change will perfect the mechanism of a free and open market
because it removes an order type that is not used by ETP Holders and
that causes system function instability. In addition, the Exchange
believes it is appropriate and desireable to remove the PNP Plus Order
type because it would further the Exchange's system development effort
in support of the proposed Limit Up-Limit Down Plan. By eliminating
this order type and the system functionality that supports it, the
Exchange will be better positioned to meet the target implementation
date for the Plan, and assure that the Exchange's systems will operate
in a manner that effectively and efficiently implements the Limit Up-
Limit-Down Rule. As such, this proposed rule change furthers the goal
of a free and open market and national market system.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(5).
\7\ 15 U.S.C. 78k-1(a)(1).
---------------------------------------------------------------------------
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
[[Page 315]]
of the Act \10\ and Rule 19b-4(f)(6) \11\ thereunder.
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or 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 email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2011-98 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-2011-98. This
file number should be included on the subject line if email 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 the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2011-98 and should
be submitted on or before January 25, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-33715 Filed 1-3-12; 8:45 am]
BILLING CODE 8011-01-P
