Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Pilot Period for the Exchange's Retail Liquidity Program for an Additional 12 Months, To Expire on July 31, 2014, 48520-48522 [2013-19143]
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48520
Federal Register / Vol. 78, No. 153 / Thursday, August 8, 2013 / Notices
• Send an email to rulecomments@sec.gov. Please include File
Number SR–BX–2013–046 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–BX–2013–046. 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–BX–
2013–046 and should be submitted on
or before August 29, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–19142 Filed 8–7–13; 8:45 am]
tkelley on DSK3SPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70096; File No. SR–NYSE–
2013–48]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Extending the
Pilot Period for the Exchange’s Retail
Liquidity Program for an Additional 12
Months, To Expire on July 31, 2014
August 2, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 30,
2013, New York Stock Exchange LLC
(‘‘NYSE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
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 extend the
pilot period for the Exchange’s Retail
Liquidity Program (the ‘‘Retail Liquidity
Program’’ or the ‘‘Program’’), which is
currently scheduled to expire on July
31, 2013, for an additional 12 months,
to expire on July 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.
1 15
7 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:55 Aug 07, 2013
2 17
Jkt 229001
PO 00000
Fmt 4703
1. Purpose
The purpose of this filing is to extend
the pilot period of the Retail Liquidity
Program,3 currently scheduled to expire
on July 31, 2013, for an additional 12
months, until July 31, 2014.
Background
In July 2012, the Commission
approved the Retail Liquidity Program
on a pilot basis.4 The Program is
designed to attract retail order flow to
the Exchange, and allows such order
flow to receive potential price
improvement. The Program is currently
limited to trades occurring at prices
equal to or greater than $1.00 per share.
Under the Program, Retail Liquidity
Providers (‘‘RLPs’’) are able to provide
potential price improvement in the form
of a non-displayed order that is priced
better than the Exchange’s best
protected bid or offer (‘‘PBBO’’), called
a Retail Price Improvement Order
(‘‘RPI’’). When there is an RPI in a
particular security, the Exchange
disseminates an indicator, known as the
Retail Liquidity Identifier, indicating
such interest exists. Retail Member
Organizations (‘‘RMOs’’) can submit a
Retail Order to the Exchange, which
would interact, to the extent possible,
with available contra-side RPIs.
The Retail Liquidity Program was
approved by the Commission on a pilot
basis. Pursuant to NYSE Rule 107C(m),
the pilot period for the Program is
scheduled to end on July 31, 2013.
Proposal To Extend the Operation of the
Program
The Exchange established the Retail
Liquidity Program in an attempt to
attract retail order flow to the Exchange
by potentially providing price
improvement to such order flow. The
Exchange believes that the Program
promotes competition for retail order
flow by allowing Exchange members to
submit RPIs to interact with Retail
Orders. Such competition has the ability
to promote efficiency by facilitating the
price discovery process and generating
additional investor interest in trading
securities, thereby promoting capital
formation. The Exchange believes that
extending the pilot is appropriate
because it will allow the Exchange and
the Commission additional time to
analyze data regarding the Program that
3 See Securities Exchange Act Release No. 67347
(July 3, 2012), 77 FR 40673 (July 10, 2012) (‘‘RLP
Approval Order’’) (SR–NYSE–2011–55).
4 See id.
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00110
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Sfmt 4703
E:\FR\FM\08AUN1.SGM
08AUN1
Federal Register / Vol. 78, No. 153 / Thursday, August 8, 2013 / Notices
the Exchange has committed to
provide.5 As such, the Exchange
believes that it is appropriate to extend
the current operation of the Program.6
Through this filing, the Exchange seeks
to amend NYSE Rule 107C(m) and
extend the current pilot period of the
Program until July 31, 2014.7
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,8
in general, and furthers the objectives of
Section 6(b)(5),9 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 a national market system, and, in
general, to protect investors and the
public interest. The Exchange believes
that extending the pilot period for the
Retail Liquidity Program is consistent
with these principles because the
Program is reasonably designed to
attract retail order flow to the exchange
environment, while helping to ensure
that retail investors benefit from the
better price that liquidity providers are
willing to give their orders.
Additionally, as previously stated, the
competition promoted by the Program
may facilitate the price discovery
process and potentially generate
additional investor interest in trading
securities. The extension of the pilot
period will allow the Commission and
the Exchange to continue to monitor the
Program for its potential effects on
public price discovery, and on the
broader market structure.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change simply extends an
established pilot program for an
additional 12 months, thus allowing the
Retail Liquidity Program to enhance
competition for retail order flow and
contribute to the public price discovery
process.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 10 and Rule
19b–4(f)(6) thereunder.11 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),13 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 believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because such waiver would allow the
pilot program to continue
uninterrupted. Accordingly, the
Commission hereby grants the
Exchange’s request and designates the
proposal operative upon filing.14
10 15
tkelley on DSK3SPTVN1PROD with NOTICES
5 See
id. at 40681.
6 Concurrently with this filing, the Exchange has
submitted a request for an extension of the
exemption under Regulation NMS Rule 612
previously granted by the Commission that permits
it to accept and rank the undisplayed RPIs. See
Letter from Janet M. McGinness, EVP & Corporate
Secretary, NYSE Euronext to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission
dated July 30, 2013.
7 The Exchange is also making a technical, nonsubstantive amendment to Rule 107C(m) to fix a
typographical error.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
VerDate Mar<15>2010
16:55 Aug 07, 2013
Jkt 229001
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) 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.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 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).
11 17
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
48521
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.
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–NYSE–2013–48 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–2013–48. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
E:\FR\FM\08AUN1.SGM
08AUN1
48522
Federal Register / Vol. 78, No. 153 / Thursday, August 8, 2013 / Notices
publicly available. All submissions
should refer to File Number SR–NYSE–
2013–48 and should be submitted on or
before August 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. 2013–19143 Filed 8–7–13; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–70099; File No. SR–NYSE–
2013–54]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change To
Amend NYSE Rule 49, Which
Addresses the Exchange’s Emergency
Powers
August 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 July 22,
2013, New York Stock Exchange LLC
(‘‘NYSE’’ or ‘‘Exchange’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
tkelley on DSK3SPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Rule 49, which addresses the
Exchange’s Emergency Powers. 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
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
16:55 Aug 07, 2013
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
VerDate Mar<15>2010
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.
Jkt 229001
The Exchange proposes to amend
NYSE Rule 49, which addresses the
Exchange’s emergency powers. As
explained in more detail below, the
proposed rule change would amend
Rule 49 to better delineate the selfregulatory organization (‘‘SRO’’)
functions of the Exchange and NYSE
Arca, Inc. (‘‘NYSE Arca’’) during an
emergency condition, reflect the
operational preferences of the industry,
and reflect the current structure of
member organization connectivity to
and system coding for exchange
systems.
Current Rule
In 2009, the Exchange adopted Rule
49 to provide the Exchange with the
authority to declare an emergency
condition 4 with respect to trading on or
through the systems and facilities of the
Exchange and to act as necessary in the
public interest and for the protection of
investors.5 The authority in Rule 49 may
be exercised when, due to an emergency
condition, the Exchange’s systems and
facilities located at 11 Wall Street, New
York, New York, including the NYSE
Trading Floor, cannot be utilized. If
such an emergency condition is
declared, a qualified Exchange officer
may designate NYSE Arca, the
Exchange’s affiliate, to serve as a backup
facility to receive and process bids and
offers and to execute orders on behalf of
the Exchange so that the Exchange, as
4 The definition of ‘‘emergency’’ is the one used
in Section 12(k)(7) of the Act and is also used by
other exchanges and the Securities and Exchange
Commission (‘‘Commission’’). Section 12(k)(7)
defines an emergency to mean ‘‘(A) a major market
disturbance characterized by or constituting—(i)
sudden and excessive fluctuations of securities
prices generally, or a substantial threat thereof, that
threaten fair and orderly markets; or (ii) a
substantial disruption of the safe or efficient
operation of the national system for clearance and
settlement of transactions in securities, or a
substantial threat thereof; or (B) a major disturbance
that substantially disrupts, or threatens to
substantially disrupt—(i) the functioning of
securities markets, investment companies, or any
other significant portion or segment of the securities
markets; or (ii) the transmission or processing of
securities transactions.’’ 15 U.S.C. § 78l(k)(7).
5 See Securities Exchange Act Release No. 61177
(December 16, 2009), 74 FR 68643 (December 28,
2009) (SR–NYSE–2009–105).
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
an SRO, can remain operational.6
During such an emergency condition,
NYSE Arca also would continue to
operate simultaneously. To date, the
Exchange has not invoked the rule.
Under Rule 49, during the emergency
condition, the Exchange would halt all
trading conducted on the Exchange’s
systems and facilities. Unexecuted
orders would remain on the Exchange’s
systems unless cancelled. The Exchange
would open trading on the systems and
facilities of NYSE Arca as soon
thereafter as possible, but not earlier
than at least the next trading day. As
soon as practicable following the
commencement of trading on the
systems and facilities of NYSE Arca, any
unexecuted orders would be purged
from the Exchange’s own systems and
facilities.
Quotes or orders of Exchange-listed
securities entered or executed on or
through the systems and facilities of
NYSE Arca would be reported to the
Consolidated Quotation System (‘‘CQS’’)
as bids and offers, or to the
Consolidated Tape Association (‘‘CTA’’)
as executions, made on or through the
systems and facilities of the Exchange,
not NYSE Arca. Members and member
organizations would be required to have
contingency plans for changing the
routing instructions for their order entry
systems and to take such other
appropriate actions as instructed by the
Exchange to accommodate the use of the
systems and facilities of NYSE Arca to
trade Exchange-listed securities.
Exchange members, member
organizations and Sponsored
Participants would be permitted to enter
bids and offers and to execute orders on
or through the systems and facilities of
NYSE Arca, regardless of whether they
were members or sponsored participants
of NYSE Arca at the time the emergency
condition was declared. Such bids and
offers would be deemed to be bids and
offers of the Exchange. Exchange
member organizations registered as
Designated Market Makers (‘‘DMMs’’)
that were designated as temporary
members of NYSE Arca in accordance
with NYSE Arca Equities Rules would,
for the duration of such designation, not
be considered DMMs for the purposes of
the Exchange’s rules but rather ‘‘Market
Makers’’ pursuant to NYSE Arca
Equities rules for the purposes of
trading Exchange-listed securities on
6 NYSE Arca trades equity securities on the
systems and facilities of its wholly owned
subsidiary, NYSE Arca Equities, Inc., referred to as
the ‘‘NYSE Arca Marketplace.’’ For the purposes of
this filing and in the text of proposed NYSE Rule
49, these shall be referred to collectively as the
systems and facilities of NYSE Arca, or simply
NYSE Arca.
E:\FR\FM\08AUN1.SGM
08AUN1
]]>Agencies
[Federal Register Volume 78, Number 153 (Thursday, August 8, 2013)]
[Notices]
[Pages 48520-48522]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-19143]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70096; File No. SR-NYSE-2013-48]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Extending the Pilot Period for the Exchange's Retail Liquidity Program
for an Additional 12 Months, To Expire on July 31, 2014
August 2, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on July 30, 2013, New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit 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 extend the pilot period for the Exchange's
Retail Liquidity Program (the ``Retail Liquidity Program'' or the
``Program''), which is currently scheduled to expire on July 31, 2013,
for an additional 12 months, to expire on July 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 purpose of this filing is to extend the pilot period of the
Retail Liquidity Program,\3\ currently scheduled to expire on July 31,
2013, for an additional 12 months, until July 31, 2014.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 67347 (July 3,
2012), 77 FR 40673 (July 10, 2012) (``RLP Approval Order'') (SR-
NYSE-2011-55).
---------------------------------------------------------------------------
Background
In July 2012, the Commission approved the Retail Liquidity Program
on a pilot basis.\4\ The Program is designed to attract retail order
flow to the Exchange, and allows such order flow to receive potential
price improvement. The Program is currently limited to trades occurring
at prices equal to or greater than $1.00 per share. Under the Program,
Retail Liquidity Providers (``RLPs'') are able to provide potential
price improvement in the form of a non-displayed order that is priced
better than the Exchange's best protected bid or offer (``PBBO''),
called a Retail Price Improvement Order (``RPI''). When there is an RPI
in a particular security, the Exchange disseminates an indicator, known
as the Retail Liquidity Identifier, indicating such interest exists.
Retail Member Organizations (``RMOs'') can submit a Retail Order to the
Exchange, which would interact, to the extent possible, with available
contra-side RPIs.
---------------------------------------------------------------------------
\4\ See id.
---------------------------------------------------------------------------
The Retail Liquidity Program was approved by the Commission on a
pilot basis. Pursuant to NYSE Rule 107C(m), the pilot period for the
Program is scheduled to end on July 31, 2013.
Proposal To Extend the Operation of the Program
The Exchange established the Retail Liquidity Program in an attempt
to attract retail order flow to the Exchange by potentially providing
price improvement to such order flow. The Exchange believes that the
Program promotes competition for retail order flow by allowing Exchange
members to submit RPIs to interact with Retail Orders. Such competition
has the ability to promote efficiency by facilitating the price
discovery process and generating additional investor interest in
trading securities, thereby promoting capital formation. The Exchange
believes that extending the pilot is appropriate because it will allow
the Exchange and the Commission additional time to analyze data
regarding the Program that
[[Page 48521]]
the Exchange has committed to provide.\5\ As such, the Exchange
believes that it is appropriate to extend the current operation of the
Program.\6\ Through this filing, the Exchange seeks to amend NYSE Rule
107C(m) and extend the current pilot period of the Program until July
31, 2014.\7\
---------------------------------------------------------------------------
\5\ See id. at 40681.
\6\ Concurrently with this filing, the Exchange has submitted a
request for an extension of the exemption under Regulation NMS Rule
612 previously granted by the Commission that permits it to accept
and rank the undisplayed RPIs. See Letter from Janet M. McGinness,
EVP & Corporate Secretary, NYSE Euronext to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission dated July 30, 2013.
\7\ The Exchange is also making a technical, non-substantive
amendment to Rule 107C(m) to fix a typographical error.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\8\ in general, and furthers the objectives of Section 6(b)(5),\9\
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 a national market system, and, in
general, to protect investors and the public interest. The Exchange
believes that extending the pilot period for the Retail Liquidity
Program is consistent with these principles because the Program is
reasonably designed to attract retail order flow to the exchange
environment, while helping to ensure that retail investors benefit from
the better price that liquidity providers are willing to give their
orders. Additionally, as previously stated, the competition promoted by
the Program may facilitate the price discovery process and potentially
generate additional investor interest in trading securities. The
extension of the pilot period will allow the Commission and the
Exchange to continue to monitor the Program for its potential effects
on public price discovery, and on the broader market structure.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change
simply extends an established pilot program for an additional 12
months, thus allowing the Retail Liquidity Program to enhance
competition for retail order flow and contribute to the public price
discovery process.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
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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A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ 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 believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because such waiver
would allow the pilot program to continue uninterrupted. Accordingly,
the Commission hereby grants the Exchange's request and designates the
proposal operative upon filing.\14\
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ 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.
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-2013-48 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-2013-48. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make
[[Page 48522]]
publicly available. All submissions should refer to File Number SR-
NYSE-2013-48 and should be submitted on or before August 29, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-19143 Filed 8-7-13; 8:45 am]
BILLING CODE 8011-01-P
