Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending Its Program That Allows Transactions To Take Place at a Price That Is Below $1 Per Option Contract Until May 31, 2013, 30572-30574 [2012-12439]
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30572
Federal Register / Vol. 77, No. 100 / Wednesday, May 23, 2012 / Notices
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
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve or disapprove
such proposed rule change, or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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:
mstockstill on DSK4VPTVN1PROD with NOTICES
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–C2–2012–011 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–C2–2012–011. 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
VerDate Mar<15>2010
17:00 May 22, 2012
Jkt 226001
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
10:00 a.m. and 3:00 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–C2–
2012–011 and should be submitted on
or before June 13, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Kevin M. O’Neill,
Deputy Secretary.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend its
program that allows transactions to take
place at a price that is below $1 per
option contract until May 31, 2013. The
text of the proposed rule change is
available at the Exchange,
www.nyse.com, the Commission’s
Public Reference Room, and
www.sec.gov.
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.
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[FR Doc. 2012–12440 Filed 5–22–12; 8:45 am]
[Release No. 34–67006; File No. SR–
NYSEAmex–2012–30]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Extending Its Program
That Allows Transactions To Take
Place at a Price That Is Below $1 Per
Option Contract Until May 31, 2013
May 17, 2012.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on May 10,
2012, NYSE Amex LLC (the ‘‘Exchange’’
or ‘‘NYSE Amex’’) 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 self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
The purpose of this filing is to extend
the Pilot Program 4 under Rule 968NY to
allow accommodation transactions
(‘‘Cabinet Trades’’) to take place at a
price that is below $1 per option
contract to May 31, 2013. The Exchange
proposes to extend the program for one
year.
An ‘‘accommodation’’ or ‘‘cabinet’’
trade refers to trades in listed options on
the Exchange that are worthless or not
actively traded. Cabinet trading is
generally conducted in accordance with
the Exchange Rules, except as provided
in Exchange Rule 968NY
Accommodation Transactions (Cabinet
Trades), which sets forth specific
procedures for engaging in cabinet
trades. Rule 968NY currently provides
for cabinet transactions to occur via
open outcry at a cabinet price of a $1
per option contract in any options series
open for trading in the Exchange, except
that the Rule is not applicable to trading
in option classes participating in the
Penny Pilot Program. Under the
procedures, bids and offers (whether
opening or closing a position) at a price
of $1 per option contract may be
6 17
1 15
PO 00000
Frm 00076
Fmt 4703
4 See Securities Exchange Act Release No. 63475
(December 8, 2010), 75 FR 77932 (December 14,
2010) (SR–NYSEAmex–2010–114).
Sfmt 4703
E:\FR\FM\23MYN1.SGM
23MYN1
Federal Register / Vol. 77, No. 100 / Wednesday, May 23, 2012 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
represented in the trading crowd by a
Floor Broker or by a Market-Maker or
provided in response to a request by a
Trading Official, a Floor Broker or a
Market-Maker, but must yield priority to
all resting orders in the Cabinet (those
orders held by the Trading Official, and
which resting cabinet orders may be
closing only). So long as both the buyer
and the seller yield to orders resting in
the cabinet book, opening cabinet bids
can trade with opening cabinet offers at
$1 per option contract.
The Exchange has temporarily
amended the procedures through June 1,
2012 to allow transactions to take place
in open outcry at a price of at least $0
but less than $1 per option contract.
These lower priced transactions are
permitted to be traded pursuant to the
same procedures applicable to $1
cabinet trades, except that (i) bids and
offers for opening transactions are only
permitted to accommodate closing
transactions in order to limit use of the
procedure to liquidations of existing
positions, and (ii) the procedures are
also made available for trading in option
classes participating in the Penny Pilot
Program.5 The Exchange believes that
allowing a price of at least $0 but less
than $1 better accommodates the closing
of options positions in series that are
worthless or not actively traded,
particularly due to recent market
conditions which have resulted in a
significant number of series being outof-the-money. For example, a market
participant might have a long position
in a call series with a strike price of
$100 and the underlying stock might be
trading at $30. In such an instance, there
might not otherwise be a market for that
person to close-out the position even at
the $1 cabinet price (e.g., the series
might be quoted no bid).
As with other accommodation
liquidations under Rule 968NY,
transactions that occur for less than $1
will not be disseminated to the public
on the consolidated tape. In addition, as
with other accommodation liquidations
under Rule 968NY the transactions will
be exempt from the Consolidated
Options Audit Trail (‘‘COATS’’)
requirements of Exchange Rule 955NY
Order Format and System Entry
5 Currently the $1 cabinet trading procedures are
limited to options classes traded in $0.05 or $0.10
standard increment. The $1 cabinet trading
procedures are not available in Penny Pilot Program
classes because in those classes an option series can
trade in a standard increment as low as $0.01 per
share (or $1.00 per option contract with a 100 share
multiplier). Because the temporary procedures
allow trading below $0.01 per share (or $1.00 per
option contract with a 100 share multiplier), the
procedures are available for all classes, including
those classes participating in the Penny Pilot
Program.
VerDate Mar<15>2010
17:00 May 22, 2012
Jkt 226001
Requirements. However, the Exchange
will maintain quotation, order and
transaction information for the
transactions in the same format as the
COATS data is maintained. In this
regard, all transactions for less than $1
must be reported to the Exchange
following the close of each business
day.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) 6 of the Securities Exchange Act of
1934 (the ‘‘Act’’), in general, and
furthers the objectives of Section
6(b)(5) 7 in particular in that it is
designed to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts, to
remove impediments to and to perfect
the mechanism for a free and open
market and a national market system
and, in general, to protect investors and
the public interest. The Exchange
believes that allowing for liquidations at
a price less than $1 per option contract
will better facilitate the closing of
options positions that are worthless or
not actively trading, especially in Penny
Pilot issues where Cabinet Trades are
not otherwise permitted.
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
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(6).
7 15
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
30573
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 10 and Rule 19b–4(f)(6)(iii)
thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 13 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing.
The Commission believes that
waiving operative delay as of June 1,
2012 is consistent with the protection of
investors and the public interest, as it
will allow the pilot program to continue
uninterrupted, thereby avoiding the
investor confusion that could result
from a temporary interruption in the
pilot program. For this reason, the
Commission designates the proposed
rule change to be operative on June 1,
2012.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the operative
delay, the Commission has considered the proposed
rule’s impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
11 17
E:\FR\FM\23MYN1.SGM
23MYN1
30574
Federal Register / Vol. 77, No. 100 / Wednesday, May 23, 2012 / Notices
No. SR–NYSEAmex–2012–30 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File No.
SR–NYSEAmex–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
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–
NYSEAmex–2012–30 and should be
submitted on or before June 13, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–12439 Filed 5–22–12; 8:45 am]
mstockstill on DSK4VPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
[Release No. 34–67005; File No. SR–
NYSEArca–2012–43]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Extending Its Program
That Allows Transactions To Take
Place at a Price That Is Below $1 Per
Option Contract Until May 31, 2013
May 17, 2012.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on May 10,
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 self-regulatory 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 extend its
program that allows transactions to take
place at a price that is below $1 per
option contract until May 31, 2013. The
text of the proposed rule change is
available at the Exchange,
www.nyse.com, the Commission’s
Public Reference Room, and
www.sec.gov.
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.
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
17:00 May 22, 2012
Jkt 226001
PO 00000
Frm 00078
Fmt 4703
1. Purpose
The purpose of this filing is to extend
the Pilot Program 4 under Rule 6.80 to
allow accommodation transactions
(‘‘Cabinet Trades’’) to take place at a
price that is below $1 per option
contract to May 31, 2013. The Exchange
proposes to extend the program for one
year.
An ‘‘accommodation’’ or ‘‘cabinet’’
trade refers to trades in listed options on
the Exchange that are worthless or not
actively traded. Cabinet trading is
generally conducted in accordance with
the Exchange Rules, except as provided
in Exchange Rule 6.80 Accommodation
Transactions (Cabinet Trades), which
sets forth specific procedures for
engaging in cabinet trades. Rule 6.80
currently provides for cabinet
transactions to occur via open outcry at
a cabinet price of a $1 per option
contract in any options series open for
trading in the Exchange, except that the
Rule is not applicable to trading in
option classes participating in the
Penny Pilot Program. Under the
procedures, bids and offers (whether
opening or closing a position) at a price
of $1 per option contract may be
represented in the trading crowd by a
Floor Broker or by a Market-Maker or
provided in response to a request by a
Trading Official, a Floor Broker or a
Market-Maker, but must yield priority to
all resting orders in the Cabinet (those
orders held by the Trading Official, and
which resting cabinet orders may be
closing only). So long as both the buyer
and the seller yield to orders resting in
the cabinet book, opening cabinet bids
can trade with opening cabinet offers at
$1 per option contract.
The Exchange has temporarily
amended the procedures through June 1,
2012 to allow transactions to take place
in open outcry at a price of at least $0
but less than $1 per option contract.
These lower priced transactions are
permitted to be traded pursuant to the
same procedures applicable to $1
cabinet trades, except that (i) bids and
offers for opening transactions are only
permitted to accommodate closing
transactions in order to limit use of the
procedure to liquidations of existing
positions, and (ii) the procedures are
also made available for trading in option
classes participating in the Penny Pilot
4 See Securities Exchange Act Release No. 63476
(December 8, 2010), 75 FR 77930 (December 14,
2010) (SR–NYSE Arca–2010–109).
2 15
15 17
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
Sfmt 4703
E:\FR\FM\23MYN1.SGM
23MYN1
]]>Agencies
[Federal Register Volume 77, Number 100 (Wednesday, May 23, 2012)]
[Notices]
[Pages 30572-30574]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-12439]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67006; File No. SR-NYSEAmex-2012-30]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Extending Its
Program That Allows Transactions To Take Place at a Price That Is Below
$1 Per Option Contract Until May 31, 2013
May 17, 2012.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on May 10, 2012, NYSE Amex LLC (the ``Exchange'' or ``NYSE
Amex'') 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 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend its program that allows
transactions to take place at a price that is below $1 per option
contract until May 31, 2013. The text of the proposed rule change is
available at the Exchange, www.nyse.com, the Commission's Public
Reference Room, and www.sec.gov.
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to extend the Pilot Program \4\ under
Rule 968NY to allow accommodation transactions (``Cabinet Trades'') to
take place at a price that is below $1 per option contract to May 31,
2013. The Exchange proposes to extend the program for one year.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 63475 (December 8,
2010), 75 FR 77932 (December 14, 2010) (SR-NYSEAmex-2010-114).
---------------------------------------------------------------------------
An ``accommodation'' or ``cabinet'' trade refers to trades in
listed options on the Exchange that are worthless or not actively
traded. Cabinet trading is generally conducted in accordance with the
Exchange Rules, except as provided in Exchange Rule 968NY Accommodation
Transactions (Cabinet Trades), which sets forth specific procedures for
engaging in cabinet trades. Rule 968NY currently provides for cabinet
transactions to occur via open outcry at a cabinet price of a $1 per
option contract in any options series open for trading in the Exchange,
except that the Rule is not applicable to trading in option classes
participating in the Penny Pilot Program. Under the procedures, bids
and offers (whether opening or closing a position) at a price of $1 per
option contract may be
[[Page 30573]]
represented in the trading crowd by a Floor Broker or by a Market-Maker
or provided in response to a request by a Trading Official, a Floor
Broker or a Market-Maker, but must yield priority to all resting orders
in the Cabinet (those orders held by the Trading Official, and which
resting cabinet orders may be closing only). So long as both the buyer
and the seller yield to orders resting in the cabinet book, opening
cabinet bids can trade with opening cabinet offers at $1 per option
contract.
The Exchange has temporarily amended the procedures through June 1,
2012 to allow transactions to take place in open outcry at a price of
at least $0 but less than $1 per option contract. These lower priced
transactions are permitted to be traded pursuant to the same procedures
applicable to $1 cabinet trades, except that (i) bids and offers for
opening transactions are only permitted to accommodate closing
transactions in order to limit use of the procedure to liquidations of
existing positions, and (ii) the procedures are also made available for
trading in option classes participating in the Penny Pilot Program.\5\
The Exchange believes that allowing a price of at least $0 but less
than $1 better accommodates the closing of options positions in series
that are worthless or not actively traded, particularly due to recent
market conditions which have resulted in a significant number of series
being out-of-the-money. For example, a market participant might have a
long position in a call series with a strike price of $100 and the
underlying stock might be trading at $30. In such an instance, there
might not otherwise be a market for that person to close-out the
position even at the $1 cabinet price (e.g., the series might be quoted
no bid).
---------------------------------------------------------------------------
\5\ Currently the $1 cabinet trading procedures are limited to
options classes traded in $0.05 or $0.10 standard increment. The $1
cabinet trading procedures are not available in Penny Pilot Program
classes because in those classes an option series can trade in a
standard increment as low as $0.01 per share (or $1.00 per option
contract with a 100 share multiplier). Because the temporary
procedures allow trading below $0.01 per share (or $1.00 per option
contract with a 100 share multiplier), the procedures are available
for all classes, including those classes participating in the Penny
Pilot Program.
---------------------------------------------------------------------------
As with other accommodation liquidations under Rule 968NY,
transactions that occur for less than $1 will not be disseminated to
the public on the consolidated tape. In addition, as with other
accommodation liquidations under Rule 968NY the transactions will be
exempt from the Consolidated Options Audit Trail (``COATS'')
requirements of Exchange Rule 955NY Order Format and System Entry
Requirements. However, the Exchange will maintain quotation, order and
transaction information for the transactions in the same format as the
COATS data is maintained. In this regard, all transactions for less
than $1 must be reported to the Exchange following the close of each
business day.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \6\ of the Securities Exchange Act of 1934 (the ``Act''),
in general, and furthers the objectives of Section 6(b)(5) \7\ in
particular in that it is designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts, to
remove impediments to and to perfect the mechanism for a free and open
market and a national market system and, in general, to protect
investors and the public interest. The Exchange believes that allowing
for liquidations at a price less than $1 per option contract will
better facilitate the closing of options positions that are worthless
or not actively trading, especially in Penny Pilot issues where Cabinet
Trades are not otherwise permitted.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 \10\ and Rule 19b-
4(f)(6)(iii) thereunder.\11\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the Exchange to give the Commission written
notice of the Exchange's intent to file the proposed rule change
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \13\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving operative delay as of June 1,
2012 is consistent with the protection of investors and the public
interest, as it will allow the pilot program to continue uninterrupted,
thereby avoiding the investor confusion that could result from a
temporary interruption in the pilot program. For this reason, the
Commission designates the proposed rule change to be operative on June
1, 2012.\14\
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\14\ For purposes only of waiving the operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File
[[Page 30574]]
No. SR-NYSEAmex-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 No. SR-NYSEAmex-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
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-NYSEAmex-2012-30 and should be
submitted on or before June 13, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-12439 Filed 5-22-12; 8:45 am]
BILLING CODE 8011-01-P
