Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Implement a One-Day Temporary Suspension of Those Aspects of Rules 36.20-Equities and 36.21-Equities That Would Not Permit Floor Brokers to Use Personal Portable Phone Devices on the Trading Floor Due to the Unavailability of Exchange-Provided Cell Phones on September 11, 2013, 58585-58587 [2013-23145]
Download as PDF
Federal Register / Vol. 78, No. 185 / Tuesday, September 24, 2013 / Notices
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–
BATS–2013–050 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–BATS–2013–050. 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 at 100 F Street NE.,
Washington, DC 20549–1090 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BATS–
2013–050, and should be submitted on
or before October 15, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–23126 Filed 9–23–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70445; File No. SR–
NYSEMKT–2013–75]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Implement a One-Day
Temporary Suspension of Those
Aspects of Rules 36.20—Equities and
36.21—Equities That Would Not Permit
Floor Brokers to Use Personal Portable
Phone Devices on the Trading Floor
Due to the Unavailability of ExchangeProvided Cell Phones on September
11, 2013
September 18, 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
September 12, 2013, NYSE MKT LLC
(the ‘‘Exchange’’ or ‘‘NYSE MKT’’) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes a one-day
temporary suspension of those aspects
of Rules 36.20—Equities and 36.21—
Equities that would not permit Floor
brokers to use personal portable phone
devices on the Trading Floor due to the
unavailability of Exchange-provided cell
phones on September 11, 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
the places specified in Item IV below.
The Exchange has prepared summaries,
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
21 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
19:49 Sep 23, 2013
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Frm 00075
Fmt 4703
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58585
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 temporarily
suspend on September 11, 2013 those
aspects of Rules 36.20—Equities and
36.21—Equities that would not permit
Floor brokers to use personal portable
phone devices on the Trading Floor.4 As
proposed, all other aspects of Rule 36—
Equities remain applicable and the
temporary suspensions of the applicable
Rule 36—Equities requirements are in
effect only for September 11, 2013.5
On September 11, 2013, the thirdparty carrier that provides service for
the Exchange-provided cell phones
experienced an issue that affected
Exchange authorized and provided
portable phones for Floor brokers. This
outage only impacted the service for
Exchange authorized and provided
portable phones. As a result, all
Exchange authorized and provided cell
phones were non-operational before the
opening of trading on September 11,
2013. The issue was resolved before the
close of trading on September 11, 2013.
Rules 36.20—Equities and 36.21—
Equities govern the type of telephone
communications that are approved for
Floor brokers. Pursuant to Rule 36.20—
Equities, Floor brokers may maintain a
telephone line on the Trading Floor and
use Exchange authorized and provided
portable phones while on the Trading
Floor. The use of such Exchange
authorized and provided portable
phones is governed by Rule 36.21—
Equities. Because of the issues with the
third-party carrier, all Exchange
authorized and provided portable
phones are not functional and therefore
Floor brokers cannot use the Exchange
authorized and provided portable
phones. However, the personal cell
phones of Floor brokers are operational
on the Trading Floor. The Exchange
believes that because communications
with customers is a vital part of a Floor
broker’s role as agent and therefore
contributes to maintaining a fair and
orderly market, during the period when
Exchange-provided cell phones are non4 Pursuant to Rule 6A—Equities, the Trading
Floor is defined as the restricted-access physical
areas designated by the Exchange for the trading of
securities.
5 The Exchange provided Floor brokers with
notice of this rule filing, including the applicable
recordkeeping and other requirements related to
using personal cell phones during the temporary
suspension of Rule 36.
E:\FR\FM\24SEN1.SGM
24SEN1
58586
Federal Register / Vol. 78, No. 185 / Tuesday, September 24, 2013 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
operational, Floor brokers should be
permitted to use personal portable
phone devices in lieu of the nonoperational Exchange authorized and
provided portable phones.
The Exchange therefore proposes to
temporarily suspend the limitations in
Rules 36.20—Equities and 36.21—
Equities that permit Floor brokers to use
only Exchange authorized and provided
portable phones so that Floor brokers
may also use personal portable phones
on the Trading Floor. The Exchange
proposes that pursuant to this
temporary suspension, Floor brokers
must provide the Exchange with the
names of all Floor-based personnel who
used personal portable phones during
this temporary suspension period,
together with the phone number and
applicable carrier for each number.
Floor broker member organizations must
maintain in their books and records all
cell phone records that show both
incoming and outgoing calls that were
made during the period that a personal
portable phone was used on the Trading
Floor. To the extent the records are
unavailable from the third-party carrier,
the Floor brokers must maintain
contemporaneous records of all calls
made or received on a personal portable
phone while on the Trading Floor. As
with all member organization records,
such cell phone records must be
provided to Exchange regulatory staff,
including without limitation staff of the
Financial Industry Regulatory Authority
(‘‘FINRA’’), on request.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,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.
In particular, because of issues
experienced by a third-party cell phone
carrier, Exchange authorized and
provided cell phones are not functional.
The Exchange believes that the
proposed temporary suspensions from
those aspects of Rule 36 that restrict
Floor broker’s use of personal portable
phones on the Trading Floor removes
impediments to and perfects the
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Mar<15>2010
19:49 Sep 23, 2013
mechanism of a free and open market
and national market system because the
proposed relief will enable Floor
brokers to conduct their regular
business, notwithstanding the ongoing
issues with telephone service. The
Exchange further believes that without
the requested relief, Floor brokers
would be compromised in their ability
to conduct their regular course of
business on the Trading Floor. In
particular, for Floor brokers, because
they operate as agents for customers,
their inability to communicate with
customers could compromise their
ability to represent public orders on the
Trading Floor.
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 does not believe that the
proposed rule change will impose any
burden on competition because the
proposed change only impacts Floor
brokers and has no change in operations
for other market participants or other
market centers. To the contrary, the
Exchange believes that without the
proposed relief, Floor brokers would be
compromised in their ability to conduct
their regular course of business on the
Trading Floor, thereby placing a burden
on the Floor brokers’ ability to compete.
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.
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 8 and Rule
19b–4(f)(6) thereunder.9 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)
8 15
9 17
Jkt 229001
PO 00000
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
Frm 00076
Fmt 4703
Sfmt 4703
of the Act 10 and Rule 19b–4(f)(6)
thereunder.11
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. Waiver
of the operative delay allows the terms
of the relief described herein to be
available on September 11, 2013, when
the Exchange experienced the outage.
Therefore, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.14
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) of the Act 15 to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
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).
15 15 U.S.C. 78s(b)(2)(B).
11 17
E:\FR\FM\24SEN1.SGM
24SEN1
Federal Register / Vol. 78, No. 185 / Tuesday, September 24, 2013 / Notices
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEMKT–2013–75 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–NYSEMKT–2013–75. 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–2013–75 and should be
submitted on or before October 15,
2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–23145 Filed 9–23–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70446; File No. SR–NYSE–
2013–61]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Implement a
One-Day Temporary Suspension of
Those Aspects of Rules 36.20 and
36.21 That Would Not Permit Floor
Brokers To Use Personal Portable
Phone Devices on the Trading Floor
Due to the Unavailability of ExchangeProvided Cell Phones on September
11, 2013
September 18, 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
September 12, 2013, New York Stock
Exchange LLC (‘‘NYSE’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes a one-day
temporary suspension of those aspects
of Rules 36.20 and 36.21 that would not
permit Floor brokers to use personal
portable phone devices on the Trading
Floor due to the unavailability of
Exchange-provided cell phones on
September 11, 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
the places specified in Item IV below.
The Exchange has prepared summaries,
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
16 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
21:43 Sep 23, 2013
Jkt 229001
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
58587
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 temporarily
suspend on September 11, 2013 those
aspects of Rules 36.20 and 36.21 that
would not permit Floor brokers to use
personal portable phone devices on the
Trading Floor.4 As proposed, all other
aspects of Rule 36 remain applicable
and the temporary suspensions of the
applicable Rule 36 requirements are in
effect only for September 11, 2013.5
On September 11, 2013, the thirdparty carrier that provides service for
the Exchange-provided cell phones
experienced an issue that affected
Exchange authorized and provided
portable phones for Floor brokers. This
outage only impacted the service for
Exchange authorized and provided
portable phones. As a result, all
Exchange authorized and provided cell
phones were non-operational before the
opening of trading on September 11,
2013. The issue was resolved before the
close of trading on September 11, 2013.
Rules 36.20 and 36.21 govern the type
of telephone communications that are
approved for Floor brokers. Pursuant to
Rule 36.20, Floor brokers may maintain
a telephone line on the Trading Floor
and use Exchange authorized and
provided portable phones while on the
Trading Floor. The use of such
Exchange authorized and provided
portable phones is governed by Rule
36.21. Because of the issues with the
third-party carrier, all Exchange
authorized and provided portable
phones are not functional and therefore
Floor brokers cannot use the Exchange
authorized and provided portable
phones. However, the personal cell
phones of Floor brokers are operational
on the Trading Floor. The Exchange
believes that because communications
with customers is a vital part of a Floor
broker’s role as agent and therefore
contributes to maintaining a fair and
orderly market, during the period when
Exchange-provided cell phones are nonoperational, Floor brokers should be
permitted to use personal portable
4 Pursuant to Rule 6A, the Trading Floor is
defined as the restricted-access physical areas
designated by the Exchange for the trading of
securities.
5 The Exchange provided Floor brokers with
notice of this rule filing, including the applicable
recordkeeping and other requirements related to
using personal cell phones during the temporary
suspension of Rule 36.
E:\FR\FM\24SEN1.SGM
24SEN1
Agencies
[Federal Register Volume 78, Number 185 (Tuesday, September 24, 2013)]
[Notices]
[Pages 58585-58587]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-23145]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70445; File No. SR-NYSEMKT-2013-75]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Implement a One-Day
Temporary Suspension of Those Aspects of Rules 36.20--Equities and
36.21--Equities That Would Not Permit Floor Brokers to Use Personal
Portable Phone Devices on the Trading Floor Due to the Unavailability
of Exchange-Provided Cell Phones on September 11, 2013
September 18, 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 September 12, 2013, NYSE MKT LLC (the ``Exchange'' or
``NYSE MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes a one-day temporary suspension of those
aspects of Rules 36.20--Equities and 36.21--Equities that would not
permit Floor brokers to use personal portable phone devices on the
Trading Floor due to the unavailability of Exchange-provided cell
phones on September 11, 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
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 temporarily suspend on September 11, 2013
those aspects of Rules 36.20--Equities and 36.21--Equities that would
not permit Floor brokers to use personal portable phone devices on the
Trading Floor.\4\ As proposed, all other aspects of Rule 36--Equities
remain applicable and the temporary suspensions of the applicable Rule
36--Equities requirements are in effect only for September 11, 2013.\5\
---------------------------------------------------------------------------
\4\ Pursuant to Rule 6A--Equities, the Trading Floor is defined
as the restricted-access physical areas designated by the Exchange
for the trading of securities.
\5\ The Exchange provided Floor brokers with notice of this rule
filing, including the applicable recordkeeping and other
requirements related to using personal cell phones during the
temporary suspension of Rule 36.
---------------------------------------------------------------------------
On September 11, 2013, the third-party carrier that provides
service for the Exchange-provided cell phones experienced an issue that
affected Exchange authorized and provided portable phones for Floor
brokers. This outage only impacted the service for Exchange authorized
and provided portable phones. As a result, all Exchange authorized and
provided cell phones were non-operational before the opening of trading
on September 11, 2013. The issue was resolved before the close of
trading on September 11, 2013.
Rules 36.20--Equities and 36.21--Equities govern the type of
telephone communications that are approved for Floor brokers. Pursuant
to Rule 36.20--Equities, Floor brokers may maintain a telephone line on
the Trading Floor and use Exchange authorized and provided portable
phones while on the Trading Floor. The use of such Exchange authorized
and provided portable phones is governed by Rule 36.21--Equities.
Because of the issues with the third-party carrier, all Exchange
authorized and provided portable phones are not functional and
therefore Floor brokers cannot use the Exchange authorized and provided
portable phones. However, the personal cell phones of Floor brokers are
operational on the Trading Floor. The Exchange believes that because
communications with customers is a vital part of a Floor broker's role
as agent and therefore contributes to maintaining a fair and orderly
market, during the period when Exchange-provided cell phones are non-
[[Page 58586]]
operational, Floor brokers should be permitted to use personal portable
phone devices in lieu of the non-operational Exchange authorized and
provided portable phones.
The Exchange therefore proposes to temporarily suspend the
limitations in Rules 36.20--Equities and 36.21--Equities that permit
Floor brokers to use only Exchange authorized and provided portable
phones so that Floor brokers may also use personal portable phones on
the Trading Floor. The Exchange proposes that pursuant to this
temporary suspension, Floor brokers must provide the Exchange with the
names of all Floor-based personnel who used personal portable phones
during this temporary suspension period, together with the phone number
and applicable carrier for each number. Floor broker member
organizations must maintain in their books and records all cell phone
records that show both incoming and outgoing calls that were made
during the period that a personal portable phone was used on the
Trading Floor. To the extent the records are unavailable from the
third-party carrier, the Floor brokers must maintain contemporaneous
records of all calls made or received on a personal portable phone
while on the Trading Floor. As with all member organization records,
such cell phone records must be provided to Exchange regulatory staff,
including without limitation staff of the Financial Industry Regulatory
Authority (``FINRA''), on request.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, because of issues experienced by a third-party cell
phone carrier, Exchange authorized and provided cell phones are not
functional. The Exchange believes that the proposed temporary
suspensions from those aspects of Rule 36 that restrict Floor broker's
use of personal portable phones on the Trading Floor removes
impediments to and perfects the mechanism of a free and open market and
national market system because the proposed relief will enable Floor
brokers to conduct their regular business, notwithstanding the ongoing
issues with telephone service. The Exchange further believes that
without the requested relief, Floor brokers would be compromised in
their ability to conduct their regular course of business on the
Trading Floor. In particular, for Floor brokers, because they operate
as agents for customers, their inability to communicate with customers
could compromise their ability to represent public orders on the
Trading Floor.
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 does not
believe that the proposed rule change will impose any burden on
competition because the proposed change only impacts Floor brokers and
has no change in operations for other market participants or other
market centers. To the contrary, the Exchange believes that without the
proposed relief, Floor brokers would be compromised in their ability to
conduct their regular course of business on the Trading Floor, thereby
placing a burden on the Floor brokers' ability to compete.
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.
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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
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 \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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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. Waiver of the
operative delay allows the terms of the relief described herein to be
available on September 11, 2013, when the Exchange experienced the
outage. Therefore, the Commission hereby waives the 30-day operative
delay 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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) of the Act \15\ to determine whether the proposed
rule change should be approved or disapproved.
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\15\ 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:
[[Page 58587]]
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-2013-75 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-2013-75. 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-2013-75 and should
be submitted on or before October 15, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-23145 Filed 9-23-13; 8:45 am]
BILLING CODE 8011-01-P