Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Option Trading Rules to Extend the Operation of Its Pilot Program Regarding Minimum Value Sizes for Flexible Exchange Options, Currently Scheduled to Expire on March 29, 2013, Until March 31, 2014, 20997-20999 [2013-08088]

Download as PDF Federal Register / Vol. 78, No. 67 / Monday, April 8, 2013 / Notices post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–ISE– 2013–28 and should be submitted on or before April 29, 2013. the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.20 Kevin M. O’Neill, Deputy Secretary. 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. [FR Doc. 2013–08092 Filed 4–5–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69267; File No. SR– NYSEArca–2013–27] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Option Trading Rules to Extend the Operation of Its Pilot Program Regarding Minimum Value Sizes for Flexible Exchange Options, Currently Scheduled to Expire on March 29, 2013, Until March 31, 2014 mstockstill on DSK4VPTVN1PROD with NOTICES April 2, 2013. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on March 28, 2013, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its option trading rules to extend the operation of its pilot program (‘‘Pilot Program’’) regarding minimum value sizes for flexible exchange options (‘‘FLEX Options’’), currently scheduled to expire on March 29, 2013, until March 31, 2014. 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 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange hereby proposes to amend its option trading rules to extend the operation of its Pilot Program regarding minimum value sizes for FLEX Options, currently scheduled to expire on March 29, 2013,4 until March 31, 2014. This filing does not propose any substantive changes to the Pilot Program and contemplates that all other terms of FLEX Options will remain the same. Overall, the Exchange believes that extending the Pilot Program will benefit public customers and other market participants who will be able to 20 17 1 15 VerDate Mar<15>2010 20:02 Apr 05, 2013 4 See Securities Exchange Act Release No. 66650 (March 23, 2012), 77 FR 19048 (March 29, 2012) (SR–NYSEArca–2012–20). Jkt 229001 PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 20997 use FLEX Options to manage risk for smaller portfolios. In support of the proposed extension of the Pilot Program, and as required by the terms of the Pilot Program’s implementation,5 the Exchange has submitted to the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) a Pilot Program Report that provides an analysis of the Pilot Program covering the period during which the Pilot Program has been in effect. This Pilot Program Report includes (i) data and analysis on the open interest and trading volume in (a) FLEX Equity Options that have opening transactions with a minimum size of 0 to 249 contracts and less than $1 million in underlying value; (b) FLEX Index Options that have opening transactions with a minimum opening size of less than $10 million in underlying equivalent value; and (ii) analysis on the types of investors that initiated opening FLEX Equity and Index Options transactions (i.e., institutional, high net worth, or retail). The report has been submitted to the Commission. The Exchange believes that there is sufficient investor interest and demand in the Pilot Program to warrant extension for another three months [sic]. The Exchange believes that the Pilot Program has provided investors with additional means of managing their risk exposures and carrying out their investment objectives. The Exchange has not experienced any adverse market effects with respect to the Pilot Program. If, in the future, the Exchange proposes an additional extension of the Pilot Program, or should the Exchange propose to make the Pilot Program permanent, the Exchange will submit, along with any filing proposing such amendments to the Pilot Program, an additional Pilot Program Report covering the period during which the Pilot Program was in effect and including the details referenced above, along with the nominal dollar value of the underlying security of each trade. The Pilot Program Report would be submitted to the Commission at least two months prior to the expiration date of the Pilot Program. The Exchange notes that any positions established under this Pilot Program would not be impacted by the expiration of the Pilot Program. For example, a 10-contract FLEX Equity Option opening position that overlies less than $1 million in the underlying security and expires in January 2016 could be established during the Pilot Program. If the Pilot Program were not extended, the position would continue 5 See E:\FR\FM\08APN1.SGM infra note 6. 08APN1 20998 Federal Register / Vol. 78, No. 67 / Monday, April 8, 2013 / Notices to exist and any further trading in the series would be subject to the minimum value size requirements for continued trading in that series. The Exchange believes that the Pilot Program has been successful and wellreceived by its membership and the investing public for the period that it has been in operation as a Pilot Program.6 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others investors, or otherwise in furtherance of the purposes of the Act. No written comments were solicited or received with respect to the proposed rule change. 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: 2. Statutory Basis Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 9 and Rule 19b–4(f)(6) thereunder.10 A proposed rule change filed under Rule 19b–4(f)(6) 11 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),12 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 the proposal may become operative immediately upon filing. The Commission notes that waiving the 30-day operative delay would allow the Pilot Program to continue without interruption, and believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest.13 Therefore, the Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of The proposed rule change is consistent with Section 6(b) of the Act,7 in general, and furthers the objectives of Section 6(b)(5),8 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. Specifically, the Exchange believes that the proposed extension of the Pilot Program, which eliminates the minimum value size applicable to FLEX Options, would provide greater opportunities for investors to manage risk through the use of FLEX Options. Further, the Exchange notes that it has not experienced any adverse effects from the operation of the Pilot Program. mstockstill on DSK4VPTVN1PROD with NOTICES 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 change is being made to extend the operation of the Pilot Program to allow additional time to enable the Exchange to file to permanently adopt the elimination of the minimum value size applicable to FLEX Options. Other competing options exchanges have similar programs to the Pilot Program. Thus, the proposed changes will not impose any burden on competition while providing that the elimination of the minimum value size applicable to FLEX Options continues without interruption until permanent approval is granted by the Commission. 6 The Pilot Program was initiated on May 12, 2010. See Securities Exchange Act Release No. 62054 (May 6, 2010), 75 FR 27381 (May 14, 2010) (SR–NYSEArca–2010–34). 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). VerDate Mar<15>2010 20:02 Apr 05, 2013 Jkt 229001 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 11 17 CFR 240.19b–4(f)(6). 12 17 CFR 240.19b–4(f)(6)(iii). 13 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 10 17 PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 IV. Solicitation of Comments 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–NYSEArca–2013–27 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–NYSEArca–2013–27. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NYSEArca–2013–27 and should be submitted on or before April 29, 2013. E:\FR\FM\08APN1.SGM 08APN1 Federal Register / Vol. 78, No. 67 / Monday, April 8, 2013 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–08088 Filed 4–5–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69276; File No. SR–DTC– 2013–01] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of Proposed Rule Change to Modify Its Practice Regarding the Collection of Participants’ Required Participants Fund Deposits April 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 March 20, 2013, The Depository Trust Company (‘‘DTC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change described in Items I, II and III below, which Items have been prepared primarily by DTC. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Clearing Agency’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change is to modify DTC’s Settlement Services Guide, as described below. mstockstill on DSK4VPTVN1PROD with NOTICES II. Clearing Agency’s Statement of Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, DTC 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. DTC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of such statements.3 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 The Commission has modified the text of the summaries prepared by DTC. 1 15 VerDate Mar<15>2010 20:02 Apr 05, 2013 Jkt 229001 (A) Self-Regulatory Organization’s Statement of Purpose of, and Statutory Basis for, the Proposed Rule Change Participants Fund Pursuant to Rule 4 of its Rules, Bylaws, Organization Certificate (‘‘DTC Rules’’), DTC maintains a fund funded by its Participants, which in addition to being a liquidity resource, is available to satisfy any uninsured loss incurred by DTC, including a loss resulting from a Participant’s failure to settle its transactions (‘‘Participants Fund’’).4 Each Participant’s required deposit to the Participant’s Fund (‘‘Required Participants Fund Deposit’’) is calculated daily pursuant to an established formula.5 While the minimum deposit is $10,000, each Participant is required to make a deposit to the Participants Fund based upon a formula that takes into account the Participant’s six largest intraday net debit peaks over a rolling sixty businessday period.6 If the Participant’s newly calculated Required Participants Fund Deposit is greater than its prior day’s Required Participants Fund Deposit, and the difference thereof (i) equals or exceeds $500,000, and (ii) represents 25 percent or more of the newly calculated required fund deposit (‘‘Threshold Amount and Percentage’’), the Participant must deposit the difference in the Participants Fund within two business days,7 to the extent any excess amount of the Participant’s Actual Participants Fund Deposit does not already satisfy the new requirement.8 Under current procedures, as set forth in DTC’s Settlement Services Guide, Participants must deposit any increased requirement to the Required Participants Fund Deposit that meets the Threshold Amount and Percentage within two business days.9 Increases in 4 See DTC Rules (https://dtcc.com/legal/ rules_proc/dtc_rules.pdf). 5 Id., Rule 4(a). 6 See DTC Settlement Service Guide (https:// dtcc.com/downloads/products/learning/ Settlement.pdf). DTC may also require an additional deposit to the Participants Fund in the event that DTC becomes concerned with a Participant’s financial soundness. See DTC Rules, supra note 4, Rule 9(A). Separately, a Participant may make a voluntary deposit to the Participants Fund (‘‘Voluntary Participants Fund Deposit’’) in excess of the amount required. See id., Rule 4(c). These provisions are not impacted by the proposed rule change. 7 See DTC Settlement Service Guide, supra note 6. 8 See DTC Rules, supra note 4, Rule 4(b). ‘‘Actual Participants Fund Deposit’’ means the actual amount the Participant has deposited to the Participants Fund, including both its Required Participants Fund Deposit and any Voluntary Participants Fund Deposit. Id., Rule 1. 9 See DTC Settlement Service Guide, supra note 6. PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 20999 amounts less than the Threshold Amount and Percentage are collected once per month for all Participants.10 In order to enhance its liquidity and risk coverage, DTC is proposing to accelerate the collection of Participants’ Required Participants Fund Deposits from two business days to the same day the Participant is notified of the requirement. Under the proposal, for both the daily and monthly calculations that trigger collections, as described above, increased deposit requirements will be collected by DTC on a same-day basis, instead of within two business days. Proposed Changes to Rule Text If approved, DTC will revise the text of its Settlement Services Guide to provide that where a Participant’s calculated Required Participants Fund Deposit meets the Threshold Amount and Percentage, the increased amount must (to the extent any excess amount of the Participant’s Actual Participants Fund Deposit does not already satisfy the new requirement) be deposited with DTC on the same business day as (i) the calculation of the increase, and (ii) a report or other notification of the change is made available to the Participant. As mentioned above, in order to harmonize the Participants Fund collection processes, monthly increases will also be collected on a same-day basis and language will be added to the Settlement Service Guide in this regard. In addition, language will be added to the Settlement Service Guide to clarify that the relevant Guide provisions shall apply only to the calculation and collection of DTC Participants Fund deposits, as described in the Guide, and do not supersede or limit any provisions of the DTC Rules or any rights of DTC in accordance with applicable law and DTC’s Rules and Procedures, including but not limited to transactions in securities and money payments. Finally, DTC will make certain clarifying and technical changes to the language as set forth in the ‘‘Participants Fund’’ section of its Settlement Service Guide. Changes include, but are not limited to: (i) Updating the description of the purpose of the Participants Fund, (ii) updating the use of defined terms, such as ‘‘Participant,’’ and (iii) updating and adding subject headings. 10 See id. (After settlement on the last business day of each month, DTC calculates each Participant’s requirement. Each participant is notified of their new requirement on the first business day of the month. If a Participant’s requirement has increased beyond the value they currently have on deposit at DTC, this deficit must be deposited with DTC within two business days.). E:\FR\FM\08APN1.SGM 08APN1

Agencies

[Federal Register Volume 78, Number 67 (Monday, April 8, 2013)]
[Notices]
[Pages 20997-20999]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08088]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69267; File No. SR-NYSEArca-2013-27]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Its Option 
Trading Rules to Extend the Operation of Its Pilot Program Regarding 
Minimum Value Sizes for Flexible Exchange Options, Currently Scheduled 
to Expire on March 29, 2013, Until March 31, 2014

April 2, 2013.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on March 28, 2013, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its option trading rules to extend 
the operation of its pilot program (``Pilot Program'') regarding 
minimum value sizes for flexible exchange options (``FLEX Options''), 
currently scheduled to expire on March 29, 2013, until March 31, 2014. 
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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange hereby proposes to amend its option trading rules to 
extend the operation of its Pilot Program regarding minimum value sizes 
for FLEX Options, currently scheduled to expire on March 29, 2013,\4\ 
until March 31, 2014. This filing does not propose any substantive 
changes to the Pilot Program and contemplates that all other terms of 
FLEX Options will remain the same. Overall, the Exchange believes that 
extending the Pilot Program will benefit public customers and other 
market participants who will be able to use FLEX Options to manage risk 
for smaller portfolios.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 66650 (March 23, 
2012), 77 FR 19048 (March 29, 2012) (SR-NYSEArca-2012-20).
---------------------------------------------------------------------------

    In support of the proposed extension of the Pilot Program, and as 
required by the terms of the Pilot Program's implementation,\5\ the 
Exchange has submitted to the Securities and Exchange Commission 
(``SEC'' or ``Commission'') a Pilot Program Report that provides an 
analysis of the Pilot Program covering the period during which the 
Pilot Program has been in effect. This Pilot Program Report includes 
(i) data and analysis on the open interest and trading volume in (a) 
FLEX Equity Options that have opening transactions with a minimum size 
of 0 to 249 contracts and less than $1 million in underlying value; (b) 
FLEX Index Options that have opening transactions with a minimum 
opening size of less than $10 million in underlying equivalent value; 
and (ii) analysis on the types of investors that initiated opening FLEX 
Equity and Index Options transactions (i.e., institutional, high net 
worth, or retail). The report has been submitted to the Commission.
---------------------------------------------------------------------------

    \5\ See infra note 6.
---------------------------------------------------------------------------

    The Exchange believes that there is sufficient investor interest 
and demand in the Pilot Program to warrant extension for another three 
months [sic]. The Exchange believes that the Pilot Program has provided 
investors with additional means of managing their risk exposures and 
carrying out their investment objectives. The Exchange has not 
experienced any adverse market effects with respect to the Pilot 
Program.
    If, in the future, the Exchange proposes an additional extension of 
the Pilot Program, or should the Exchange propose to make the Pilot 
Program permanent, the Exchange will submit, along with any filing 
proposing such amendments to the Pilot Program, an additional Pilot 
Program Report covering the period during which the Pilot Program was 
in effect and including the details referenced above, along with the 
nominal dollar value of the underlying security of each trade. The 
Pilot Program Report would be submitted to the Commission at least two 
months prior to the expiration date of the Pilot Program.
    The Exchange notes that any positions established under this Pilot 
Program would not be impacted by the expiration of the Pilot Program. 
For example, a 10-contract FLEX Equity Option opening position that 
overlies less than $1 million in the underlying security and expires in 
January 2016 could be established during the Pilot Program. If the 
Pilot Program were not extended, the position would continue

[[Page 20998]]

to exist and any further trading in the series would be subject to the 
minimum value size requirements for continued trading in that series.
    The Exchange believes that the Pilot Program has been successful 
and well-received by its membership and the investing public for the 
period that it has been in operation as a Pilot Program.\6\
---------------------------------------------------------------------------

    \6\ The Pilot Program was initiated on May 12, 2010. See 
Securities Exchange Act Release No. 62054 (May 6, 2010), 75 FR 27381 
(May 14, 2010) (SR-NYSEArca-2010-34).
---------------------------------------------------------------------------

2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\7\ in general, and furthers the objectives of Section 6(b)(5),\8\ 
in particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. Specifically, the Exchange 
believes that the proposed extension of the Pilot Program, which 
eliminates the minimum value size applicable to FLEX Options, would 
provide greater opportunities for investors to manage risk through the 
use of FLEX Options. Further, the Exchange notes that it has not 
experienced any adverse effects from the operation of the Pilot 
Program.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 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 change is being 
made to extend the operation of the Pilot Program to allow additional 
time to enable the Exchange to file to permanently adopt the 
elimination of the minimum value size applicable to FLEX Options. Other 
competing options exchanges have similar programs to the Pilot Program. 
Thus, the proposed changes will not impose any burden on competition 
while providing that the elimination of the minimum value size 
applicable to FLEX Options continues without interruption until 
permanent approval is granted by the Commission.

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

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    Because the proposed rule change does not: (i) Significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\12\ 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 the proposal 
may become operative immediately upon filing. The Commission notes that 
waiving the 30-day operative delay would allow the Pilot Program to 
continue without interruption, and believes that waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest.\13\ Therefore, the Commission hereby waives the 30-day 
operative delay and designates the proposal operative upon filing.
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2013-27 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-NYSEArca-2013-27. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly.
    All submissions should refer to File Number SR-NYSEArca-2013-27 and 
should be submitted on or before April 29, 2013.


[[Page 20999]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-08088 Filed 4-5-13; 8:45 am]
BILLING CODE 8011-01-P
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