Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 13-Equities To Expand the Availability of Self-Trade Prevention Modifiers, 26821-26823 [2013-10900]

Download as PDF Federal Register / Vol. 78, No. 89 / Wednesday, May 8, 2013 / Notices similarly situated Exchange members, in connection with the provision of inbound order routing to the Exchange. The Exchange has met all the abovelisted conditions. By meeting the above conditions, the Exchange has set up mechanisms that protect the independence of the Exchange’s regulatory responsibility with respect to NOS, as well as demonstrate that NOS cannot use any information advantage it may have because of its affiliation with the Exchange. Because the Exchange has met all the above-listed conditions, it now seeks permanent approval of this inbound routing relationship. The Exchange will continue to comply with the conditions 1–4 stated above. mstockstill on DSK4VPTVN1PROD with NOTICES 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,13 in general, and with Sections 6(b)(5) of the Act,14 in particular, in that the proposal 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 regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest, because the proposed rule change will allow the Exchange to continue to receive inbound orders from NOS, acting in its capacity as a facility of BX, in a manner consistent with prior approvals and established protections. The Exchange believes that these conditions establish mechanisms that protect the independence of the Exchange’s regulatory responsibility with respect to NOS, as well as ensure that NOS cannot use any information it may have because of its affiliation with the Exchange to its advantage. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. Permanent approval of the current pilot program does not raise any issues of intra-market competition because it involves inbound routing from an affiliated exchange. Nor does it result in a burden on competition among 13 15 14 15 U.S.C. 78f. U.S.C. 78f(b)(5). VerDate Mar<15>2010 17:56 May 07, 2013 Jkt 229001 exchanges, because there are many competing options exchanges that provide routing services, including through an affiliate. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. 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 Exchange consents, the Commission shall: (a) By order approve or disapprove such 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 • 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–NASDAQ–2013–070 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–NASDAQ–2013–070. 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 PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 26821 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 a.m. and 3 p.m. Copies of the filing will also 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 SRNASDAQ–2013–070 and should be submitted on or before May 29, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–10874 Filed 5–7–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69501; File No. SR– NYSEMKT–2013–36] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 13— Equities To Expand the Availability of Self-Trade Prevention Modifiers May 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 April 22, 2013, NYSE MKT LLC (‘‘NYSE MKT’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 15 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 E:\FR\FM\08MYN1.SGM 08MYN1 26822 Federal Register / Vol. 78, No. 89 / Wednesday, May 8, 2013 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 13—Equities to expand the availability of self-trade prevention (‘‘STP’’) modifiers. 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. mstockstill on DSK4VPTVN1PROD with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Rule 13—Equities to expand the availability of STP modifiers functionality to additional order types.4 STP modifiers are designed to prevent two orders from the same market participant identifier (‘‘MPID’’) assigned to a member organization from executing against each other. Use of the STP modifiers is optional and is not automatically implemented by the Exchange. Rather, a member organization can choose to add a STP modifier on eligible orders. The STP modifier on the incoming order determines the interaction between two orders marked with STP modifiers and whether the incoming or the resting order would cancel. Both the buy and the sell order must include an STP modifier in order to prevent a trade from occurring and to effect a cancel instruction. The Exchange proposes to make STP modifiers available to additional order types. Specifically, the Exchange proposes to make STP modifiers available for market orders and stop 4 The Exchange recently amended Rule 13— Equities to add STP Modifiers. See Securities Exchange Act Release No. 69098 (Mar. 11, 2013), 78 FR 16544 (Mar. 15, 2013) (SR–NYSEMKT–2013– 21). VerDate Mar<15>2010 17:56 May 07, 2013 Jkt 229001 orders entered by off-Floor participants in a manner that is similar to limit orders. As proposed, the STP modifiers would be available for market orders and stop orders sent to the matching engine by off-Floor participants. Because of technology issues, the Exchange would continue to reject all GTC and MTS–IOC orders with an STP modifier. In addition, the Exchange proposes to make the STP modifier available for certain Floor broker interest. In adopting STP modifiers, the Exchange noted that the technology supporting the proposed STP modifiers was not compatible with the Floor broker systems, but the Exchange was actively working to develop the technology to extend STP modifiers to be available for Floor brokers.5 The Exchange did not believe it should delay the deployment of the STP modifiers for other market participants while it performed the technical modifications required for the use of STP modifiers for Floor brokers. Although the technology supporting STP modifiers is still not compatible with certain Floor broker systems, the Exchange is able to make the STP modifiers available to algorithms used by Floor brokers to route interest to the Exchange’s matching engine. Accordingly, the Exchange proposes to make STP modifiers available for eQuotes, pegging e-Quotes, and g-Quotes entered into the matching engine by an algorithm on behalf of a Floor broker. STP modifiers would not be available for d-Quotes at this time, regardless of the system used to enter d-Quotes. Because of the technology changes associated with this rule proposal, the Exchange will announce the implementation date of the STP modifiers in a Trader Update to be published no later than 60 days after the publication of the notice in the Federal Register. The implementation date will be no later than 60 days following publication of the Trader Update announcing publication of the notice in the Federal Register. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b) 6 of the Securities Exchange Act of 1934 (the ‘‘Act’’), in general, and furthers the objectives of Section 6(b)(5) 7 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 5 See id. U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). 6 15 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 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. The Exchange believes that expanding the availability STP functionality to additional order types would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would allow firms to better manage order flow and prevent unintended executions with themselves or the potential for ‘‘wash sales’’ that may occur as a result of the velocity of trading in today’s high-speed marketplace. Commonly, member organizations have multiple connections into the Exchange due to capacity and speed-related demands. Orders routed by member organizations via different connections may, in certain circumstances, inadvertently trade against each other. Enabling STP modifiers for market orders and stop orders would provide member organizations with the opportunity to prevent these unintended trades from occurring. By providing STP modifier functionality to certain e-Quotes, pegging e-Quotes, and g-Quotes entered algorithmically, the proposal provides Floor brokers with the opportunity to prevent these unintended trades from occurring as well. The Exchange believes that offering STP modifiers to Floor broker interest entered via algorithms removes impediments to and perfects the mechanism of a free and open market because there is a greater potential for unintended consequences for interest entered via algorithms, because of the above-noted velocity of trading, as compared to orders entered manually. The Exchange will continue to work to develop technology to extend STP modifiers for other Floor broker systems as well. The Exchange notes that all Floor brokers have access to algorithms, and therefore this functionality will be available to all Floor brokers. The Exchange further notes that the STP modifiers would not alleviate, or otherwise exempt, brokerdealers from their best execution obligations. 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 proposal will would provide member organizations E:\FR\FM\08MYN1.SGM 08MYN1 Federal Register / Vol. 78, No. 89 / Wednesday, May 8, 2013 / Notices and Floor brokers with the opportunity to prevent unintended self-trades from occurring. The Exchange notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues who offer similar functionality. Many competing venues offer similar functionality to market participants. To this end, the Exchange is proposing a market enhancement to provide greater protections from inadvertent executions, and encourage market participants to trade on the Exchange. The Exchange believes the proposed rule change is pro-competitive because it would enable the Exchange to provide Floor brokers with functionality that is similar to that of other exchanges and available for interest entered electronically from off of the Floor. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule 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 after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and Rule 19b– 4(f)(6) 9 thereunder. 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: Number SR–NYSEMKT–2013–36 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–69494; File No. SR–DTC– 2013–03] • 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–2013–36. 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– NYSEMKT–2013–36 and should be submitted on or before May 29, 2013. • 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 mstockstill on DSK4VPTVN1PROD with NOTICES Electronic Comments For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–10900 Filed 5–7–13; 8:45 am] 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 filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. BILLING CODE 8011–01–P 9 17 17:56 May 07, 2013 Jkt 229001 Self-Regulatory Organizations; the Depository Trust Company; Notice of Filing of Proposed Rule Change in Connection With the Implementation of the Foreign Account Tax Compliance Act (FATCA) May 2, 2013. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on April 22, 2013 The Depository Trust Company (‘‘DTC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been substantially prepared 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 modifies DTC’s Rules & Procedures (‘‘Rules’’), as described below, in connection with the implementation of sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended, which sections were enacted as part of the Foreign Account Tax Compliance Act, and the Treasury Regulations or other official interpretations thereunder (collectively ‘‘FATCA’’). II. Clearing Agency’s Statement of the 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 (A) Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Background FATCA was enacted on March 18, 2010, as part of the Hiring Incentives to 8 15 VerDate Mar<15>2010 26823 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 The Commission has modified the text of the summaries prepared by the clearing agency. 2 17 11 17 PO 00000 CFR 200.30–3(a)(12). Frm 00077 Fmt 4703 Sfmt 4703 E:\FR\FM\08MYN1.SGM 08MYN1

Agencies

[Federal Register Volume 78, Number 89 (Wednesday, May 8, 2013)]
[Notices]
[Pages 26821-26823]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-10900]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69501; File No. SR-NYSEMKT-2013-36]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Amending Rule 13--
Equities To Expand the Availability of Self-Trade Prevention Modifiers

May 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 April 22, 2013, NYSE MKT LLC (``NYSE MKT'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

[[Page 26822]]

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

    The Exchange proposes to amend Rule 13--Equities to expand the 
availability of self-trade prevention (``STP'') modifiers. 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 proposes to amend Rule 13--Equities to expand the 
availability of STP modifiers functionality to additional order 
types.\4\ STP modifiers are designed to prevent two orders from the 
same market participant identifier (``MPID'') assigned to a member 
organization from executing against each other. Use of the STP 
modifiers is optional and is not automatically implemented by the 
Exchange. Rather, a member organization can choose to add a STP 
modifier on eligible orders. The STP modifier on the incoming order 
determines the interaction between two orders marked with STP modifiers 
and whether the incoming or the resting order would cancel. Both the 
buy and the sell order must include an STP modifier in order to prevent 
a trade from occurring and to effect a cancel instruction.
---------------------------------------------------------------------------

    \4\ The Exchange recently amended Rule 13--Equities to add STP 
Modifiers. See Securities Exchange Act Release No. 69098 (Mar. 11, 
2013), 78 FR 16544 (Mar. 15, 2013) (SR-NYSEMKT-2013-21).
---------------------------------------------------------------------------

    The Exchange proposes to make STP modifiers available to additional 
order types. Specifically, the Exchange proposes to make STP modifiers 
available for market orders and stop orders entered by off-Floor 
participants in a manner that is similar to limit orders. As proposed, 
the STP modifiers would be available for market orders and stop orders 
sent to the matching engine by off-Floor participants. Because of 
technology issues, the Exchange would continue to reject all GTC and 
MTS-IOC orders with an STP modifier.
    In addition, the Exchange proposes to make the STP modifier 
available for certain Floor broker interest. In adopting STP modifiers, 
the Exchange noted that the technology supporting the proposed STP 
modifiers was not compatible with the Floor broker systems, but the 
Exchange was actively working to develop the technology to extend STP 
modifiers to be available for Floor brokers.\5\ The Exchange did not 
believe it should delay the deployment of the STP modifiers for other 
market participants while it performed the technical modifications 
required for the use of STP modifiers for Floor brokers. Although the 
technology supporting STP modifiers is still not compatible with 
certain Floor broker systems, the Exchange is able to make the STP 
modifiers available to algorithms used by Floor brokers to route 
interest to the Exchange's matching engine. Accordingly, the Exchange 
proposes to make STP modifiers available for e-Quotes, pegging e-
Quotes, and g-Quotes entered into the matching engine by an algorithm 
on behalf of a Floor broker. STP modifiers would not be available for 
d-Quotes at this time, regardless of the system used to enter d-Quotes.
---------------------------------------------------------------------------

    \5\ See id.
---------------------------------------------------------------------------

    Because of the technology changes associated with this rule 
proposal, the Exchange will announce the implementation date of the STP 
modifiers in a Trader Update to be published no later than 60 days 
after the publication of the notice in the Federal Register. The 
implementation date will be no later than 60 days following publication 
of the Trader Update announcing publication of the notice in the 
Federal Register.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) \6\ of the Securities Exchange Act 
of 1934 (the ``Act''), in general, and furthers the objectives of 
Section 6(b)(5) \7\ 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. The Exchange believes that 
expanding the availability STP functionality to additional order types 
would remove impediments to and perfect the mechanism of a free and 
open market and a national market system because it would allow firms 
to better manage order flow and prevent unintended executions with 
themselves or the potential for ``wash sales'' that may occur as a 
result of the velocity of trading in today's high-speed marketplace. 
Commonly, member organizations have multiple connections into the 
Exchange due to capacity and speed-related demands. Orders routed by 
member organizations via different connections may, in certain 
circumstances, inadvertently trade against each other. Enabling STP 
modifiers for market orders and stop orders would provide member 
organizations with the opportunity to prevent these unintended trades 
from occurring.
---------------------------------------------------------------------------

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

    By providing STP modifier functionality to certain e-Quotes, 
pegging e-Quotes, and g-Quotes entered algorithmically, the proposal 
provides Floor brokers with the opportunity to prevent these unintended 
trades from occurring as well. The Exchange believes that offering STP 
modifiers to Floor broker interest entered via algorithms removes 
impediments to and perfects the mechanism of a free and open market 
because there is a greater potential for unintended consequences for 
interest entered via algorithms, because of the above-noted velocity of 
trading, as compared to orders entered manually. The Exchange will 
continue to work to develop technology to extend STP modifiers for 
other Floor broker systems as well. The Exchange notes that all Floor 
brokers have access to algorithms, and therefore this functionality 
will be available to all Floor brokers. The Exchange further notes that 
the STP modifiers would not alleviate, or otherwise exempt, broker-
dealers from their best execution obligations.

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 proposal will would provide member organizations

[[Page 26823]]

and Floor brokers with the opportunity to prevent unintended self-
trades from occurring. The Exchange notes that it operates in a highly 
competitive market in which market participants can readily direct 
order flow to competing venues who offer similar functionality. Many 
competing venues offer similar functionality to market participants. To 
this end, the Exchange is proposing a market enhancement to provide 
greater protections from inadvertent executions, and encourage market 
participants to trade on the Exchange. The Exchange believes the 
proposed rule change is pro-competitive because it would enable the 
Exchange to provide Floor brokers with functionality that is similar to 
that of other exchanges and available for interest entered 
electronically from off of the Floor.

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

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

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

    Because the foregoing proposed rule 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 after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\ 
thereunder.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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 filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

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-2013-36 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-2013-36. 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-NYSEMKT-2013-36 and should 
be submitted on or before May 29, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-10900 Filed 5-7-13; 8:45 am]
BILLING CODE 8011-01-P
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