Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period of the Trading Pause for NMS Stocks Other Than Rights and Warrants, 4387-4389 [2012-1739]
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Federal Register / Vol. 77, No. 18 / Friday, January 27, 2012 / Notices
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–
Phlx–2012–07 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.
tkelley on DSK3SPTVN1PROD with NOTICES
All submissions should refer to File No.
SR–Phlx–2012–07. 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–Phlx–2012–
07 and should be submitted on or before
February 17, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–1740 Filed 1–26–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66215; File No. SR–BX–
2012–003]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Extend the
Pilot Period of the Trading Pause for
NMS Stocks Other Than Rights and
Warrants
January 23, 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
11, 2012, NASDAQ OMX BX, Inc.
(‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
pilot period of the trading pause for
individual NMS stocks other than rights
and warrants, so that the pilot will now
expire on July 31, 2012.
The text of the proposed rule change
is below. Proposed new language is
italicized; proposed deletions are in
brackets.
*
*
*
*
*
IM–4120–3. Circuit Breaker Securities
Pilot
The provisions of paragraph (a)(11) of
this Rule shall be in effect during a pilot
set to end on July 31, 2012[January 31,
2012]. During the pilot, the term
‘‘Circuit Breaker Securities’’ shall mean
all NMS stocks except rights and
warrants.
*
*
*
*
*
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
1 15
22 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:14 Jan 26, 2012
2 17
Jkt 226001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00113
Fmt 4703
Sfmt 4703
4387
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
On June 10, 2010, the Commission
granted accelerated approval, for a pilot
period to end December 10, 2010, for a
proposed rule change submitted by the
Exchange, together with related rule
changes of the BATS Exchange, Inc.,
Chicago Board Options Exchange,
Incorporated, Chicago Stock Exchange,
Inc., EDGA Exchange, Inc., EDGX
Exchange, Inc., International Securities
Exchange LLC, The NASDAQ Stock
Market LLC (‘‘NASDAQ’’), New York
Stock Exchange LLC (‘‘NYSE’’), NYSE
Amex LLC (‘‘NYSE Amex’’), NYSE Arca,
Inc. (‘‘NYSE Arca’’), and National Stock
Exchange, Inc. (collectively, the
‘‘Exchanges’’), to pause trading during
periods of extraordinary market
volatility in S&P 500 stocks.3 The rules
require the Listing Markets 4 to issue
five-minute trading pauses for
individual securities for which they are
the primary Listing Market if the
transaction price of the security moves
ten percent or more from a price in the
preceding five-minute period. The
Listing Markets are required to notify
the other Exchanges and market
participants of the imposition of a
trading pause by immediately
disseminating a special indicator over
the consolidated tape. Under the rules,
once the Listing Market issues a trading
pause, the other Exchanges are required
to pause trading in the security on their
markets. On September 10, 2010, the
Commission approved the respective
rule filings of the Exchanges to expand
application of the pilot to the Russell
1000® Index and specified Exchange
Traded Products.5 On December 7,
2010, the Exchange filed an
immediately effective filing to extend
the existing pilot program for four
months, so that the pilot would expire
on April 11, 2011.6 On March 31, 2011,
the Exchange filed an immediately
effective filing to extend the pilot period
3 Securities Exchange Act Release No. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR–
BX–2010–037).
4 The term ‘‘Listing Markets’’ refers collectively to
NYSE, NYSE Amex, NYSE Arca, and NASDAQ.
5 Securities Exchange Act Release No. 62884
(September 10, 2010), 75 FR 56618 (September 16,
2010) (SR–BX–2010–044).
6 Securities Exchange Act Release No. 63527
(December 10, 2010), 75 FR 78781 (December 16,
2010) (SR–BX–2010–088).
E:\FR\FM\27JAN1.SGM
27JAN1
4388
Federal Register / Vol. 77, No. 18 / Friday, January 27, 2012 / Notices
an additional four months, so that the
pilot would expire on August 11, 2011
or the date on which a limit up/limit
down mechanism to address
extraordinary market volatility, if
adopted, applies.7 On June 23, 2011, the
Commission approved the expansion of
the pilot to all NMS stocks, but with
different pause-triggering thresholds.8
On August 8, 2011, the Exchange filed
an immediately effective filing that
removed language from the rule that
tied the expiration of the pilot to the
adoption of a limit up/limit down
mechanism to address extraordinary
market volatility, and further extended
the pilot period, so that the pilot would
expire on January 31, 2012.9 On
November 18, 2011, the Exchange filed
an immediately effective filing that
excluded rights and warrants from the
pilot.10
The Exchange believes that the pilot
program has been successful in reducing
the negative impacts of sudden,
unanticipated price movements in the
securities covered by the pilot. The
Exchange also believes that an
additional extension of the pilot is
warranted so that it may continue to
assess whether circuit breakers are the
best means to reduce the negative
impacts of sudden, unanticipated price
movements or whether alternative
mechanisms would be more effective in
achieving this goal.
tkelley on DSK3SPTVN1PROD with NOTICES
2. Statutory Basis
The statutory basis for the proposed
rule change is Section 6(b)(5) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),11 which requires the rules of an
exchange to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The proposed rule
change also is designed to support the
principles of Section 11A(a)(1) 12 of the
Act in that it seeks to assure fair
competition among brokers and dealers
and among exchange markets. The
Exchange believes that the proposed
rule meets these requirements in that it
7 Securities Exchange Act Release No. 64176
(April 4, 2011), 76 FR 19821 (April 8, 2011) (SR–
BX–2011–018).
8 Securities Exchange Act Release No. 64735
(June 23, 2011), 76 FR 38243 (June 29, 2011) (SR–
BX–2011–025, et al.).
9 Securities Exchange Act Release No. 65093
(August 10, 2011), 76 FR 50781 (August 16, 2011)
(SR–BX–2011–055).
10 Securities Exchange Act Release No. 65815
(November 23, 2011), 76 FR 74109 (November 30,
2011) (SR–BX–2011–079).
11 15 U.S.C. 78f(b)(5).
12 15 U.S.C. 78k–1(a)(1).
VerDate Mar<15>2010
18:14 Jan 26, 2012
Jkt 226001
promotes transparency and uniformity
across markets concerning decisions to
pause trading in a security when there
are significant price movements.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
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 13 and Rule
19b–4(f)(6) thereunder.14 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 15 and Rule 19b–4(f)(6)(iii)
thereunder.16
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 18 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.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
13 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
15 15 U.S.C. 78s(b)(3)(A).
16 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.
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6)(iii).
14 17
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
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.19
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–BX–2012–003 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–BX–2012–003. 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
19 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\27JAN1.SGM
27JAN1
Federal Register / Vol. 77, No. 18 / Friday, January 27, 2012 / Notices
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–BX–2012–
003 and should be submitted on or
before February 17, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–1739 Filed 1–26–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[File No. 500–1]
In the Matter of Tornado Gold
International Corp., Twin Faces East
Entertainment Corp., Universal Ice
Blast, Inc., US Farms, Inc., US
Microbics, Inc., and Visitel Network
(a/k/a PRG Group, Inc.); Order of
Suspension of Trading
[FR Doc. 2012–1903 Filed 1–25–12; 11:15 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 7776]
tkelley on DSK3SPTVN1PROD with NOTICES
January 25, 2012.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Tornado
Gold International Corp. because it has
not filed any periodic reports since the
period ended June 30, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Twin Faces
East Entertainment Corp. because it has
not filed any periodic reports since the
period ended June 30, 2006.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Universal
Ice Blast, Inc. because it has not filed
any periodic reports since the period
ended June 30, 2004.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of US Farms,
Inc. because it has not filed any periodic
20 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:14 Jan 26, 2012
reports since the period ended
September 30, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of US
Microbics, Inc. because it has not filed
any periodic reports since the period
ended June 30, 2007.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Visitel
Network, Inc. (a/k/a PRG Group, Inc.)
because it has not filed any periodic
reports since the period ended
September 30, 1995.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed companies
is suspended for the period from 9:30
a.m. EST on January 25, 2012, through
11:59 p.m. EST on February 7, 2012.
Jkt 226001
Persons on Whom Sanctions Have
Been Imposed Under the Iran
Sanctions Act of 1996
Department of State.
Notice.
AGENCY:
ACTION:
The Secretary of State has
determined that the following persons
have engaged in sanctionable activity
described in section 5(a) of the Iran
Sanctions Act of 1996 (Pub. L. 104–172)
(50 U.S.C. 1701 note) (‘‘ISA’’), as
amended by the Comprehensive Iran
Sanctions, Accountability, and
Divestment Act of 2010 (Pub. L. 111–
195) (22 U.S.C. 8501–51) (‘‘CISADA’’),
and that certain sanctions should be
imposed as a result: FAL Oil Company
Limited; Kuo Oil (S) Pte. Ltd.; and
Zhuhai Zhenrong Company.
DATES: Effective Date: The sanctions on
FAL Oil Company Limited; Kuo Oil (S)
Pte. Ltd.; and Zhuhai Zhenrong
Company are effective January 12, 2012.
FOR FURTHER INFORMATION CONTACT: On
general issues: Norman Galimba, Office
of Terrorism Finance and Economic
SUMMARY:
PO 00000
Frm 00115
Fmt 4703
Sfmt 4703
4389
Sanctions Policy, Department of State,
Telephone: (202) 647–9183. For U.S.
Government procurement ban issues:
Daniel Walt, Office of the Procurement
Executive, Department of State,
Telephone: (703) 516–1696.
SUPPLEMENTARY INFORMATION: Pursuant
to the authority delegated to the
Secretary of State in the Presidential
Memorandum of September 23, 2010, 75
FR 67025 (the ‘‘Delegation
Memorandum’’), the Secretary has
determined that the following persons
have engaged in sanctionable activity
described in section 5(a) of the ISA, as
amended by the CISADA: FAL Oil
Company Limited; Kuo Oil (S) Pte. Ltd.;
and Zhuhai Zhenrong Company.
Pursuant to section 5(a) of the ISA
and the Delegation Memorandum, the
Secretary determined to impose on FAL
Oil Company Limited the following
sanctions described in section 6 of the
ISA:
1. Export-Import Bank assistance for
exports to sanctioned persons. The
Export-Import Bank of the United States
shall not give approval to the issuance
of any guarantee, insurance, extension
of credit, or participation in the
extension of credit in connection with
the export of any goods or services to
FAL Oil Company Limited.
2. Export sanction. The United States
Government shall not issue any specific
license and shall not grant any other
specific permission or authority to
export any goods or technology to FAL
Oil Company Limited under—
a. The Export Administration Act of
1979 (50 U.S.C. Appx. §§ 2401 et seq.);
b. The Arms Export Control Act (22
U.S.C. 2751 et seq.);
c. The Atomic Energy Act of 1954 (42
U.S.C. 2011 et seq.); or
d. Any other statute that requires the
prior review and approval of the United
States Government as a condition for the
export or re-export of goods or services.
3. Loans from United States financial
institutions. United States financial
institutions shall be prohibited from
making loans or providing credits to
FAL Oil Company Limited totaling more
than $10,000,000 in any 12-month
period unless FAL Oil Company
Limited is engaged in activities to
relieve human suffering and the loans or
credits are provided for such activities.
These sanctions apply with respect to
FAL Oil Company Limited and not to
any subsidiary, affiliate, or shareholder
thereof unless separately identified.
Pursuant to section 5(a) of the ISA
and the Delegation Memorandum, the
Secretary determined to impose on Kuo
Oil (S) Pte. Ltd. the following sanctions
described in section 6 of the ISA:
E:\FR\FM\27JAN1.SGM
27JAN1
]]>Agencies
[Federal Register Volume 77, Number 18 (Friday, January 27, 2012)]
[Notices]
[Pages 4387-4389]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1739]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66215; File No. SR-BX-2012-003]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Extend
the Pilot Period of the Trading Pause for NMS Stocks Other Than Rights
and Warrants
January 23, 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 11, 2012, NASDAQ OMX BX, Inc. (``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the pilot period of the trading
pause for individual NMS stocks other than rights and warrants, so that
the pilot will now expire on July 31, 2012.
The text of the proposed rule change is below. Proposed new
language is italicized; proposed deletions are in brackets.
* * * * *
IM-4120-3. Circuit Breaker Securities Pilot
The provisions of paragraph (a)(11) of this Rule shall be in effect
during a pilot set to end on July 31, 2012[January 31, 2012]. During
the pilot, the term ``Circuit Breaker Securities'' shall mean all NMS
stocks except rights and warrants.
* * * * *
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
On June 10, 2010, the Commission granted accelerated approval, for
a pilot period to end December 10, 2010, for a proposed rule change
submitted by the Exchange, together with related rule changes of the
BATS Exchange, Inc., Chicago Board Options Exchange, Incorporated,
Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc.,
International Securities Exchange LLC, The NASDAQ Stock Market LLC
(``NASDAQ''), New York Stock Exchange LLC (``NYSE''), NYSE Amex LLC
(``NYSE Amex''), NYSE Arca, Inc. (``NYSE Arca''), and National Stock
Exchange, Inc. (collectively, the ``Exchanges''), to pause trading
during periods of extraordinary market volatility in S&P 500 stocks.\3\
The rules require the Listing Markets \4\ to issue five-minute trading
pauses for individual securities for which they are the primary Listing
Market if the transaction price of the security moves ten percent or
more from a price in the preceding five-minute period. The Listing
Markets are required to notify the other Exchanges and market
participants of the imposition of a trading pause by immediately
disseminating a special indicator over the consolidated tape. Under the
rules, once the Listing Market issues a trading pause, the other
Exchanges are required to pause trading in the security on their
markets. On September 10, 2010, the Commission approved the respective
rule filings of the Exchanges to expand application of the pilot to the
Russell 1000[supreg] Index and specified Exchange Traded Products.\5\
On December 7, 2010, the Exchange filed an immediately effective filing
to extend the existing pilot program for four months, so that the pilot
would expire on April 11, 2011.\6\ On March 31, 2011, the Exchange
filed an immediately effective filing to extend the pilot period
[[Page 4388]]
an additional four months, so that the pilot would expire on August 11,
2011 or the date on which a limit up/limit down mechanism to address
extraordinary market volatility, if adopted, applies.\7\ On June 23,
2011, the Commission approved the expansion of the pilot to all NMS
stocks, but with different pause-triggering thresholds.\8\ On August 8,
2011, the Exchange filed an immediately effective filing that removed
language from the rule that tied the expiration of the pilot to the
adoption of a limit up/limit down mechanism to address extraordinary
market volatility, and further extended the pilot period, so that the
pilot would expire on January 31, 2012.\9\ On November 18, 2011, the
Exchange filed an immediately effective filing that excluded rights and
warrants from the pilot.\10\
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 62252 (June 10, 2010),
75 FR 34186 (June 16, 2010) (SR-BX-2010-037).
\4\ The term ``Listing Markets'' refers collectively to NYSE,
NYSE Amex, NYSE Arca, and NASDAQ.
\5\ Securities Exchange Act Release No. 62884 (September 10,
2010), 75 FR 56618 (September 16, 2010) (SR-BX-2010-044).
\6\ Securities Exchange Act Release No. 63527 (December 10,
2010), 75 FR 78781 (December 16, 2010) (SR-BX-2010-088).
\7\ Securities Exchange Act Release No. 64176 (April 4, 2011),
76 FR 19821 (April 8, 2011) (SR-BX-2011-018).
\8\ Securities Exchange Act Release No. 64735 (June 23, 2011),
76 FR 38243 (June 29, 2011) (SR-BX-2011-025, et al.).
\9\ Securities Exchange Act Release No. 65093 (August 10, 2011),
76 FR 50781 (August 16, 2011) (SR-BX-2011-055).
\10\ Securities Exchange Act Release No. 65815 (November 23,
2011), 76 FR 74109 (November 30, 2011) (SR-BX-2011-079).
---------------------------------------------------------------------------
The Exchange believes that the pilot program has been successful in
reducing the negative impacts of sudden, unanticipated price movements
in the securities covered by the pilot. The Exchange also believes that
an additional extension of the pilot is warranted so that it may
continue to assess whether circuit breakers are the best means to
reduce the negative impacts of sudden, unanticipated price movements or
whether alternative mechanisms would be more effective in achieving
this goal.
2. Statutory Basis
The statutory basis for the proposed rule change is Section 6(b)(5)
of the Securities Exchange Act of 1934 (the ``Act''),\11\ which
requires the rules of an exchange to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system and, in general,
to protect investors and the public interest. The proposed rule change
also is designed to support the principles of Section 11A(a)(1) \12\ of
the Act in that it seeks to assure fair competition among brokers and
dealers and among exchange markets. The Exchange believes that the
proposed rule meets these requirements in that it promotes transparency
and uniformity across markets concerning decisions to pause trading in
a security when there are significant price movements.
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\11\ 15 U.S.C. 78f(b)(5).
\12\ 15 U.S.C. 78k-1(a)(1).
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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
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
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 \13\ and Rule 19b-4(f)(6) thereunder.\14\
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 \15\ and Rule 19b-
4(f)(6)(iii) thereunder.\16\
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6).
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 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) \17\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \18\ 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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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 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.\19\
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\19\ 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-BX-2012-003 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-BX-2012-003. 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
[[Page 4389]]
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-BX-2012-003 and should be submitted on or before February
17, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-1739 Filed 1-26-12; 8:45 am]
BILLING CODE 8011-01-P
