Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE MKT Rule 500-Equities To Extend the Operation of the Pilot Program That Allows Nasdaq Stock Market (“Nasdaq”) Securities To Be Traded on the Exchange Pursuant to a Grant of Unlisted Trading Privileges, 1290-1292 [2013-00082]
Download as PDF
<![CDATA[
1290
Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–00079 Filed 1–7–13; 8:45 am]
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68455; File No. SR–CHX–
2012–14]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Telemarketing Rules
December 18, 2012.
Correction
In notice document 2012–30886
appearing on pages 76141–76145 in the
issue of December 26, 2012, make the
following correction:
On page 76145, in the third column,
in the 12th line, ‘‘January 14, 2013’’
should read ‘‘January 16, 2013’’.
[FR Doc. C1–2012–30886 Filed 1–7–13; 8:45 am]
BILLING CODE 1505–01–D
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68561; File No. SR–
NYSEMKT–2012–86]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE MKT
Rule 500—Equities To Extend the
Operation of the Pilot Program That
Allows Nasdaq Stock Market
(‘‘Nasdaq’’) Securities To Be Traded on
the Exchange Pursuant to a Grant of
Unlisted Trading Privileges
srobinson on DSK4SPTVN1PROD with
January 2, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
18, 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 and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
19:11 Jan 07, 2013
Jkt 229001
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
The Exchange proposes to amend
NYSE MKT Rule 500—Equities to
Extend the Operation of the Pilot
Program that Allows Nasdaq Stock
Market (‘‘Nasdaq’’) Securities to be
Traded on the Exchange Pursuant to a
Grant of Unlisted Trading Privileges.
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
NYSE MKT Rules 500–525—Equities,
as a pilot program, govern the trading of
any Nasdaq-listed security on the
Exchange pursuant to unlisted trading
privileges (‘‘UTP Pilot Program’’).5 The
Exchange hereby seeks to extend the
operation of the UTP Pilot Program,
currently scheduled to expire on
January 31, 2013, until the earlier of
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 62479
(July 9, 2010), 75 FR 41264 (July 15, 2010) (SR–
NYSEAmex–2010–31). See also Securities
Exchange Act Release Nos. 62857 (September 7,
2010), 75 FR 55837 (September 14, 2010) (SR–
NYSEAmex–2010–89); 63601 (December 22, 2010),
75 FR 82117 (December 29, 2010) (SR–NYSEAmex–
2010–124); 64746 (June 24, 2011), 76 FR 38446
(June 30, 2011) (SR–NYSEAmex–2011–45); 66040
(December 23, 2011), 76 FR 82324 (December 30,
2011) (SR–NYSEAmex–2011–104); and 67497 (July
25, 2012), 77 FR 45404 (July 31, 2012) (SR–
NYSEMKT–2012–25).
4 17
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
Commission approval to make such
pilot permanent or July 31, 2013.
The UTP Pilot Program includes any
security listed on Nasdaq that (i) is
designated as an ‘‘eligible security’’
under the Joint Self-Regulatory
Organization Plan Governing the
Collection, Consolidation and
Dissemination of Quotation and
Transaction Information for NasdaqListed Securities Traded on Exchanges
on an Unlisted Trading Privilege Basis,
as amended (‘‘UTP Plan’’),6 and (ii) has
been admitted to dealings on the
Exchange pursuant to a grant of unlisted
trading privileges in accordance with
Section 12(f) of the Securities Exchange
Act of 1934, as amended (the ‘‘Act’’),7
(collectively, ‘‘Nasdaq Securities’’).8
The Exchange notes that its New
Market Model Pilot (‘‘NMM Pilot’’),
which, among other things, eliminated
the function of specialists on the
Exchange and created a new category of
market participant, the Designated
Market Maker (‘‘DMM’’),9 is also
scheduled to end on January 31, 2013.10
The timing of the operation of the UTP
Pilot Program was designed to
correspond to that of the NMM Pilot. In
approving the UTP Pilot Program, the
Commission acknowledged that the
rules relating to DMM benefits and
duties in trading Nasdaq Securities on
the Exchange pursuant to the UTP Pilot
6 See Securities Exchange Act Release No. 58863
(October 27, 2008), 73 FR 65417 (November 3, 2008)
(File No. S7–24–89). The Exchange’s predecessor,
the American Stock Exchange LLC, joined the UTP
Plan in 2001. See Securities Exchange Act Release
No. 55647 (April 19, 2007), 72 FR 20891 (April 26,
2007) (File No. S7–24–89). In March 2009, the
Exchange changed its name to NYSE Amex LLC,
and, in May 2012, the Exchange subsequently
changed its name to NYSE MKT LLC. See Securities
Exchange Act Release Nos. 59575 (March 13, 2009),
74 FR 11803 (March 19, 2009) (SR–NYSEALTR–
2009–24) and 67037 (May 21, 2012), 77 FR 31415
(May 25, 2012) (SR–NYSEAmex–2012–32).
7 15 U.S.C. 78l.
8 ‘‘Nasdaq Securities’’ is included within the
definition of ‘‘security’’ as that term is used in the
NYSE MKT Equities Rules. See NYSE MKT Rule
3—Equities. In accordance with this definition,
Nasdaq Securities are admitted to dealings on the
Exchange on an ‘‘issued,’’ ‘‘when issued,’’ or ‘‘when
distributed’’ basis. See NYSE MKT Rule 501—
Equities.
9 See NYSE MKT Rule 103—Equities.
10 See Securities Exchange Act Release No. 60758
(October 1, 2009), 74 FR 51639 (October 7, 2009)
(SR–NYSEAmex–2009–65). See also Securities
Exchange Act Release Nos. 61030 (November 19,
2009), 74 FR 62365 (November 27, 2009) (SR–
NYSEAmex–2009–83); 61725 (March 17, 2010), 75
FR 14223 (March 24, 2010) (SR–NYSEAmex–2010–
28); 62820 (September 1, 2010), 75 FR 54935
(September 9, 2010) (SR–NYSEAmex–2010–86);
63615 (December 29, 2010), 76 FR 611 (January 5,
2011) (SR–NYSEAmex–2010–123); 64773 (June 29,
2011), 76 FR 39453 (July 6, 2011) (SR–NYSEAmex–
2011–43); 66042 (December 23, 2011), 76 FR 82326
(December 30, 2011) (SR–NYSEAmex–2011–102);
and 67495 (July 25, 2012), 77 FR 45406 (July 31,
2012) (SR–NYSEMKT–2012–21).
E:\FR\FM\08JAN1.SGM
08JAN1
Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices
Program are consistent with the Act 11
and noted the similarity to the NMM
Pilot, particularly with respect to DMM
obligations and benefits.12 Furthermore,
the UTP Pilot Program rules pertaining
to the assignment of securities to DMMs
are substantially similar to the rules
implemented through the NMM Pilot.13
The Exchange has similarly filed to
extend the operation of the NMM Pilot
until the earlier of Commission approval
to make the NMM Pilot permanent or
July 31, 2013.14
Extension of the UTP Pilot Program in
tandem with the NMM Pilot, both from
January 31, 2013 until the earlier of
Commission approval to make such
pilots permanent or July 31, 2013, will
provide for the uninterrupted trading of
Nasdaq Securities on the Exchange on a
UTP basis and thus continue to
encourage the additional utilization of,
and interaction with, the Exchange, and
provide market participants with
improved price discovery, increased
liquidity, more competitive quotes and
greater price improvement for Nasdaq
Securities.
extending the existing markets for such
securities.
Specifically, the Exchange believes
that extending the UTP Pilot Program
would provide for the uninterrupted
trading of Nasdaq Securities on the
Exchange on a UTP basis and thus
continue to encourage the additional
utilization of, and interaction with, the
Exchange, thereby providing market
participants with additional price
discovery, increased liquidity, more
competitive quotes and potentially
greater price improvement for Nasdaq
Securities. Additionally, under the UTP
Pilot Program, Nasdaq Securities trade
on the Exchange pursuant to rules
governing the trading of ExchangeListed securities that previously have
been approved by the Commission.
Accordingly, this proposed rule change
would permit the Exchange to extend
the effectiveness of the UTP Pilot
Program in tandem with the NMM Pilot,
which the Exchange has similarly
proposed to extend until the earlier of
Commission approval to make such
pilot permanent or July 31, 2013.19
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange. In particular, the Exchange
believes that its proposal to extend the
UTP Pilot Program is consistent with (i)
Section 6(b) of the Act,15 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,16 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest; (ii)
Section 11A(a)(1) of the Act,17 in that it
seeks to ensure the economically
efficient execution of securities
transactions and fair competition among
brokers and dealers and among
exchange markets; and (iii) Section 12(f)
of the Act,18 which governs the trading
of securities pursuant to UTP consistent
with the maintenance of fair and orderly
markets, the protection of investors and
the public interest, and the impact of
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.
11 15
U.S.C. 78.
SR–NYSEAmex–2010–31, supra note 5, at
srobinson on DSK4SPTVN1PROD with
12 See
41271.
13 Id.
14 See SR–NYSEMKT–2012–84.
15 15 U.S.C. 78f(b).
16 15 U.S.C. 78f(b)(5).
17 15 U.S.C. 78k–1(a)(1).
18 15 U.S.C. 78l(f).
VerDate Mar<15>2010
19:11 Jan 07, 2013
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 foregoing proposed rule
does not (i) significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 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,
provided that the self-regulatory
organization has given the Commission
written notice of its intent to file 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 proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 20 and
Rule 19b–4(f)(6) thereunder.21
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:
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–NYSEMKT–2012–86 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–NYSEMKT–2012–86. 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 such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
20 15
19 See
Jkt 229001
PO 00000
supra note 14.
Frm 00096
Fmt 4703
21 17
Sfmt 4703
1291
E:\FR\FM\08JAN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
08JAN1
1292
Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices
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–
NYSEMKT–2012–86 and should be
submitted on or before January 29, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–00082 Filed 1–7–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68562; File No. SR–NSCC–
2012–11]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Revise Its Fee
Structure as It Relates to Certain
Insurance and Retirement Processing
Services and To Remove Reference to
and the Fees Related to FundSPEED,
a Discontinued Service
January 2, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2
notice is hereby given that on December
21, 2012, the National Securities
Clearing Corporation (‘‘NSCC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been prepared primarily by NSCC.
NSCC filed the proposed rule change
pursuant to Section 19(b)(3)(A)(ii) 3 of
the Act and Rule 19b–4(f)(2) 4
thereunder, so that the proposed rule
change was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
srobinson on DSK4SPTVN1PROD with
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change is to revise
Addendum A (Fee Structure) of NSCC’s
Rules & Procedures (‘‘Rules’’) as it
relates to certain Insurance and
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
VerDate Mar<15>2010
19:11 Jan 07, 2013
Retirement Services (‘‘I&RS’’) fees and
remove reference to FundSPEED, a
discontinued service.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
NSCC included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. NSCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of such statements.5
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
(a) Proposal Overview
The purpose of the proposed rule
change is to revise NSCC’s fee schedule
(as listed in Addendum A of the Rules),
as it relates to certain I&RS, to replace
the current fee structure with a tiered
fee structure. This change is being made
in order to simplify the fee schedule
with respect to these services. In
connection with this change, certain
I&RS fees have been changed in order to
align those fees with the costs of
delivering the related services, with the
expectation that the fee changes, in the
aggregate, will be revenue neutral to
NSCC.
The Addendum A I&RS fee schedule
changes are:
• Eliminating the Business
Attachment subpart and associated fees;
• Eliminating the Licensing and
Appointments subpart and associated
fees;
• Eliminating the Request for
Replacement subpart and associated
fees;
• Eliminating the Request for
Replacement Status (including
incremental statuses) subpart and
associated fees;
• Eliminating the Inforce Transaction
Fees section and associated fees; and
• Adding an Other Services Fees
section, comprised of the following five
tiers and associated fees and services:
1. TIER 1—$0.05—All Attachments
(per attachment, per side);
2. TIER 2—$0.15—Licensing and
Appointments (L&A) Periodic
Reconciliation (per item);
3. TIER 3—$0.35—Licensing and
Appointments (L&A) Transaction (per
item), Registered Representative Change
5 The Commission has modified the text of the
summaries prepared by NSCC.
Jkt 229001
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
Confirm (per transaction, per side),
Brokerage Identification Number
Change Request (per transaction, per
side), Brokerage Identification Number
Change Confirm (per transaction, per
side), Values Inquiry (per inquiry,
includes response, per side);
4. TIER 4—$0.65—Customer Account
Transfer Output (per transaction,
charged to Insurance Carrier/Retirement
Services Member only), Customer
Account Transfer Confirm (per
transaction, per side), Settlement
Processing (per transaction, per side),
Request for Replacement Status (a/k/a
Pending Case Status)—Receiving Carrier
(per Request for Replacement Status),
Request for Replacement Status (a/k/a
Pending Case Status)—Deliverer (per
Request for Replacement Status),
Registered Representative Change
Request (per transaction, per side), Time
Expired Transaction (per transaction,
per side); and
5. TIER 5—$1.25—Fund Transfer (per
request, per side), Withdrawals (per
request, per side), Arrangements (per
request, per side), Request for
Replacement—Delivering Carrier (per
request), Request for Replacement—
Receiving Carrier (per request). NSCC is
also removing reference to the I&RS
‘‘Beneficiary Update Request’’ and
‘‘Beneficiary Confirm’’ in Addendum A
of the Rules. These functions do not
require a line item in the fee schedule
because there is no charge for these
services.
In addition, NSCC is making a
technical change to remove from
Addendum A of the Rules reference to
and the fees related to FundSPEED, as
this service was discontinued.
The above changes took effect on
January 1, 2013.
(b) Statutory Basis
NSCC believes the proposed rule is
consistent with the requirements of the
Act, specifically Section 17A(b)(3)(F),6
and the rules and regulations
thereunder applicable to NSCC because
it updates NSCC’s fee schedule to align
fees with the costs of delivering
services. As such, it provides for the
equitable allocation of fees among
NSCC’s Members.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
NSCC does not believe that the
proposed rule change will have any
impact, or impose any burden, on
competition.
6 15
E:\FR\FM\08JAN1.SGM
U.S.C. 78q-1(b)(3)(F).
08JAN1
]]>Agencies
[Federal Register Volume 78, Number 5 (Tuesday, January 8, 2013)]
[Notices]
[Pages 1290-1292]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00082]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68561; File No. SR-NYSEMKT-2012-86]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending NYSE MKT Rule
500--Equities To Extend the Operation of the Pilot Program That Allows
Nasdaq Stock Market (``Nasdaq'') Securities To Be Traded on the
Exchange Pursuant to a Grant of Unlisted Trading Privileges
January 2, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on December 18, 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 and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE MKT Rule 500--Equities to
Extend the Operation of the Pilot Program that Allows Nasdaq Stock
Market (``Nasdaq'') Securities to be Traded on the Exchange Pursuant to
a Grant of Unlisted Trading Privileges. 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
NYSE MKT Rules 500-525--Equities, as a pilot program, govern the
trading of any Nasdaq-listed security on the Exchange pursuant to
unlisted trading privileges (``UTP Pilot Program'').\5\ The Exchange
hereby seeks to extend the operation of the UTP Pilot Program,
currently scheduled to expire on January 31, 2013, until the earlier of
Commission approval to make such pilot permanent or July 31, 2013.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 62479 (July 9,
2010), 75 FR 41264 (July 15, 2010) (SR-NYSEAmex-2010-31). See also
Securities Exchange Act Release Nos. 62857 (September 7, 2010), 75
FR 55837 (September 14, 2010) (SR-NYSEAmex-2010-89); 63601 (December
22, 2010), 75 FR 82117 (December 29, 2010) (SR-NYSEAmex-2010-124);
64746 (June 24, 2011), 76 FR 38446 (June 30, 2011) (SR-NYSEAmex-
2011-45); 66040 (December 23, 2011), 76 FR 82324 (December 30, 2011)
(SR-NYSEAmex-2011-104); and 67497 (July 25, 2012), 77 FR 45404 (July
31, 2012) (SR-NYSEMKT-2012-25).
---------------------------------------------------------------------------
The UTP Pilot Program includes any security listed on Nasdaq that
(i) is designated as an ``eligible security'' under the Joint Self-
Regulatory Organization Plan Governing the Collection, Consolidation
and Dissemination of Quotation and Transaction Information for Nasdaq-
Listed Securities Traded on Exchanges on an Unlisted Trading Privilege
Basis, as amended (``UTP Plan''),\6\ and (ii) has been admitted to
dealings on the Exchange pursuant to a grant of unlisted trading
privileges in accordance with Section 12(f) of the Securities Exchange
Act of 1934, as amended (the ``Act''),\7\ (collectively, ``Nasdaq
Securities'').\8\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 58863 (October 27,
2008), 73 FR 65417 (November 3, 2008) (File No. S7-24-89). The
Exchange's predecessor, the American Stock Exchange LLC, joined the
UTP Plan in 2001. See Securities Exchange Act Release No. 55647
(April 19, 2007), 72 FR 20891 (April 26, 2007) (File No. S7-24-89).
In March 2009, the Exchange changed its name to NYSE Amex LLC, and,
in May 2012, the Exchange subsequently changed its name to NYSE MKT
LLC. See Securities Exchange Act Release Nos. 59575 (March 13,
2009), 74 FR 11803 (March 19, 2009) (SR-NYSEALTR-2009-24) and 67037
(May 21, 2012), 77 FR 31415 (May 25, 2012) (SR-NYSEAmex-2012-32).
\7\ 15 U.S.C. 78l.
\8\ ``Nasdaq Securities'' is included within the definition of
``security'' as that term is used in the NYSE MKT Equities Rules.
See NYSE MKT Rule 3--Equities. In accordance with this definition,
Nasdaq Securities are admitted to dealings on the Exchange on an
``issued,'' ``when issued,'' or ``when distributed'' basis. See NYSE
MKT Rule 501--Equities.
---------------------------------------------------------------------------
The Exchange notes that its New Market Model Pilot (``NMM Pilot''),
which, among other things, eliminated the function of specialists on
the Exchange and created a new category of market participant, the
Designated Market Maker (``DMM''),\9\ is also scheduled to end on
January 31, 2013.\10\ The timing of the operation of the UTP Pilot
Program was designed to correspond to that of the NMM Pilot. In
approving the UTP Pilot Program, the Commission acknowledged that the
rules relating to DMM benefits and duties in trading Nasdaq Securities
on the Exchange pursuant to the UTP Pilot
[[Page 1291]]
Program are consistent with the Act \11\ and noted the similarity to
the NMM Pilot, particularly with respect to DMM obligations and
benefits.\12\ Furthermore, the UTP Pilot Program rules pertaining to
the assignment of securities to DMMs are substantially similar to the
rules implemented through the NMM Pilot.\13\ The Exchange has similarly
filed to extend the operation of the NMM Pilot until the earlier of
Commission approval to make the NMM Pilot permanent or July 31,
2013.\14\
---------------------------------------------------------------------------
\9\ See NYSE MKT Rule 103--Equities.
\10\ See Securities Exchange Act Release No. 60758 (October 1,
2009), 74 FR 51639 (October 7, 2009) (SR-NYSEAmex-2009-65). See also
Securities Exchange Act Release Nos. 61030 (November 19, 2009), 74
FR 62365 (November 27, 2009) (SR-NYSEAmex-2009-83); 61725 (March 17,
2010), 75 FR 14223 (March 24, 2010) (SR-NYSEAmex-2010-28); 62820
(September 1, 2010), 75 FR 54935 (September 9, 2010) (SR-NYSEAmex-
2010-86); 63615 (December 29, 2010), 76 FR 611 (January 5, 2011)
(SR-NYSEAmex-2010-123); 64773 (June 29, 2011), 76 FR 39453 (July 6,
2011) (SR-NYSEAmex-2011-43); 66042 (December 23, 2011), 76 FR 82326
(December 30, 2011) (SR-NYSEAmex-2011-102); and 67495 (July 25,
2012), 77 FR 45406 (July 31, 2012) (SR-NYSEMKT-2012-21).
\11\ 15 U.S.C. 78.
\12\ See SR-NYSEAmex-2010-31, supra note 5, at 41271.
\13\ Id.
\14\ See SR-NYSEMKT-2012-84.
---------------------------------------------------------------------------
Extension of the UTP Pilot Program in tandem with the NMM Pilot,
both from January 31, 2013 until the earlier of Commission approval to
make such pilots permanent or July 31, 2013, will provide for the
uninterrupted trading of Nasdaq Securities on the Exchange on a UTP
basis and thus continue to encourage the additional utilization of, and
interaction with, the Exchange, and provide market participants with
improved price discovery, increased liquidity, more competitive quotes
and greater price improvement for Nasdaq Securities.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange. In particular,
the Exchange believes that its proposal to extend the UTP Pilot Program
is consistent with (i) Section 6(b) of the Act,\15\ in general, and
furthers the objectives of Section 6(b)(5) of the Act,\16\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investors and the public interest; (ii) Section
11A(a)(1) of the Act,\17\ in that it seeks to ensure the economically
efficient execution of securities transactions and fair competition
among brokers and dealers and among exchange markets; and (iii) Section
12(f) of the Act,\18\ which governs the trading of securities pursuant
to UTP consistent with the maintenance of fair and orderly markets, the
protection of investors and the public interest, and the impact of
extending the existing markets for such securities.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
\17\ 15 U.S.C. 78k-1(a)(1).
\18\ 15 U.S.C. 78l(f).
---------------------------------------------------------------------------
Specifically, the Exchange believes that extending the UTP Pilot
Program would provide for the uninterrupted trading of Nasdaq
Securities on the Exchange on a UTP basis and thus continue to
encourage the additional utilization of, and interaction with, the
Exchange, thereby providing market participants with additional price
discovery, increased liquidity, more competitive quotes and potentially
greater price improvement for Nasdaq Securities. Additionally, under
the UTP Pilot Program, Nasdaq Securities trade on the Exchange pursuant
to rules governing the trading of Exchange-Listed securities that
previously have been approved by the Commission. Accordingly, this
proposed rule change would permit the Exchange to extend the
effectiveness of the UTP Pilot Program in tandem with the NMM Pilot,
which the Exchange has similarly proposed to extend until the earlier
of Commission approval to make such pilot permanent or July 31,
2013.\19\
---------------------------------------------------------------------------
\19\ See supra note 14.
---------------------------------------------------------------------------
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 foregoing proposed rule does not (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
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, provided that the self-regulatory
organization has given the Commission written notice of its intent to
file 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 proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \20\ and Rule 19b-
4(f)(6) thereunder.\21\
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78s(b)(3)(A).
\21\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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:
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-NYSEMKT-2012-86 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-NYSEMKT-2012-86. 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 such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments
[[Page 1292]]
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-NYSEMKT-2012-86 and should
be submitted on or before January 29, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
---------------------------------------------------------------------------
\22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-00082 Filed 1-7-13; 8:45 am]
BILLING CODE 8011-01-P
