Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Amex Options Rule 902NY To Create a Reserve Floor Market Maker Amex Trading Permit, 4848-4850 [2012-2036]
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4848
Federal Register / Vol. 77, No. 20 / Tuesday, January 31, 2012 / Notices
to oversee the Applicant’s activities as
a national securities exchange if the
Commission were to approve the
Applicant’s Form 1 application. In
particular, the Commission notes that
the Applicant has represented that it
would have no direct connection to the
Foreign Indirect Affiliates, that the
Foreign Indirect Affiliates would have
no ability to influence the management
or policies of the Applicant, and that the
Foreign Indirect Affiliates would have
no obligation to fund, or ability to
materially affect the funding of, the
Applicant. In addition, the Commission
notes that the Applicant represented
that: (1) The Foreign Indirect Affiliates
have no ownership interest in the
Applicant or in any of the controlling
equity holders of the Applicant; and (2)
there are no commercial dealings
between the Applicant and the Foreign
Indirect Affiliates.27 The Commission
also believes that, based on the
Applicant’s representations, it could be
burdensome for the Applicant to obtain
detailed corporate and financial
information with respect to the Foreign
Indirect Affiliates because these
affiliates are located in foreign
jurisdictions and the disclosure of such
information could implicate foreign
information sharing restrictions in such
jurisdictions.28
Given the limited and indirect
relationship between the Applicant and
the Foreign Indirect Affiliates and the
location of the Foreign Indirect
Affiliates in foreign jurisdictions, as
described above, the Commission
believes that the detailed corporate and
financial information required in
Exhibits C and D with respect to the
Foreign Indirect Affiliates is
unnecessary for the Commission’s
review of the Applicant’s Form 1
application and would be unnecessary
for the Commission’s oversight of the
Applicant as a registered national
securities exchange following any
Commission approval of its Form 1
application.
For the reasons discussed above, the
Commission finds that the conditional
exemptive relief requested by the
Applicant is appropriate in the public
interest and is consistent with the
protection of investors.
It is ordered, pursuant to Section 36
of the Exchange Act,29 and subject to the
conditions described above, that the
Applicant is exempt from the
requirements to: (1) include in its Form
1 application the information required
in Exhibits C and D to Form 1 with
Exemption Request, supra note 4, at 4.
id.
29 15 U.S.C. 78mm.
respect to the Foreign Indirect Affiliates;
and (2) with respect to the Foreign
Indirect Affiliates, update the
information in Exhibits C and D to Form
1 as required by Exchange Act Rules 6a–
2(a)(2), 6a–2(b)(1), and 6a–2(c).
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012–2021 Filed 1–30–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66237; File No. SR–
NYSEAmex–2012–02]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Amex
Options Rule 902NY To Create a
Reserve Floor Market Maker Amex
Trading Permit
January 25, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
24, 2012, NYSE Amex LLC (the
‘‘Exchange’’ or ‘‘NYSE Amex’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Amex Options Rule 902NY to
create a Reserve Floor Market Maker
Amex Trading Permit (‘‘Reserve ATP’’).
The text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room,
and www.nyse.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
27 See
28 See
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2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NYSE Amex Options Rule 902NY to
create a Reserve ATP.
Under the current Fee Schedule, an
ATP Holder 3 acting as a Market Maker
must pay $5,000 per month per Amex
Trading Permit (‘‘ATP’’).4 In order to act
as a Floor Market Maker, an individual
must be specifically named on the
relevant Market Maker’s ATP. On some
occasions, a Floor Market Maker may be
absent from the floor due to illness or
other unexpected absence, in which
case the ATP Holder may wish to have
a Market Maker Authorized Trader 5
(‘‘MMAT’’) employee engage in open
outcry trading to cover for the absent
Floor Market Maker. However, at
present the ATP Holder cannot do so
unless the MMAT employee is
specifically named on the relevant ATP,
and it may not be economical for the
ATP Holder to maintain an additional
ATP to address such unexpected or
limited situations or to complete the
approval process for an additional ATP
in a timely way when a short-term need
arises. In such cases, the ATP Holder
must carry out its responsibilities with
fewer than the optimal number of Floor
Market Makers on the trading floor. For
example, currently under NYSE Amex
Rule 923NY, a total of four ATPs are
required to stream quotes electronically
into all option issues traded on the
Exchange. Additionally, each ATP can
have an individual named to act as a
Floor Market Maker in open outcry
trading on the Floor of the Exchange.
Thus, an ATP Holder with four ATPs
may stream quotes in every option issue
on the Exchange and have four
3 An ‘‘ATP Holder’’ is a natural person, sole
proprietorship, partnership, corporation, limited
liability company or other organization, in good
standing, that has been issued an Amex Trading
Permit. See NYSE Amex Rule 900.2NY(5).
4 The fee is calculated based on the maximum
number of ATPs held by the ATP Holder during the
calendar month.
5 A ‘‘Market Maker Authorized Trader’’ is an
authorized trader who performs market making
activities pursuant to Rule 920NY on behalf of an
ATP Holder registered as a Market Maker. See
NYSE Amex Rule 900.2NY(37). A Market Maker
Authorized Trader must meet the same registration
requirements as a Floor Market Maker before they
can be designated as a Market Maker Authorized
Trader. See NYSE Amex Rule 921.1NY.
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Federal Register / Vol. 77, No. 20 / Tuesday, January 31, 2012 / Notices
individuals conduct trading in open
outcry on the trading Floor as Floor
Market Makers. If one of those four
individuals is unavailable due to
sickness, vacation or other reason, the
ATP Holder is required to pay for an
additional ATP (presently $5,000) in
order to have another individual trade
in open outcry as a Floor Market Maker.
If the ATP Holder activates an
individual on an ATP for any portion of
a month, even as little as one day, the
ATP Holder is charged the full $5,000
monthly ATP fee.
The Exchange believes that an option
should be available to Market Maker
firms to address the short-term absence
of an employee in a more economical
way, which also would assist the
Exchange in maintaining fair and
orderly markets. In addition, certain
Market Maker firms have requested that
the Exchange amend the present system
to address the issue of an absent Floor
Market Maker. Accordingly, the
Exchange proposes to create a Reserve
ATP under which an ATP Holder would
be permitted to have a qualified MMAT
employee cover for the absent Floor
Market Maker under the firm’s ATP,
effectively empowering the individual
acting as a qualified MMAT to act as a
Floor Market Maker in lieu of the absent
individual until such time as the absent
Floor Market Maker returns. When a
Floor Market Maker is or will be absent,
an ATP Holder that maintains a Reserve
ATP would be required to provide
written notice to the Exchange that it
will utilize such Reserve ATP, at least
a day in advance of the utilization. The
notice will identify both the Floor
Market Maker who will not be utilizing
the ATP Holder’s ATP and the MMAT
who will be acting as the substitute
Floor Market Maker. While the notice is
in effect, only the specifically named
MMAT acting as a substitute Floor
Market Maker will be authorized to
utilize the ATP. When the original Floor
Market Maker returns, the ATP Holder
will provide written notice to the
Exchange, and, as of the date specified
in the notice, the original Floor Market
Maker may resume reliance on the ATP
and the MMAT will no longer be able
to utilize the ATP. In this manner, an
ATP Holder that has purchased the four
ATPs required to quote every issue on
the Exchange would have the ability to
ensure it has sufficient Floor Market
Maker coverage in the event of an
absence, without having to incur the full
$5,000 ATP fee, by instead paying a
Reserve ATP fee of $175 per month,
which would be established by a
separate fee filing with the Commission.
The proposed fee would be assessed to
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an ATP Holder for each MMAT in its
employ whom the ATP Holder wishes
to be eligible to be named to the ATP
to act as a Floor Market Maker to cover
for another Floor Market Maker who is
otherwise unable to be at work that day.
Any natural person to whom a
Reserve ATP is issued would be
required, as of the date of notice, to (a)
be fully qualified and approved by the
Exchange to be an ATP Holder
authorized as an MMAT; and (b) meet
all of the requirements of an ATP
Holder under the Exchange’s rules.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,6
in general, and furthers the objectives of
Section 6(b)(5),7 in particular, in that it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. Specifically, the Exchange
believes that the proposed rule change
would provide a method for ATP
Holders to have fully qualified
personnel step in to handle other
employees’ absences without requiring
the ATP Holders to pay the full fee
every month for the ATPs used by such
substitute persons, thereby contributing
to the efficient use of ATP Holder
personnel and resources, and fair and
orderly markets. Additionally, the
Exchange notes that it is filing this rule
change to respond to the Market Maker
firms that have requested a solution to
the issues they face when they have an
absent Floor Market Maker.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and Rule
19b–4(f)(6) thereunder.9 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),11 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEAmex–2012–02 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.
8 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
9 17
6 15
7 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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Federal Register / Vol. 77, No. 20 / Tuesday, January 31, 2012 / Notices
All submissions should refer to File
Number SR–NYSEAmex–2012–02. 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 NW.,
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 Number SR–
NYSEAmex–2012–02 and should be
submitted on or before February 21,
2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–2036 Filed 1–30–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66238; File No. SR–BX–
2012–005]
wreier-aviles on DSK5TPTVN1PROD with NOTICES
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Expand the
Short Term Option Series Program
January 25, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on January
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
15:20 Jan 30, 2012
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Trading Rules of the Boston Options
Exchange Group, LLC (‘‘BOX’’) to
expand the Short Term Option Series
Program.
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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend Supplementary
Material .07 to Chapter IV, Section 6
(Series of Options Open for Trading)
and Supplementary Material .02 to
Chapter XIV, Section 10 (Terms of Index
Options Contracts) to expand the Short
Term Option Series Program (‘‘Weeklys
Program’’).4 Currently, BOX may select
up to 25 currently listed option classes
on which Weekly options may be
opened in the Weeklys Program. The
Exchange proposes to increase this to
thirty option classes to participate in the
Weeklys Program. This is a competitive
3 17
CFR 240.19b–4(f)(6).
Exchange adopted the Weeklys Program on
July 15, 2010. See Securities Exchange Act Release
No. 62505 (July 15, 2010), 75 FR 42792 (July 22,
2010) (SR–BX–2010–047).
4 The
12 17
VerDate Mar<15>2010
17, 2012, NASDAQ OMX BX, Inc. (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
constituting a non-controversial rule
change under Rule 19b–4(f)(6) under the
Act,3 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
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Frm 00094
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filing and is based on recently approved
filings submitted by The NASDAQ
Stock Market LLC for the NASDAQ
Options Market (‘‘NOM’’) and NASDAQ
OMX PHLX, Inc. (‘‘PHLX’’).5
On November 17, 2011, the Exchange
amended the BOX Weeklys Program by
increasing the number of strikes that
may be listed per class (from 20 to 30)
that participates in the Weeklys
Program, and by increasing the number
of classes (from 15 to 25) that are
eligible to participate in the BOX
Weeklys Program.6 On that same day,
NOM and PHLX each increased the
number of classes that are eligible to
participate in their Weeklys Programs
from 15 classes to 30 classes. As a
result, BOX is competitively
disadvantaged since it operates a
substantially similar Weeklys Program
as NOM and PHLX but is limited to
selecting only 25 classes that may
participate in its Weeklys Program
(whereas PHLX and NOM may each
select 30 classes).7
The Exchange is not proposing any
changes to these additional Weeklys
Program limitations other than to
increase from 25 to 30 the number of
option classes that may participate in
the Weeklys Program.
BOX notes that the Weeklys Program
has been well-received by market
participants, in particular by retail
investors. BOX believes a modest
increase to the number of classes that
may participate in the Weeklys Program,
such as the one proposed in this rule
filing, will permit BOX to meet
increased customer demand and
provide market participants with the
ability to hedge in a greater number of
option classes.
With regard to the impact of this
proposal on system capacity, BOX has
analyzed its capacity and represents that
it and the Options Price Reporting
Authority (‘‘OPRA’’) have the necessary
systems capacity to handle the potential
additional traffic associated with trading
of an expanded number of classes that
participate in the Weeklys Program.
The proposed increase to the number
of classes eligible to participate in the
5 See Securities Exchange Act Release Nos. 65775
(November 17, 2011), 76 FR 72473 (November 23,
2011) (SR–NASDAQ–2011–138) and 65776
(November 17, 2011), 76 FR 72482 (November 23,
2011) (SR–PHLX–2011–131).
6 See Securities Exchange Act Release No. 65773
(November 17, 2011), 76 FR 72490 (November 23,
2011) (SR–BX–2011–075).
7 BOX is permitted to list Weekly options ‘‘on any
option classes that are selected by other securities
exchanges that employ a similar program under
their respective rules.’’ See Supplementary Material
.07 to Chapter IV, Section 6, and Supplementary
Material .02 to Chapter XIV, Section 10 of the BOX
Trading Rules.
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]]>Agencies
[Federal Register Volume 77, Number 20 (Tuesday, January 31, 2012)]
[Notices]
[Pages 4848-4850]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-2036]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66237; File No. SR-NYSEAmex-2012-02]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Amex
Options Rule 902NY To Create a Reserve Floor Market Maker Amex Trading
Permit
January 25, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 24, 2012, NYSE Amex LLC (the ``Exchange'' or ``NYSE Amex'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the self-regulatory organization. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Amex Options Rule 902NY to
create a Reserve Floor Market Maker Amex Trading Permit (``Reserve
ATP''). The text of the proposed rule change is available at the
Exchange, the Commission's Public Reference Room, and www.nyse.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend NYSE Amex Options Rule 902NY to
create a Reserve ATP.
Under the current Fee Schedule, an ATP Holder \3\ acting as a
Market Maker must pay $5,000 per month per Amex Trading Permit
(``ATP'').\4\ In order to act as a Floor Market Maker, an individual
must be specifically named on the relevant Market Maker's ATP. On some
occasions, a Floor Market Maker may be absent from the floor due to
illness or other unexpected absence, in which case the ATP Holder may
wish to have a Market Maker Authorized Trader \5\ (``MMAT'') employee
engage in open outcry trading to cover for the absent Floor Market
Maker. However, at present the ATP Holder cannot do so unless the MMAT
employee is specifically named on the relevant ATP, and it may not be
economical for the ATP Holder to maintain an additional ATP to address
such unexpected or limited situations or to complete the approval
process for an additional ATP in a timely way when a short-term need
arises. In such cases, the ATP Holder must carry out its
responsibilities with fewer than the optimal number of Floor Market
Makers on the trading floor. For example, currently under NYSE Amex
Rule 923NY, a total of four ATPs are required to stream quotes
electronically into all option issues traded on the Exchange.
Additionally, each ATP can have an individual named to act as a Floor
Market Maker in open outcry trading on the Floor of the Exchange. Thus,
an ATP Holder with four ATPs may stream quotes in every option issue on
the Exchange and have four
[[Page 4849]]
individuals conduct trading in open outcry on the trading Floor as
Floor Market Makers. If one of those four individuals is unavailable
due to sickness, vacation or other reason, the ATP Holder is required
to pay for an additional ATP (presently $5,000) in order to have
another individual trade in open outcry as a Floor Market Maker. If the
ATP Holder activates an individual on an ATP for any portion of a
month, even as little as one day, the ATP Holder is charged the full
$5,000 monthly ATP fee.
---------------------------------------------------------------------------
\3\ An ``ATP Holder'' is a natural person, sole proprietorship,
partnership, corporation, limited liability company or other
organization, in good standing, that has been issued an Amex Trading
Permit. See NYSE Amex Rule 900.2NY(5).
\4\ The fee is calculated based on the maximum number of ATPs
held by the ATP Holder during the calendar month.
\5\ A ``Market Maker Authorized Trader'' is an authorized trader
who performs market making activities pursuant to Rule 920NY on
behalf of an ATP Holder registered as a Market Maker. See NYSE Amex
Rule 900.2NY(37). A Market Maker Authorized Trader must meet the
same registration requirements as a Floor Market Maker before they
can be designated as a Market Maker Authorized Trader. See NYSE Amex
Rule 921.1NY.
---------------------------------------------------------------------------
The Exchange believes that an option should be available to Market
Maker firms to address the short-term absence of an employee in a more
economical way, which also would assist the Exchange in maintaining
fair and orderly markets. In addition, certain Market Maker firms have
requested that the Exchange amend the present system to address the
issue of an absent Floor Market Maker. Accordingly, the Exchange
proposes to create a Reserve ATP under which an ATP Holder would be
permitted to have a qualified MMAT employee cover for the absent Floor
Market Maker under the firm's ATP, effectively empowering the
individual acting as a qualified MMAT to act as a Floor Market Maker in
lieu of the absent individual until such time as the absent Floor
Market Maker returns. When a Floor Market Maker is or will be absent,
an ATP Holder that maintains a Reserve ATP would be required to provide
written notice to the Exchange that it will utilize such Reserve ATP,
at least a day in advance of the utilization. The notice will identify
both the Floor Market Maker who will not be utilizing the ATP Holder's
ATP and the MMAT who will be acting as the substitute Floor Market
Maker. While the notice is in effect, only the specifically named MMAT
acting as a substitute Floor Market Maker will be authorized to utilize
the ATP. When the original Floor Market Maker returns, the ATP Holder
will provide written notice to the Exchange, and, as of the date
specified in the notice, the original Floor Market Maker may resume
reliance on the ATP and the MMAT will no longer be able to utilize the
ATP. In this manner, an ATP Holder that has purchased the four ATPs
required to quote every issue on the Exchange would have the ability to
ensure it has sufficient Floor Market Maker coverage in the event of an
absence, without having to incur the full $5,000 ATP fee, by instead
paying a Reserve ATP fee of $175 per month, which would be established
by a separate fee filing with the Commission. The proposed fee would be
assessed to an ATP Holder for each MMAT in its employ whom the ATP
Holder wishes to be eligible to be named to the ATP to act as a Floor
Market Maker to cover for another Floor Market Maker who is otherwise
unable to be at work that day.
Any natural person to whom a Reserve ATP is issued would be
required, as of the date of notice, to (a) be fully qualified and
approved by the Exchange to be an ATP Holder authorized as an MMAT; and
(b) meet all of the requirements of an ATP Holder under the Exchange's
rules.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\6\ in general, and furthers the objectives of Section 6(b)(5),\7\
in particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. Specifically, the Exchange
believes that the proposed rule change would provide a method for ATP
Holders to have fully qualified personnel step in to handle other
employees' absences without requiring the ATP Holders to pay the full
fee every month for the ATPs used by such substitute persons, thereby
contributing to the efficient use of ATP Holder personnel and
resources, and fair and orderly markets. Additionally, the Exchange
notes that it is filing this rule change to respond to the Market Maker
firms that have requested a solution to the issues they face when they
have an absent Floor Market Maker.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\11\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEAmex-2012-02 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.
[[Page 4850]]
All submissions should refer to File Number SR-NYSEAmex-2012-02. 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 NW.,
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 Number SR-NYSEAmex-2012-02 and should
be submitted on or before February 21, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-2036 Filed 1-30-12; 8:45 am]
BILLING CODE 8011-01-P
