Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Provide for the Payment of Exchange Fees Through an Integrated Billing Process, 5236-5238 [2013-01376]

Download as PDF 5236 Federal Register / Vol. 78, No. 16 / Thursday, January 24, 2013 / Notices 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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 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 NYSE’s principal office and on its Internet Web site at www.nyse.com. 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– 2013–02, and should be submitted on or before February 14, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.56 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–01375 Filed 1–23–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–68684; File No. SR–NSX– 2013–01] Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Provide for the Payment of Exchange Fees Through an Integrated Billing Process Paper Comments erowe on DSK2VPTVN1PROD with • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–NYSE–2013–02 on the subject line. 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 January 10, 2013, National Stock Exchange, Inc. (‘‘NSX®’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change, as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comment on the proposed rule change from interested persons. • 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–2013–02. 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 (http://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 VerDate Mar<15>2010 15:12 Jan 23, 2013 Jkt 229001 January 17, 2013. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is proposing to: (1) define the term ‘‘Clearing Member’’ 56 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 under Exchange Rule 1.5; and (2) adopt Exchange Rule 16.4 to allow Equity Trading Permit (‘‘ETP’’) 3 Holders to pay their Exchange and vendor invoices for Exchange-related services through the Exchange’s integrated billing system (‘‘IBS’’). The text of the proposed rule change is available on the Exchange’s Web site at http://www.nsx.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The 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 The Exchange is proposing to: (1) define the term ‘‘Clearing Member’’ under Exchange Rule 1.5; and (2) adopt Exchange Rule 16.4 to allow ETP Holders to pay their Exchange and vendor invoices for Exchange-related services through the Exchange’s IBS. Definition of Clearing Member The Exchange is proposing to: (1) define the term ‘‘Clearing Member’’ under Exchange Rule 1.5 as ‘‘[a]n ETP Holder that is a member of a Qualified Clearing Agency defined in Section Q below.’’ Section Q of Exchange Rule 1.5 defines ‘‘Qualified Clearing Agency’’ as ‘‘a clearing agency registered with the Commission pursuant to Section 17A of the Act that is deemed qualified by the Exchange.’’ In adding a definition of Clearing Member to Exchange Rule 1.5, the Exchange does not propose to add a new category of Exchange member or alter current ETP Holder obligations. The Exchange simply proposes this definition to describe ETP Holders that may also be members of a Qualified Clearing Agency as a means to add clarity to the integrated billing solution 3 Exchange Rule 1.5 defines the term ‘‘ETP’’ as an Equity Trading Permit issued by the Exchange for effecting approved securities transactions on the Exchange’s Trading Facilities. E:\FR\FM\24JAN1.SGM 24JAN1 Federal Register / Vol. 78, No. 16 / Thursday, January 24, 2013 / Notices under proposed Exchange Rule 16.4, described below. Integrated Billing Solution The Exchange also proposes to adopt Exchange Rule 16.4 to allow ETP Holders to pay their Exchange and vendor invoices for Exchange-related services through the Exchange’s IBS, unless payment by check of [sic] bank transfer is agreed to between the Exchange and ETP Holder.4 In lieu of payment by check or bank transfer, ETP Holders will now be required to designate an ETP Holder that is also Clearing Member (as defined above) to pay their Exchange invoices via IBS. The ETP Holder will continue to receive monthly statements which outline their monthly fees and charges. The Clearing Member will pay to the Exchange on a timely basis any amount that the ETP holder does not dispute. The Exchange will obtain these payments from the Clearing Member’s account at the Qualified Clearing Agency. The Qualified Clearing Agency will not be liable in connection with its forwarding to the Exchange each month a payment representing the total amount that the Exchange advises the Qualified Clearing Agency is owed to the Exchange. Payment of invoices via the Exchange’s IBS will increase efficiency and reduce financial risk by allowing the Exchange to draft against the Clearing Member’s account the amount due rather than invoicing each ETP Holder separately and awaiting payment via check or bank transfer. In addition, the Exchange notes the Chicago Board Options Exchange, Inc. (‘‘CBOE’’) 5 has implemented a similar process for the payment of invoices by its members. The only difference between CBOE’s requirements and those proposed by the NSX, is that the CBOE rule appears to required [sic] payment via IBS as mandatory for all its members, while the NSX’s proposed rule would allow alternative payment methods if agreed to with the Exchange. erowe on DSK2VPTVN1PROD with 2. Statutory Basis The Exchange believes the proposed rule change is consistent with Section 6 4 The Exchange represents that, in the Exchange’s written agreement with each vendor for which the Exchange will collect payments via IBS, the Exchange will require the vendor to include a provision in the vendor’s written agreement with each member from which payments via IBS will be collected in which the member authorizes NSX to assess and collect from the member through NSX’s billing procedures and automated systems, on behalf of the vendor, the fees assessed by the vendor to the member for the vendor’s service. The Exchange does not currently collect payments from ETP Holders for vendor invoices, but may do so in the future. 5 CBOE Rule 3.23. VerDate Mar<15>2010 15:12 Jan 23, 2013 Jkt 229001 of the Act,6 and the rules and regulations thereunder and, in particular, the requirements of Section 6(b) of the Act.7 Specifically, the Exchange believes the proposed rule change furthers the objective of Section 6(b)(5) of the Act 8 because allowing ETP Holders to pay their Exchange and vendor invoices via IBS is designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, and processing information with respect to transactions in securities, and to remove impediments to and perfects [sic] the mechanism of a free and open market and a national market system. Payment of invoices via the Exchange’s IBS would increase efficiency and reduce financial risk by allowing the Exchange to draft against the Clearing Member’s account the amount due, rather than the ETP Holder paying their invoices via check or bank transfer each month. Lastly, the Exchange notes that the proposed rule change is not unfairlydiscriminatory because payment of invoices via IBS is voluntary and each ETP Holder is able to continue to remit payment of their invoices by check or bank transfer. The Exchange believes the proposed definition of ‘‘Clearing Member’’ under Exchange Rule 1.5 is consistent with Section 6 of the Act,9 and the rules and regulations thereunder and, in particular, the requirements of Section 6(b) of the Act.10 Specifically, the Exchange believes the proposed definition furthers the objective of Section 6(b)(5) of the Act 11 because the proposed definition of ‘‘Clearing Member’’ is designed to describe ETP Holders who may also be members of a Qualified Clearing Agency, thereby adding clarity to the IBS under proposed Exchange Rule 16.4. Therefore, the Exchange believes the proposed definition of ‘‘Clearing Member’’ fosters cooperation and coordination with persons engaged in regulating, clearing, settling, and processing information with respect to transactions in securities, and removes impediments to and perfect [sic] the mechanism of a free and open market and a national market system. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose 6 15 U.S.C. 78f. U.S.C. 78f(b)(5). 8 15 U.S.C. 78f(b)(5). 9 15 U.S.C. 78f. 10 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78f(b)(5). 7 15 PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 5237 any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change will provide ETP Holders the choice of paying their invoices through IBS rather than via check or bank transfer, which is designed to increase efficiency and reduce financial risk. The proposed definition of ‘‘Clearing Member’’ under Exchange Rule 1.5 is designed to add clarity to the integrated billing solution under proposed Exchange Rule 16.4 and does not propose to add a new category of Exchange members or alter current ETP Holder obligations. Therefore, the Exchange believes the proposed rule change does not impose a burden on competition because ETP Holders are free to choose the payment method they wish. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing 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 for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) 12 of the Act and Rule 19b–4(f)(6) 13 thereunder. A proposed rule change filed under Rule 19b–4(f)(6) of the Act 14 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b– 4(f)(6)(iii) of the Act,15 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that ETP Holders may use the IBS system for invoicing and payment processing immediately. The Commission believes 12 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 at least five business days prior to the date of the filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 14 17 CFR 240.19b–4(f)(6). 15 17 CFR 240.19b–4(f)(6)(iii). 13 17 E:\FR\FM\24JAN1.SGM 24JAN1 5238 Federal Register / Vol. 78, No. 16 / Thursday, January 24, 2013 / Notices that waiving the 30-day operative delay is consistent with the protection of investors and the public interest as it will facilitate a more efficient method for ETP Holders to pay invoices to the Exchange and for the Exchange to collect undisputed payments owed by ETP Holders to the Exchange and to vendors.16 Therefore, the Commission hereby waives the 30-day operative delay and designates the proposed rule change to be operative upon filing with the Commission. 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change should be approved or disapproved. 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–NSX–2013–01 on the subject line. erowe on DSK2VPTVN1PROD with Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NSX–2013–01. 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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements 16 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). VerDate Mar<15>2010 15:12 Jan 23, 2013 Jkt 229001 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 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 offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NSX– 2013–01, and should be submitted on or before February 14, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–01376 Filed 1–23–13; 8:45 am] BILLING CODE 8011–01–P TRADE REPRESENTATIVE Request for Comments on an International Services Agreement Office of the United States Trade Representative. ACTION: Request for comments and notice of public hearing. AGENCY: On January 15, 2013, the United States Trade Representative notified Congress of the Administration’s intention to enter into negotiations for an International Services Agreement (ISA) with an initial group of 20 trading partners. The Office of the United States Trade Representative (USTR) is seeking public comments regarding U.S. interests and priorities with regard to this initiative. Comments may be provided in writing and orally at a public hearing. DATES: Persons wishing to testify orally at the hearing must provide written notification of their intention, as well as their testimony, by February 26, 2013. The hearing will be held in Washington, DC, on March 12, 2013. Written comments are due by noon, February 26, 2013. SUMMARY: 17 17 PO 00000 CFR 200.30–3(a)(12). Frm 00075 Fmt 4703 Sfmt 4703 Submissions via on-line: http://www.regulations.gov. For alternatives to on-line submissions please contact Yvonne Jamison at (202) 395–3475. ADDRESSES: For questions concerning requirements for written comments, please contact Yvonne Jamison at (202) 395–3475. All other questions regarding this notice should be directed to Amanda Horan at (202) 395–4510. FOR FURTHER INFORMATION CONTACT: The following twenty trading partners have expressed their intention to participate in negotiations with the United States to establish an ISA: Australia, Canada, Chile, Chinese Taipei, Colombia, Costa Rica, European Union on behalf of its member states, Hong Kong China, Iceland, Israel, Japan, Korea, Mexico, New Zealand, Norway, Pakistan, Panama, Peru, Switzerland, and Turkey. This group, which may expand as the negotiations proceed, includes a range of developed and developing economies, representing nearly twothirds of global trade in services. The agreement envisioned will place a high priority on enabling U.S. service suppliers to compete on the basis of quality and competence rather than nationality. The scope would be comprehensive, permitting the coverage of all services. To remain relevant into the future, the agreement would be flexible enough to address new issues arising in the global marketplace and changes in the way services are traded. The Chair of the interagency Trade Policy Staff Committee (TPSC) invites interested persons to provide written comments and/or oral testimony at a public hearing that will assist USTR in assessing U.S. objectives for the proposed agreement. The TPSC Chair invites comments on all relevant matters, and, in particular, on the following: (a) Economic costs and benefits to U.S. service suppliers and consumers of eliminating barriers to services traded either on a cross-border basis or through a foreign commercial presence; (b) existing barriers to trade in services that should be addressed; (c) areas where existing international rules governing services trade, such as those found in the General Agreement on Trade in Services and U.S. free trade agreements, could be strengthened or enhanced; (d) relevant issues related to the supply of services through various modes of supply and technologies. SUPPLEMENTARY INFORMATION: E:\FR\FM\24JAN1.SGM 24JAN1

Agencies

[Federal Register Volume 78, Number 16 (Thursday, January 24, 2013)]
[Notices]
[Pages 5236-5238]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-01376]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68684; File No. SR-NSX-2013-01]


Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Provide for the Payment of Exchange Fees Through an Integrated Billing 
Process

January 17, 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 January 10, 2013, National Stock Exchange, Inc. 
(``NSX[supreg]'' or the ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change, as 
described in Items I and II below, which Items have been prepared by 
the Exchange. The Commission is publishing this notice to solicit 
comment on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange is proposing to: (1) define the term ``Clearing 
Member'' under Exchange Rule 1.5; and (2) adopt Exchange Rule 16.4 to 
allow Equity Trading Permit (``ETP'') \3\ Holders to pay their Exchange 
and vendor invoices for Exchange-related services through the 
Exchange's integrated billing system (``IBS'').
---------------------------------------------------------------------------

    \3\ Exchange Rule 1.5 defines the term ``ETP'' as an Equity 
Trading Permit issued by the Exchange for effecting approved 
securities transactions on the Exchange's Trading Facilities.
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nsx.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The 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
    The Exchange is proposing to: (1) define the term ``Clearing 
Member'' under Exchange Rule 1.5; and (2) adopt Exchange Rule 16.4 to 
allow ETP Holders to pay their Exchange and vendor invoices for 
Exchange-related services through the Exchange's IBS.
Definition of Clearing Member
    The Exchange is proposing to: (1) define the term ``Clearing 
Member'' under Exchange Rule 1.5 as ``[a]n ETP Holder that is a member 
of a Qualified Clearing Agency defined in Section Q below.'' Section Q 
of Exchange Rule 1.5 defines ``Qualified Clearing Agency'' as ``a 
clearing agency registered with the Commission pursuant to Section 17A 
of the Act that is deemed qualified by the Exchange.'' In adding a 
definition of Clearing Member to Exchange Rule 1.5, the Exchange does 
not propose to add a new category of Exchange member or alter current 
ETP Holder obligations. The Exchange simply proposes this definition to 
describe ETP Holders that may also be members of a Qualified Clearing 
Agency as a means to add clarity to the integrated billing solution

[[Page 5237]]

under proposed Exchange Rule 16.4, described below.
Integrated Billing Solution
    The Exchange also proposes to adopt Exchange Rule 16.4 to allow ETP 
Holders to pay their Exchange and vendor invoices for Exchange-related 
services through the Exchange's IBS, unless payment by check of [sic] 
bank transfer is agreed to between the Exchange and ETP Holder.\4\ In 
lieu of payment by check or bank transfer, ETP Holders will now be 
required to designate an ETP Holder that is also Clearing Member (as 
defined above) to pay their Exchange invoices via IBS. The ETP Holder 
will continue to receive monthly statements which outline their monthly 
fees and charges. The Clearing Member will pay to the Exchange on a 
timely basis any amount that the ETP holder does not dispute. The 
Exchange will obtain these payments from the Clearing Member's account 
at the Qualified Clearing Agency. The Qualified Clearing Agency will 
not be liable in connection with its forwarding to the Exchange each 
month a payment representing the total amount that the Exchange advises 
the Qualified Clearing Agency is owed to the Exchange.
---------------------------------------------------------------------------

    \4\ The Exchange represents that, in the Exchange's written 
agreement with each vendor for which the Exchange will collect 
payments via IBS, the Exchange will require the vendor to include a 
provision in the vendor's written agreement with each member from 
which payments via IBS will be collected in which the member 
authorizes NSX to assess and collect from the member through NSX's 
billing procedures and automated systems, on behalf of the vendor, 
the fees assessed by the vendor to the member for the vendor's 
service. The Exchange does not currently collect payments from ETP 
Holders for vendor invoices, but may do so in the future.
---------------------------------------------------------------------------

    Payment of invoices via the Exchange's IBS will increase efficiency 
and reduce financial risk by allowing the Exchange to draft against the 
Clearing Member's account the amount due rather than invoicing each ETP 
Holder separately and awaiting payment via check or bank transfer. In 
addition, the Exchange notes the Chicago Board Options Exchange, Inc. 
(``CBOE'') \5\ has implemented a similar process for the payment of 
invoices by its members. The only difference between CBOE's 
requirements and those proposed by the NSX, is that the CBOE rule 
appears to required [sic] payment via IBS as mandatory for all its 
members, while the NSX's proposed rule would allow alternative payment 
methods if agreed to with the Exchange.
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    \5\ CBOE Rule 3.23.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6 of the Act,\6\ and the rules and regulations thereunder and, 
in particular, the requirements of Section 6(b) of the Act.\7\ 
Specifically, the Exchange believes the proposed rule change furthers 
the objective of Section 6(b)(5) of the Act \8\ because allowing ETP 
Holders to pay their Exchange and vendor invoices via IBS is designed 
to foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, and processing information with respect 
to transactions in securities, and to remove impediments to and 
perfects [sic] the mechanism of a free and open market and a national 
market system. Payment of invoices via the Exchange's IBS would 
increase efficiency and reduce financial risk by allowing the Exchange 
to draft against the Clearing Member's account the amount due, rather 
than the ETP Holder paying their invoices via check or bank transfer 
each month. Lastly, the Exchange notes that the proposed rule change is 
not unfairly-discriminatory because payment of invoices via IBS is 
voluntary and each ETP Holder is able to continue to remit payment of 
their invoices by check or bank transfer.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes the proposed definition of ``Clearing 
Member'' under Exchange Rule 1.5 is consistent with Section 6 of the 
Act,\9\ and the rules and regulations thereunder and, in particular, 
the requirements of Section 6(b) of the Act.\10\ Specifically, the 
Exchange believes the proposed definition furthers the objective of 
Section 6(b)(5) of the Act \11\ because the proposed definition of 
``Clearing Member'' is designed to describe ETP Holders who may also be 
members of a Qualified Clearing Agency, thereby adding clarity to the 
IBS under proposed Exchange Rule 16.4. Therefore, the Exchange believes 
the proposed definition of ``Clearing Member'' fosters cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
and processing information with respect to transactions in securities, 
and removes impediments to and perfect [sic] the mechanism of a free 
and open market and a national market system.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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. The proposed rule change 
will provide ETP Holders the choice of paying their invoices through 
IBS rather than via check or bank transfer, which is designed to 
increase efficiency and reduce financial risk. The proposed definition 
of ``Clearing Member'' under Exchange Rule 1.5 is designed to add 
clarity to the integrated billing solution under proposed Exchange Rule 
16.4 and does not propose to add a new category of Exchange members or 
alter current ETP Holder obligations. Therefore, the Exchange believes 
the proposed rule change does not impose a burden on competition 
because ETP Holders are free to choose the payment method they wish.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing 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 for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) \12\ of the Act and 
Rule 19b-4(f)(6) \13\ thereunder.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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 at 
least five business days prior to the date of the filing of the 
proposed rule change, or such shorter time as designated by the 
Commission. The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) of the Act \14\ 
normally does not become operative prior to 30 days after the date of 
the filing. However, pursuant to Rule 19b-4(f)(6)(iii) of the Act,\15\ 
the Commission may designate a shorter time if such action is 
consistent with the protection of investors and the public interest. 
The Exchange has asked the Commission to waive the 30-day operative 
delay so that ETP Holders may use the IBS system for invoicing and 
payment processing immediately. The Commission believes

[[Page 5238]]

that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest as it will facilitate a 
more efficient method for ETP Holders to pay invoices to the Exchange 
and for the Exchange to collect undisputed payments owed by ETP Holders 
to the Exchange and to vendors.\16\ Therefore, the Commission hereby 
waives the 30-day operative delay and designates the proposed rule 
change to be operative upon filing with the Commission.
---------------------------------------------------------------------------

    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NSX-2013-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NSX-2013-01. 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 (http://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 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 offices of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-NSX-2013-01, and should be submitted on or before 
February 14, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01376 Filed 1-23-13; 8:45 am]
BILLING CODE 8011-01-P