Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Rule 128, Which Governs Clearly Erroneous Executions, to Extend the Effective Date of The Pilot by Which Portions of Such Rule Operate Until July 31, 2012, 2589-2590 [2012-776]
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Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66136; File No. SR–NYSE–
2011–69]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending
NYSE Rule 128, 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 December 28,
2011, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) 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 Rule 128, 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 text of the proposed rule
change is available at the Exchange, the
Commission’s Public Reference Room,
www.nyse.com, and www.sec.gov.
tkelley on DSK3SPTVN1PROD with NOTICES
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
16:07 Jan 17, 2012
Jkt 226001
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 Rule 128, 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,
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 Rule 128(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 Rule 128 would be in
effect, and the NYSE 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 Rule 128
until July 31, 2012 in order to maintain
4 See
Securities Exchange Act Release No. 62886
(September 10, 2010), 75 FR 56613 (September 16,
2010) (SR–NYSE–2010–47). See also Securities
Exchange Act Release Nos. 63479 (December 9,
2010), 75 FR 78274 (December 15, 2010) (SR–
NYSE–2010–80); 64232 (April 7, 2011), 76 FR
20735 (April 13, 2011) (SR–NYSE–2011–17); and
65064 (August 9, 2011), 76 FR 50505 (August 15,
2011) (SR–NYSE–2011–41).
5 Terms not defined herein are defined in NYSE
Rule 128.
6 Separately, the Exchange has proposed extend
the effective date of the trading pause pilot under
NYSE Rule 80C, 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–NYSE–2011–68.
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
2589
uniform rules across markets and allow
the pilot to continue to operate without
interruption during the same period that
the Rule 80C 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 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.
7 15
8 15
E:\FR\FM\18JAN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
18JAN1
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
VerDate Mar<15>2010
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
Frm 00083
Fmt 4703
Sfmt 4703
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
]]>Agencies
[Federal Register Volume 77, Number 11 (Wednesday, January 18, 2012)]
[Notices]
[Pages 2589-2590]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-776]
[[Page 2589]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66136; File No. SR-NYSE-2011-69]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending NYSE Rule 128, 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 December 28, 2011, New York Stock Exchange LLC (``NYSE'' or
the ``Exchange'') 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 Rule 128, 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 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 Rule 128, 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-NYSE-2010-47). See also
Securities Exchange Act Release Nos. 63479 (December 9, 2010), 75 FR
78274 (December 15, 2010) (SR-NYSE-2010-80); 64232 (April 7, 2011),
76 FR 20735 (April 13, 2011) (SR-NYSE-2011-17); and 65064 (August 9,
2011), 76 FR 50505 (August 15, 2011) (SR-NYSE-2011-41).
---------------------------------------------------------------------------
On September 10, 2010, the Commission approved, on a pilot basis,
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 Rule 128(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 Rule 128.
\6\ Separately, the Exchange has proposed extend the effective
date of the trading pause pilot under NYSE Rule 80C, 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-NYSE-2011-68.
---------------------------------------------------------------------------
If the pilot were not extended, the prior versions of paragraphs
(c), (e)(2), (f), and (g) of Rule 128 would be in effect, and the NYSE
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 Rule 128 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 80C 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 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.
---------------------------------------------------------------------------
\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.
[[Page 2590]]
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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-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 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\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-776 Filed 1-17-12; 8:45 am]
BILLING CODE 8011-01-P
