Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.31(h)(4) To Make Passive Liquidity Orders in Exchange-Listed Securities Available to All Users, Regardless of Whether a Lead Market Maker Is Assigned to the Security, 23534-23536 [2012-9409]
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<![CDATA[
23534
Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Notices
Sections 6(b)(1) and 6(b)(6) of the Act,13
which require that an exchange enforce
compliance with, and have rules that
provide appropriate discipline for
violations of, the Act, the rules and
regulations thereunder, and Exchange
rules. As an initial matter, the proposed
rule change will further these objectives
through its clarification of the list of
Exchange rule violations that are subject
to NYSE Amex Rule 476A by updating
rule titles and rule references, deleting
references to rules that have been
deleted, updating descriptions of rules
that have been amended, and fixing a
typographical error.
Further, the Commission recognizes
that the proposed rule change will
render violations of DMM obligations
under Rule 104 that were not previously
on the Rule 476A List,14 as well as
violations of DMM obligations under
Rule 123D, as eligible for treatment as
minor violations.15 However, the
Commission notes that designating a
rule as subject to the Minor Rule
Violation Plan does not signify that
violation of the rule will always be
deemed a minor violation. As noted by
the Exchange, Rule 476A preserves the
Exchange’s discretion to seek formal
discipline, as warranted, when
transgressions of rules designated as
eligible for the Minor Rule Violation
Plan are found to be more serious. Thus,
the Exchange will remain able to
require, on a case-by-case basis, formal
disciplinary action for any particular
violation. Therefore, the Commission
believes that the proposed rule change
will not compromise the Exchange’s
ability to seek more stringent sanctions
for the more serious violations of Rules
104 and 123D.
In addition, because NYSE Amex Rule
476A provides procedural rights to a
person fined under the rule, entitling
the person to contest the fine and
receive a full disciplinary proceeding,16
the Commission believes that NYSE
Amex Rule 476A, as amended by this
proposed rule change, will provide a
fair procedure for the disciplining of
Exchange members and persons
associated with members, consistent
with Sections 6(b)(7) and 6(d)(1) of the
Act.17
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,19 that the
proposed rule change (SR–NYSEAmex–
2012–10) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–9408 Filed 4–18–12; 8:45 am]
BILLING CODE 8011–01–P
13 15
mstockstill on DSK4VPTVN1PROD with NOTICES
U.S.C. 78f(b)(1) and 15 U.S.C. 78f(b)(6).
Commission believes that it is appropriate
to include in NYSE Amex Rule 476A references to
rules that are currently operating on a pilot basis.
15 The Commission also recognizes that the
Exchange proposes to harmonize its Rule 476A List
with the NYSE Minor Rule Violation Plan by
adding violations not currently included in the Rule
476A List.
16 See NYSE Amex Rule 476A(d).
17 15 U.S.C. 78f(b)(7) and 15 U.S.C. 78f(d)(1).
Finally, the Commission finds that the
proposed rule change is consistent with
the public interest, the protection of
investors, or is otherwise in furtherance
of the purposes of the Act, as required
by Rule 19d–1(c)(2) under the Act,18
which governs minor rule violation
plans. The Commission believes that the
proposed changes to NYSE Amex Rule
476A will strengthen the Exchange’s
ability to carry out its oversight and
enforcement responsibilities as a selfregulatory organization, in cases where
full disciplinary proceedings are
unsuitable in view of the nature of a
particular violation.
In approving this proposed rule
change, the Commission emphasizes
that in no way should the amendment
of the rule be seen as minimizing the
importance of compliance with
Exchange rules and all other rules
subject to the imposition of fines under
NYSE Amex Rule 476A. The
Commission believes that the violation
of any self-regulatory organization’s
rules, as well as Commission rules, is a
serious matter. However, NYSE Amex
Rule 476A provides a reasonable means
of addressing rule violations that do not
rise to the level of requiring formal
disciplinary proceedings, while
providing greater flexibility in handling
certain violations. The Commission
expects that the Exchange will continue
to conduct surveillance with due
diligence and make a determination
based on its findings, on a case by-case
basis, of whether a violation requires
formal disciplinary action under NYSE
Amex Rule 476.
14 The
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CFR 240.19d–1(c)(2).
U.S.C. 78s(b)(2).
20 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
3(a)(44).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66810; File No. SR–
NYSEArca–2012–30]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Arca
Equities Rule 7.31(h)(4) To Make
Passive Liquidity Orders in ExchangeListed Securities Available to All
Users, Regardless of Whether a Lead
Market Maker Is Assigned to the
Security
April 13, 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 April 3,
2012, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
constituting a 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Equities Rule 7.31(h)(4) to
make Passive Liquidity Orders (‘‘PL
Orders’’) in Exchange-listed securities
available to all Users, regardless of
whether a Lead Market Maker (‘‘LMM’’)
is assigned to the security. The text of
the proposed rule change is available at
the Exchange, www.nyse.com, and the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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,
18 17
19 15
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Frm 00085
Fmt 4703
Sfmt 4703
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Notices
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 Arca Equities Rule 7.31(h)(4) to
make PL Orders in Exchange-listed
securities available to all Users,
regardless of whether an LMM is
assigned to the security.
A PL Order is an order to buy or sell
a stated amount of a security at a
specified, undisplayed price.4 In
securities where the NYSE Arca
Marketplace is the primary listings
market and there is an LMM assigned to
the security that complies with certain
display requirements, a PL Order is
currently available only to the LMM for
such security. In all other securities
traded on the Exchange, whether duallylisted securities or securities traded
pursuant to unlisted trading privileges,
a PL Order is available to all Users. The
Exchange proposes to amend NYSE
Arca Equities Rule 7.31(h)(4) to remove
the text therein that limits the use of PL
Orders in Exchange-listed securities to
the assigned LMM, thereby making PL
Orders available to all Users, regardless
of whether an LMM is assigned to the
security.5
The PL Order was initially designed
to attract liquidity to the Exchange by
permitting market participants to
express their trading interest more
accurately than was possible with other
order types available at the time.6 PL
Orders were also designed to offer
potential price improvement to
incoming marketable orders submitted
by any User.7 The Exchange originally
believed that restricting the use of the
PL Order in Exchange-listed securities
to LMMs was appropriate because
LMMs would be subject to certain
minimum display requirements in
proximity to the Exchange’s Best Bid
and Offer (‘‘BBO’’).8 The Exchange
believed that these requirements could
enhance depth and liquidity at or near
the Exchange’s BBO.9
4 See
NYSE Arca Equities Rule 7.31(h)(4).
Exchange also proposes to remove certain
text from NYSE Arca Equities Rule 7.37(a)(1) and
(b)(1)(A) that would be rendered obsolete by the
proposed amendment to NYSE Arca Equities Rule
7.31(h)(4).
6 See Securities Exchange Act Release No. 54511
(September 26, 2006), 71 FR 58460, 58461 (October
3, 2006) (SR–PCX–2005–53).
7 Id.
8 Id.
9 Id. at 58462.
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After significant experience with the
use of PL Orders on the Exchange, both
by LMMs and other Users, the Exchange
believes that PL Orders in Exchangelisted securities should be available to
all Users, regardless of whether an LMM
is assigned to the security. In this
regard, experience has shown that
LMMs in Exchange-listed securities
generally do not utilize PL Orders in
their assigned securities. In contrast, the
Exchange has recently received requests
from ETP Holders to permit PL Orders
in Exchange-listed securities to be
entered by Users other than the LMM
assigned to the security.
The proposed rule change would
enhance the tools available to Users
when entering their trading interest by
making PL Orders in Exchange-listed
securities available to all Users,
including LMMs. The Exchange believes
that the proposed rule change would not
disadvantage LMMs, which generally do
not utilize the PL Order type, but would
remain able to do so going forward,
albeit without the exclusivity that is
currently available. Furthermore, the
Exchange believes that the elimination
of this exclusivity, and the display
requirements related thereto, would not
have a detrimental impact on the quality
of the Exchange’s market, because, as
discussed above, LMMs generally do not
utilize the PL Order. Instead, the
proposed rule change could improve the
quality of the Exchange’s market by
increasing the potential for price
improvement on the Exchange in
Exchange-listed securities.
Because of the related technology
changes that this proposed rule change
would require, the Exchange proposes
to announce the initial implementation
date via Trader Update.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),10 in general, and furthers the
objectives of Section 6(b)(5),11 in
particular, because it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The Exchange believes
that the proposed rule change meets
these requirements because it would
10 15
11 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00086
Fmt 4703
promote just and equitable principles of
trade and remove impediments to the
mechanism of a free and open market by
expanding the universe of Users that
could submit PL Orders in Exchangelisted securities. The Exchange further
believes that by expanding access to PL
Orders in Exchange-listed securities to
all Users, the Exchange will further
promote just and equitable principles of
trade. Conversely, the Exchange believes
that the proposed rule change would not
disadvantage LMMs, which generally do
not utilize the PL Order type, because
they would remain able to use PL
Orders in Exchange-listed securities.
Furthermore, the Exchange believes that
the elimination of this exclusivity
would further the goals of a free and
open market and national market system
by increasing the potential for price
improvement in Exchange-listed
securities.
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
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 for 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,
provided that the self-regulatory
organization has given the Commission
written notice of its intent to file 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 proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 12 and
Rule 19b–4(f)(6) thereunder.13 At any
time within 60 days of the filing of such
proposed rule change, the Commission
12 15
13 17
Sfmt 4703
23535
E:\FR\FM\19APN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
19APN1
23536
Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Notices
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:
All submissions should refer to File
Number SR–NYSEArca–2012–30 and
should be submitted on or before May
10, 2012.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
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.
[FR Doc. 2012–9409 Filed 4–18–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–NYSEArca–2012–30 on the
subject line.
mstockstill on DSK4VPTVN1PROD with NOTICES
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
Number SR–NYSEArca–2012–30. 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 the 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.
VerDate Mar<15>2010
17:10 Apr 18, 2012
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[Release No. 34–66811; File No. SR–
NYSEArca–2012–29]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Arca
Equities Rule 7.31(t) To Provide for
Limit-on-Open Orders and Market-onOpen Orders
April 13, 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 April 3,
2012, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
constituting a 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Equities Rule 7.31(t) to
provide for Limit-on-Open Orders
(‘‘LOO Orders’’) and Market-on-Open
Orders (‘‘MOO Orders’’). The text of the
proposed rule change is available at the
Exchange, www.nyse.com, and the
Commission’s Public Reference Room.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
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 Arca Equities Rule 7.31(t) to
provide for LOO and MOO Orders.
NYSE Arca Equities Rule 7.31(t)
currently provides for Auction-Only
Orders, which are limit or market orders
that are only executed within an
auction.4 As proposed, LOO and MOO
Orders would be defined under NYSE
Arca Equities Rule 7.31(t)(1) and (2),
respectively, as specific types of
Auction-Only Orders. More specifically,
a LOO Order would be defined as an
Auction-Only Limit Order that is to be
executed only during the Market Order
Auction, which is the auction that
opens the Core Trading Session on the
Exchange for Exchange-listed
securities.5 Any portion of a LOO Order
that remains unfilled after completion of
the Market Order Auction would be
cancelled. A MOO Order would be
defined as an Auction-Only Market
Order that is to be executed only during
the Market Order Auction. As with LOO
Orders, any portion of a MOO Order
that remains unfilled after completion of
the Market Order Auction would be
cancelled. MOO and LOO orders would
not participate in the Opening Auction,
as defined in NYSE Arca Equities Rule
7.35(b), the Closing Auction, as defined
in NYSE Arca Equities Rule 7.35(e), or
4 An Auction-Only Order is executable during the
next auction following entry of the order. If the
order is not executed in the auction, the balance is
cancelled. An Auction-Only Order is only available
for auctions that take place on the Exchange.
Auction-Only Orders are not routed to other
exchanges and are cancelled where the next auction
after entry of the order is cancelled or does not
occur. An Auction-Only Order may not be
designated as good until cancelled.
5 The Market Order Auction is described in NYSE
Arca Equities Rule 7.35(c).
E:\FR\FM\19APN1.SGM
19APN1
]]>Agencies
[Federal Register Volume 77, Number 76 (Thursday, April 19, 2012)]
[Notices]
[Pages 23534-23536]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9409]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66810; File No. SR-NYSEArca-2012-30]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Equities Rule 7.31(h)(4) To Make Passive Liquidity Orders in Exchange-
Listed Securities Available to All Users, Regardless of Whether a Lead
Market Maker Is Assigned to the Security
April 13, 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 April 3, 2012, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'')
filed with the Securities and Exchange Commission (the ``Commission'')
the proposed rule change as described in Items I and II below, which
Items have been prepared by the Exchange. The Exchange has designated
the proposed rule change as constituting a 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Arca Equities Rule 7.31(h)(4)
to make Passive Liquidity Orders (``PL Orders'') in Exchange-listed
securities available to all Users, regardless of whether a Lead Market
Maker (``LMM'') is assigned to the security. The text of the proposed
rule change is available at the Exchange, www.nyse.com, and the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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,
[[Page 23535]]
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 Arca Equities Rule 7.31(h)(4)
to make PL Orders in Exchange-listed securities available to all Users,
regardless of whether an LMM is assigned to the security.
A PL Order is an order to buy or sell a stated amount of a security
at a specified, undisplayed price.\4\ In securities where the NYSE Arca
Marketplace is the primary listings market and there is an LMM assigned
to the security that complies with certain display requirements, a PL
Order is currently available only to the LMM for such security. In all
other securities traded on the Exchange, whether dually-listed
securities or securities traded pursuant to unlisted trading
privileges, a PL Order is available to all Users. The Exchange proposes
to amend NYSE Arca Equities Rule 7.31(h)(4) to remove the text therein
that limits the use of PL Orders in Exchange-listed securities to the
assigned LMM, thereby making PL Orders available to all Users,
regardless of whether an LMM is assigned to the security.\5\
---------------------------------------------------------------------------
\4\ See NYSE Arca Equities Rule 7.31(h)(4).
\5\ The Exchange also proposes to remove certain text from NYSE
Arca Equities Rule 7.37(a)(1) and (b)(1)(A) that would be rendered
obsolete by the proposed amendment to NYSE Arca Equities Rule
7.31(h)(4).
---------------------------------------------------------------------------
The PL Order was initially designed to attract liquidity to the
Exchange by permitting market participants to express their trading
interest more accurately than was possible with other order types
available at the time.\6\ PL Orders were also designed to offer
potential price improvement to incoming marketable orders submitted by
any User.\7\ The Exchange originally believed that restricting the use
of the PL Order in Exchange-listed securities to LMMs was appropriate
because LMMs would be subject to certain minimum display requirements
in proximity to the Exchange's Best Bid and Offer (``BBO'').\8\ The
Exchange believed that these requirements could enhance depth and
liquidity at or near the Exchange's BBO.\9\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 54511 (September 26,
2006), 71 FR 58460, 58461 (October 3, 2006) (SR-PCX-2005-53).
\7\ Id.
\8\ Id.
\9\ Id. at 58462.
---------------------------------------------------------------------------
After significant experience with the use of PL Orders on the
Exchange, both by LMMs and other Users, the Exchange believes that PL
Orders in Exchange-listed securities should be available to all Users,
regardless of whether an LMM is assigned to the security. In this
regard, experience has shown that LMMs in Exchange-listed securities
generally do not utilize PL Orders in their assigned securities. In
contrast, the Exchange has recently received requests from ETP Holders
to permit PL Orders in Exchange-listed securities to be entered by
Users other than the LMM assigned to the security.
The proposed rule change would enhance the tools available to Users
when entering their trading interest by making PL Orders in Exchange-
listed securities available to all Users, including LMMs. The Exchange
believes that the proposed rule change would not disadvantage LMMs,
which generally do not utilize the PL Order type, but would remain able
to do so going forward, albeit without the exclusivity that is
currently available. Furthermore, the Exchange believes that the
elimination of this exclusivity, and the display requirements related
thereto, would not have a detrimental impact on the quality of the
Exchange's market, because, as discussed above, LMMs generally do not
utilize the PL Order. Instead, the proposed rule change could improve
the quality of the Exchange's market by increasing the potential for
price improvement on the Exchange in Exchange-listed securities.
Because of the related technology changes that this proposed rule
change would require, the Exchange proposes to announce the initial
implementation date via Trader Update.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\10\ in general, and
furthers the objectives of Section 6(b)(5),\11\ in particular, because
it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, to protect investors and the public interest. The Exchange
believes that the proposed rule change meets these requirements because
it would promote just and equitable principles of trade and remove
impediments to the mechanism of a free and open market by expanding the
universe of Users that could submit PL Orders in Exchange-listed
securities. The Exchange further believes that by expanding access to
PL Orders in Exchange-listed securities to all Users, the Exchange will
further promote just and equitable principles of trade. Conversely, the
Exchange believes that the proposed rule change would not disadvantage
LMMs, which generally do not utilize the PL Order type, because they
would remain able to use PL Orders in Exchange-listed securities.
Furthermore, the Exchange believes that the elimination of this
exclusivity would further the goals of a free and open market and
national market system by increasing the potential for price
improvement in Exchange-listed securities.
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\10\ 15 U.S.C. 78f(b).
\11\ 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
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 for 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, provided that the self-regulatory organization
has given the Commission written notice of its intent to file 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 proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6)
thereunder.\13\ At any time within 60 days of the filing of such
proposed rule change, the Commission
[[Page 23536]]
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.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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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-NYSEArca-2012-30 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 Number SR-NYSEArca-2012-30. 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 the 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-NYSEArca-2012-30 and
should be submitted on or before May 10, 2012.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-9409 Filed 4-18-12; 8:45 am]
BILLING CODE 8011-01-P
