Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Implementation Date of the NYSE Arca Equities Rule 7400 Series, the Order Audit Trail System Rules, for Equity Trading Permit Holders That Are Not Financial Industry Regulatory Authority Members to March 31, 2012, 1545-1546 [2012-181]

Download as PDF Federal Register / Vol. 77, No. 6 / Tuesday, January 10, 2012 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION [Release No. 34–66094; File No. SR– NYSEARCA–2011–103] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Implementation Date of the NYSE Arca Equities Rule 7400 Series, the Order Audit Trail System Rules, for Equity Trading Permit Holders That Are Not Financial Industry Regulatory Authority Members to March 31, 2012 January 4, 2012. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on December 30, 2011, NYSE Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. mstockstill on DSK4VPTVN1PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to extend the implementation date of the NYSE Arca Equities Rule 7400 Series, the Order Audit Trail System (‘‘OATS’’) Rules, for Equity Trading Permit (‘‘ETP’’) Holders that are not Financial Industry Regulatory Authority (‘‘FINRA’’) members from January 31, 2012 to March 31, 2012. 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. 1 15 U.S.C.78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 VerDate Mar<15>2010 18:28 Jan 09, 2012 Jkt 226001 1. Purpose The Exchange proposes to extend the implementation date of the OATS Rules for ETP Holders that are not FINRA members from January 31, 2012 to March 31, 2012. On October 12, 2011, NYSE Arca adopted the OATS Rules for ETP Holders that are dual members of NYSE Arca and FINRA (‘‘Dual Members’’) and ETP Holders that are not FINRA members (i.e., NYSE Arca proprietary firms) with implementation beginning on October 17, 2011 for Dual Members and on January 31, 2012 for non-FINRA members.4 Since that time, the Exchange has been advised by certain NYSE Arca proprietary firms that meeting the OATS record-keeping obligations requires significant technology resources. In particular, although it is an NYSE Arca Equities rule, it governs record-keeping for all National Market System (‘‘NMS’’) stocks that these firms trade, regardless of the venue. While these NYSE Arca proprietary firms have been working toward completing the technology changes required by the NYSE Arca OATS Rules, these firms have had, and continue to have, several competing regulatory technology changes to make, including complying with the Commission’s large trader reporting requirements,5 and until November 30, 2011, meeting the Commission’s market access rule technology requirements.6 Because these are NYSE Arca proprietary firms, the regulatory risk of extending the time to comply is low in that the extension should not impact any surveillances or reviews relating to customer trading. In addition, because the rules impose record-keeping requirements, extending the compliance date should not impact any ongoing FINRA surveillances. Finally, for these NYSE Arca proprietary firms, they already maintain records required by the rules in other formats, as required by Rules 17a–3 and 17a–4 under the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’). 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Exchange Act,7 in general, and furthers 4 See Securities Exchange Act Release No. 65544 (October 12, 2011), 76 FR 64406 (October 18, 2011) (SR–NYSEArca–2011–69). 5 17 CFR 240.13h–1. 6 17 CFR 240.15c3–5. 7 15 U.S.C. 78f(b). PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 1545 the objectives of Section 6(b)(5),8 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. Specifically, the Exchange believes that extending the implementation date of the OATS Rules for NYSE Arca proprietary firms will ensure that these firms have sufficient time to make the necessary changes to their systems to be able to comply with the new OATS recording and reporting requirements. 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 9 and Rule 19b–4(f)(6) thereunder.10 Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(6)(iii) thereunder. A proposed rule change filed under Rule 19b–4(f)(6) 11 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),12 the Commission may designate a shorter 8 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(3)(A)(iii). 10 17 CFR 240.19b–4(f)(6). 11 17 CFR 240.19b–4(f)(6). 12 17 CFR 240.19b–4(f)(6)(iii). 9 15 E:\FR\FM\10JAN1.SGM 10JAN1 1546 Federal Register / Vol. 77, No. 6 / Tuesday, January 10, 2012 / Notices time if such action is consistent with the protection of investors and the public interest. At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: mstockstill on DSK4VPTVN1PROD with NOTICES Electronic Comments • 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–2011–103 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–2011–103. 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 Section, 100 F Street, NE., Washington, DC 20549–1090 on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal VerDate Mar<15>2010 18:28 Jan 09, 2012 Jkt 226001 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–2011–103 and should be submitted on or before January 31, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–181 Filed 1–9–12; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #12978 and #12979] Percent Homeowners With Credit Available Elsewhere ...................... Homeowners Without Credit Available Elsewhere .............. Businesses With Credit Available Elsewhere ...................... Businesses Without Credit Available Elsewhere .............. Non-Profit Organizations With Credit Available Elsewhere ... Non-Profit Organizations Without Credit Available Elsewhere ..................................... For Economic Injury Businesses & Small Agricultural Cooperatives Without Credit Available Elsewhere: ............. Non-Profit Organizations Without Credit Available Elsewhere: .................................... 4.125 2.063 6.000 4.000 3.125 3.000 4.000 3.000 Georgia Disaster #GA–00038 U.S. Small Business Administration. ACTION: Notice. AGENCY: This is a notice of an Administrative declaration of a disaster for the State of Georgia dated 12/29/ 2011. Incident: Severe Storms Tornadoes. Incident Period: 12/22/2011. DATES: Effective Date: 12/29/2011. Physical Loan Application Deadline Date: 02/27/2012. Economic Injury (EIDL) Loan Application Deadline Date: 09/29/2012. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the Administrator’s disaster declaration, applications for disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Counties: Floyd. Contiguous Counties: Georgia: Bartow, Chattooga, Gordon, Polk, Walker. Alabama: Cherokee. The Interest Rates are: SUMMARY: Percent For Physical Damage 13 17 PO 00000 CFR 200.30–3(a)(12). Frm 00094 Fmt 4703 Sfmt 4703 The number assigned to this disaster for physical damage is 12978 C and for economic injury is 12979 0. The States which received an EIDL Declaration # are: Georgia and Alabama. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) Dated: December 29, 2011. Karen G. Mills, Administrator. [FR Doc. 2012–194 Filed 1–9–12; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #12815 and #12816] Texas Disaster Number TX–00381 U.S. Small Business Administration. ACTION: Amendment 9. AGENCY: This is an amendment of the Presidential declaration of a major disaster for the State of Texas (FEMA– 4029–DR), dated 09/09/2011. Incident: Wildfires. Incident Period: 08/30/2011 through 12/31/2011. Effective Date: 12/31/2011. Physical Loan Application Deadline Date: 01/06/2012. EIDL Loan Application Deadline Date: 06/06/2012. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: The notice of the President’s major disaster SUMMARY: E:\FR\FM\10JAN1.SGM 10JAN1

Agencies

[Federal Register Volume 77, Number 6 (Tuesday, January 10, 2012)]
[Notices]
[Pages 1545-1546]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-181]



[[Page 1545]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66094; File No. SR-NYSEARCA-2011-103]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Extending the 
Implementation Date of the NYSE Arca Equities Rule 7400 Series, the 
Order Audit Trail System Rules, for Equity Trading Permit Holders That 
Are Not Financial Industry Regulatory Authority Members to March 31, 
2012

January 4, 2012.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on December 30, 2011, NYSE Arca, Inc. (``Exchange'' or ``NYSE 
Arca'') 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 self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to extend the implementation date of the NYSE 
Arca Equities Rule 7400 Series, the Order Audit Trail System (``OATS'') 
Rules, for Equity Trading Permit (``ETP'') Holders that are not 
Financial Industry Regulatory Authority (``FINRA'') members from 
January 31, 2012 to March 31, 2012. 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 extend the implementation date of the OATS 
Rules for ETP Holders that are not FINRA members from January 31, 2012 
to March 31, 2012.
    On October 12, 2011, NYSE Arca adopted the OATS Rules for ETP 
Holders that are dual members of NYSE Arca and FINRA (``Dual Members'') 
and ETP Holders that are not FINRA members (i.e., NYSE Arca proprietary 
firms) with implementation beginning on October 17, 2011 for Dual 
Members and on January 31, 2012 for non-FINRA members.\4\ Since that 
time, the Exchange has been advised by certain NYSE Arca proprietary 
firms that meeting the OATS record-keeping obligations requires 
significant technology resources. In particular, although it is an NYSE 
Arca Equities rule, it governs record-keeping for all National Market 
System (``NMS'') stocks that these firms trade, regardless of the 
venue. While these NYSE Arca proprietary firms have been working toward 
completing the technology changes required by the NYSE Arca OATS Rules, 
these firms have had, and continue to have, several competing 
regulatory technology changes to make, including complying with the 
Commission's large trader reporting requirements,\5\ and until November 
30, 2011, meeting the Commission's market access rule technology 
requirements.\6\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 65544 (October 12, 
2011), 76 FR 64406 (October 18, 2011) (SR-NYSEArca-2011-69).
    \5\ 17 CFR 240.13h-1.
    \6\ 17 CFR 240.15c3-5.
---------------------------------------------------------------------------

    Because these are NYSE Arca proprietary firms, the regulatory risk 
of extending the time to comply is low in that the extension should not 
impact any surveillances or reviews relating to customer trading. In 
addition, because the rules impose record-keeping requirements, 
extending the compliance date should not impact any ongoing FINRA 
surveillances. Finally, for these NYSE Arca proprietary firms, they 
already maintain records required by the rules in other formats, as 
required by Rules 17a-3 and 17a-4 under the Securities Exchange Act of 
1934 (the ``Exchange Act'').
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Exchange Act,\7\ in general, and furthers the objectives of Section 
6(b)(5),\8\ in particular, in that it is designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. Specifically, the Exchange 
believes that extending the implementation date of the OATS Rules for 
NYSE Arca proprietary firms will ensure that these firms have 
sufficient time to make the necessary changes to their systems to be 
able to comply with the new OATS recording and reporting requirements.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

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

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

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

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 \9\ and Rule 19b-4(f)(6) thereunder.\10\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission 
may designate a shorter

[[Page 1546]]

time if such action is consistent with the protection of investors and 
the public interest.
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NYSEARCA-2011-103 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-2011-103. 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 Section, 100 F Street, 
NE., Washington, DC 20549-1090 on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Exchange. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
NYSEARCA-2011-103 and should be submitted on or before January 31, 
2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-181 Filed 1-9-12; 8:45 am]
BILLING CODE 8011-01-P
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