Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of Proposed Rule Change Defining a Primary Specialist in Each Options Class and Modifying the Specialist Entitlement Accordingly, 32157-32159 [2012-13148]
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Federal Register / Vol. 77, No. 105 / Thursday, May 31, 2012 / Notices
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
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:
srobinson on DSK4SPTVN1PROD 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–NYSEArca–2012–45 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–2012–45. 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
VerDate Mar<15>2010
17:53 May 30, 2012
Jkt 226001
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–2012–45 and should be
submitted on or before June 21, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–13149 Filed 5–30–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67057; File No. SR–
NYSEAmex–2012–31]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing of
Proposed Rule Change Defining a
Primary Specialist in Each Options
Class and Modifying the Specialist
Entitlement Accordingly
May 24, 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 May 11,
2012, NYSE Amex LLC (the ‘‘Exchange’’
or ‘‘NYSE Amex’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Frm 00077
Fmt 4703
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 define a
Primary Specialist in each options class
and modify the Specialist entitlement
accordingly. The text of the proposed
rule change is available at the Exchange,
the Commission’s Public Reference
Room, and www.nyse.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rules 964NY and 964.2NY to define
Primary Specialists, and to modify the
order allocation entitlement amongst
Specialist Pool participants so as to
enhance competition between the
Specialist and e-Specialists.
Rule 964NY sets forth the priority for
the allocation of incoming orders to
resting interest at a particular price in
the NYSE Amex System. Under the rule,
resting Customer orders have first
priority. After that, Directed Order
Market Makers have second priority,
provided they satisfy the criteria to be
eligible to receive a Directed Order. If an
order is not allocated to a Directed
Order Market Maker, the Specialist Pool
has next priority. As currently provided
in Rule 964NY(b)(2)(C) and Rule
964.2NY, the Specialist and eSpecialists in each class compete in the
Specialist Pool on a size pro-rata basis,
and do not compete at all for the
allocation of non-Directed Orders of five
contracts or fewer.3 For orders of five
contracts or fewer, they are allocated on
a rotating basis (i.e., a round robin) to
a Specialist or e-Specialist in the
3 Under the rule, the Specialist’s pro-rata
allocation may receive additional weighting as
determined by the Exchange.
1 15
PO 00000
32157
Sfmt 4703
E:\FR\FM\31MYN1.SGM
31MYN1
srobinson on DSK4SPTVN1PROD with NOTICES
32158
Federal Register / Vol. 77, No. 105 / Thursday, May 31, 2012 / Notices
Specialist Pool. After the Specialist
Pool, non-Customer interest has next
priority on a size pro-rata basis.
The Exchange proposes to enhance
competition amongst the Specialist Pool
participants by designating one of the
participants to be the Primary
Specialist. The Primary Specialist will
be determined using objective
evaluation of the relative quote
performance of each Specialist and eSpecialist. The evaluation will be
conducted on a quarterly basis and
would include one or more of the
following factors: time and size at the
NBBO, average quote width, average
quote size, and the relative share of
electronic volume in a given class of
options.4 The Exchange will issue a
Regulatory Bulletin at least five business
days prior to each evaluation period
with the evaluation criteria, including
the relative weighting of each factor.
The Exchange believes that providing
for a Primary Specialist to be designated
based on competitive quote performance
will encourage tighter and more liquid
markets, and thus provide better
markets for all investors. The Exchange
notes that the Primary Specialist, like all
Specialists on the Exchange today,
would continue to be eligible to receive
Directed Orders under Rule
964NY(b)(2)(B), but would continue to
be subject to the restrictions in that
provision, including the limitation on
receiving no more than 40% of a
Directed Order. Moreover, as is
currently the case today, if the Primary
Specialist were to receive a Directed
Order under Rule 964NY(b)(2)(B), the
Specialist Pool, including the Primary
Specialist, would be ineligible to receive
an allocation from that order and the
NYSE Amex System would move to the
next step in the allocation process—size
pro rata allocation pursuant to Rule
964NY(b)(2)(D).
Under the proposed rule change, the
Primary Specialist (instead of the
Specialist) would receive any additional
weighting in the size pro rata allocation
amongst Specialist Pool participants.
This additional weighting would be
determined by the Exchange, as is
currently the case now. Additionally,
under the proposal, rather than a round
robin allocation of non-Directed Orders
for five contracts or fewer, all such
orders would be allocated to the
Primary Specialist after any allocation
4 Notwithstanding the quarterly evaluation
timeframe noted above, the first evaluation period
may be longer or shorter than a calendar quarter,
depending on the approval date of this filing. As
noted above, the Exchange will announce the
evaluation criteria and relative weighting of each
factor at least 5 business days prior to that period
and subsequent quarterly periods.
VerDate Mar<15>2010
17:53 May 30, 2012
Jkt 226001
to Customers, not to exceed the size of
their quote, provided the Primary
Specialist is quoting at the NBBO.5 If the
Primary Specialist’s quote size is less
than the order of five contracts or fewer,
any remaining contracts after the
Primary Specialist receives its allocation
will be allocated in accordance with
Rule 964NY(b)(2)(D) (i.e., size pro rata).
In addition, as is the case under the
current rule for the Specialist Pool, if
the Primary Specialist is not quoting at
the NBBO at the time the order for five
or fewer contracts arrives, then the order
will be executed in accordance with the
provision of Rule 964NY(b)(2)(D).
Finally, the Exchange proposes to
correct a typographical error in Rule
964.2NY(b)(3)(A) by changing the word
‘‘on’’ to ‘‘one’’.
NYSE Amex will not implement this
rule change until such time that ATP
Holders have been notified via
Regulatory Bulletin.
Compliance Date
The Exchange plans to issue a notice
announcing the compliance date of the
rule change within 90 days from the
effective date of the rule change.
2. Statutory Basis
The Exchange believes that this
proposed rule change is consistent with
Section 6(b) of the Securities Exchange
Act of 1934 (‘‘Act’’),6 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 7 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices,
promote just and equitable principles of
trade, 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. In
particular, the proposed rule change
seeks to enhance quote competition
amongst Specialist Pool participants.
Increasing quote competition should
lead to narrower spreads and more
liquid markets and thus benefit
investors. Narrower spreads and more
liquid markets should attract more order
flow to the Exchange, enhancing price
discovery and generally benefiting all
participants on the Exchange. The
Exchange further believes that the
proposed rule change would be not be
unfairly discriminatory in allocating
orders of 5 contracts or fewer to the
Primary Specialist because it uses
objective standards to determine the
Primary Specialist, and re-evaluates
5 The Exchange proposes to eliminate the round
robin for such orders.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
Specialist performance on a quarterly
basis. In this respect, all Specialists
compete on a quarterly basis to be
designated the Primary Specialist based
on objective standards that are
published prior to each quarter in which
Specialist performance is measured, and
accordingly, all Specialists have the
opportunity to be designated the
Primary Specialist.
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
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
the 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:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEAmex–2012–31 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.
E:\FR\FM\31MYN1.SGM
31MYN1
Federal Register / Vol. 77, No. 105 / Thursday, May 31, 2012 / Notices
All submissions should refer to File
Number SR–NYSEAmex–2012–31. 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. The text of the proposed
rule change is available on the
Commission’s Web site at https://
www.sec.gov. Copies of such filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEAmex–2012–31 and should be
submitted on or before June 21, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–13148 Filed 5–30–12; 8:45 am]
srobinson on DSK4SPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67056; File No. SR–C2–
2012–014]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to the Name Change
of the C2 Regulatory Oversight
Committee
May 24, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b-4 thereunder,2
notice is hereby given that on May 18,
2012, the C2 Options Exchange,
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which items
have been prepared by the Exchange.
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 its
Fourth Amended and Restated Bylaws
(the ‘‘Bylaws’’) to change the name of
the C2 Regulatory Oversight Committee.
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.c2exchange.com/Legal/), at
the Exchange’s Office of the Secretary,
and at 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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
1 15
8 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
17:53 May 30, 2012
2 17
Jkt 226001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00079
Fmt 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 the
Bylaws to change the name of the
Regulatory Oversight Committee.
Currently, the Bylaws provide that the
committees of the Board include, among
others, a Regulatory Oversight
Committee. Recently, the Board
(pursuant to its authority under Section
4.5 of the Bylaws) delegated to the
Regulatory Oversight Committee
authority to oversee the adequacy and
effectiveness of the Exchange’s
compliance functions, in addition to its
regulatory oversight responsibilities. To
more accurately reflect the current
regulatory and compliance functions of
the Regulatory Oversight Committee, the
Exchange proposes to amend the Bylaws
to replace all references to ‘‘Regulatory
Oversight Committee’’ with ‘‘Regulatory
Oversight and Compliance Committee.’’
Additionally, the title of the Bylaws
would be changed to the Fifth Amended
and Restated Bylaws of C2.
2. Statutory Basis
The Exchange believes the proposed
amendment is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.3 Specifically,
the Exchange believes the proposed
amendment is consistent with the
Section 6(b)(5) 4 requirements that the
rules of an exchange be 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 proposed
amendment would protect investors and
the public interest by clarifying the
Bylaws to change the name of an
Exchange committee to one that more
accurately reflects the committee’s
current functions.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
C2 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.
3 15
4 15
Sfmt 4703
32159
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
E:\FR\FM\31MYN1.SGM
31MYN1
Agencies
[Federal Register Volume 77, Number 105 (Thursday, May 31, 2012)]
[Notices]
[Pages 32157-32159]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-13148]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67057; File No. SR-NYSEAmex-2012-31]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of
Proposed Rule Change Defining a Primary Specialist in Each Options
Class and Modifying the Specialist Entitlement Accordingly
May 24, 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 May 11, 2012, NYSE Amex LLC (the ``Exchange'' or ``NYSE Amex'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I 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\ 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 define a Primary Specialist in each
options class and modify the Specialist entitlement accordingly. The
text of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, and www.nyse.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rules 964NY and 964.2NY to define
Primary Specialists, and to modify the order allocation entitlement
amongst Specialist Pool participants so as to enhance competition
between the Specialist and e-Specialists.
Rule 964NY sets forth the priority for the allocation of incoming
orders to resting interest at a particular price in the NYSE Amex
System. Under the rule, resting Customer orders have first priority.
After that, Directed Order Market Makers have second priority, provided
they satisfy the criteria to be eligible to receive a Directed Order.
If an order is not allocated to a Directed Order Market Maker, the
Specialist Pool has next priority. As currently provided in Rule
964NY(b)(2)(C) and Rule 964.2NY, the Specialist and e-Specialists in
each class compete in the Specialist Pool on a size pro-rata basis, and
do not compete at all for the allocation of non-Directed Orders of five
contracts or fewer.\3\ For orders of five contracts or fewer, they are
allocated on a rotating basis (i.e., a round robin) to a Specialist or
e-Specialist in the
[[Page 32158]]
Specialist Pool. After the Specialist Pool, non-Customer interest has
next priority on a size pro-rata basis.
---------------------------------------------------------------------------
\3\ Under the rule, the Specialist's pro-rata allocation may
receive additional weighting as determined by the Exchange.
---------------------------------------------------------------------------
The Exchange proposes to enhance competition amongst the Specialist
Pool participants by designating one of the participants to be the
Primary Specialist. The Primary Specialist will be determined using
objective evaluation of the relative quote performance of each
Specialist and e-Specialist. The evaluation will be conducted on a
quarterly basis and would include one or more of the following factors:
time and size at the NBBO, average quote width, average quote size, and
the relative share of electronic volume in a given class of options.\4\
The Exchange will issue a Regulatory Bulletin at least five business
days prior to each evaluation period with the evaluation criteria,
including the relative weighting of each factor.
---------------------------------------------------------------------------
\4\ Notwithstanding the quarterly evaluation timeframe noted
above, the first evaluation period may be longer or shorter than a
calendar quarter, depending on the approval date of this filing. As
noted above, the Exchange will announce the evaluation criteria and
relative weighting of each factor at least 5 business days prior to
that period and subsequent quarterly periods.
---------------------------------------------------------------------------
The Exchange believes that providing for a Primary Specialist to be
designated based on competitive quote performance will encourage
tighter and more liquid markets, and thus provide better markets for
all investors. The Exchange notes that the Primary Specialist, like all
Specialists on the Exchange today, would continue to be eligible to
receive Directed Orders under Rule 964NY(b)(2)(B), but would continue
to be subject to the restrictions in that provision, including the
limitation on receiving no more than 40% of a Directed Order. Moreover,
as is currently the case today, if the Primary Specialist were to
receive a Directed Order under Rule 964NY(b)(2)(B), the Specialist
Pool, including the Primary Specialist, would be ineligible to receive
an allocation from that order and the NYSE Amex System would move to
the next step in the allocation process--size pro rata allocation
pursuant to Rule 964NY(b)(2)(D).
Under the proposed rule change, the Primary Specialist (instead of
the Specialist) would receive any additional weighting in the size pro
rata allocation amongst Specialist Pool participants. This additional
weighting would be determined by the Exchange, as is currently the case
now. Additionally, under the proposal, rather than a round robin
allocation of non-Directed Orders for five contracts or fewer, all such
orders would be allocated to the Primary Specialist after any
allocation to Customers, not to exceed the size of their quote,
provided the Primary Specialist is quoting at the NBBO.\5\ If the
Primary Specialist's quote size is less than the order of five
contracts or fewer, any remaining contracts after the Primary
Specialist receives its allocation will be allocated in accordance with
Rule 964NY(b)(2)(D) (i.e., size pro rata).
---------------------------------------------------------------------------
\5\ The Exchange proposes to eliminate the round robin for such
orders.
---------------------------------------------------------------------------
In addition, as is the case under the current rule for the
Specialist Pool, if the Primary Specialist is not quoting at the NBBO
at the time the order for five or fewer contracts arrives, then the
order will be executed in accordance with the provision of Rule
964NY(b)(2)(D).
Finally, the Exchange proposes to correct a typographical error in
Rule 964.2NY(b)(3)(A) by changing the word ``on'' to ``one''.
NYSE Amex will not implement this rule change until such time that
ATP Holders have been notified via Regulatory Bulletin.
Compliance Date
The Exchange plans to issue a notice announcing the compliance date
of the rule change within 90 days from the effective date of the rule
change.
2. Statutory Basis
The Exchange believes that this proposed rule change is consistent
with Section 6(b) of the Securities Exchange Act of 1934 (``Act''),\6\
in general, and furthers the objectives of Section 6(b)(5) of the Act
\7\ in particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, promote just and equitable principles
of trade, 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. In particular, the proposed rule
change seeks to enhance quote competition amongst Specialist Pool
participants. Increasing quote competition should lead to narrower
spreads and more liquid markets and thus benefit investors. Narrower
spreads and more liquid markets should attract more order flow to the
Exchange, enhancing price discovery and generally benefiting all
participants on the Exchange. The Exchange further believes that the
proposed rule change would be not be unfairly discriminatory in
allocating orders of 5 contracts or fewer to the Primary Specialist
because it uses objective standards to determine the Primary
Specialist, and re-evaluates Specialist performance on a quarterly
basis. In this respect, all Specialists compete on a quarterly basis to
be designated the Primary Specialist based on objective standards that
are published prior to each quarter in which Specialist performance is
measured, and accordingly, all Specialists have the opportunity to be
designated the Primary Specialist.
---------------------------------------------------------------------------
\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
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 the 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:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEAmex-2012-31 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
[[Page 32159]]
All submissions should refer to File Number SR-NYSEAmex-2012-31. 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. The text of the proposed rule change is available on
the Commission's Web site at https://www.sec.gov. Copies of such filing
also will be available for inspection and copying at the principal
office of the Exchange. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-NYSEAmex-2012-31 and should be submitted on or before June 21, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-13148 Filed 5-30-12; 8:45 am]
BILLING CODE 8011-01-P