Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove Proposed Rule Change Proposing a Pilot Program To Create a Lead Market Maker Issuer Incentive Program for Issuers of Certain Exchange-Traded Products Listed on NYSE Arca, Inc., 61462-61463 [2012-24734]

Download as PDF 61462 Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Notices (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The purpose of proposed rule change is to update Schedule 502 of the ICC Rules in order to be consistent with the scheduled index series listings occurring on September 20, 2012 and September 27, 2012. The North American credit default swap indices scheduled to be listed (the ‘‘Scheduled Indices’’) are: Investment Grade, Series 19, 5- and 10-year to be listed on September 20, 2012; Emerging Markets, Series 18, 5-year to be listed on September 20, 2012; and High Yield, Series 19, 5-year to be listed on September 27, 2012. The Scheduled Indices update does not require any changes to the body of the ICC Rules. Also, the Scheduled Indices update does not require any changes to the ICC risk management framework. The only change being submitted is the update to the Scheduled Indices in Schedule 502 of the ICC Rules. ICC believes that the update to the three Scheduled Indices is consistent with the purposes and requirements of Section 17A of the Act 5 and the rules and regulations thereunder applicable to ICC because it will facilitate the prompt and accurate settlement of derivatives agreements. (B) Self-Regulatory Organization’s Statement on Burden on Competition ICC does not believe the proposed rule change would have any impact, or impose any burden, on competition. wreier-aviles on DSK5TPTVN1PROD with NOTICES (C) Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments relating to the proposed rule change have not been solicited or received. ICC will notify the Commission of any written comments received by ICC. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) 6 of the Act and Rule 19b– 4(f)(4)(i) 7 thereunder because by updating the three Scheduled Indices, it effects a change in an existing service of ICC that does not adversely affect the safeguarding of securities or funds in the custody or control of ICC or for which it is responsible, and does not 5 15 U.S.C. 78q–1. U.S.C. 78s(b)(3)(A). 7 17 CFR 240.19b–4(f)(4)(i). 6 15 VerDate Mar<15>2010 15:28 Oct 05, 2012 Jkt 229001 significantly affect the respective rights or obligations of ICC or the persons using it. 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 Number SR–ICC–2012–15 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–ICC–2012–15. 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 Section, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filings will also be available for inspection and copying at the principal office of ICE Clear Credit and on ICE Clear Credit’s Web site at https:// www.theice.com/publicdocs/ PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 regulatory_filings/ ICEClearCredit_091212b.pdf. 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–ICC–2012–15 and should be submitted on or before October 30, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–24739 Filed 10–5–12; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–67962; File No. SR– NYSEArca–2012–37] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove Proposed Rule Change Proposing a Pilot Program To Create a Lead Market Maker Issuer Incentive Program for Issuers of Certain Exchange-Traded Products Listed on NYSE Arca, Inc. October 2, 2012. On April 27, 2012, NYSE Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to create and implement, on a pilot basis, a Lead Market Maker (‘‘LMM’’) Issuer Incentive Program (‘‘Fixed Incentive Program’’) for issuers of certain exchange-traded products (‘‘ETPs’’) listed on the Exchange. The proposed rule change was published for comment in the Federal Register on May 17, 2012.3 The Commission initially received two comment letters on the proposal.4 On June 20, 2012, pursuant to Section 19(b)(2) of the Act,5 the Commission extended the time 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 66966 (May 11, 2012), 77 FR 29419. 4 See Letter from Gus Sauter, Managing Director and Chief Investment Officer, Vanguard, dated June 7, 2012; and Letter from Ari Burstein, Senior Counsel, Investment Company Institute, dated June 7, 2012. 5 15 U.S.C. 78s(b)(2). 1 15 E:\FR\FM\09OCN1.SGM 09OCN1 Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Notices wreier-aviles on DSK5TPTVN1PROD with NOTICES period for Commission action on the proposed rule change to August 15, 2012.6 The Commission subsequently received one additional comment letter on the NYSE Arca Proposal.7 On July 11, 2012, the Commission instituted proceedings to determine whether to approve or disapprove the proposed rule change.8 The Commission thereafter received six comment letters and a response letter from the Exchange.9 Section 19(b)(2) of the Act 10 provides that, after initiating disapproval proceedings, the Commission shall issue an order approving or disapproving the proposed rule change not later than 180 days after the date of publication of notice of filing of the proposed rule change. The Commission may extend the period for issuing an order approving or disapproving the proposed rule change, however, by not more than 60 days if the Commission determines that a longer period is appropriate and publishes the reasons for such determination. The proposed rule change was published for notice and comment in the Federal Register on May 17, 2012. November 13, 2012 is 180 days from that date, and January 12, 2013 is 240 days from that date. The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change, the issues raised in the comment letters that have been submitted in response to the proposed rule change, including comment letters submitted in response to the Order Instituting Proceedings, and the Exchange’s responses to such comments. Accordingly, the Commission, pursuant to Section 19(b)(2) of the 6 See Securities Exchange Act Release No. 67222 (June 20, 2012), 77 FR 38116 (June 26, 2012). 7 See Letter from John T. Hyland, CFA, Chief Investment Officer, United States Commodity Funds LLC, dated June 27, 2012. 8 See Securities Exchange Act Release No. 67411, 77 FR 42052 (July 17, 2012). 9 See Letter from Joseph Cavatoni, Managing Director, and Joanne Medero, Managing Director, BlackRock, Inc., dated July 11, 2012; Letter from Stanislav Dolgopolov, Assistant Adjunct Professor, UCLA School of Law, dated August 15, 2012; Letter from James E. Ross, Global Head, SPDR Exchange Traded Funds, State Street Global Advisors, dated August 16, 2012; Letter from Ari Burstein, Senior Counsel, Investment Company Institute, dated August 16, 2012; Letter from F. William McNabb, Chairman and Chief Executive Officer, Vanguard, dated August 16, 2012; and Letter from Andrew Stevens, Legal Counsel, IMC Chicago, LLC d/b/a IMC Financial Markets, dated August 16, 2012. See Letter from Jane McGinness, EVP & Corporate Secretary, General Counsel, NYSE Markets, dated August 14, 2012. 10 15 U.S.C. 78s(b)(2). VerDate Mar<15>2010 15:28 Oct 05, 2012 Jkt 229001 Act,11 designates January 12, 2013 as the date by which the Commission should either approve or disapprove the proposed rule change (File Number SR– NYSEArca–2012–37). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–24734 Filed 10–5–12; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–67960; File No. SR–EDGA– 2012–44] Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to EDGA Rule 11.5 To Add a New Order Type October 2, 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 September 25, 2012, EDGA Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) 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 Rule 11.5(c) to add a new order type, the NBBO Offset Peg Order, to the rule. The text of the proposed rule change is available on the Exchange’s Web site at www.directedge.com, at the Exchange’s principal office and at the Public Reference Room of 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 11 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(57). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 12 17 Frm 00086 Fmt 4703 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 SECURITIES AND EXCHANGE COMMISSION PO 00000 61463 Sfmt 4703 The Exchange proposes to add a new order type to Exchange Rule 11.5(c), the NBBO Offset Peg Order. While the NBBO Offset Peg Order would be available for all Users,4 the Exchange believes it would be particularly useful for, and therefore used predominately, if not exclusively, by Members 5 acting as Market Makers 6 in accordance with applicable Exchange Rules.7 The NBBO Offset Peg Order would enable Users to submit buy and sell orders to the Exchange that are pegged to a designated percentage away from the National Best Bid (the ‘‘NBB’’) and National Best Offer (the ‘‘NBO’’, and together with the NBB, the ‘‘NBBO’’), respectively, while providing them full control over order origination and order marking. This retention of control, in turn, would enable Market Makers to comply independently with the requirements of Regulation SHO 8 under the Securities Exchange Act of 1934 (the ‘‘Act’’) and Rule 15c3–5 9 under the Act (the ‘‘Market Access Rule’’), as described in more detail below.10 Background The Market Access Rule requires that any broker-dealer with market access, or that provides a customer or any other person with market access, must establish, document and maintain a system of risk management controls and supervisory procedures reasonably designed to manage the financial, regulatory and other risks of this 4 As defined in Exchange Rule 1.5(ee). defined in Exchange Rule 1.5(n). 6 As defined in Exchange Rule 1.5(l). 7 See Exchange Rules 11.18 (Registration of Market Makers), 11.19 (Obligations of Market Maker Authorized Traders), 11.20 (Registration of Market Makers in a Security) and 11.21 (Obligations of Market Makers). 8 17 C.F.R. 242.200 through 242.204. 9 17 CFR 242.15c3–5. 10 The Exchange notes that the NBBO Offset Peg Order represents new functionality for the Exchange, which has not previously offered and does not currently offer any automated quote management (‘‘AQ’’) functionality, in contrast to other exchanges, such as The NASDAQ Stock Market LLC (‘‘NASDAQ’’) and BATS Exchange, Inc. (‘‘BATS’’), whose respective Market Maker Peg Orders replaced their previous AQ functionality. 5 As E:\FR\FM\09OCN1.SGM 09OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 77, Number 195 (Tuesday, October 9, 2012)]
[Notices]
[Pages 61462-61463]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-24734]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67962; File No. SR-NYSEArca-2012-37]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of 
Designation of Longer Period for Commission Action on Proceedings To 
Determine Whether To Approve or Disapprove Proposed Rule Change 
Proposing a Pilot Program To Create a Lead Market Maker Issuer 
Incentive Program for Issuers of Certain Exchange-Traded Products 
Listed on NYSE Arca, Inc.

October 2, 2012.
    On April 27, 2012, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
create and implement, on a pilot basis, a Lead Market Maker (``LMM'') 
Issuer Incentive Program (``Fixed Incentive Program'') for issuers of 
certain exchange-traded products (``ETPs'') listed on the Exchange. The 
proposed rule change was published for comment in the Federal Register 
on May 17, 2012.\3\ The Commission initially received two comment 
letters on the proposal.\4\ On June 20, 2012, pursuant to Section 
19(b)(2) of the Act,\5\ the Commission extended the time

[[Page 61463]]

period for Commission action on the proposed rule change to August 15, 
2012.\6\ The Commission subsequently received one additional comment 
letter on the NYSE Arca Proposal.\7\ On July 11, 2012, the Commission 
instituted proceedings to determine whether to approve or disapprove 
the proposed rule change.\8\ The Commission thereafter received six 
comment letters and a response letter from the Exchange.\9\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 66966 (May 11, 
2012), 77 FR 29419.
    \4\ See Letter from Gus Sauter, Managing Director and Chief 
Investment Officer, Vanguard, dated June 7, 2012; and Letter from 
Ari Burstein, Senior Counsel, Investment Company Institute, dated 
June 7, 2012.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 67222 (June 20, 
2012), 77 FR 38116 (June 26, 2012).
    \7\ See Letter from John T. Hyland, CFA, Chief Investment 
Officer, United States Commodity Funds LLC, dated June 27, 2012.
    \8\ See Securities Exchange Act Release No. 67411, 77 FR 42052 
(July 17, 2012).
    \9\ See Letter from Joseph Cavatoni, Managing Director, and 
Joanne Medero, Managing Director, BlackRock, Inc., dated July 11, 
2012; Letter from Stanislav Dolgopolov, Assistant Adjunct Professor, 
UCLA School of Law, dated August 15, 2012; Letter from James E. 
Ross, Global Head, SPDR Exchange Traded Funds, State Street Global 
Advisors, dated August 16, 2012; Letter from Ari Burstein, Senior 
Counsel, Investment Company Institute, dated August 16, 2012; Letter 
from F. William McNabb, Chairman and Chief Executive Officer, 
Vanguard, dated August 16, 2012; and Letter from Andrew Stevens, 
Legal Counsel, IMC Chicago, LLC d/b/a IMC Financial Markets, dated 
August 16, 2012. See Letter from Jane McGinness, EVP & Corporate 
Secretary, General Counsel, NYSE Markets, dated August 14, 2012.
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \10\ provides that, after initiating 
disapproval proceedings, the Commission shall issue an order approving 
or disapproving the proposed rule change not later than 180 days after 
the date of publication of notice of filing of the proposed rule 
change. The Commission may extend the period for issuing an order 
approving or disapproving the proposed rule change, however, by not 
more than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for such determination. The 
proposed rule change was published for notice and comment in the 
Federal Register on May 17, 2012. November 13, 2012 is 180 days from 
that date, and January 12, 2013 is 240 days from that date.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider this proposed 
rule change, the issues raised in the comment letters that have been 
submitted in response to the proposed rule change, including comment 
letters submitted in response to the Order Instituting Proceedings, and 
the Exchange's responses to such comments.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\11\ designates January 12, 2013 as the date by which the 
Commission should either approve or disapprove the proposed rule change 
(File Number SR-NYSEArca-2012-37).
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(57).
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[FR Doc. 2012-24734 Filed 10-5-12; 8:45 am]
BILLING CODE 8011-01-P

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