Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Temporary Suspension of Those Aspects of Rules 36.20 and 36.21 That Would Not Permit Floor Brokers To Use Personal Portable Phone Devices on the Trading Floor Following the Aftermath of Hurricane Sandy Until the Earlier of When Phone Service Is Fully Restored or Friday, November 16, 2012, 69534-69536 [2012-28001]
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69534
Federal Register / Vol. 77, No. 223 / Monday, November 19, 2012 / Notices
Number SR–Phlx–2012–129 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–68211; File No. SR–NYSE–
2012–64]
• 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–Phlx–2012–129. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of 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–Phlx–2012–129 and should
be submitted on or before December 10,
2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–28003 Filed 11–16–12; 8:45 am]
pmangrum on DSK3VPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Extending the
Temporary Suspension of Those
Aspects of Rules 36.20 and 36.21 That
Would Not Permit Floor Brokers To
Use Personal Portable Phone Devices
on the Trading Floor Following the
Aftermath of Hurricane Sandy Until the
Earlier of When Phone Service Is Fully
Restored or Friday, November 16, 2012
November 9, 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 November
9, 2012, New York Stock Exchange LLC
(‘‘NYSE’’ 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 extend the
temporary suspension of those aspects
of Rules 36.20 and 36.21 that would not
permit Floor brokers to use personal
portable phone devices on the Trading
Floor following the aftermath of
Hurricane Sandy until the earlier of
when phone service is fully restored on
Friday, November 16, 2012. 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
23 17
CFR 200.30–3(a)(12).
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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
On Thursday, November 1, 2012, the
Exchange filed a rule proposal to
temporarily suspend those aspects of
Rules 36.20, 36.21, and 36.30 that
would not permit Floor brokers and
Designated Market Makers (‘‘DMMs’’) to
use personal portable phone devices on
the Trading Floor 4 following the
aftermath of Hurricane Sandy and
during the period that phone service
was not fully functional.5 Pursuant to
that filing, all other aspects of those
rules remained applicable and the
temporary suspensions of Rule 36
requirements were in effect beginning
the first day trading resumed following
Hurricane Sandy until Friday,
November 2, 2012.
On November 5, 2012, although
power had been restored to the
downtown Manhattan vicinity, other
services were not yet fully operational.
Among other things, the telephone
services provided by third-party carriers
to the Exchange were still not fully
operational on the Trading Floor, which
continued to impact the ability of Floor
members to communicate from the
Trading Floor as permitted by Rule 36.
Accordingly, the Exchange filed to
extend the temporary suspension of
those aspects of Rules 36.20, 36.21, and
36.30 that would not permit Floor
brokers and DMMs to use personal
portable phone devices on the Trading
Floor to the earlier of phone service
being restored or November 9, 2012,6
which was subject to the same terms
and conditions of the temporary
suspension filed for October 31, 2012
through November 2, 2012, including
the record retention requirements
related to any use of personal portable
phones.7
Since filing the extension, the
Exchange has been advised by its thirdparty carrier that the damage to the
telephone connections is more extensive
4 Pursuant to Rule 6A, the Trading Floor is
defined as the restricted-access physical areas
designated by the Exchange for the trading of
securities, but does not include the physical
locations where NYSE Amex Options are traded.
5 See Securities Exchange Act Release No. 68137
(Nov. 1, 2012) (SR–NYSE–2012–58).
6 See Securities Exchange Act Release No. 68161
(Nov. 5, 2012) (SR–NYSE–2012–61).
7 See supra note 5 (notice that describes the terms
and conditions of the temporary suspension).
E:\FR\FM\19NON1.SGM
19NON1
Federal Register / Vol. 77, No. 223 / Monday, November 19, 2012 / Notices
pmangrum on DSK3VPTVN1PROD with NOTICES
than previously anticipated. As a result,
the telephone line connections for Floor
brokers still are not fully operational.
The Exchange notes, however, that the
telephone lines available for DMMs are
now operational, so that the DMMs no
longer need relief.
Because of the ongoing intermittent
phone service, many Exchange
authorized and provided portable
phones continue to not be functional
and therefore Floor brokers still cannot
use the Exchange authorized and
provided portable phones, pursuant to
Rules 36.20 and 36.21. In addition, the
land lines for Floor brokers continue to
not be functional. In certain instances,
however, the personal cell phones of
Floor brokers are operational on the
Trading Floor. The Exchange believes
that because communications with
customers is a vital part of a Floor
broker’s role as agent and therefore
contributes to maintaining a fair and
orderly market, during the period when
phone service continues to be
intermittent, Floor brokers should be
permitted to use personal portable
phone devices in lieu of the nonoperational Exchange authorized and
provided portable phones or wired
phone lines.
Accordingly, the Exchange proposes
to extend the temporary suspension of
those aspects of Rules 36.20 and 36.21
that would not permit Floor brokers to
use personal portable phone devices on
the Trading Floor to the earlier of when
phone service is fully restored or Friday,
November 16, 2012. Because phone
service to DMMs has been restored, the
Exchange is not proposing to extend
further the temporary suspension of
Rule 36.30, which prohibits DMMs from
using personal portable phones on the
Trading Floor.8 The Exchange proposes
that the extension of the temporary
suspension of those aspects of Rules
36.20 and 36.21 to permit use of the
personal portable phones by Floor
brokers on the Trading Floor be
pursuant to the same terms and
conditions of the temporary suspension
filed for October 31, 2012 through
November 2, 2012, including the record
retention requirements related to any
use of personal portable phones.9
In particular, as set forth in the prior
filing, Floor brokers that use a portable
personal phone must provide the
8 Similarly, because the off-Floor locations for
DMMs have been restored, the Exchange does not
need to extend further the temporary suspension for
DMMs to be permitted to communicate with offFloor personnel who may not be located at their
regular physical location. See supra notes 5 and 6
(notices describing the relief requested for DMMs).
9 See supra note 5 (notice that describes the terms
and conditions of the temporary suspension).
VerDate Mar<15>2010
14:04 Nov 16, 2012
Jkt 229001
Exchange with the names of all Floorbased personnel who used personal
portable phones during this temporary
suspension period, together with the
phone number and applicable carrier for
each number. Floor broker member
organizations must maintain in their
books and records all cell phone records
that show both incoming and outgoing
calls that were made during the period
that a personal portable phone was used
on the Trading Floor. To the extent the
records are unavailable from the thirdparty carrier, the Floor broker member
organizations must maintain
contemporaneous records of all calls
made or received on a personal portable
phone while on the Trading Floor. As
with all member organization records,
such cell phone records must be
provided to Exchange regulatory staff,
including without limitation staff of the
Financial Industry Regulatory Authority
(‘‘FINRA’’), on request.
As noted above, because the Exchange
is dependent on third-party carriers for
both wired and wireless phone service
on the Trading Floor, the Exchange does
not know how long the proposed
temporary suspension of Rules 36.20
and 36.21 will be required. However,
based on current estimates, the
Exchange understands that phone
service may not be fully restored until
late in the week of November 12, 2012,
and because of the extensive damage,
may be later than that date.
Accordingly, the Exchange proposes
that the extension of the temporary
suspensions of those aspects of Rule 36
that do not permit Floor brokers to use
personal portable phones on the Trading
Floor continue until the earlier of when
phone service is fully restored or Friday,
November 16, 2012.10
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,11 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,12 in particular, in that 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,
and to remove impediments to and
10 The
Exchange will provide notice of this rule
filing to Floor brokers, including the applicable
recordkeeping and other requirements. If telephone
service is fully restored prior to November 16, 2012,
the Exchange will notify Floor brokers that the
temporary suspension of those aspects of Rule 36
that do not permit the use of personal portable
phones on the Trading Floor has expired as of the
time that phone service is fully restored.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
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Fmt 4703
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69535
perfect the mechanism of a free and
open market and a national market
system.
In particular, in the aftermath of
Hurricane Sandy, while the Exchange
was able to open for trading, many of
the services that the Exchange depends
on from third-party carriers, such as
wired and wireless telephone
connections, are not fully restored. The
Exchange believes that the proposed
extension of the temporary suspensions
from those aspects of Rule 36 that
restrict Floor broker’s use of personal
portable phones on the Trading Floor
removes impediments to and perfects
the mechanism of a free and open
market and national market system
because the proposed relief will enable
Floor brokers to conduct their regular
business, notwithstanding the ongoing
issues with telephone service. The
Exchange further believes that without
the requested relief, Floor brokers
would be compromised in their ability
to conduct their regular course of
business on the Trading Floor, which
could adversely impact the market
generally and investor confidence
during this time of unprecedented
weather disruptions. In particular, for
Floor brokers, because they operate as
agents for customers, their inability to
communicate with customers could
compromise their ability to represent
public orders on the Trading Floor.
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
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,
the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
E:\FR\FM\19NON1.SGM
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69536
Federal Register / Vol. 77, No. 223 / Monday, November 19, 2012 / Notices
of the Act 13 and Rule 19b–4(f)(6)
thereunder.14
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 15 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6) 16
permits the Commission to 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. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest. The Commission notes that
doing so will allow the Exchange to
continue uninterrupted, for Floor
brokers, the emergency temporary relief
necessitated by Hurricane Sandy’s
disruption of telephone service, as
described herein and in the Exchange’s
prior filings seeking such relief, until
the earlier of when phone service for
Floor brokers is fully restored or Friday,
November 16, 2012. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposal 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
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its 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).
16 17 CFR 240.19b–4(f)(6).
17 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).
pmangrum on DSK3VPTVN1PROD with NOTICES
14 17
VerDate Mar<15>2010
14:04 Nov 16, 2012
Jkt 229001
Number SR–NYSE–2012–64 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–68212; File No. SR–
NYSEMKT–2012–66]
• 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–NYSE–2012–64. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of 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–NYSE–
2012–64 and should be submitted on or
before December 10, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–28001 Filed 11–16–12; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Extending the Temporary
Suspension of Those Aspects of Rules
36.20—Equities and 36.21—Equities
That Would Not Permit Floor Brokers
To Use Personal Portable Phone
Devices on the Trading Floor following
the Aftermath of Hurricane Sandy Until
the Earlier of When Phone Service Is
Fully Restored or Friday, November 16,
2012
November 9, 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 November
9, 2012, NYSE MKT LLC (the
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
temporary suspension of those aspects
of Rules 36.20—Equities and 36.21—
Equities that would not permit Floor
brokers to use personal portable phone
devices on the Trading Floor following
the aftermath of Hurricane Sandy until
the earlier of when phone service is
fully restored or Friday, November 16,
2012. 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
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
18 17
PO 00000
CFR 200.30–3(a)(12).
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E:\FR\FM\19NON1.SGM
19NON1
]]>Agencies
[Federal Register Volume 77, Number 223 (Monday, November 19, 2012)]
[Notices]
[Pages 69534-69536]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-28001]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68211; File No. SR-NYSE-2012-64]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Extending the Temporary Suspension of Those Aspects of Rules 36.20 and
36.21 That Would Not Permit Floor Brokers To Use Personal Portable
Phone Devices on the Trading Floor Following the Aftermath of Hurricane
Sandy Until the Earlier of When Phone Service Is Fully Restored or
Friday, November 16, 2012
November 9, 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 November 9, 2012, New York Stock Exchange LLC (``NYSE''
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 extend the temporary suspension of those
aspects of Rules 36.20 and 36.21 that would not permit Floor brokers to
use personal portable phone devices on the Trading Floor following the
aftermath of Hurricane Sandy until the earlier of when phone service is
fully restored on Friday, November 16, 2012. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
On Thursday, November 1, 2012, the Exchange filed a rule proposal
to temporarily suspend those aspects of Rules 36.20, 36.21, and 36.30
that would not permit Floor brokers and Designated Market Makers
(``DMMs'') to use personal portable phone devices on the Trading Floor
\4\ following the aftermath of Hurricane Sandy and during the period
that phone service was not fully functional.\5\ Pursuant to that
filing, all other aspects of those rules remained applicable and the
temporary suspensions of Rule 36 requirements were in effect beginning
the first day trading resumed following Hurricane Sandy until Friday,
November 2, 2012.
---------------------------------------------------------------------------
\4\ Pursuant to Rule 6A, the Trading Floor is defined as the
restricted-access physical areas designated by the Exchange for the
trading of securities, but does not include the physical locations
where NYSE Amex Options are traded.
\5\ See Securities Exchange Act Release No. 68137 (Nov. 1, 2012)
(SR-NYSE-2012-58).
---------------------------------------------------------------------------
On November 5, 2012, although power had been restored to the
downtown Manhattan vicinity, other services were not yet fully
operational. Among other things, the telephone services provided by
third-party carriers to the Exchange were still not fully operational
on the Trading Floor, which continued to impact the ability of Floor
members to communicate from the Trading Floor as permitted by Rule 36.
Accordingly, the Exchange filed to extend the temporary suspension of
those aspects of Rules 36.20, 36.21, and 36.30 that would not permit
Floor brokers and DMMs to use personal portable phone devices on the
Trading Floor to the earlier of phone service being restored or
November 9, 2012,\6\ which was subject to the same terms and conditions
of the temporary suspension filed for October 31, 2012 through November
2, 2012, including the record retention requirements related to any use
of personal portable phones.\7\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 68161 (Nov. 5, 2012)
(SR-NYSE-2012-61).
\7\ See supra note 5 (notice that describes the terms and
conditions of the temporary suspension).
---------------------------------------------------------------------------
Since filing the extension, the Exchange has been advised by its
third-party carrier that the damage to the telephone connections is
more extensive
[[Page 69535]]
than previously anticipated. As a result, the telephone line
connections for Floor brokers still are not fully operational. The
Exchange notes, however, that the telephone lines available for DMMs
are now operational, so that the DMMs no longer need relief.
Because of the ongoing intermittent phone service, many Exchange
authorized and provided portable phones continue to not be functional
and therefore Floor brokers still cannot use the Exchange authorized
and provided portable phones, pursuant to Rules 36.20 and 36.21. In
addition, the land lines for Floor brokers continue to not be
functional. In certain instances, however, the personal cell phones of
Floor brokers are operational on the Trading Floor. The Exchange
believes that because communications with customers is a vital part of
a Floor broker's role as agent and therefore contributes to maintaining
a fair and orderly market, during the period when phone service
continues to be intermittent, Floor brokers should be permitted to use
personal portable phone devices in lieu of the non-operational Exchange
authorized and provided portable phones or wired phone lines.
Accordingly, the Exchange proposes to extend the temporary
suspension of those aspects of Rules 36.20 and 36.21 that would not
permit Floor brokers to use personal portable phone devices on the
Trading Floor to the earlier of when phone service is fully restored or
Friday, November 16, 2012. Because phone service to DMMs has been
restored, the Exchange is not proposing to extend further the temporary
suspension of Rule 36.30, which prohibits DMMs from using personal
portable phones on the Trading Floor.\8\ The Exchange proposes that the
extension of the temporary suspension of those aspects of Rules 36.20
and 36.21 to permit use of the personal portable phones by Floor
brokers on the Trading Floor be pursuant to the same terms and
conditions of the temporary suspension filed for October 31, 2012
through November 2, 2012, including the record retention requirements
related to any use of personal portable phones.\9\
---------------------------------------------------------------------------
\8\ Similarly, because the off-Floor locations for DMMs have
been restored, the Exchange does not need to extend further the
temporary suspension for DMMs to be permitted to communicate with
off-Floor personnel who may not be located at their regular physical
location. See supra notes 5 and 6 (notices describing the relief
requested for DMMs).
\9\ See supra note 5 (notice that describes the terms and
conditions of the temporary suspension).
---------------------------------------------------------------------------
In particular, as set forth in the prior filing, Floor brokers that
use a portable personal phone must provide the Exchange with the names
of all Floor-based personnel who used personal portable phones during
this temporary suspension period, together with the phone number and
applicable carrier for each number. Floor broker member organizations
must maintain in their books and records all cell phone records that
show both incoming and outgoing calls that were made during the period
that a personal portable phone was used on the Trading Floor. To the
extent the records are unavailable from the third-party carrier, the
Floor broker member organizations must maintain contemporaneous records
of all calls made or received on a personal portable phone while on the
Trading Floor. As with all member organization records, such cell phone
records must be provided to Exchange regulatory staff, including
without limitation staff of the Financial Industry Regulatory Authority
(``FINRA''), on request.
As noted above, because the Exchange is dependent on third-party
carriers for both wired and wireless phone service on the Trading
Floor, the Exchange does not know how long the proposed temporary
suspension of Rules 36.20 and 36.21 will be required. However, based on
current estimates, the Exchange understands that phone service may not
be fully restored until late in the week of November 12, 2012, and
because of the extensive damage, may be later than that date.
Accordingly, the Exchange proposes that the extension of the temporary
suspensions of those aspects of Rule 36 that do not permit Floor
brokers to use personal portable phones on the Trading Floor continue
until the earlier of when phone service is fully restored or Friday,
November 16, 2012.\10\
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\10\ The Exchange will provide notice of this rule filing to
Floor brokers, including the applicable recordkeeping and other
requirements. If telephone service is fully restored prior to
November 16, 2012, the Exchange will notify Floor brokers that the
temporary suspension of those aspects of Rule 36 that do not permit
the use of personal portable phones on the Trading Floor has expired
as of the time that phone service is fully restored.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\11\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\12\ in particular, in that 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, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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In particular, in the aftermath of Hurricane Sandy, while the
Exchange was able to open for trading, many of the services that the
Exchange depends on from third-party carriers, such as wired and
wireless telephone connections, are not fully restored. The Exchange
believes that the proposed extension of the temporary suspensions from
those aspects of Rule 36 that restrict Floor broker's use of personal
portable phones on the Trading Floor removes impediments to and
perfects the mechanism of a free and open market and national market
system because the proposed relief will enable Floor brokers to conduct
their regular business, notwithstanding the ongoing issues with
telephone service. The Exchange further believes that without the
requested relief, Floor brokers would be compromised in their ability
to conduct their regular course of business on the Trading Floor, which
could adversely impact the market generally and investor confidence
during this time of unprecedented weather disruptions. In particular,
for Floor brokers, because they operate as agents for customers, their
inability to communicate with customers could compromise their ability
to represent public orders on the Trading Floor.
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
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, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
[[Page 69536]]
of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its 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 pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6) \16\ permits the Commission to
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. The Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. The Commission notes
that doing so will allow the Exchange to continue uninterrupted, for
Floor brokers, the emergency temporary relief necessitated by Hurricane
Sandy's disruption of telephone service, as described herein and in the
Exchange's prior filings seeking such relief, until the earlier of when
phone service for Floor brokers is fully restored or Friday, November
16, 2012. Therefore, the Commission hereby waives the 30-day operative
delay and designates the proposal operative upon filing.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6).
\17\ 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).
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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 Number SR-NYSE-2012-64 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-NYSE-2012-64. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of 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-NYSE-2012-64 and should be
submitted on or before December 10, 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. 2012-28001 Filed 11-16-12; 8:45 am]
BILLING CODE 8011-01-P
