Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Rule 7.10, Which Governs Clearly Erroneous Executions, To Extend the Effective Date of the Pilot by Which Portions of Such Rule Operate Until July 31, 2012, 2590-2592 [2012-775]
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<![CDATA[
2590
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices
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.11
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 rulecomments@sec.gov. Please include File
No. SR–NYSE–2011–69 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 No.
SR–NYSE–2011–69. This file number
should be included on the subject line
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6). Pursuant to Rule 19b–
4(f)(6)(iii) under the Act, the Exchange is required
to give the Commission written notice of its intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
tkelley on DSK3SPTVN1PROD with NOTICES
10 17
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16:07 Jan 17, 2012
Jkt 226001
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 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
available publicly. All submissions
should refer to File No. SR–NYSE–
2011–69 and should be submitted on or
before February 8, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–776 Filed 1–17–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66135; File No. SR–
NYSEArca–2011–100]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Arca
Rule 7.10, Which Governs Clearly
Erroneous Executions, To Extend the
Effective Date of the Pilot by Which
Portions of Such Rule Operate Until
July 31, 2012
January 11, 2012.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
12 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
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notice is hereby given that, on December
28, 2011, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Rule 7.10, which governs
clearly erroneous executions, to extend
the effective date of the pilot by which
portions of such Rule operate until July
31, 2012. The pilot is currently
scheduled to expire on January 31,
2012. The text of the proposed rule
change is available at the Exchange, the
Commission’s Public Reference Room,
www.nyse.com, and 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NYSE Arca Equities Rule 7.10, which
governs clearly erroneous executions, to
extend the effective date of the pilot by
which portions of such Rule operate,
until July 31, 2012. The pilot is
currently scheduled to expire on
January 31, 2012.4
On September 10, 2010, the
Commission approved, on a pilot basis,
4 See Securities Exchange Act Release No. 62886
(September 10, 2010), 75 FR 56613 (September 16,
2010) (SR–NYSEArca–2010–58). See also Securities
Exchange Act Release Nos. 63482 (December 9,
2010), 75 FR 78331 (December 15, 2010) (SR–
NYSEArca-2010–113); 64234 (April 7, 2011), 76 FR
20399 (April 12, 2011) (SR–NYSEArca–2011–15);
and 65065 (August 9, 2011), 76 FR 50502 (August
15, 2011) (SR–NYSEArca–2011–56).
E:\FR\FM\18JAN1.SGM
18JAN1
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices
market-wide amendments to exchanges’
rules for clearly erroneous executions to
set forth clearer standards and curtail
discretion with respect to breaking
erroneous trades. In connection with
this pilot initiative, the Exchange
amended NYSE Arca Equities Rule
7.10(c), (e)(2), (f), and (g). The
amendments provide for uniform
treatment of clearly erroneous execution
reviews (1) in Multi-Stock Events 5
involving twenty or more securities, and
(2) in the event transactions occur that
result in the issuance of an individual
security trading pause by the primary
market and subsequent transactions that
occur before the trading pause is in
effect on the Exchange.6 The
amendments also eliminated appeals of
certain rulings made in conjunction
with other exchanges with respect to
clearly erroneous transactions and
limited the Exchange’s discretion to
deviate from Numerical Guidelines set
forth in the Rule in the event of system
disruptions or malfunctions.
If the pilot were not extended, the
prior versions of paragraphs (c), (e)(2),
(f), and (g) of NYSE Arca Equities Rule
7.10 would be in effect, and NYSE Arca
would have different rules than other
exchanges and greater discretion in
connection with breaking clearly
erroneous transactions. The Exchange
proposes to extend the pilot
amendments to NYSE Arca Equities
Rule 7.10 until July 31, 2012 in order to
maintain uniform rules across markets
and allow the pilot to continue to
operate without interruption during the
same period that the Rule 7.11 trading
pause rule pilot is also in effect.
Extension of the pilot would permit the
Exchange, other national securities
exchanges and the Commission to
further assess the effect of the pilot on
the marketplace, including whether
additional measures should be added,
whether the parameters of the rule
should be modified or whether other
initiatives should be adopted in lieu of
the current pilot.
2. Statutory Basis
tkelley on DSK3SPTVN1PROD with NOTICES
The proposed rule change is
consistent with Section 6(b) 7 of the Act,
in general, and furthers the objectives of
5 Terms not defined herein are defined in NYSE
Arca Equities Rule 7.10.
6 Separately, the Exchange has proposed
extending the effective date of the trading pause
pilot under NYSE Arca Equities Rule 7.11, which
requires to the Exchange to pause trading in an
individual security listed on the Exchange if the
price moves by a specified percentage as compared
to prices of that security in the preceding fiveminute period during a trading day. See SR–
NYSEArca–2011–99.
7 15 U.S.C. 78f(b).
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16:07 Jan 17, 2012
Jkt 226001
Section 6(b)(5) 8 in particular in that it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. More specifically, the
NYSE Arca believes that the extension
of the pilot would help assure that the
determination of whether a clearly
erroneous trade has occurred will be
based on clear and objective criteria,
and that the resolution of the incident
will occur promptly through a
transparent process. The proposed rule
change would also help assure
consistent results in handling erroneous
trades across the U.S. markets, thus
furthering fair and orderly markets, the
protection of investors and the public
interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
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.11
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). Pursuant to Rule 19b–
4(f)(6)(iii) under the Act, the Exchange is required
9 15
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Sfmt 4703
2591
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 rulecomments@sec.gov. Please include File
No. SR–NYSEArca–2011–100 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 No.
SR–NYSEArca-2011–100. 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 such filing
also will be available for inspection and
to give the Commission written notice of its intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
E:\FR\FM\18JAN1.SGM
18JAN1
2592
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices
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 No. SR–NYSEArca–
2011–100 and should be submitted on
or before February 8, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–775 Filed 1–17–12; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–66134; File No. SR–NYSE–
2011–68]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Amending
NYSE Rule 80C, Which Provides for
Trading Pauses in Individual Securities
Due to Extraordinary Market Volatility,
To Extend the Effective Date of the
Pilot Until July 31, 2012
January 11, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
28, 2011, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
tkelley on DSK3SPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Rule 80C, which provides for
trading pauses in individual securities
due to extraordinary market volatility,
to extend the effective date of the pilot
by which such rule operates from the
current scheduled expiration date of
January 31, 2012, until July 31, 2012.
The text of the proposed rule change is
available at the Exchange, the
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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16:07 Jan 17, 2012
Jkt 226001
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
Exchange 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. 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
SECURITIES AND EXCHANGE
COMMISSION
12 17
Commission’s Public Reference Room,
and www.nyse.com.
1. Purpose
The Exchange proposes to amend
NYSE Rule 80C, which provides for
trading pauses in individual securities
due to extraordinary market volatility,
to extend the effective date of the pilot
by which such rule operates from the
current scheduled expiration date of
January 31, 2012,3 until July 31, 2012.
NYSE Rule 80C requires the Exchange
to pause trading in an individual
security listed on the Exchange if the
price moves by a specified percentage as
compared to prices of that security in
the preceding five-minute period during
a trading day, which period is defined
as a ‘‘Trading Pause.’’ The pilot was
developed and implemented as a
market-wide initiative by the Exchange
and other national securities exchanges
in consultation with the Commission
staff and is currently applicable to all
NMS stocks and specified exchangetraded products.4
3 See Securities Exchange Act Release No. 65090
(August 10, 2011), 76 FR 50790 (August 16, 2011)
(SR–NYSE–2011–40).
4 The Exchange notes that the other national
securities exchanges and the Financial Industry
Regulatory Authority have adopted the pilot in
substantially similar form. See Securities Exchange
Act Release No. 62252 (June 10, 2010), 75 FR 34186
(June 16, 2010) (File Nos. SR–BATS–2010–014; SR–
EDGA–2010–01; SR–EDGX–2010–01; SR–BX–2010–
037; SR–ISE–2010–48; SR–NYSE–2010–39; SR–
NYSEAmex–2010–46; SR–NYSEArca–2010–41; SR–
NASDAQ–2010–061; SR–CHX–2010–10; SR–NSX–
2010–05; and SR–CBOE–2010–047) and Securities
Exchange Act Release No. 62251 (June 10, 2010), 75
FR 34183 (June 16, 2010) (SR–FINRA–2010–025).
See also Securities Exchange Act Release No. 62884
(September 10, 2010), 75 FR 56618 (September 16,
2010) (File Nos. SR–BATS–2010–018; SR–BX–
2010–044; SR–CBOE–2010–065; SR–CHX–2010–14;
SR–EDGA–2010–05; SR–EDGX–2010–05; SR–ISE–
2010–66; SR–NASDAQ–2010–079; SR–NYSE–
2010–49; SR–NYSEAmex–2010–63; SR–NYSEArca–
2010–61; and SR–NSX–2010–08 and Securities
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
The extension proposed herein would
allow the pilot to continue to operate
without interruption while the
Exchange, other national securities
exchanges and the Commission further
assess the effect of the pilot on the
marketplace or whether other initiatives
should be adopted in lieu of the current
pilot.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Securities Exchange Act of 1934
(the ‘‘Act’’),5 in general, and furthers the
objectives of Section 6(b)(5) of the Act,6
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, 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 Exchange believes
that the change proposed herein meets
these requirements in that it promotes
uniformity across markets concerning
decisions to pause trading in a security
when there are significant price
movements. Additionally, extension of
the pilot until July 31, 2012 would
allow the pilot to continue to operate
without interruption while the
Exchange and the Commission further
assess the effect of the pilot on the
marketplace or whether other initiatives
should be adopted in lieu of the current
pilot.
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.
Exchange Act Release No. 62883 (September 10,
2010), 75 FR 56608 (September 16, 2010) (SR–
FINRA–2010–033). See also Securities Exchange
Act Release No. 63500 (December 9, 2010), 75 FR
78309 (December 15, 2010) (SR–NYSE–2010–81). A
proposal to, among other things, expand the pilot
to include all NMS stocks not already included
therein was implemented on August 8, 2011. See
Securities Exchange Act Release No. 64735 (June
23, 2011), 76 FR 38243 (June 29, 2011) (File Nos.
SR–BATS–2011–016; SR–BYX–2011–011; SR–BX–
2011–025; SR–CBOE–2011–049; SR–CHX–2011–09;
SR–EDGA–2011–15; SR–EDGX–2011–14; SR–
FINRA–2011–023; SR–ISE–2011–028; SR–
NASDAQ–2011–067; SR–NYSE–2011–21; SR–
NYSEAmex–2011–32; SR–NYSEArca–2011–26; SR–
NSX–2011–06; and SR–Phlx–2011–64).
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
E:\FR\FM\18JAN1.SGM
18JAN1
]]>Agencies
[Federal Register Volume 77, Number 11 (Wednesday, January 18, 2012)]
[Notices]
[Pages 2590-2592]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-775]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66135; File No. SR-NYSEArca-2011-100]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Rule 7.10, Which Governs Clearly Erroneous Executions, To Extend the
Effective Date of the Pilot by Which Portions of Such Rule Operate
Until July 31, 2012
January 11, 2012.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on December 28, 2011, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Arca Rule 7.10, which governs
clearly erroneous executions, to extend the effective date of the pilot
by which portions of such Rule operate until July 31, 2012. The pilot
is currently scheduled to expire on January 31, 2012. The text of the
proposed rule change is available at the Exchange, the Commission's
Public Reference Room, www.nyse.com, and 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend NYSE Arca Equities Rule 7.10, which
governs clearly erroneous executions, to extend the effective date of
the pilot by which portions of such Rule operate, until July 31, 2012.
The pilot is currently scheduled to expire on January 31, 2012.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62886 (September 10,
2010), 75 FR 56613 (September 16, 2010) (SR-NYSEArca-2010-58). See
also Securities Exchange Act Release Nos. 63482 (December 9, 2010),
75 FR 78331 (December 15, 2010) (SR-NYSEArca-2010-113); 64234 (April
7, 2011), 76 FR 20399 (April 12, 2011) (SR-NYSEArca-2011-15); and
65065 (August 9, 2011), 76 FR 50502 (August 15, 2011) (SR-NYSEArca-
2011-56).
---------------------------------------------------------------------------
On September 10, 2010, the Commission approved, on a pilot basis,
[[Page 2591]]
market-wide amendments to exchanges' rules for clearly erroneous
executions to set forth clearer standards and curtail discretion with
respect to breaking erroneous trades. In connection with this pilot
initiative, the Exchange amended NYSE Arca Equities Rule 7.10(c),
(e)(2), (f), and (g). The amendments provide for uniform treatment of
clearly erroneous execution reviews (1) in Multi-Stock Events \5\
involving twenty or more securities, and (2) in the event transactions
occur that result in the issuance of an individual security trading
pause by the primary market and subsequent transactions that occur
before the trading pause is in effect on the Exchange.\6\ The
amendments also eliminated appeals of certain rulings made in
conjunction with other exchanges with respect to clearly erroneous
transactions and limited the Exchange's discretion to deviate from
Numerical Guidelines set forth in the Rule in the event of system
disruptions or malfunctions.
---------------------------------------------------------------------------
\5\ Terms not defined herein are defined in NYSE Arca Equities
Rule 7.10.
\6\ Separately, the Exchange has proposed extending the
effective date of the trading pause pilot under NYSE Arca Equities
Rule 7.11, which requires to the Exchange to pause trading in an
individual security listed on the Exchange if the price moves by a
specified percentage as compared to prices of that security in the
preceding five-minute period during a trading day. See SR-NYSEArca-
2011-99.
---------------------------------------------------------------------------
If the pilot were not extended, the prior versions of paragraphs
(c), (e)(2), (f), and (g) of NYSE Arca Equities Rule 7.10 would be in
effect, and NYSE Arca would have different rules than other exchanges
and greater discretion in connection with breaking clearly erroneous
transactions. The Exchange proposes to extend the pilot amendments to
NYSE Arca Equities Rule 7.10 until July 31, 2012 in order to maintain
uniform rules across markets and allow the pilot to continue to operate
without interruption during the same period that the Rule 7.11 trading
pause rule pilot is also in effect. Extension of the pilot would permit
the Exchange, other national securities exchanges and the Commission to
further assess the effect of the pilot on the marketplace, including
whether additional measures should be added, whether the parameters of
the rule should be modified or whether other initiatives should be
adopted in lieu of the current pilot.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Act, in general, and furthers the objectives of Section 6(b)(5) \8\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest. More specifically, the NYSE Arca believes that the
extension of the pilot would help assure that the determination of
whether a clearly erroneous trade has occurred will be based on clear
and objective criteria, and that the resolution of the incident will
occur promptly through a transparent process. The proposed rule change
would also help assure consistent results in handling erroneous trades
across the U.S. markets, thus furthering fair and orderly markets, the
protection of investors and the public interest.
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\7\ 15 U.S.C. 78f(b).
\8\ 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
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.\11\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19b-4(f)(6)(iii)
under the Act, the Exchange is required to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the 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.
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 No. SR-NYSEArca-2011-100 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 No. SR-NYSEArca-2011-100. 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 such filing also will be available for
inspection and
[[Page 2592]]
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 No. SR-NYSEArca-2011-100 and should be submitted
on or before February 8, 2012.
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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\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-775 Filed 1-17-12; 8:45 am]
BILLING CODE 8011-01-P
