Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Rule 103B, Section III(A) To Increase From Three to Four the Minimum Number of DMM Units an Issuer Must Interview From the Pool of DMM Units Eligible To Participate in the Allocation Process, 36279-36281 [2013-14256]
Download as PDF
Federal Register / Vol. 78, No. 116 / Monday, June 17, 2013 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
‘‘Domestic Licensing of Production and
Utilization Facilities,’’ and 10 CFR
50.55a.
The 1979 revision to RG 1.137
endorsed the guidance in ANSI
Standard N195–1976, ‘‘Fuel Oil Systems
for Standby Diesel-Generators.’’ The
ANSI standard was revised in 1989 and
reformatted and revised in 1997 as
ANSI/ANS–59.51–1997 with no change
to RG 1.137. Revision 2 of RG 1.137
endorses the most current version of the
ANSI/ANS standard.
Revision 2 of RG 1.137 was issued
with a temporary identification as Draft
Regulatory Guide, DG–1282 on July 5,
2012 (77 FR 39745) for a 60-day public
comment period. The public comment
period was extended until September
28, 2012 (77 FR 48177). Public
comments were received and addressed
by the NRC staff. These comments and
the NRC staff responses are available in
ADAMS under Accession No.
ML12300A121.
The NRC prepared a regulatory
analysis for the development of DG–
1285 and it is available in ADAMS
under Accession No. ML121090459.
Revision 2 of RG 1.137 supersedes
Revision 1 of RG 1.137, and represents
the NRC staff’s guidance for future users
and applications. Earlier versions of this
regulatory guide, however, continue to
be acceptable for those licensees whose
licensing basis includes earlier versions
of this regulatory guide, absent a
licensee-initiated change to its licensing
basis. Additional information on the
staff’s use of this revised regulatory
guide with respect to both current and
future users and applications is set forth
in the ‘‘Implementation’’ section of the
revised regulatory guide.
III. Backfitting and Issue Finality
Issuance of this final regulatory guide
does not constitute backfitting as
defined in 10 CFR 50.109 (the Backfit
Rule) and is not otherwise inconsistent
with the issue finality provisions in 10
CFR Part 52. As discussed in the
‘‘Implementation’’ section of this
regulatory guide, the NRC has no
current intention to impose this
regulatory guide on holders of current
operating licenses or combined licenses.
This regulatory guide may be applied
to applications for operating licenses
and combined licenses docketed by the
NRC as of the date of issuance of the
final regulatory guide, as well as future
applications for operating licenses and
combined licenses submitted after the
issuance of the regulatory guide. Such
action does not constitute backfitting as
defined in 10 CFR 50.109(a)(1) or is
otherwise inconsistent with the
applicable issue finality provision in 10
VerDate Mar<15>2010
20:38 Jun 14, 2013
Jkt 229001
CFR Part 52, inasmuch as such
applicants or potential applicants are
not within the scope of entities
protected by the Backfit Rule or the
relevant issue finality provisions in Part
52.
Congressional Review Act
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: [78 FR 35075, June 11,
2013].
This regulatory guide is a rule as
designated in the Congressional Review
Act (5 U.S.C. 801–808). However, the
Office of Management and Budget
(OMB) has not found it to be a major
rule as designated in the Congressional
Review Act.
Dated at Rockville, Maryland, this 7th day
of June, 2013.
For the Nuclear Regulatory Commission.
Thomas H. Boyce,
Chief, Regulatory Guide Development Branch,
Division of Engineering, Office of Nuclear
Regulatory Research.
[FR Doc. 2013–14309 Filed 6–14–13; 8:45 am]
BILLING CODE 7590–01–P
PRIVACY AND CIVIL LIBERTIES
OVERSIGHT BOARD
[Notice–PCLOB–2013–03; Docket No 2013–
0004; Sequence No. 3]
Sunshine Act Meeting
1:00 p.m.–3:00 p.m. on
Wednesday, June 19, 2013.
TIME AND DATE:
The meeting will be held at 2100
K Street NW., Washington, DC 20427.
PLACE:
STATUS:
Closed.
The Privacy
and Civil Liberties Oversight Board will
meet in closed session to discuss
classified information pertaining to the
PRISM-related activities and the Foreign
Intelligence Surveillance Act.
The Government in the Sunshine Act,
5 U.S.C. 552b, normally requires that
agencies provide at least one week prior
notice to the public of the time, date,
and location of meetings. As permitted
by section 552b(e)(1), the Board
determined, by recorded vote, that
agency business requires that this
meeting be called at an earlier date.
CONTACT PERSON FOR MORE INFORMATION:
Susan Reingold, Chief Administrative
Officer, 202–331–1986.
PLACE:
DC.
DATE AND TIME OF PREVIOUSLY ANNOUNCED
MEETING: June 13, 2013 at 2:00 p.m.
Additional Item.
The following matter will also be
considered during the 2:00 p.m. Closed
Meeting scheduled for Thursday, June
13, 2013: a personnel matter.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions as set forth in
5 U.S.C. 552b(c)(2) and (6) and 17 CFR
200.402(a)(2) and (6), permit
consideration of the scheduled matter at
the Closed Meeting.
Commissioner Walter, as duty officer,
voted to consider the item listed for the
Closed Meeting in closed session, and
determined that no earlier notice thereof
was possible.
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.
CHANGE IN THE MEETING:
Dated: June 12, 2013.
Elizabeth M. Murphy,
Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69735; File No. SR–NYSE–
2013–39]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending
NYSE Rule 103B, Section III(A) To
Increase From Three to Four the
Minimum Number of DMM Units an
Issuer Must Interview From the Pool of
DMM Units Eligible To Participate in
the Allocation Process
June 11, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Dated: June 12, 2013.
Claire McKenna,
Legal Counsel.
[FR Doc. 2013–14431 Filed 6–13–13; 11:15 am]
1 15
BILLING CODE 6820–B3–P
2 17
Frm 00120
Fmt 4703
Closed Meeting.
100 F Street NE., Washington,
STATUS:
[FR Doc. 2013–14422 Filed 6–13–13; 11:15 am]
MATTERS TO BE CONSIDERED:
PO 00000
36279
Sfmt 4703
E:\FR\FM\17JNN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
17JNN1
36280
Federal Register / Vol. 78, No. 116 / Monday, June 17, 2013 / Notices
notice is hereby given that, on June 6,
2013, New York Stock Exchange LLC
(the ‘‘Exchange’’ or ‘‘NYSE’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit 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
NYSE Rule 103B, Section III(A) to
increase from three to four the
minimum number of DMM units an
issuer must interview from the pool of
DMM units eligible to participate in the
allocation. 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
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
The Exchange is proposing to amend
Rule 103B, Section III(A) (‘‘Security
Allocation and Reallocation’’) to
increase from three to four the
minimum number of DMM units an
issuer must interview from the pool of
DMM units eligible to participate in the
allocation process.
Rule 103B provides two options for
the allocation of securities to DMMs: (1)
The issuer selects the DMM unit; or (2)
the issuer delegates selection of the
DMM unit to the Exchange.3 If the issuer
3 In 2008, the Commission approved the
Exchange’s amendments to its rules to allow an
issuer to select the DMM units it chooses to
interview directly from the DMM units that are
eligible to participate in the allocation process and
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20:38 Jun 14, 2013
Jkt 229001
proceeds under the first option, the
listing company selects the DMM units
it wishes to interview. A DMM unit’s
eligibility to participate in the allocation
process is based on objective criteria
and determined at the time the
interview is scheduled.
Within five business days after the
issuer selects the DMM units to be
interviewed, the issuer meets with
representatives of each of the DMM
units. At least one representative of the
listing company must be a senior official
of the rank of Corporate Secretary or
above of that company. Additionally, no
more than three representatives of each
DMM unit may participate in the
meeting, each of whom must be an
employee of the DMM unit, and one of
whom must be the individual DMM
who is proposed to trade the company’s
security, unless that DMM is
unavailable to appear, in which case a
telephone interview is permitted.
Following the interview, a DMM unit
may not have any contact with an
issuer. If an issuer has a follow-up
question regarding any DMM unit(s) it
interviewed, it must be conveyed to the
Exchange. The Exchange then contacts
the unit(s) to which the question
pertains and provides any available
information received from the unit(s) to
the listing company. Within two
business days of the issuer’s interviews
with the DMM units, the issuer selects
its DMM unit in writing. The Exchange
then confirms the allocation of the
security to that DMM unit, at which
time the security is deemed to have
been so allocated.
If the issuer decides to select the
DMM unit itself and conducts
interviews pursuant to the above
process, the issuer is currently required
to select a minimum of three DMM units
to interview from the pool of DMM
units eligible to participate in the
allocation process. The Exchange is
proposing to increase the minimum
number of DMM units that must be
interviewed from three to four.4 By
increasing the minimum number of
DMM units that must be interviewed, a
larger number of DMM firms will have
an opportunity to participate in the
allocation process, which will lead to an
increase in competition without being
eliminated the Allocation Committee. See
Securities Exchange Act Release No. 58857 (Oct. 24,
2008), 73 FR 65435 (Nov. 3, 2008) (SR–NYSE–
2008–52) (Approval Order).
4 When a security is put up for reallocation,
pursuant to NYSE Rule 103B, Section IV, the
allocation process set forth in NYSE Rule 103B,
Section III is followed. Under the proposed
amendment, therefore, if an issuer chooses to select
the DMM unit itself during the reallocation process,
the issuer will have to interview a minimum of four
DMM units.
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
overly burdensome on the issuer. The
increase in number of DMM units to
interview will also provide the issuer
with more choice in the selection of its
assigned DMM unit. The Exchange
believes that the increase in competition
will provide DMM units with a greater
incentive to perform optimally.5
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Section 6(b)(5),7 in
particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to, and
perfect the mechanism of a free and
open market and, in general, to protect
investors and the public interest. The
Exchange believes that the proposal will
promote just and equitable principles of
trade because it will allow more DMM
units to participate in the allocation
process. The inclusion of these
additional DMM units, moreover, will
be based on objective criteria.
Additionally, the Exchange believes that
the proposal is designed to remove
impediments to, and perfect the
mechanism of a free and open market
because increasing the number of DMMs
participating in the allocations will
increase competition to provide services
to issuers and, thus, provide DMM units
with a greater incentive to perform
optimally, and will provide the issuer
with more choice in the selection of its
assigned DMM unit.
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 proposed
rule change will increase competition
among DMM units by allowing more
DMM units to participate in the
interview process and provide DMM
units with a greater incentive to perform
optimally potentially and enhance the
quality of the services DMMs provide to
issuers. While the proposal may
increase the burden on issuers during
the allocation process, the Exchange
believes that any such increase will be
small relative to the benefits that
additional competition between DMM
units may provide. Issuers could,
moreover, permit the Exchange to select
the DMM unit pursuant to the process
5 The Exchange also proposes to make technical,
non-substantive changes to Rule 103B to conform
the style of the headings in the rule.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
E:\FR\FM\17JNN1.SGM
17JNN1
Federal Register / Vol. 78, No. 116 / Monday, June 17, 2013 / Notices
found in NYSE Rule 103B, Section
III(B), which would lessen the burden of
the allocation process on such issuers.8
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
mstockstill on DSK4VPTVN1PROD with NOTICES
Because the foregoing proposed rule
change does not significantly affect the
protection of investors or the public
interest, does not impose any significant
burden on competition, and, by its
terms, does not become operative for 30
days from the date on which it was
filed, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(6) thereunder.10
The Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
waiver of the 30-day operative delay
will benefit the Exchange’s market,
issuers, and investors. Therefore, the
Commission designates the proposal
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.
8 Despite delegating authority to the Exchange to
select its DMM unit, an issuer may choose to submit
a letter to the Exchange Selection Panel (‘‘ESP’’)
indicating its preference and supporting
justification for a particular DMM unit. See NYSE
Rule 103B, Section III(B)(1).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6). 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 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).
12 15 U.S.C. 78s(b)(2)(B).
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20:38 Jun 14, 2013
Jkt 229001
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:
• 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–NYSE–2013–39 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–NYSE–2013–39. 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–NYSE–
2013–39 and should be submitted on or
before July 8, 2013.
Frm 00122
Fmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–14256 Filed 6–14–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
PO 00000
36281
Sfmt 4703
[Release No. 34–69734; File No. SR–NYSE–
2013–35]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending Its
Price List Related to Certain Pricing
Applicable to Supplemental Liquidity
Providers on the Exchange
June 11, 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 May 30,
2013, New York Stock Exchange LLC
(the ‘‘Exchange’’ or ‘‘NYSE’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been prepared by the Exchange.
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 its
Price List related to certain pricing
applicable to Supplemental Liquidity
Providers (‘‘SLPs’’) on the Exchange.
The Exchange proposes to implement
the fee change effective June 1, 2013.
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
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\17JNN1.SGM
17JNN1
Agencies
[Federal Register Volume 78, Number 116 (Monday, June 17, 2013)]
[Notices]
[Pages 36279-36281]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-14256]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69735; File No. SR-NYSE-2013-39]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending NYSE Rule 103B, Section III(A) To Increase From Three to Four
the Minimum Number of DMM Units an Issuer Must Interview From the Pool
of DMM Units Eligible To Participate in the Allocation Process
June 11, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\
[[Page 36280]]
notice is hereby given that, on June 6, 2013, New York Stock Exchange
LLC (the ``Exchange'' or ``NYSE'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\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 NYSE Rule 103B, Section III(A) to
increase from three to four the minimum number of DMM units an issuer
must interview from the pool of DMM units eligible to participate in
the allocation. 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 is proposing to amend Rule 103B, Section III(A)
(``Security Allocation and Reallocation'') to increase from three to
four the minimum number of DMM units an issuer must interview from the
pool of DMM units eligible to participate in the allocation process.
Rule 103B provides two options for the allocation of securities to
DMMs: (1) The issuer selects the DMM unit; or (2) the issuer delegates
selection of the DMM unit to the Exchange.\3\ If the issuer proceeds
under the first option, the listing company selects the DMM units it
wishes to interview. A DMM unit's eligibility to participate in the
allocation process is based on objective criteria and determined at the
time the interview is scheduled.
---------------------------------------------------------------------------
\3\ In 2008, the Commission approved the Exchange's amendments
to its rules to allow an issuer to select the DMM units it chooses
to interview directly from the DMM units that are eligible to
participate in the allocation process and eliminated the Allocation
Committee. See Securities Exchange Act Release No. 58857 (Oct. 24,
2008), 73 FR 65435 (Nov. 3, 2008) (SR-NYSE-2008-52) (Approval
Order).
---------------------------------------------------------------------------
Within five business days after the issuer selects the DMM units to
be interviewed, the issuer meets with representatives of each of the
DMM units. At least one representative of the listing company must be a
senior official of the rank of Corporate Secretary or above of that
company. Additionally, no more than three representatives of each DMM
unit may participate in the meeting, each of whom must be an employee
of the DMM unit, and one of whom must be the individual DMM who is
proposed to trade the company's security, unless that DMM is
unavailable to appear, in which case a telephone interview is
permitted.
Following the interview, a DMM unit may not have any contact with
an issuer. If an issuer has a follow-up question regarding any DMM
unit(s) it interviewed, it must be conveyed to the Exchange. The
Exchange then contacts the unit(s) to which the question pertains and
provides any available information received from the unit(s) to the
listing company. Within two business days of the issuer's interviews
with the DMM units, the issuer selects its DMM unit in writing. The
Exchange then confirms the allocation of the security to that DMM unit,
at which time the security is deemed to have been so allocated.
If the issuer decides to select the DMM unit itself and conducts
interviews pursuant to the above process, the issuer is currently
required to select a minimum of three DMM units to interview from the
pool of DMM units eligible to participate in the allocation process.
The Exchange is proposing to increase the minimum number of DMM units
that must be interviewed from three to four.\4\ By increasing the
minimum number of DMM units that must be interviewed, a larger number
of DMM firms will have an opportunity to participate in the allocation
process, which will lead to an increase in competition without being
overly burdensome on the issuer. The increase in number of DMM units to
interview will also provide the issuer with more choice in the
selection of its assigned DMM unit. The Exchange believes that the
increase in competition will provide DMM units with a greater incentive
to perform optimally.\5\
---------------------------------------------------------------------------
\4\ When a security is put up for reallocation, pursuant to NYSE
Rule 103B, Section IV, the allocation process set forth in NYSE Rule
103B, Section III is followed. Under the proposed amendment,
therefore, if an issuer chooses to select the DMM unit itself during
the reallocation process, the issuer will have to interview a
minimum of four DMM units.
\5\ The Exchange also proposes to make technical, non-
substantive changes to Rule 103B to conform the style of the
headings in the rule.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5),\7\ in particular, in that it is designed to promote just and
equitable principles of trade, to remove impediments to, and perfect
the mechanism of a free and open market and, in general, to protect
investors and the public interest. The Exchange believes that the
proposal will promote just and equitable principles of trade because it
will allow more DMM units to participate in the allocation process. The
inclusion of these additional DMM units, moreover, will be based on
objective criteria. Additionally, the Exchange believes that the
proposal is designed to remove impediments to, and perfect the
mechanism of a free and open market because increasing the number of
DMMs participating in the allocations will increase competition to
provide services to issuers and, thus, provide DMM units with a greater
incentive to perform optimally, and will provide the issuer with more
choice in the selection of its assigned DMM unit.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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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 proposed rule change will increase competition among DMM units by
allowing more DMM units to participate in the interview process and
provide DMM units with a greater incentive to perform optimally
potentially and enhance the quality of the services DMMs provide to
issuers. While the proposal may increase the burden on issuers during
the allocation process, the Exchange believes that any such increase
will be small relative to the benefits that additional competition
between DMM units may provide. Issuers could, moreover, permit the
Exchange to select the DMM unit pursuant to the process
[[Page 36281]]
found in NYSE Rule 103B, Section III(B), which would lessen the burden
of the allocation process on such issuers.\8\
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\8\ Despite delegating authority to the Exchange to select its
DMM unit, an issuer may choose to submit a letter to the Exchange
Selection Panel (``ESP'') indicating its preference and supporting
justification for a particular DMM unit. See NYSE Rule 103B, Section
III(B)(1).
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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 significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not become operative for 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). 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.
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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission believes that waiver of the 30-day
operative delay will benefit the Exchange's market, issuers, and
investors. Therefore, the Commission designates the proposal operative
upon filing.\11\
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\11\ 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).
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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-NYSE-2013-39 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-NYSE-2013-39. 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-NYSE-2013-39 and should be
submitted on or before July 8, 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. 2013-14256 Filed 6-14-13; 8:45 am]
BILLING CODE 8011-01-P