Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.31(d) To Provide That an Inside Limit Order Designated as a Primary Until 9:45 Order or a Primary After 3:55 Order Will Follow the Order Processing of an Inside Limit Order Only When the Order Is On the NYSE Arca Book, 57635-57637 [2012-22914]
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Federal Register / Vol. 77, No. 181 / Tuesday, September 18, 2012 / Notices
the Act 12 and Rule 19b–4(f)(2) 13
thereunder. At any time within 60 days
of the filing of such proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–EDGX–2012–41 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–EDGX–2012–41. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–EDGX–
2012–41 and should be submitted on or
before October 9, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–22913 Filed 9–17–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67841; File No. SR–
NYSEArca–2012–99]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Arca
Equities Rule 7.31(d) To Provide That
an Inside Limit Order Designated as a
Primary Until 9:45 Order or a Primary
After 3:55 Order Will Follow the Order
Processing of an Inside Limit Order
Only When the Order Is On the NYSE
Arca Book
September 12, 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 August
31, 2012, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or the ‘‘Exchange’’) 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 amend
NYSE Arca Equities Rule 7.31(d) to
provide that an Inside Limit Order
designated as a Primary Until 9:45
Order or a Primary After 3:55 Order will
follow the order processing of an Inside
Limit Order only when the order is on
the NYSE Arca Book.
The text of the proposed rule change
is available on the Exchange’s Web site
at www.nyse.com, at the principal office
14 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
12 15
13 17
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
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57635
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
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 Exchange proposes to amend
NYSE Arca Equities Rule 7.31(d) to
provide that an Inside Limit Order
designated as either a Primary Until
9:45 Order or a Primary After 3:55 Order
will follow the order processing of an
Inside Limit Order only when the order
is on the NYSE Arca Book and to clarify
that the order processing of the inside
limit order is repeated at each next best
displayed price.
As defined in NYSE Arca Equities
Rule 7.31(d), an Inside Limit Order is a
Limit Order, which, if routed away
pursuant to NYSE Arca Equities Rule
7.37(d), will be routed to the market
participant with the best displayed
price. Any unfilled portion of the order
will not be routed to the next best price
level until all quotes at the current best
bid or offer are exhausted. Once each
current best bid or offer is exhausted,
Exchange systems will repeat the
process at each new best displayed price
level until the order is filled or no
longer marketable.
The Exchange proposes to amend
Rule 7.31(d) to clarify that this process
is repeated at each next best displayed
price. Once the Inside Limit Order is no
longer marketable it will be ranked in
the NYSE Arca Book pursuant to NYSE
Arca Equities Rule 7.36. An Inside Limit
Order is ‘‘marketable’’ when it is priced
to buy (sell) at or above (below) the
national best bid or offer for the
security.
The purpose of the Inside Limit Order
is to assess away market displayed
interest on a price-by-price basis,
thereby slowing down the routing of
such order, rather than simultaneously
routing an order to away markets at
E:\FR\FM\18SEN1.SGM
18SEN1
mstockstill on DSK4VPTVN1PROD with NOTICES
57636
Federal Register / Vol. 77, No. 181 / Tuesday, September 18, 2012 / Notices
potentially multiple prices. For
example, if the national best bid and
offer is 10.10 by 10.12, and the
Exchange receives an order to buy with
a limit of 10.15, in addition to executing
with the interest on the Exchange’s
book, the Exchange will route the
balance of the order to all protected
quotes, including quotes with an
inferior price than the NBO (e.g., any
protected offers priced at 10.13 or
higher), up to the limit order price of
10.15.4 By contrast, an Inside Limit
Order with a price of 10.15 would be
matched with interest on the Arca Book
and routed only to away market interest
priced at the NBO of 10.12. After
routing to the 10.12 offer(s), Exchange
systems will reevaluate the next best
displayed offer price, and route to that
single price point and continue such
assessment at each price point until
either the limit order has been filled, or
there is no further interest available to
satisfy the limit order price either at the
Exchange or at away markets.
As defined in NYSE Arca Equities
Rule 7.31(oo), a Primary Until 9:45
Order is an Order entered for
participation on the primary market
until 9:45 a.m. Eastern Time, after
which time the order is cancelled on the
primary market and entered on the
NYSE Arca Book. Orders that return to
the NYSE Arca Book after routing to the
primary market will retain their original
order attributes.
As defined in NYSE Arca Equities
Rule 7.31(pp), a Primary After 3:55
Order is an Order entered for
participation on the Exchange until 3:55
p.m. Eastern Time (12:55 p.m. Pacific
Time) after which time the order is
cancelled on the Exchange and an order
is entered for participation on the
primary market. Orders that route to the
primary market at 3:55 p.m. Eastern
Time will retain their original order
attributes.
As currently defined, the Primary
Until 9:45 Order and Primary After 3:55
Order are available to orders entered for
participation on the Exchange, except
for orders that, by definition, do not
route, and currently, Inside Limit
Orders. The Exchange proposes to
amend NYSE Arca Equities Rule 7.31(d)
to clarify that when an Inside Limit
Order is designated as a Primary Until
9:45 Order or as a Primary After 3:55
Order, it will follow the order
processing set forth in Rule 7.31(d), i.e.,
that if routed, it would be routed to the
market participant with the best
displayed price, only when the Inside
Limit Order is on the NYSE Arca Book.
Accordingly, when an Inside Limit
Order is routed to the primary market
pursuant to the terms of a Primary Until
9:45 Order or a Primary After 3:55
Order, such order will be routed as a
straight limit order to the primary
market, and the order processing of an
Inside Limit Order will be applicable
only if it returns to the NYSE Arca Book
(in the case of a Primary Until 9:45
Order) or before it is routed to the
primary market (in the case of a Primary
After 3:55 Order). The Exchange is
proposing this rule change to make clear
that the routing process of the Inside
Limit Order, i.e., routing to the best
displayed price, will not be in effect
when the Primary Until 9:45 Order or
Primary After 3:55 Order is applicable,
because during those periods, the
entirety of the order would be routed to
the primary market, regardless of
whether the primary market is
displaying the best price.
The Exchange believes that the
proposed rule change provides
transparency in the rules regarding the
order processing applicable to Inside
Limit Orders when such an order is
routed to a primary market pursuant to
the terms of a Primary Until 9:45 Order
or a Primary After 3:55 Order.
The Exchange will announce the
implementation date of the proposed
rule change in a Trader Update to be
published no later than 30 days
following the date of filing. The
implementation date will be no later
than 30 days following publication of
the Trader Update announcing the rule
change.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),5 in general, and furthers the
objectives of Section 6(b)(5),6 in
particular, because it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The Exchange believes
that the proposed change to the Inside
Limit Order meets these requirements
because it provides that the order
processing of an Inside Limit Order will
only be applicable when such an order
is on the NYSE Arca Book, and will not
be applicable if the order is routed to a
5 15
4 See
NYSE Arca Equities Rule 7.37(d)(2)(B).
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6 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00081
Fmt 4703
primary market pursuant to the terms of
a Primary Until 9:45 Order or Primary
After 3:55 Order. Accordingly, the
proposed rule change will remove
impediments to and perfect the
mechanism of a free and open market
and national market system by
providing transparency in the rules
regarding the order processing
applicable to Inside Limit Orders when
such an order is routed to a primary
market pursuant to the terms of a
Primary Until 9:45 Order or a Primary
After 3:55 Order.
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 7 and Rule
19b–4(f)(6) thereunder.8 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 and Rule 19b–4(f)(6)(iii)
thereunder.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
7 15
8 17
Sfmt 4703
E:\FR\FM\18SEN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
18SEN1
Federal Register / Vol. 77, No. 181 / Tuesday, September 18, 2012 / Notices
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–NYSEArca–2012–99 on the
subject line.
mstockstill on DSK4VPTVN1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2012–99. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2012–99 and should be
submitted on or before October 9, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–22914 Filed 9–17–12; 8:45 am]
BILLING CODE 8011–01–P
9 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:39 Sep 17, 2012
Jkt 226001
DEPARTMENT OF STATE
[Public Notice 8028]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘City of
Gold: Tomb and Temple in Ancient
Cyprus’’
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000,
I hereby determine that the objects to be
included in the exhibition ‘‘City of
Gold: Tomb and Temple in Ancient
Cyprus,’’ imported from abroad for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to loan
agreements with the foreign owners or
custodians. I also determine that the
exhibition or display of the exhibit
objects at the Princeton University Art
Museum, Princeton, New Jersey, from
on or about October 20, 2012, until on
or about January 20, 2013, and at
possible additional exhibitions or
venues yet to be determined, is in the
national interest. I have ordered that
Public Notice of these Determinations
be published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Paul W.
Manning, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–632–6469). The
mailing address is U.S. Department of
State, SA–5, L/PD, Fifth Floor (Suite
5H03), Washington, DC 20522–0505.
SUMMARY:
Dated: September 11, 2012.
Ann Stock,
Assistant Secretary, Bureau of Educational
and Cultural Affairs, Department of State.
[FR Doc. 2012–23008 Filed 9–17–12; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice 8029]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘The
Place of Provenance—Regional Styles
in Tibetan Painting’’
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
SUMMARY:
PO 00000
Frm 00082
Fmt 4703
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57637
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000,
I hereby determine that the objects to be
included in the exhibition ‘‘The Place of
Provenance—Regional Styles in Tibetan
Painting,’’ imported from abroad for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to loan
agreements with the foreign owners or
custodians. I also determine that the
exhibition or display of the exhibit
objects at the Rubin Museum of Art,
New York, New York, from on or about
October 12, 2012, until on or about
March 25, 2013, and at possible
additional exhibitions or venues yet to
be determined, is in the national
interest. I have ordered that Public
Notice of these Determinations be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Paul W.
Manning, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–632–6469). The
mailing address is U.S. Department of
State, SA–5, L/PD, Fifth Floor (Suite
5H03), Washington, DC 20522–0505.
Dated: September 11, 2012.
Ann Stock,
Assistant Secretary, Bureau of Educational
and Cultural Affairs, Department of State.
[FR Doc. 2012–23006 Filed 9–17–12; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice 8031]
Shipping Coordinating Committee;
Notice of Committee Meeting
The Shipping Coordinating
Committee (SHC) will conduct an open
meeting at 9:30 a.m. on Friday, October
26, 2012, in Room 1200 of the United
States Coast Guard Headquarters
Building, 2100 Second Street, SW.,
Washington, DC 20593–7126. The
primary purpose of the meeting is to
prepare for the one-hundred and ninth
Session of the IMO Council Session (C
109) to be held at the IMO Headquarters,
United Kingdom, from November 5–9,
2012.
The agenda items to be discussed
include:
—Adoption of the agenda
—Report of the Secretary-General on
credentials
—Strategy, planning and reform
—Resource management:
E:\FR\FM\18SEN1.SGM
18SEN1
]]>Agencies
[Federal Register Volume 77, Number 181 (Tuesday, September 18, 2012)]
[Notices]
[Pages 57635-57637]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-22914]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67841; File No. SR-NYSEArca-2012-99]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Equities Rule 7.31(d) To Provide That an Inside Limit Order Designated
as a Primary Until 9:45 Order or a Primary After 3:55 Order Will Follow
the Order Processing of an Inside Limit Order Only When the Order Is On
the NYSE Arca Book
September 12, 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 August 31, 2012, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') 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 amend NYSE Arca Equities Rule 7.31(d) to
provide that an Inside Limit Order designated as a Primary Until 9:45
Order or a Primary After 3:55 Order will follow the order processing of
an Inside Limit Order only when the order is on the NYSE Arca Book.
The text of the proposed rule change is available on the Exchange's
Web site at www.nyse.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 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 Exchange proposes to amend NYSE Arca Equities Rule 7.31(d) to
provide that an Inside Limit Order designated as either a Primary Until
9:45 Order or a Primary After 3:55 Order will follow the order
processing of an Inside Limit Order only when the order is on the NYSE
Arca Book and to clarify that the order processing of the inside limit
order is repeated at each next best displayed price.
As defined in NYSE Arca Equities Rule 7.31(d), an Inside Limit
Order is a Limit Order, which, if routed away pursuant to NYSE Arca
Equities Rule 7.37(d), will be routed to the market participant with
the best displayed price. Any unfilled portion of the order will not be
routed to the next best price level until all quotes at the current
best bid or offer are exhausted. Once each current best bid or offer is
exhausted, Exchange systems will repeat the process at each new best
displayed price level until the order is filled or no longer
marketable.
The Exchange proposes to amend Rule 7.31(d) to clarify that this
process is repeated at each next best displayed price. Once the Inside
Limit Order is no longer marketable it will be ranked in the NYSE Arca
Book pursuant to NYSE Arca Equities Rule 7.36. An Inside Limit Order is
``marketable'' when it is priced to buy (sell) at or above (below) the
national best bid or offer for the security.
The purpose of the Inside Limit Order is to assess away market
displayed interest on a price-by-price basis, thereby slowing down the
routing of such order, rather than simultaneously routing an order to
away markets at
[[Page 57636]]
potentially multiple prices. For example, if the national best bid and
offer is 10.10 by 10.12, and the Exchange receives an order to buy with
a limit of 10.15, in addition to executing with the interest on the
Exchange's book, the Exchange will route the balance of the order to
all protected quotes, including quotes with an inferior price than the
NBO (e.g., any protected offers priced at 10.13 or higher), up to the
limit order price of 10.15.\4\ By contrast, an Inside Limit Order with
a price of 10.15 would be matched with interest on the Arca Book and
routed only to away market interest priced at the NBO of 10.12. After
routing to the 10.12 offer(s), Exchange systems will reevaluate the
next best displayed offer price, and route to that single price point
and continue such assessment at each price point until either the limit
order has been filled, or there is no further interest available to
satisfy the limit order price either at the Exchange or at away
markets.
---------------------------------------------------------------------------
\4\ See NYSE Arca Equities Rule 7.37(d)(2)(B).
---------------------------------------------------------------------------
As defined in NYSE Arca Equities Rule 7.31(oo), a Primary Until
9:45 Order is an Order entered for participation on the primary market
until 9:45 a.m. Eastern Time, after which time the order is cancelled
on the primary market and entered on the NYSE Arca Book. Orders that
return to the NYSE Arca Book after routing to the primary market will
retain their original order attributes.
As defined in NYSE Arca Equities Rule 7.31(pp), a Primary After
3:55 Order is an Order entered for participation on the Exchange until
3:55 p.m. Eastern Time (12:55 p.m. Pacific Time) after which time the
order is cancelled on the Exchange and an order is entered for
participation on the primary market. Orders that route to the primary
market at 3:55 p.m. Eastern Time will retain their original order
attributes.
As currently defined, the Primary Until 9:45 Order and Primary
After 3:55 Order are available to orders entered for participation on
the Exchange, except for orders that, by definition, do not route, and
currently, Inside Limit Orders. The Exchange proposes to amend NYSE
Arca Equities Rule 7.31(d) to clarify that when an Inside Limit Order
is designated as a Primary Until 9:45 Order or as a Primary After 3:55
Order, it will follow the order processing set forth in Rule 7.31(d),
i.e., that if routed, it would be routed to the market participant with
the best displayed price, only when the Inside Limit Order is on the
NYSE Arca Book. Accordingly, when an Inside Limit Order is routed to
the primary market pursuant to the terms of a Primary Until 9:45 Order
or a Primary After 3:55 Order, such order will be routed as a straight
limit order to the primary market, and the order processing of an
Inside Limit Order will be applicable only if it returns to the NYSE
Arca Book (in the case of a Primary Until 9:45 Order) or before it is
routed to the primary market (in the case of a Primary After 3:55
Order). The Exchange is proposing this rule change to make clear that
the routing process of the Inside Limit Order, i.e., routing to the
best displayed price, will not be in effect when the Primary Until 9:45
Order or Primary After 3:55 Order is applicable, because during those
periods, the entirety of the order would be routed to the primary
market, regardless of whether the primary market is displaying the best
price.
The Exchange believes that the proposed rule change provides
transparency in the rules regarding the order processing applicable to
Inside Limit Orders when such an order is routed to a primary market
pursuant to the terms of a Primary Until 9:45 Order or a Primary After
3:55 Order.
The Exchange will announce the implementation date of the proposed
rule change in a Trader Update to be published no later than 30 days
following the date of filing. The implementation date will be no later
than 30 days following publication of the Trader Update announcing the
rule change.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\5\ in general, and
furthers the objectives of Section 6(b)(5),\6\ in particular, because
it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, to protect investors and the public interest. The Exchange
believes that the proposed change to the Inside Limit Order meets these
requirements because it provides that the order processing of an Inside
Limit Order will only be applicable when such an order is on the NYSE
Arca Book, and will not be applicable if the order is routed to a
primary market pursuant to the terms of a Primary Until 9:45 Order or
Primary After 3:55 Order. Accordingly, the proposed rule change will
remove impediments to and perfect the mechanism of a free and open
market and national market system by providing transparency in the
rules regarding the order processing applicable to Inside Limit Orders
when such an order is routed to a primary market pursuant to the terms
of a Primary Until 9:45 Order or a Primary After 3:55 Order.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
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 and Rule 19b-
4(f)(6)(iii) thereunder.
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing,
[[Page 57637]]
including whether the proposed rule change is consistent with the Act.
Comments may be submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2012-99 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-2012-99. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2012-99 and should
be submitted on or before October 9, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-22914 Filed 9-17-12; 8:45 am]
BILLING CODE 8011-01-P
