Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend Pilot Program Related to Trading Pauses Due to Extraordinary Market Volatility, 3834-3836 [2012-1486]
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3834
Federal Register / Vol. 77, No. 16 / Wednesday, January 25, 2012 / Notices
day cycle only, they should not be
affected by the proposed modification to
processing in the night-cycle for
weekends and holidays.
In order to determine the potential
effects of lowering the net debit caps for
certain night cycle processing as
proposed in this rule filing, DTC
conducted a simulation study in which
the maximum net debit cap for a
Participant and for a Participant family
was set at $1.5 billion. The study found
that net debit cap related blockage
increased by only 1.13% on average,
which represents a gross value of
approximately $913 million out of
approximately $70 billion processed in
each night cycle for settlement on the
next business day. For Participants that
might encounter transaction blockage,
this blockage could be further
minimized by the Participant by
instructing deliveries versus payment
that would generate credits to offset
debits. Under the proposed revised
practice, at the time net debit caps are
restored for same-day settlement, any
transactions that are pending due to the
lower net debit cap would be
reprocessed and would be completed at
the start of the day cycle, assuming no
other changes.8 DTC recognizes that this
change in practice may affect
transaction management for certain
Participants and has taken the initiative
to discuss the proposal with all of those
Participants and has received no
objections. Certain Participants
indicated that they would consider
changes that could lessen the impact by
implementing their own night cycle
process improvements.
Accordingly, DTC believes that the
proposed rule change would mitigate
systemic risk due to the potential
shortfall in liquidity associated with the
net settlement failure of a Participant
with only minimal impact on
Participants and processing.
srobinson on DSK4SPTVN1PROD with NOTICES
III. Discussion
Section 19(b)(2)(B) of the Act directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if it finds that such
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to such organization.9 In
particular, Section 17A(b)(3)(A) 10 of the
8 The Participants with increased blockage in the
simulation often have large net debits in the night
cycle because they do not send in Night Deliver
Orders (‘‘NDOs’’) or they exempt or withhold from
night cycle processing many or all of their
Institutional Deliveries that would otherwise create
credits.
9 15 U.S.C. 78s(b)(2)(B).
10 15 U.S.C. 78q–1(b)(3)(A).
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Act requires, among other things, that
the clearing agency be so organized and
have the capacity to safeguard the
securities and funds which are in the
custody or control of such clearing
agency or for which it is responsible.
Because the proposed change would
allow DTC to enhance the risk
management controls by temporarily
reducing each Participant’s and family
of Participant’s maximum net debit cap
for night cycle processing of valued
transactions over weekends and
holidays and to restore such debit cap
at the start of day cycle processing for
the next settlement date, the
Commission believes that the proposed
rule change is consistent with DTC’s
safeguarding obligations under the Act.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) 11 of the Act, that the
proposed rule change (File No. SR–
DTC–2011–09) be, and hereby is,
approved.12
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary .
[FR Doc. 2012–1378 Filed 1–24–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66190; File No. SR–BATS–
2012–001]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend Pilot Program
Related to Trading Pauses Due to
Extraordinary Market Volatility
January 19, 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 January 6,
2012, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS’’) filed with the
11 15
U.S.C. 78s(b)(2).
approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
13 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
12 In
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing with the
Commission a proposal to extend a pilot
program previously approved by the
Commission related to Rule 11.18,
entitled ‘‘Trading Halts Due to
Extraordinary Market Volatility.’’
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
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
1. Purpose
The purpose of this filing is to extend
the effectiveness of the Exchange’s rule
related to individual stock circuit
breakers, which is contained in Rule
11.18(d) and Interpretation and Policy
.05 to Rule 11.18. The rule, explained in
further detail below, is currently
operating as a pilot program set to
expire on January 31, 2012. The
Exchange proposes to extend the pilot
program to July 31, 2012.
On June 10, 2010, the Commission
approved on a pilot basis changes to
BATS Rule 11.18 to provide for uniform
market-wide trading pause standards for
individual securities in the S&P 500®
Index that experience rapid price
movement.3 Later, the Exchange and
3 Securities Exchange Act Release No. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR–
BATS–2010–014).
E:\FR\FM\25JAN1.SGM
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Federal Register / Vol. 77, No. 16 / Wednesday, January 25, 2012 / Notices
other markets proposed extension of the
trading pause standards on a pilot basis
to individual securities in the Russell
1000® Index and specified Exchange
Traded Products, which changes the
Commission approved on September 10,
2010.4 More recently, the Exchange
proposed expansion of the pilot
program to apply to all NMS stocks.5
This expansion was approved on June
23, 2011.6 The pilot program relating to
trading pause standards has been
extended three times since its
inception.7
The Exchange believes the benefits to
market participants from the individual
stock trading pause rule should be
continued on a pilot basis.
srobinson on DSK4SPTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the Act.8
In particular, the proposal is consistent
with Section 6(b)(5) of the Act,9 because
it would promote just and equitable
principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system. The
proposed rule change is also consistent
with Section 11A(a)(1) of the Act 10 in
that it seeks to assure fair competition
among brokers and dealers and among
exchange markets. The Exchange
believes that the pilot program promotes
just and equitable principles of trade in
that it promotes transparency and
uniformity across markets concerning
decisions to pause trading in a security
when there are significant price
movements. The Exchange believes that
4 Securities Exchange Act Release No. 62884
(September 10, 2010), 75 FR 56618 (September 16,
2010) (SR–BATS–2010–018).
5 Securities Exchange Act Release No. 64435 (May
6, 2011), 76 FR 27684 (May 12, 2011) (SR–BATS–
2011–016).
6 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; SR–Phlx2011–64).
7 Securities Exchange Act Release No. 63497
(December 9, 2010), 75 FR 78315 (December 15,
2010) (SR–BATS–2010–037); Securities Exchange
Act Release No. 64207 (April 6, 2011), 76 FR 20424
(April 12, 2011) (SR–BATS–2011–011); Securities
Exchange Act Release No. 65081 (August 9, 2011),
76 FR 50798 (August 16, 2011) (SR–BATS–2011–
027).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 15 U.S.C. 78k–1(a)(1).
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18:09 Jan 24, 2012
Jkt 226001
the pilot program is working well, that
it has been infrequently invoked during
the previous months, and that the
extension of the pilot program will
allow the Exchange to further assess the
effect of the pilot program on the market
or whether other initiatives should be
adopted in lieu of the current pilot
program.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on 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 11 and Rule
19b–4(f)(6) thereunder.12 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 13 and Rule 19b–4(f)(6)(iii)
thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 16 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b-4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
12 17
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3835
the proposal may become operative
immediately upon filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest, as it
will allow the pilot program to continue
uninterrupted, thereby avoiding the
investor confusion that could result
from a temporary interruption in the
pilot program. For this reason, the
Commission designates the proposed
rule change to be operative upon
filing.17
At any time within 60 days of the
filing of the 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–BATS–2012–001 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–BATS–2012–001. 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
17 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\25JAN1.SGM
25JAN1
3836
Federal Register / Vol. 77, No. 16 / Wednesday, January 25, 2012 / Notices
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–BATS–
2012–001 and should be submitted on
or before February 15, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–1486 Filed 1–24–12; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA–2011–0105]
Public Availability of Social Security
Administration Fiscal Year (FY) 2011
Service Contract Inventory
Social Security Administration.
Notice of Public Availability of
FY 2011 Service Contract Inventories.
ACTION:
In accordance with Section
743 of Division C of the Consolidated
Appropriations Act of 2010 (Pub. L.
111–117), we are publishing this notice
to advise the public of the availability
of the FY 2011 Service Contract
inventory. This inventory provides
information on FY 2011 service contract
actions over $25,000. We organized the
information by function to show how
we distribute contracted resources
throughout the agency. We developed
the inventory in accordance with
guidance issued on November 5, 2010
by the Office of Management and
Budget’s Office of Federal Procurement
Policy (OFPP). OFPP’s guidance is
available at https://www.whitehouse.gov/
sites/default/files/omb/procurement/
memo/service-contract-inventoriesguidance-11052010.pdf. You can access
the inventory and summary of the
inventory on our homepage at the
srobinson on DSK4SPTVN1PROD with NOTICES
18 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:09 Jan 24, 2012
Jkt 226001
FOR FURTHER INFORMATION CONTACT:
Dennis Wilhite, Director, Office of
Budget Execution and Automation,
Office of Budget, Social Security
Administration, 6401 Security
Boulevard, Baltimore, MD 21235–6401.
Phone (410) 966–6988, email
Dennis.Wilhite@ssa.gov.
Michael G. Gallagher,
Deputy Commissioner for Budget, Finance
and Management.
[FR Doc. 2012–1561 Filed 1–24–12; 8:45 am]
BILLING CODE 4191–02–P
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
DEPARTMENT OF THE ARMY
Corps of Engineers
Supplemental Environmental Impact
Statement, Mingo County, WV
Federal Highway
Administration (FHWA), DOT. U.S.
Army Corps of Engineers (USACE),
DoD.
ACTION: Notice of intent to prepare a
supplemental environmental impact
statement.
AGENCY:
The Federal Highway
Administration (FHWA) and the United
States Department of the Army Corps of
Engineers (USACE) in cooperation with
the West Virginia Division of Highways
(WVDOH) will prepare a Supplemental
Environmental Impact Statement (SEIS)
to evaluate the impacts of the proposed
Delbarton to Belo portion of the King
Coal Highway 2000 FEIS and the
Buffalo Mountain Surface Mine Clean
Water Act Section 404 Permit
Application. The FHWA and USACE are
joint-lead federal agencies on this
project and are evaluating federal
actions. FHWA is evaluating a location
shift of a portion of the alignment
between the West Virginia towns of
Delbarton and Belo described in the
2000 FEIS and approved in the 2000
ROD. The USACE is evaluating a Clean
Water Act (CWA) Section 404
Individual Permit (IP) application
submitted by Consol of Kentucky, Inc.
(CONSOL), for the discharge of fill
material into waters of the United States
(U.S.) in conjunction with the
construction and operation of the
Buffalo Mountain Surface Mine.
DATES: To ensure that a full range of
issues related to the proposed action are
addressed and all significant issues
SUMMARY:
AGENCY:
SUMMARY:
following link: https://
www.socialsecurity.gov/sci.
PO 00000
Frm 00108
Fmt 4703
Sfmt 4703
identified, comments and suggestions
are invited from all interested parties.
Comments and suggestions concerning
the proposed action and the SEIS
should be submitted to FHWA, the
USACE or WVDOH
(www.transportation.wv.gov) at the
address below within 30 days to ensure
timely consideration.
FOR FURTHER INFORMATION CONTACT:
Thomas Smith, Division Administrator,
Federal Highway Administration, 700
Washington Street E., Charleston, WV
25301; telephone: (304) 347–5928;
email: Thomas.Smith@dot.gov. Ginger
Mullins, Chief, Regulatory Branch, U.S.
Army Corps of Engineers, 502 Eighth
Street, Huntington, WV 25701–2070;
telephone: (304) 399–5610; email:
ginger.mullins@usace.army.mil. Greg E.
Bailey, P.E., Director Engineering
Division, WVDOH, State Capitol
Complex, Building 5, 1900 Kanawha
Boulevard, East, Charleston, WV 26305;
telephone: (304) 558–9722; email:
Gregory.L.Bailey@wv.gov.
SUPPLEMENTARY INFORMATION:
1. Description of the Proposed
Action—CONSOL proposes to extract
coal within the vicinity of Delbarton
and Belo for the proposed Buffalo
Mountain Surface Mine. The
construction and operation of the
Buffalo Mountain Surface Mine will
require the discharge of fill material into
waters of the U.S.; therefore, CONSOL is
required to obtain a CWA Section 404
IP. In 2008, CONSOL submitted an
application for a CWA Section 404 IP,
and the USACE issued Public Notice
2008–491 on December 3, 2008. The
USACE is currently processing the
Department of Army (DA) permit
application (LRH–2008–491–TUG).
The King Coal Highway is a series of
transportation improvements stretching
for 94 miles in southern West Virginia.
The approximate length of the Delbarton
to Belo portion of the project is 7 miles.
The King Coal Highway is also part of
the I–73/74 National Highway System
(NHS) Corridor. A Final Environmental
Impact Statement (FEIS) for the entire
King Coal Highway was approved by
FHWA in June 2000 and a Record of
Decision (ROD) was issued on August
24, 2000. Sections of the overall project
are complete and open to traffic and a
few others are currently under
construction. Due to the limited
availability of federal and state funding
for the King Coal Highway, however,
much of the highway alignment has not
been constructed.
Since the issuance of the ROD, an
opportunity for a joint development
initiative was identified during
CONSOL’s development of a plan to
E:\FR\FM\25JAN1.SGM
25JAN1
]]>Agencies
[Federal Register Volume 77, Number 16 (Wednesday, January 25, 2012)]
[Notices]
[Pages 3834-3836]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1486]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66190; File No. SR-BATS-2012-001]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Extend
Pilot Program Related to Trading Pauses Due to Extraordinary Market
Volatility
January 19, 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 January 6, 2012, BATS Exchange, Inc. (the ``Exchange'' or
``BATS'') 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.
---------------------------------------------------------------------------
\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 is filing with the Commission a proposal to extend a
pilot program previously approved by the Commission related to Rule
11.18, entitled ``Trading Halts Due to Extraordinary Market
Volatility.''
The text of the proposed rule change is available at the Exchange's
Web site at https://www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
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
1. Purpose
The purpose of this filing is to extend the effectiveness of the
Exchange's rule related to individual stock circuit breakers, which is
contained in Rule 11.18(d) and Interpretation and Policy .05 to Rule
11.18. The rule, explained in further detail below, is currently
operating as a pilot program set to expire on January 31, 2012. The
Exchange proposes to extend the pilot program to July 31, 2012.
On June 10, 2010, the Commission approved on a pilot basis changes
to BATS Rule 11.18 to provide for uniform market-wide trading pause
standards for individual securities in the S&P 500[supreg] Index that
experience rapid price movement.\3\ Later, the Exchange and
[[Page 3835]]
other markets proposed extension of the trading pause standards on a
pilot basis to individual securities in the Russell 1000[supreg] Index
and specified Exchange Traded Products, which changes the Commission
approved on September 10, 2010.\4\ More recently, the Exchange proposed
expansion of the pilot program to apply to all NMS stocks.\5\ This
expansion was approved on June 23, 2011.\6\ The pilot program relating
to trading pause standards has been extended three times since its
inception.\7\
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 62252 (June 10, 2010),
75 FR 34186 (June 16, 2010) (SR-BATS-2010-014).
\4\ Securities Exchange Act Release No. 62884 (September 10,
2010), 75 FR 56618 (September 16, 2010) (SR-BATS-2010-018).
\5\ Securities Exchange Act Release No. 64435 (May 6, 2011), 76
FR 27684 (May 12, 2011) (SR-BATS-2011-016).
\6\ 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; SR-Phlx2011-64).
\7\ Securities Exchange Act Release No. 63497 (December 9,
2010), 75 FR 78315 (December 15, 2010) (SR-BATS-2010-037);
Securities Exchange Act Release No. 64207 (April 6, 2011), 76 FR
20424 (April 12, 2011) (SR-BATS-2011-011); Securities Exchange Act
Release No. 65081 (August 9, 2011), 76 FR 50798 (August 16, 2011)
(SR-BATS-2011-027).
---------------------------------------------------------------------------
The Exchange believes the benefits to market participants from the
individual stock trading pause rule should be continued on a pilot
basis.
2. Statutory Basis
The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\8\ In particular, the
proposal is consistent with Section 6(b)(5) of the Act,\9\ because it
would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system. The proposed rule change is also
consistent with Section 11A(a)(1) of the Act \10\ in that it seeks to
assure fair competition among brokers and dealers and among exchange
markets. The Exchange believes that the pilot program promotes just and
equitable principles of trade in that it promotes transparency and
uniformity across markets concerning decisions to pause trading in a
security when there are significant price movements. The Exchange
believes that the pilot program is working well, that it has been
infrequently invoked during the previous months, and that the extension
of the pilot program will allow the Exchange to further assess the
effect of the pilot program on the market or whether other initiatives
should be adopted in lieu of the current pilot program.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ 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 imposes
any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
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 \11\ and Rule 19b-4(f)(6) thereunder.\12\
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 \13\ and Rule 19b-
4(f)(6)(iii) thereunder.\14\
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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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A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \16\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest, as
it will allow the pilot program to continue uninterrupted, thereby
avoiding the investor confusion that could result from a temporary
interruption in the pilot program. For this reason, the Commission
designates the proposed rule change to be operative upon filing.\17\
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\17\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the 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-BATS-2012-001 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-BATS-2012-001. 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
[[Page 3836]]
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-BATS-2012-001 and should be
submitted on or before February 15, 2012.
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\18\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-1486 Filed 1-24-12; 8:45 am]
BILLING CODE 8011-01-P
