Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 107C-Equities To Allow Retail Liquidity Providers To Enter Retail Price Improvement Orders in a Non-RLP Capacity for Securities to Which the RLP Is Not Assigned, 6152-6154 [2013-01840]
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<![CDATA[
6152
Federal Register / Vol. 78, No. 19 / Tuesday, January 29, 2013 / Notices
RAILROAD RETIREMENT BOARD
Proposed Collection; Comment
Request
Summary: In accordance with the
requirement of Section 3506 (c)(2)(A) of
the Paperwork Reduction Act of 1995
which provides opportunity for public
comment on new or revised data
collections, the Railroad Retirement
Board (RRB) will publish periodic
summaries of proposed data collections.
Comments are invited on: (a) Whether
the proposed information collection is
necessary for the proper performance of
the functions of the agency, including
whether the information has practical
utility; (b) the accuracy of the RRB’s
estimate of the burden of the collection
of the information; (c) ways to enhance
the quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden related to
the collection of information on
respondents, including the use of
automated collection techniques or
other forms of information technology.
Title and purpose of information
collection: Repayment of Debt; OMB
3220–0169.
When the Railroad Retirement Board
(RRB) determines that an overpayment
of Railroad Retirement Act (RRA) or
Railroad Unemployment Insurance Act
(RUIA) benefits has occurred, it initiates
prompt action to notify the annuitant of
the overpayment and to recover the
money owed the RRB. To effect
payment of a debt by credit card, the
RRB utilizes Form G–421F, Repayment
by Credit Card. RRB procedures
pertaining to benefit overpayment
determinations and the recovery of such
benefits are prescribed in 20 CFR parts
255 and 340.
One form is completed by each
respondent. Completion is voluntary.
The RRB proposes minor non-burden
impacting editorial changes to Form G–
421F.
ESTIMATE OF ANNUAL RESPONDENT BURDEN
[The estimated annual respondent burden is as follows]
Annual
responses
Form number
Time
(minutes)
Burden
(hours)
G–421F ............................................................................................................................
535
5
45
Total ..........................................................................................................................
535
............................
45
Additional Information or Comments:
To request more information or to
obtain a copy of the information
collection justification, forms, and/or
supporting material, contact Dana
Hickman at (312) 751–4981 or
Dana.Hickman@RRB.GOV. Comments
regarding the information collection
should be addressed to Charles
Mierzwa, Railroad Retirement Board,
844 North Rush Street, Chicago, Illinois
60611–2092 or emailed to
Charles.Mierzwa@RRB.GOV. Written
comments should be received within 60
days of this notice.
Charles Mierzwa,
Chief of Information Resources Management.
[FR Doc. 2013–01801 Filed 1–28–13; 8:45 am]
BILLING CODE 7905–01–P
SECURITIES AND EXCHANGE
COMMISSION
srobinson on DSK4SPTVN1PROD with
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, January 31, 2013 at 2:00
p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
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The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matters at the Closed
Meeting.
Commissioner Gallagher, as duty
officer, voted to consider the items
listed for the Closed Meeting in a closed
session.
The subject matter of the Closed
Meeting will be:
Institution and settlement of injunctive
actions;
Institution and settlement of
administrative proceedings; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact the Office of the Secretary at
(202) 551–5400.
Dated: January 24, 2013.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013–01960 Filed 1–25–13; 11:15 am]
BILLING CODE 8011–01–P
PO 00000
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68710; File No. SR–
NYSEMKT–2013–02]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 107C—
Equities To Allow Retail Liquidity
Providers To Enter Retail Price
Improvement Orders in a Non-RLP
Capacity for Securities to Which the
RLP Is Not Assigned
January 23, 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 January
11, 2013, NYSE MKT LLC (the
‘‘Exchange’’ or ‘‘NYSE MKT’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 107C—Equities to clarify that
1 15
2 17
Frm 00088
Fmt 4703
Sfmt 4703
E:\FR\FM\29JAN1.SGM
U.S.C. 78s(b)(2).
CFR 240.19b–4.
29JAN1
Federal Register / Vol. 78, No. 19 / Tuesday, January 29, 2013 / Notices
Retail Liquidity Providers (‘‘RLPs’’) may
enter Retail Price Improvement Orders
(‘‘RPIs’’) in a non-RLP capacity for
securities to which the RLP is not
assigned. 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
srobinson on DSK4SPTVN1PROD with
1. Purpose
The Exchange is proposing an
amendment to Rule 107C—Equities to
clarify that RLPs may enter RPIs in a
non-RLP capacity for securities to which
the RLP is not assigned.
Under current Rule 107C—Equities, a
member organization that is registered
as an RLP must submit RPIs for
securities that are assigned to the RLP,
with an RPI being required to be priced
better than the PBBO by at least $0.001
per share. For each assigned securities,
an RLP must maintain RPIs that are
better than the PBBO at least 5% of the
trading day. If an RLP fails to meet this
5% quoting requirement in any assigned
security for three consecutive months,
the Exchange may: (1) Revoke the
assignment of any or all of the affected
securities; (2) revoke the assignment of
unaffected securities; or (3) disqualify
the member organization to serve as a
Retail Liquidity Provider. Under the
Retail Liquidity Program, member
organizations that are not RLPs are
permitted to interact with Retail Orders
within the Program by also submitting
RPIs. Member organizations are not
eligible for the lower execution fees
available to RLPs who satisfy their
quoting requirements.
The Exchange is proposing to amend
Rule 107C—Equities to clarify that RLPs
may act in a non-RLP capacity for those
securities to which it is not assigned,
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16:47 Jan 28, 2013
Jkt 229001
and as a result, may submit RPIs for
those securities. For securities to which
it is not assigned, the RLP would not be
required to satisfy the quoting
requirements found in Rule 107C(f)—
Equities, but would also not be eligible
for the lower execution fees available to
RLPs submitting RPIs for assigned
securities.3 For assigned securities, the
RLP would still be subject to the quoting
requirements found in Rule 107C(f)—
Equities, and failure to meet those
requirements, could still result in the
actions found in Rule 107C(g)—Equities.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),4 in general, and furthers the
objectives of Section 6(b)(5),5 in
particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system. The
Exchange believes the change proposed
herein meets these requirements
because it permits member
organizations who have taken on the
extra requirements of being an RLP in
its assigned securities to still participate
in the Program with other member
organizations for those securities to
which it is not assigned, which
promotes just and equitable principles
of trade. Without such permission, an
RLP would be effectively penalized for
taking on the responsibilities of
becoming an RLP in assigned securities
by not being permitted to participate in
the program in securities to which it is
not assigned. The proposed rule change
would rectify this disparate treatment
between RLPs and non-RLP member
organizations in non-assigned securities.
Additionally, the proposed rule change
will remove impediments to and perfect
the mechanism of a free and open
market and a national market system
because it will allow RLPs to submit
RPIs in both its assigned and nonassigned securities, thus creating a
larger pool of liquidity for Retail Orders
to interact with and stimulating further
price competition for retail orders.
3 Currently, RLPs who satisfy the applicable
percentage requirement of Rule 107C—Equities are
not charged a fee per share per execution of RPIs
against a Retail Order. Non-RLP member
organizations, unless they execute an average daily
volume during the month of at least 500,000 shares
of RPIs, would be charged a fee per share per
execution of RPIs against Retail Orders of $0.0003.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
6153
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
Exchange believes that the amendment,
by increasing the level of participation
in the program, will increase the level
of competition around executions such
that retail investors would receive better
prices than they currently do on the
Exchange and potentially through
bilateral internalization arrangements.
The Exchange believes that the
transparency and competitiveness of
operating a program such as the Retail
Liquidity Program on an exchange
market would result in better prices for
retail investors, and benefits retail
investors by expanding the capabilities
of Exchanges to encompass practices
currently allowed on non-Exchange
venues.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(6) thereunder.7 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 8 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),9 the Commission
may designate a shorter time if such
action is consistent with the protection
6 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
8 17 CFR 240.19b–4(f)(6).
9 17 CFR 240.19b–4(f)(6)(iii).
7 17
E:\FR\FM\29JAN1.SGM
29JAN1
6154
Federal Register / Vol. 78, No. 19 / Tuesday, January 29, 2013 / Notices
of investors and the public interest.10
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
proposal would explicitly state that
RLPs could submit RPIs in non-assigned
securities, which should allow retail
orders additional opportunities to
receive price improvement. Therefore,
the Commission designates the
proposed rule change as operative upon
filing.11
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
under Section 19(b)(2)(B) 12 of the Act 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEMKT–2013–02 on the
subject line.
100 F Street NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–NYSEMKT–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 (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
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–2013–02 and should be
submitted on or before February 19,
2013.
[Release No. 34–68707; File No. SR–
NASDAQ–2012–090]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–01840 Filed 1–28–13; 8:45 am]
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
srobinson on DSK4SPTVN1PROD with
Paper Comments
BILLING CODE 8011–01–P
10 In addition, Rule 19b–4(f)(6)(iii) requires the
Exchange to give the Commission written notice of
the Exchange’s 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.
11 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
12 15 U.S.C. 78s(b)(2)(B).
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16:47 Jan 28, 2013
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13 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00090
Fmt 4703
Sfmt 4703
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Designation of Longer Period for
Commission Action on Proceedings To
Determine Whether To Approve or
Disapprove Proposed Rule Change To
Amend Rule 4626—Limitation of
Liability
January 23, 2013.
I. Introduction
On July 23, 2012, The NASDAQ Stock
Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend Exchange Rule 4626—
Limitation of Liability (‘‘accommodation
proposal’’). The proposed rule change
was published for comment in the
Federal Register on August 1, 2012.3
The Commission received 11 comment
letters on the accommodation proposal 4
and a response letter from Nasdaq.5 On
September 12, 2012, the Commission
extended the time period in which to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 67507
(July 26, 2012), 77 FR 45706 (‘‘Notice’’).
4 See letters to Elizabeth M. Murphy, Secretary,
Commission, from Sis DeMarco, Chief Compliance
Officer, Triad Securities Corp., dated August 20,
2012 (‘‘Triad Letter’’); Eugene P. Torpey, Chief
Compliance Officer, Vandham Securities Corp.,
dated August 21, 2012 (‘‘Vandham Letter’’); John C.
Nagel, Managing Director and General Counsel,
Citadel LLC, dated August 21, 2012 (‘‘Citadel
Letter’’); Benjamin Bram, Watermill Institutional
Trading LLC, dated August 22, 2012 (‘‘Bram
Letter’’); Daniel Keegan, Managing Director,
Citigroup Global Markets Inc., dated August 22,
2012 (‘‘Citi Letter’’); Theodore R. Lazo, Managing
Director and Associate General Counsel, Securities
Industry and Financial Markets Association, dated
August 22, 2012 (‘‘SIFMA Letter I’’); Mark Shelton,
Group Managing Director and General Counsel,
UBS Securities LLC, dated August 22, 2012 (‘‘UBS
Letter I’’); Andrew J. Entwistle and Vincent R.
Cappucci, Entwistle & Cappucci LLP, dated August
22, 2012 (‘‘Entwistle Letter’’); Douglas G.
Thompson, Michael G. McLellan, and Robert O.
Wilson, Finkelstein Thompson LLP, Christopher
Lovell, Victor E. Stewart, and Fred T. Isquith,
Lovell Stewart Halebian Jacobson LLP, Jacob H.
Zamansky and Edward H. Glenn, Zamansky &
Associates LLC, dated August 22, 2012 (‘‘Thompson
Letter I’’); James J. Angel, Associate Professor of
Finance, Georgetown University, McDonough
School of Business, dated August 23, 2012 (‘‘Angel
Letter’’); and Leonard J. Amoruso, General Counsel,
Knight Capital Group, Inc., dated August 29, 2012
(‘‘Knight Letter’’).
5 See letter to Elizabeth M. Murphy, Secretary,
Commission, from Joan C. Conley, Senior Vice
President and Corporate Secretary, The NASDAQ
Stock Market LLC, dated September 17, 2012
(‘‘Nasdaq Letter I’’).
2 17
E:\FR\FM\29JAN1.SGM
29JAN1
]]>Agencies
[Federal Register Volume 78, Number 19 (Tuesday, January 29, 2013)]
[Notices]
[Pages 6152-6154]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-01840]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68710; File No. SR-NYSEMKT-2013-02]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending Rule 107C--
Equities To Allow Retail Liquidity Providers To Enter Retail Price
Improvement Orders in a Non-RLP Capacity for Securities to Which the
RLP Is Not Assigned
January 23, 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 January 11, 2013, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'')
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 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)(2).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 107C--Equities to clarify that
[[Page 6153]]
Retail Liquidity Providers (``RLPs'') may enter Retail Price
Improvement Orders (``RPIs'') in a non-RLP capacity for securities to
which the RLP is not assigned. The text of the proposed rule change is
available on the Exchange's Web site at www.nyse.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing an amendment to Rule 107C--Equities to
clarify that RLPs may enter RPIs in a non-RLP capacity for securities
to which the RLP is not assigned.
Under current Rule 107C--Equities, a member organization that is
registered as an RLP must submit RPIs for securities that are assigned
to the RLP, with an RPI being required to be priced better than the
PBBO by at least $0.001 per share. For each assigned securities, an RLP
must maintain RPIs that are better than the PBBO at least 5% of the
trading day. If an RLP fails to meet this 5% quoting requirement in any
assigned security for three consecutive months, the Exchange may: (1)
Revoke the assignment of any or all of the affected securities; (2)
revoke the assignment of unaffected securities; or (3) disqualify the
member organization to serve as a Retail Liquidity Provider. Under the
Retail Liquidity Program, member organizations that are not RLPs are
permitted to interact with Retail Orders within the Program by also
submitting RPIs. Member organizations are not eligible for the lower
execution fees available to RLPs who satisfy their quoting
requirements.
The Exchange is proposing to amend Rule 107C--Equities to clarify
that RLPs may act in a non-RLP capacity for those securities to which
it is not assigned, and as a result, may submit RPIs for those
securities. For securities to which it is not assigned, the RLP would
not be required to satisfy the quoting requirements found in Rule
107C(f)--Equities, but would also not be eligible for the lower
execution fees available to RLPs submitting RPIs for assigned
securities.\3\ For assigned securities, the RLP would still be subject
to the quoting requirements found in Rule 107C(f)--Equities, and
failure to meet those requirements, could still result in the actions
found in Rule 107C(g)--Equities.
---------------------------------------------------------------------------
\3\ Currently, RLPs who satisfy the applicable percentage
requirement of Rule 107C--Equities are not charged a fee per share
per execution of RPIs against a Retail Order. Non-RLP member
organizations, unless they execute an average daily volume during
the month of at least 500,000 shares of RPIs, would be charged a fee
per share per execution of RPIs against Retail Orders of $0.0003.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\4\ in general, and
furthers the objectives of Section 6(b)(5),\5\ in particular, in that
it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. The Exchange believes the change
proposed herein meets these requirements because it permits member
organizations who have taken on the extra requirements of being an RLP
in its assigned securities to still participate in the Program with
other member organizations for those securities to which it is not
assigned, which promotes just and equitable principles of trade.
Without such permission, an RLP would be effectively penalized for
taking on the responsibilities of becoming an RLP in assigned
securities by not being permitted to participate in the program in
securities to which it is not assigned. The proposed rule change would
rectify this disparate treatment between RLPs and non-RLP member
organizations in non-assigned securities. Additionally, the proposed
rule change will remove impediments to and perfect the mechanism of a
free and open market and a national market system because it will allow
RLPs to submit RPIs in both its assigned and non-assigned securities,
thus creating a larger pool of liquidity for Retail Orders to interact
with and stimulating further price competition for retail orders.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 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 Exchange believes that
the amendment, by increasing the level of participation in the program,
will increase the level of competition around executions such that
retail investors would receive better prices than they currently do on
the Exchange and potentially through bilateral internalization
arrangements. The Exchange believes that the transparency and
competitiveness of operating a program such as the Retail Liquidity
Program on an exchange market would result in better prices for retail
investors, and benefits retail investors by expanding the capabilities
of Exchanges to encompass practices currently allowed on non-Exchange
venues.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\9\ the Commission
may designate a shorter time if such action is consistent with the
protection
[[Page 6154]]
of investors and the public interest.\10\ The Exchange has asked the
Commission to waive the 30-day operative delay so that the proposal may
become operative immediately upon filing. The Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest. The proposal would explicitly state
that RLPs could submit RPIs in non-assigned securities, which should
allow retail orders additional opportunities to receive price
improvement. Therefore, the Commission designates the proposed rule
change as operative upon filing.\11\
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\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
\10\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to
give the Commission written notice of the Exchange's 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.
\11\ For purposes only of waiving the operative delay for this
proposal, 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 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 under
Section 19(b)(2)(B) \12\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\12\ 15 U.S.C. 78s(b)(2)(B).
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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-2013-02 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-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 (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 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-2013-02 and should
be submitted on or before February 19, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01840 Filed 1-28-13; 8:45 am]
BILLING CODE 8011-01-P
