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-on-Open Orders, 23536-23538 [2012-9410]
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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
Jkt 226001
[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
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Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
Trading Halt Auctions, as defined in
NYSE Arca Equities Rule 7.35(f).
The Exchange also proposes the
following technical amendments to
NYSE Arca Equities Rule 7.35(c):
• First, the Exchange proposes to
remove certain text from NYSE Arca
Equities Rule 7.35(c) that crossreferences New York Stock Exchange
(‘‘NYSE’’) Rule 123D and NYSE-listed
securities subject to a sub-penny trading
condition, which was previously
described within NYSE Rule 123D(3).
NYSE has removed this text from NYSE
Rule 123D and eliminated the subpenny trading condition in its entirety.6
The proposed removal of the crossreference would therefore remove
obsolete text from NYSE Arca Equities
Rule 7.35(c).
• Second, the Exchange proposes to
specify that, for purposes of NYSE Arca
Equities Rule 7.35(c), and unless stated
otherwise, references to Market Orders
include Auction-Only Market Orders.
This proposed change would add
greater specificity regarding the
handling of Auction-Only Market
Orders, including MOO Orders, during
the Market Order Auction.
• Third, the Exchange proposes to
delete duplicative text from NYSE Arca
Equities Rule 7.35(c) describing that,
after the first opening print on the
primary market, all Market Orders and
Limit Orders are processed pursuant to
NYSE Arca Equities Rule 7.37.
• Finally, the Exchange proposes to
specify in NYSE Arca Equities Rule
7.35(c)(3)(A)(3) that only Market Orders
that are eligible for both the Market
Order Auction and the Core Trading
Session, but are not executed in the
Market Order Auction, become eligible
for execution in the Core Trading
Session immediately upon conclusion
of the Market Order Auction.7 This
proposed change would add greater
specificity regarding the handling of
certain Market Orders, like MOO
Orders, that are not eligible for the Core
Trading Session.
Because of the related technology
changes that this proposed rule change
would require, the Exchange proposes
to announce the date on which LOO and
MOO Orders would be available via
Trader Update.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the
6 See
8 15
17:10 Apr 18, 2012
Jkt 226001
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 See NASDAQ Stock Market LLC (‘‘NASDAQ’’)
Rule 4752(a)(3) and (4), which define ‘‘Limit On
Open Order’’ and ‘‘Market On Open Order,’’
respectively. See also BATS Exchange, Inc.
(‘‘BATS’’) Rule 11.23(a)(14) and (16), which define
‘‘Limit-On-Open’’ orders and ‘‘Market-On-Open’’
orders, respectively.
9 15
Securities Exchange Act Release No. 58936
(November 13, 2008), 73 FR 69704 (November 19,
2008) (SR–NYSE–2008–117).
7 The Exchange also proposes to remove
duplicative text from NYSE Arca Equities Rule
7.35(c)(3)(A)(4).
VerDate Mar<15>2010
‘‘Act’’),8 in general, and furthers the
objectives of Section 6(b)(5),9 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 proposed rule
change is also not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
As proposed, LOO and MOO Orders
would be a subset of the existing
Auction-Only Orders that are currently
available on the Exchange. In this
regard, the availability of LOO and
MOO Orders would enhance the tools
available to ETP Holders when entering
their trading interest by providing for an
Auction-Only Order that could only be
executed during the Market Order
Auction. Furthermore, the proposed
addition of LOO and MOO Orders on
the Exchange could contribute to the
quality of the Exchange’s opening by
increasing the amount of liquidity that
ETP Holders are willing to enter to
participate in the Market Order Auction.
For these reasons, the Exchange believes
that its proposal to provide for LOO and
MOO Orders would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, protect investors and the public
interest. The Exchange notes that order
types similar to LOO and MOO Orders
are available on other exchanges.10
Accordingly, making these order types
available for ETP Holders to utilize
would promote just and equitable
principles of trade and foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities. Furthermore,
LOO and MOO Orders would be
available for all ETP Holders to utilize
on the Exchange. In this regard, the
Exchange believes that the proposed
rule change is not designed to permit
unfair discrimination. The proposed
technical changes would also benefit
ETP Holders and investors by adding
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
23537
greater specificity and precision to the
Exchange’s Rules.
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 11 and
Rule 19b–4(f)(6) thereunder.12 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
11 15
12 17
E:\FR\FM\19APN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
19APN1
23538
Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Notices
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2012–29 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–2012–29. 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–2012–29 and
should be submitted on or before May
10, 2012.
mstockstill on DSK4VPTVN1PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–9410 Filed 4–18–12; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #13058 and #13059]
West Virginia Disaster Number WV–
00025
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of West Virginia (FEMA–4061–
DR), dated 03/22/2012.
Incident: Severe storms, flooding,
mudslides, and landslides.
Incident Period: 03/15/2012 through
03/31/2012.
Effective Date: 03/31/2012.
Physical Loan Application Deadline
Date: 05/21/2012.
Economic Injury (EIDL) Loan
Application Deadline Date: 12/24/2012.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing And
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of WEST
VIRGINIA, dated 03/22/2012, is hereby
amended to establish the incident
period for this disaster as beginning 03/
15/2012 and continuing through 03/31/
2012.
All other information in the original
declaration remains unchanged.
SUMMARY:
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2012–9455 Filed 4–18–12; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #13054 and #13055]
West Virginia Disaster Number WV–
00027
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for the State of West Virginia
(FEMA–4061–DR), dated 03/22/2012.
SUMMARY:
13 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
17:10 Apr 18, 2012
Jkt 226001
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
Incident: Severe Storms, Flooding,
Mudslides, and Landslides.
Incident Period: 03/15/2012 through
03/31/2012.
Effective Date: 03/31/2012.
Physical Loan Application Deadline
Date: 05/21/2012.
EIDL Loan Application Deadline Date:
12/24/2012.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for the State of West
Virginia, dated 03/22/2012 is hereby
amended to establish the incident
period for this disaster as beginning 03/
15/2012 and continuing through 03/31/
2012.
All other information in the original
declaration remains unchanged.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2012–9456 Filed 4–18–12; 8:45 am]
BILLING CODE 8025–01–P
DEPARTMENT OF STATE
[Public Notice 7851]
RIN 1400–AC95
Announcement of Entry Into Force of
the Defense Trade Cooperation Treaty
Between the United States and the
United Kingdom
ACTION:
Notice.
On April 13, 2012, the United
States and the United Kingdom
exchanged diplomatic notes bringing
the Treaty between the Government of
the United States of America and the
Government of the United Kingdom of
Great Britain and Northern Ireland
Concerning Defense Trade Cooperation
(Treaty Doc. 110–7) into force. This
Notice announces the entry into force of
the Treaty. This Notice also announces
April 13, 2012 as the effective date of
the rule published on March 21, 2012
(77 FR 16592) implementing the Treaty
and making other updates to the
International Traffic in Arms
Regulations (ITAR).
SUMMARY:
E:\FR\FM\19APN1.SGM
19APN1
]]>Agencies
[Federal Register Volume 77, Number 76 (Thursday, April 19, 2012)]
[Notices]
[Pages 23536-23538]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9410]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[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-
on-Open 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.
---------------------------------------------------------------------------
\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(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.
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 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
[[Page 23537]]
Trading Halt Auctions, as defined in NYSE Arca Equities Rule 7.35(f).
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
The Exchange also proposes the following technical amendments to
NYSE Arca Equities Rule 7.35(c):
First, the Exchange proposes to remove certain text from
NYSE Arca Equities Rule 7.35(c) that cross-references New York Stock
Exchange (``NYSE'') Rule 123D and NYSE-listed securities subject to a
sub-penny trading condition, which was previously described within NYSE
Rule 123D(3). NYSE has removed this text from NYSE Rule 123D and
eliminated the sub-penny trading condition in its entirety.\6\ The
proposed removal of the cross-reference would therefore remove obsolete
text from NYSE Arca Equities Rule 7.35(c).
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 58936 (November 13,
2008), 73 FR 69704 (November 19, 2008) (SR-NYSE-2008-117).
---------------------------------------------------------------------------
Second, the Exchange proposes to specify that, for
purposes of NYSE Arca Equities Rule 7.35(c), and unless stated
otherwise, references to Market Orders include Auction-Only Market
Orders. This proposed change would add greater specificity regarding
the handling of Auction-Only Market Orders, including MOO Orders,
during the Market Order Auction.
Third, the Exchange proposes to delete duplicative text
from NYSE Arca Equities Rule 7.35(c) describing that, after the first
opening print on the primary market, all Market Orders and Limit Orders
are processed pursuant to NYSE Arca Equities Rule 7.37.
Finally, the Exchange proposes to specify in NYSE Arca
Equities Rule 7.35(c)(3)(A)(3) that only Market Orders that are
eligible for both the Market Order Auction and the Core Trading
Session, but are not executed in the Market Order Auction, become
eligible for execution in the Core Trading Session immediately upon
conclusion of the Market Order Auction.\7\ This proposed change would
add greater specificity regarding the handling of certain Market
Orders, like MOO Orders, that are not eligible for the Core Trading
Session.
---------------------------------------------------------------------------
\7\ The Exchange also proposes to remove duplicative text from
NYSE Arca Equities Rule 7.35(c)(3)(A)(4).
---------------------------------------------------------------------------
Because of the related technology changes that this proposed rule
change would require, the Exchange proposes to announce the date on
which LOO and MOO Orders would be available 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''),\8\ in general, and
furthers the objectives of Section 6(b)(5),\9\ 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 proposed
rule change is also not designed to permit unfair discrimination
between customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
As proposed, LOO and MOO Orders would be a subset of the existing
Auction-Only Orders that are currently available on the Exchange. In
this regard, the availability of LOO and MOO Orders would enhance the
tools available to ETP Holders when entering their trading interest by
providing for an Auction-Only Order that could only be executed during
the Market Order Auction. Furthermore, the proposed addition of LOO and
MOO Orders on the Exchange could contribute to the quality of the
Exchange's opening by increasing the amount of liquidity that ETP
Holders are willing to enter to participate in the Market Order
Auction. For these reasons, the Exchange believes that its proposal to
provide for LOO and MOO Orders would remove impediments to and perfect
the mechanism of a free and open market and a national market system
and, in general, protect investors and the public interest. The
Exchange notes that order types similar to LOO and MOO Orders are
available on other exchanges.\10\ Accordingly, making these order types
available for ETP Holders to utilize would promote just and equitable
principles of trade and foster cooperation and coordination with
persons engaged in facilitating transactions in securities.
Furthermore, LOO and MOO Orders would be available for all ETP Holders
to utilize on the Exchange. In this regard, the Exchange believes that
the proposed rule change is not designed to permit unfair
discrimination. The proposed technical changes would also benefit ETP
Holders and investors by adding greater specificity and precision to
the Exchange's Rules.
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\10\ See NASDAQ Stock Market LLC (``NASDAQ'') Rule 4752(a)(3)
and (4), which define ``Limit On Open Order'' and ``Market On Open
Order,'' respectively. See also BATS Exchange, Inc. (``BATS'') Rule
11.23(a)(14) and (16), which define ``Limit-On-Open'' orders and
``Market-On-Open'' orders, respectively.
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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 \11\ and Rule 19b-4(f)(6)
thereunder.\12\ 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.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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
[[Page 23538]]
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2012-29 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-2012-29. 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-2012-29 and
should be submitted on or before May 10, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-9410 Filed 4-18-12; 8:45 am]
BILLING CODE 8011-01-P
