Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period of Amendments to the Clearly Erroneous Rule, 4612-4614 [2012-1884]
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Federal Register / Vol. 77, No. 19 / Monday, January 30, 2012 / Notices
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) 9 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
break erroneous trades.
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 10 and Rule
19b–4(f)(6) thereunder.11 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 12 and Rule 19b–4(f)(6)(iii)
thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative for 30 days after the
9 15
U.S.C. 78k–1(a)(1).
U.S.C. 78s(b)(3)(A)(iii).
11 17 CFR 240.19b–4(f)(6).
12 15 U.S.C. 78s(b)(3)(A).
13 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.
14 17 CFR 240.19b–4(f)(6).
emcdonald on DSK29S0YB1PROD with NOTICES
10 15
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date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 15 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
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.16
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–2012–004 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–2012–004. 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
15 17
CFR 240.19b–4(f)(6)(iii).
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).
16 For
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
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–BX–2012–
004 and should be submitted on or
before February 21, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–1886 Filed 1–27–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66224; File No. SR–Phlx–
2012–08]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Extend the
Pilot Period of Amendments to the
Clearly Erroneous Rule
January 24, 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
12, 2012, NASDAQ OMX PHLX LLC
(‘‘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
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 77, No. 19 / Monday, January 30, 2012 / Notices
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 amendments to Rule
3312, concerning clearly erroneous
transactions, 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.
*
*
*
*
*
Rule 3312. Clearly Erroneous
Transactions
The provisions of paragraphs (a)(2)(C),
(b), and (c)(1) of this Rule, as amended
by SR–Phlx–2010–125, shall be in effect
during a pilot period set to end on July
31, 2012[January 31, 2012]. If the pilot
is not either extended or approved
permanent by July 31, 2012[January 31,
2012], the prior versions of paragraphs
(a)(2)(C), (b), and (c)(1) shall be in effect.
(a)–(f) No change.
*
*
*
*
*
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.
emcdonald on DSK29S0YB1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On September 10, 2010, the
Commission approved, for a pilot period
to end December 10, 2010, a proposed
rule change submitted by the BATS
Exchange, Inc., NASDAQ OMX BX, 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, New York Stock Exchange
LLC, NYSE Amex LLC, NYSE Arca, Inc.,
and National Stock Exchange, Inc.
(collectively, the ‘‘Exchanges’’), to
amend certain of their respective rules
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15:09 Jan 27, 2012
Jkt 226001
to set forth clearer standards and curtail
discretion with respect to breaking
erroneous trades.3 The changes were
adopted to address concerns that the
lack of clear guidelines for dealing with
clearly erroneous transactions may have
added to the confusion and uncertainty
faced by investors on May 6, 2010. In
connection with its resumption of
trading of NMS Stocks through PSX, the
Exchange amended Rule 3312 to
conform it to the newly-adopted
changes to the Exchanges’ clearly
erroneous rules, so that it could
participate in the pilot program.4 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, 2011.5 On March 31, 2011,
the Exchange filed an immediately
effective filing to extend the existing
pilot program for four months, so that
the pilot would expire on the earlier of
August 11, 2011 or the date on which
a limit up/limit down mechanism to
address extraordinary market volatility,
if adopted, applies.6 On August 5, 2011,
the Exchange filed an immediately
effective filing 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, 2012.7 On August 8, 2011, the
Exchange filed an immediately effective
filing to amend Rule 3312 so that it
would continue to operate in the same
manner after changes to the single stock
trading pause process became effective.8
The Exchange believes that the pilot
program has been successful in
providing greater transparency and
certainty to the process of breaking
erroneous trades. The Exchange also
believes that an additional extension of
the pilot is warranted so that it may
continue to monitor the effects of the
pilot on the markets and investors, and
consider appropriate adjustments, as
necessary.
3 Securities Exchange Act Release No. 62886
(September 10, 2010), 75 FR 56613 (September 16,
2010).
4 Securities Exchange Act Release No. 63023
(September 30, 2010), 75 FR 61802 (October 6,
2010).
5 Securities Exchange Act Release No. 63491;
(December 9, 2010), 75 FR 78297 (December 15,
2010).
6 Securities Exchange Act Release No. 64239
(April 7, 2011), 76 FR 20789 (April 13, 2011) (SR–
Phlx–2011–45).
7 Securities Exchange Act Release No. 65058
(August 9, 2011), 76 FR 50519 (August 15, 2011)
(SR–Phlx–2011–110).
8 Securities Exchange Act Release No. 65106
(August 11, 2011), 76 FR 51079 (August 17, 2011)
(SR–Phlx–2011–114).
PO 00000
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Sfmt 4703
4613
Accordingly, the Exchange is filing to
further extend the pilot program until
July 31, 2012.
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’’),9 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) 10 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
break erroneous trades.
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 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)
9 15
U.S.C. 78f(b)(5).
U.S.C. 78k–1(a)(1).
11 15 U.S.C. 78s(b)(3)(A)(iii).
12 17 CFR 240.19b–4(f)(6).
10 15
E:\FR\FM\30JAN1.SGM
30JAN1
4614
Federal Register / Vol. 77, No. 19 / Monday, January 30, 2012 / Notices
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
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–Phlx–2012–08 on the subject
line.
U.S.C. 78s(b)(3)(A).
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).
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).
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–Phlx–2012–08. 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–
08 and should be submitted on or before
February 21, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Kevin M. O’Neill,
Deputy Secretary.
emcdonald on DSK29S0YB1PROD with NOTICES
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15:09 Jan 27, 2012
Jkt 226001
Dated: January 24, 2012.
J. Adam Ereli,
Principal Deputy Assistant Secretary, Bureau
of Educational and Cultural Affairs,
Department of State.
[FR Doc. 2012–1955 Filed 1–27–12; 8:45 am]
BILLING CODE 4710–05–P
[FR Doc. 2012–1884 Filed 1–27–12; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 7777]
13 15
14 17
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000
(and, as appropriate, Delegation of
Authority No. 257 of April 15, 2003), I
hereby determine that the objects to be
included in the exhibition ‘‘Children of
the Plumed Serpent: The Legacy of
Quetzalcoatl in Ancient Mexico,’’
imported from abroad for temporary
exhibition within the United States, are
of cultural significance. The objects are
imported pursuant to loan agreements
with the foreign owners or custodians.
I also determine that the exhibition or
display of the exhibit objects at the Los
Angeles County Museum of Art, Los
Angeles, CA from on or about April 1,
2012, until on or about July 1, 2012, and
then exhibition or display of the exhibit
at the Dallas Museum of Art, Dallas, TX
from on or about July 29, 2012 to on or
about November 25, 2012, and at
possible additional exhibitions or
venues yet to be determined, is in the
national interest. I have ordered that
Public Notice of these Determinations
be published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Ona M.
Hahs, Attorney-Adviser, Office of the
Legal Adviser, U.S. Department of State
(telephone: (202) 632–6473). The
mailing address is U.S. Department of
State, SA–5, L/PD, Fifth Floor (Suite
5H03), Washington, DC 20522–0505.
DEPARTMENT OF STATE
[Public Notice 7778]
Culturally Significant Objects Imported
for Exhibition Determinations:
‘‘Children of the Plumed Serpent: The
Legacy of Quetzalcoatl in Ancient
Mexico’’
Notice is hereby given of the
following determinations: Pursuant to
SUMMARY:
18 17
PO 00000
CFR 200.30–3(a)(12).
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In the Matter of the Review of the
Designation of Aum Shinrikyo (aka
AUM, Aleph and Other Aliases); As a
Foreign Terrorist Organization
Pursuant to Section 219 of the
Immigration and Nationality Act, as
Amended
Based upon a review of the
Administrative Record assembled
pursuant to Section 219(a)(4)(C) of the
Immigration and Nationality Act, as
amended (8 U.S.C. 1189(a)(4)(C))
E:\FR\FM\30JAN1.SGM
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]]>Agencies
[Federal Register Volume 77, Number 19 (Monday, January 30, 2012)]
[Notices]
[Pages 4612-4614]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1884]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66224; File No. SR-Phlx-2012-08]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Extend
the Pilot Period of Amendments to the Clearly Erroneous Rule
January 24, 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 12, 2012, NASDAQ OMX PHLX LLC (``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
[[Page 4613]]
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 amendments to
Rule 3312, concerning clearly erroneous transactions, 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.
* * * * *
Rule 3312. Clearly Erroneous Transactions
The provisions of paragraphs (a)(2)(C), (b), and (c)(1) of this
Rule, as amended by SR-Phlx-2010-125, shall be in effect during a pilot
period set to end on July 31, 2012[January 31, 2012]. If the pilot is
not either extended or approved permanent by July 31, 2012[January 31,
2012], the prior versions of paragraphs (a)(2)(C), (b), and (c)(1)
shall be in effect.
(a)-(f) No change.
* * * * *
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 September 10, 2010, the Commission approved, for a pilot period
to end December 10, 2010, a proposed rule change submitted by the BATS
Exchange, Inc., NASDAQ OMX BX, 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, New York Stock Exchange LLC, NYSE Amex LLC, NYSE Arca,
Inc., and National Stock Exchange, Inc. (collectively, the
``Exchanges''), to amend certain of their respective rules to set forth
clearer standards and curtail discretion with respect to breaking
erroneous trades.\3\ The changes were adopted to address concerns that
the lack of clear guidelines for dealing with clearly erroneous
transactions may have added to the confusion and uncertainty faced by
investors on May 6, 2010. In connection with its resumption of trading
of NMS Stocks through PSX, the Exchange amended Rule 3312 to conform it
to the newly-adopted changes to the Exchanges' clearly erroneous rules,
so that it could participate in the pilot program.\4\ 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.\5\ On March 31, 2011, the Exchange filed an
immediately effective filing to extend the existing pilot program for
four months, so that the pilot would expire on the earlier of August
11, 2011 or the date on which a limit up/limit down mechanism to
address extraordinary market volatility, if adopted, applies.\6\ On
August 5, 2011, the Exchange filed an immediately effective filing
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.\7\ On August 8,
2011, the Exchange filed an immediately effective filing to amend Rule
3312 so that it would continue to operate in the same manner after
changes to the single stock trading pause process became effective.\8\
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 62886 (September 10,
2010), 75 FR 56613 (September 16, 2010).
\4\ Securities Exchange Act Release No. 63023 (September 30,
2010), 75 FR 61802 (October 6, 2010).
\5\ Securities Exchange Act Release No. 63491; (December 9,
2010), 75 FR 78297 (December 15, 2010).
\6\ Securities Exchange Act Release No. 64239 (April 7, 2011),
76 FR 20789 (April 13, 2011) (SR-Phlx-2011-45).
\7\ Securities Exchange Act Release No. 65058 (August 9, 2011),
76 FR 50519 (August 15, 2011) (SR-Phlx-2011-110).
\8\ Securities Exchange Act Release No. 65106 (August 11, 2011),
76 FR 51079 (August 17, 2011) (SR-Phlx-2011-114).
---------------------------------------------------------------------------
The Exchange believes that the pilot program has been successful in
providing greater transparency and certainty to the process of breaking
erroneous trades. The Exchange also believes that an additional
extension of the pilot is warranted so that it may continue to monitor
the effects of the pilot on the markets and investors, and consider
appropriate adjustments, as necessary.
Accordingly, the Exchange is filing to further extend the pilot
program until July 31, 2012.
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''),\9\ 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) \10\ 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 break erroneous
trades.
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\9\ 15 U.S.C. 78f(b)(5).
\10\ 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 \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)
[[Page 4614]]
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-Phlx-2012-08 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-Phlx-2012-08. 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-2012-08 and should be
submitted on or before February 21, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Kevin M. O'Neill,
Deputy Secretary.
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\18\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2012-1884 Filed 1-27-12; 8:45 am]
BILLING CODE 8011-01-P
