Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Rules To Extend Pilot Program Regarding Trading Pauses in Individual Securities Due to Extraordinary Market Volatility, 47476-47478 [2012-19359]
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47476
Federal Register / Vol. 77, No. 153 / Wednesday, August 8, 2012 / Notices
proposed rule change is consistent with
the protection of investors and the
public interest because it would permit
the Exchange to immediately implement
the proposed rule change that would
allow CBSX to begin ensuring that
customer complaints are adequately
kept and addressed by CBSX Traders.8
The Commission believes that waiver of
the 30-day operative delay is consistent
with the protection of investors and the
public interest. Such waiver would
allow the Exchange, without delay, to
require CBSX Traders to establish a
process to maintain, and make available
to CBSX upon request, certain customer
complaints. The Commission notes that
the proposed rule change is based on
and similar to BATS Rule 4.3.9
Therefore, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.10
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 Exchange
Act. Comments may be submitted by
any of the following methods:
wreier-aviles on DSK7SPTVN1PROD 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–CBOE–2012–074 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–CBOE–2012–074. 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
8 See
SR–CBOE–2012–074, Item 7.
supra note 3.
10 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
9 See
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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–CBOE–
2012–074 and should be submitted on
or before August 29, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–19361 Filed 8–7–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67577; File No. SR–NSX–
2012–10]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend
Its Rules To Extend Pilot Program
Regarding Trading Pauses in
Individual Securities Due to
Extraordinary Market Volatility
August 2, 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 July 25,
2012, the National Stock Exchange, Inc.
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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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
National Stock Exchange, Inc.
(‘‘NSX®’’ or ‘‘Exchange’’) is proposing to
amend its rules to extend a certain pilot
program regarding trading pauses in
individual securities due to
extraordinary market volatility.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nsx.com, at the principal
office of the Exchange, 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
self-regulatory organization has
prepared summaries, set forth in
Sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
With this rule change, the Exchange is
proposing to extend a pilot program
currently in effect regarding trading
pauses in individual securities due to
extraordinary market volatility under
NSX Rule 11.20B. Currently, unless
otherwise extended or approved
permanently, this pilot program will
expire on July 31, 2012. The instant rule
filing proposes an extension to the pilot
program until February 4, 2013.
NSX Rule 11.20B (Trading Pauses in
Individual Securities Due to
Extraordinary Market Volatility) was
approved by the Securities and
Exchange Commission (the
‘‘Commission’’) on June 10, 2010 on a
pilot basis to end on December 10,
2010.3 The pilot program end date was
subsequently extended until April 11,
3 See Securities Exchange Act Release No. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR–
NSX–2010–05).
E:\FR\FM\08AUN1.SGM
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Federal Register / Vol. 77, No. 153 / Wednesday, August 8, 2012 / Notices
2011.4 Similar rule changes were
adopted by other markets in the national
market system in a coordinated manner.
As the Exchange noted in its filing to
adopt NSX Rule 11.20B, during the pilot
period, the Exchange, in conjunction
with other markets in the national
market system, would continue to assess
whether additional securities need to be
added and whether the parameters of
the rule would need to be modified to
accommodate trading characteristics of
different securities. NSX Rule 11.20B
was expanded to include additional
exchange traded products on September
10, 2010.5 The pilot program end date
was further extended to August 11, 2011
or the date on which a limit up/limit
down mechanism to address
extraordinary market volatility, if
adopted applies.6 The pilot program
was then again lengthened until January
31, 2012.7 Finally, the date was
extended until July 31, 2012.8 The
Exchange, in consultation with the
Commission and other markets, is now
proposing that this pilot program be
extended until February 4, 2013 to
coordinate with the implementation of a
limit up/limit down mechanism to
address extraordinary market volatility.
Accordingly, pursuant to the instant
rule filing, the expiration date of the
pilot program referenced in
Commentary .05 to Rule 11.20B is
proposed to be changed from ‘‘July 31,
2012’’ to ‘‘February 4, 2013.’’
wreier-aviles on DSK7SPTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) and
Section 11A of the Securities Exchange
Act of 1934 9 (the ‘‘Act’’), in general, and
Section 6(b)(5) of the Act,10 in
particular, in that it is designed, among
other things, to promote clarity,
transparency and full disclosure, in so
doing, to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
4 See Securities Exchange Act Release No. 63512
(December 9, 2010), 75 FR 78786 (December 16,
2010) (SR–NSX–2010–17).
5 See Securities Exchange Act Release No. 62884
(September 10, 2010), 75 FR 56618 (September 16,
2010) (SR–NSX–2010–08).
6 See Securities and Exchange Act Release No.
34–64213 (April 6, 2011), 76 FR 20409 (April 12,
2011) (SR–NSX–2011–04).
7 See Securities Exchange Act Release No. 34–
65095 (August 10, 2011), 76 FR 50777 (August 16,
2011) (SR–NSX–2011–08).
8 See Securities Exchange Act Release No. 34–
66229 (January 24, 2012), 77 FR 4842 (January 31,
2012) (SR–NSX–2012–01).
9 15 U.S.C. 78f(b) and 15 U.S.C. 78k–1,
respectively.
10 15 U.S.C. 78f(b)(5).
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open market and a national market
system, and, in general, to maintain fair
and orderly markets and protect
investors and the public interest.
Moreover, the proposed rule change is
not discriminatory in that it uniformly
applies to all ETP Holders. The
Exchange believes that the extension of
the pilot program will promote
uniformity among markets with respect
to trading pauses and should continue
uninterrupted until the February 4, 2013
implementation date of the marketwide
limit up/limit down mechanism to
address extraordinary market volatility.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on 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 11 and Rule
19b–4(f)(6) thereunder.12 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 13 and Rule 19b–4(f)(6)(iii)
thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6)15 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(6). 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.
15 17 CFR 240.19b–4(f)(6).
12 17
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47477
Rule 19b–4(f)(6)(iii)16 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 the 30-day operative delay 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 upon
filing.17
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
No. SR–NSX–2012–10 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–NSX–2012–10. 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 Commissions
Internet Web site (https://www.sec.gov/
16 17
CFR 240.19b–4(f)(6)(iii).
purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
17 For
E:\FR\FM\08AUN1.SGM
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47478
Federal Register / Vol. 77, No. 153 / Wednesday, August 8, 2012 / Notices
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. 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–NSX–
2012–10 and should be submitted by
August 29, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–19359 Filed 8–7–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67575; File No. SR–CBOE–
2012–070]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to the Extension
of a CBSX Clearly Erroneous Policy
Pilot Program
wreier-aviles on DSK7SPTVN1PROD with NOTICES
August 2, 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 July 20,
2012, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) 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 proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Jkt 226001
Act 3 and Rule 19b–4(f)(6) thereunder.4
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 a
clearly erroneous policy pilot program
pertaining to the CBOE Stock Exchange,
LLC (‘‘CBSX’’, the CBOE’s stock trading
facility). This rule change simply seeks
to extend the pilot. No other changes to
the pilot are being proposed. The text of
the proposed rule change is available on
the Exchange’s Web site (www.cboe.org/
Legal), at the Exchange’s Office of the
Secretary and at the Commission.
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 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.
other markets and the Commission staff
to provide for uniform treatment: (i) Of
clearly erroneous execution reviews in
Multi-Stock Events involving twenty or
more securities; and (ii) in the event
transactions occur that result in the
issuance of an individual stock trading
pause by the primary market and
subsequent transactions that occur
before the trading pause is in effect on
the Exchange. Additional changes were
also made to Rule 52.4 that reduce the
ability of the Exchange to deviate from
the objective standards set forth in the
Rule. As the duration of the pilot
expires on July 31, 2012, the Exchange
is proposing to extend the effectiveness
of the clearly erroneous policy changes
to Rule 52.4 to February 4, 2013. A
February 4, 2013 extension date would
coincide with the date on which the
pilot National Market System Plan to
Address Extraordinary Market Volatility
(the ‘‘Limit Up-Limit Down Plan’’)
becomes effective.6
2. Statutory Basis
Extension of the pilot period will
allow the Exchange to continue to
operate the pilot on an uninterrupted
basis until the Limit Up-Down Plan
pilot becomes effective. Accordingly,
the Exchange believes the proposed rule
change is consistent with Act 7 and the
rules and regulations under the Act
applicable to a national securities
A. Self-Regulatory Organization’s
exchange and, in particular, the
Statement of the Purpose of, and the
requirements of Section 6(b) of the Act.8
Statutory Basis for, the Proposed Rule
Specifically, the Exchange believes the
Change
proposed rule change is consistent with
the Section 6(b)(5) 9 requirements that
1. Purpose
the rules of an exchange be designed to
Certain amendments to Rule 52.4,
promote just and equitable principles of
Clearly Erroneous Policy, were approved trade, to prevent fraudulent and
by the Commission on September 10,
manipulative acts and, in general, to
2010 on a pilot basis. The pilot is
protect investors and the public interest.
currently set to expire on July 31, 2012.5
B. Self-Regulatory Organization’s
The clearly erroneous policy changes
were developed in consultation with
Statement on Burden on Competition
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 Securities Exchange Act Release Nos. 62886
(September 10, 2010), 75 FR 56613 (September 16,
2010) (SR–CBOE–2010–056) (approval order
establishing pilot through December 10, 2010);
63485 (December 9, 2010), 75 FR 78278 (December
15, 2010) (SR–CBOE–2010–113) (extension of pilot
through April 11, 2011); 64227 (April 7, 2011), 76
FR 20796 (April 13, 2011) (SR–CBOE–2011–032)
(extension of pilot through the earlier of August 11,
2011 or the date on which a limit up-limit down
mechanism to address extraordinary market
volatility, if adopted, applies to the Circuit Breaker
Stocks as defined in Interpretation and Policy .03
of Rule 6.3C, Individual Stock Trading Pause Due
to Extraordinary Market Volatility); 65060 (August
9, 2011), 76 FR 50532 (August 15, 2011) (SR–
CBOE–2011–077) (extension of pilot through
January 31, 2012) and 66167 (January 17, 2012), 77
FR 3310 (January 23, 2012) (SR–CBOE–2012–002)
(extension of pilot through July 31, 2012).
4 17
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Fmt 4703
Sfmt 4703
CBOE 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
The Exchange neither solicited nor
received comments on the proposal.
6 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012).
7 15 U.S.C. 78a et seq.
8 15 U.S.C. 78(f)(b).
9 15 U.S.C. 78(f)(b)(5).
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]]>Agencies
[Federal Register Volume 77, Number 153 (Wednesday, August 8, 2012)]
[Notices]
[Pages 47476-47478]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19359]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67577; File No. SR-NSX-2012-10]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Its Rules To Extend Pilot Program Regarding Trading Pauses in
Individual Securities Due to Extraordinary Market Volatility
August 2, 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 July 25, 2012, the National Stock Exchange, Inc. (``Exchange'')
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
National Stock Exchange, Inc. (``NSX[supreg]'' or ``Exchange'') is
proposing to amend its rules to extend a certain pilot program
regarding trading pauses in individual securities due to extraordinary
market volatility.
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nsx.com, at the principal office of the
Exchange, 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 self-regulatory organization has prepared summaries,
set forth in Sections A, B and C below, of the most significant aspects
of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
With this rule change, the Exchange is proposing to extend a pilot
program currently in effect regarding trading pauses in individual
securities due to extraordinary market volatility under NSX Rule
11.20B. Currently, unless otherwise extended or approved permanently,
this pilot program will expire on July 31, 2012. The instant rule
filing proposes an extension to the pilot program until February 4,
2013.
NSX Rule 11.20B (Trading Pauses in Individual Securities Due to
Extraordinary Market Volatility) was approved by the Securities and
Exchange Commission (the ``Commission'') on June 10, 2010 on a pilot
basis to end on December 10, 2010.\3\ The pilot program end date was
subsequently extended until April 11,
[[Page 47477]]
2011.\4\ Similar rule changes were adopted by other markets in the
national market system in a coordinated manner. As the Exchange noted
in its filing to adopt NSX Rule 11.20B, during the pilot period, the
Exchange, in conjunction with other markets in the national market
system, would continue to assess whether additional securities need to
be added and whether the parameters of the rule would need to be
modified to accommodate trading characteristics of different
securities. NSX Rule 11.20B was expanded to include additional exchange
traded products on September 10, 2010.\5\ The pilot program end date
was further extended to August 11, 2011 or the date on which a limit
up/limit down mechanism to address extraordinary market volatility, if
adopted applies.\6\ The pilot program was then again lengthened until
January 31, 2012.\7\ Finally, the date was extended until July 31,
2012.\8\ The Exchange, in consultation with the Commission and other
markets, is now proposing that this pilot program be extended until
February 4, 2013 to coordinate with the implementation of a limit up/
limit down mechanism to address extraordinary market volatility.
Accordingly, pursuant to the instant rule filing, the expiration date
of the pilot program referenced in Commentary .05 to Rule 11.20B is
proposed to be changed from ``July 31, 2012'' to ``February 4, 2013.''
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 62252 (June 10,
2010), 75 FR 34186 (June 16, 2010) (SR-NSX-2010-05).
\4\ See Securities Exchange Act Release No. 63512 (December 9,
2010), 75 FR 78786 (December 16, 2010) (SR-NSX-2010-17).
\5\ See Securities Exchange Act Release No. 62884 (September 10,
2010), 75 FR 56618 (September 16, 2010) (SR-NSX-2010-08).
\6\ See Securities and Exchange Act Release No. 34-64213 (April
6, 2011), 76 FR 20409 (April 12, 2011) (SR-NSX-2011-04).
\7\ See Securities Exchange Act Release No. 34-65095 (August 10,
2011), 76 FR 50777 (August 16, 2011) (SR-NSX-2011-08).
\8\ See Securities Exchange Act Release No. 34-66229 (January
24, 2012), 77 FR 4842 (January 31, 2012) (SR-NSX-2012-01).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) and Section 11A of the Securities
Exchange Act of 1934 \9\ (the ``Act''), in general, and Section 6(b)(5)
of the Act,\10\ in particular, in that it is designed, among other
things, to promote clarity, transparency and full disclosure, in so
doing, to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to maintain fair and orderly markets
and protect investors and the public interest. Moreover, the proposed
rule change is not discriminatory in that it uniformly applies to all
ETP Holders. The Exchange believes that the extension of the pilot
program will promote uniformity among markets with respect to trading
pauses and should continue uninterrupted until the February 4, 2013
implementation date of the marketwide limit up/limit down mechanism to
address extraordinary market volatility.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b) and 15 U.S.C. 78k-1, respectively.
\10\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
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 \11\ and Rule 19b-4(f)(6) thereunder.\12\
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 \13\ and Rule 19b-
4(f)(6)(iii) thereunder.\14\
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). 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)\15\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii)\16\ 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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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay 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 upon filing.\17\
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\17\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 No. SR-NSX-2012-10 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-NSX-2012-10. 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 Commissions Internet Web site (https://www.sec.gov/
[[Page 47478]]
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. 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-NSX-2012-10 and should be submitted by August 29, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-19359 Filed 8-7-12; 8:45 am]
BILLING CODE 8011-01-P
