Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to the Clearly Erroneous Rule, 61427-61429 [2013-24160]
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Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
tkelley on DSK3SPTVN1PROD with NOTICES
may designate, the proposed rule
change has become effective pursuant to
19(b)(3)(A) of the Act and Rule 19b–
4(f)(6) thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),14 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has requested
that the Commission waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange believes that
waiver of the operative delay is
appropriate because the proposed rule
change does not present any new,
unique or substantive issues, but rather
only changes the manner by which
RMMs may obtain appointments. The
Exchange also states that RMMs will
continue to be subject to the same
obligations with respect to their
appointments. According to the
Exchange, waiver of the operative delay
will provide RMMs with more efficient
access to the securities in which they
want to make markets so that RMMs
may more quickly begin disseminating
competitive quotations in those
securities, which will provide
additional liquidity and enhance
competition in those securities. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, as doing so will allow
RMMs to manage their appointments in
a more flexible and timely manner. For
this reason, the Commission designates
the proposed rule change to be operative
upon filing.15
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
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:
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–
CBOE–2013–089 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–CBOE–2013–089. 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
available publicly. All submissions
should refer to File Number SR–CBOE–
2013–089, and should be submitted on
or before October 24, 2013.
14 17
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
15 For
[FR Doc. 2013–24158 Filed 10–2–13; 8:45 am]
13 Id.
CFR 240.19b–4(f)(6).
purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Mar<15>2010
18:29 Oct 02, 2013
Jkt 232001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70542; File No. SR–BX–
2013–053]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change to the Clearly
Erroneous Rule
September 27, 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
September 26, 2013, NASDAQ OMX
BX, Inc. (‘‘BX’’ 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 of recent amendments to
Rule 11890, concerning clearly
erroneous transactions, so that the pilot
will now expire on April 8, 2014. The
Exchange also proposes to remove
certain references to individual stock
trading pauses contained in Rule
11890(a)(2)(C)(4).
The text of the proposed rule change
is available from BX’s Web site at
https://nasdaqomxbx.cchwallstreet.com,
at BX’s principal office, 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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
BILLING CODE 8011–01–P
1 15
16 17
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CFR 200.30–3(a)(12).
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61427
2 17
E:\FR\FM\03OCN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
tkelley on DSK3SPTVN1PROD with NOTICES
1. Purpose
On September 10, 2010, the
Commission approved, for a pilot period
to end December 10, 2010, a proposed
rule change submitted by the Exchange,
together with related rule changes of the
BATS Exchange, Inc., The NASDAQ
Stock Market LLC, Chicago Board
Options Exchange, Incorporated,
Chicago Stock Exchange, Inc., EDGA
Exchange, Inc., EDGX Exchange, Inc.,
International Securities Exchange LLC,
New York Stock Exchange LLC, NYSE
MKT LLC (formerly, NYSE Amex LLC),
NYSE Arca, Inc., and National Stock
Exchange, Inc., to amend certain of their
respective rules to set forth clearer
standards and curtail discretion with
respect to breaking erroneous trades.3
The changes were adopted to address
concerns that the lack of clear
guidelines for dealing with clearly
erroneous transactions may have added
to the confusion and uncertainty faced
by investors on May 6, 2010. The pilot
program was extended several times
since its adoption and is currently set to
expire on September 30, 2013.4 In its
rule change that extended the pilot
program to September 30, 2013,5 the
Exchange also adopted a provision
designed to address the operation of the
National Market System Plan to Address
Extraordinary Market Volatility 6 (the
‘‘Limit Up-Limit Down Plan’’). The
Exchange believes the benefits to market
participants from the more objective
clearly erroneous executions rule
should continue on a pilot basis through
April 8, 2014, which is one year
following commencement of operations
of the Limit Up-Limit Down Plan. The
Exchange believes that continuing the
pilot during this time will protect
against any unanticipated
consequences. Thus, the Exchange
believes that the protections of the
Clearly Erroneous Rule should continue
while the industry gains further
experience operating the Limit Up-Limit
Down Plan.
The Exchange also proposes to
eliminate all references in Rule 11890 to
individual stock trading pauses issued
3 Securities Exchange Act Release No. 62886
(September 10, 2010), 75 FR 56613 (September 16,
2010).
4 Securities Exchange Act Release No. 68818
(February 1, 2013), 78 FR 9100 (February 7, 2013)
(SR–BX–2013–010).
5 Id.
6 Securities Exchange Act Release No. 67091 (May
31, 2012), 77 FR 33498 (June 6, 2012); see also Rule
11890(g).
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18:29 Oct 02, 2013
Jkt 232001
by a primary listing market.
Specifically, Rule 11890(a)(2)(C)(4)
provides specific rules to follow with
respect to review of an execution as
potentially clearly erroneous when there
was an individual stock trading pause
issued for that security and the security
is included in the S&P 500 Index, the
Russell 1000 Index, or a pilot list of
Exchange Traded Products (‘‘Subject
Securities’’). The stock trading pauses
described in Rule 11890(a)(2)(C)(4) are
being phased out as securities become
subject to the Limit Up-Limit Down
Plan pursuant to a phased
implementation schedule. The Limit
Up-Limit Down Plan is already
operational with respect to all Subject
Securities, and thus, the Exchange
believes that all references to individual
stock trading pauses should be removed,
including all cross-references to Rule
11890(a)(2)(C)(4) contained in other
portions of Rule 11890.7
The Exchange is also making
technical amendments to certain
citations within Rule 11890 to make
them more accurate.
2. Statutory Basis
The statutory basis for the proposed
rule change is Section 6(b)(5) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),8 which requires the rules of an
exchange 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 the pilot program promotes just and
equitable principals of trade in that it
promotes transparency and uniformity
across markets concerning review of
transactions as clearly erroneous. More
specifically, the Exchange believes that
the extension of the pilot would help
assure that the determination of whether
a clearly erroneous trade has occurred
will be based on clear and objective
criteria, and that the resolution of the
incident will occur promptly through a
transparent process. The proposed rule
7 The Exchange notes that certain Exchange
Traded Products (‘‘ETPs’’) are not yet subject to the
Limit Up-Limit Down Plan. Because such ETPs are
not on the pilot list of securities, such ETPs are not
subject to Rule 11890(a)(2)(C)(4). Securities
Exchange Act Release No. 65105 (August 11, 2011),
76 FR 51108 (August 17, 2011) (SR–BX–2011–56)
(notice of filing and immediate effectiveness to
amend the clearly erroneous rule to specify that
Rule 11890(a)(2)(C)(4) applies only to the current
securities of the Individual Stock Trading Pause
pilot). Accordingly, the proposed rule change does
not change the status quo with respect to such
ETPs. As amended, all securities, including ETPs
not subject to the Limit Up-Limit Down Plan, will
continue to be subject to Rule 11890(a)(2)(C)(1)–(3).
8 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00108
Fmt 4703
Sfmt 4703
change would also help assure
consistent results in handling erroneous
trades across the U.S. markets, thus
furthering fair and orderly markets, the
protection of investors and the public
interest. Although the Limit Up-Limit
Down Plan will become fully
operational during the same time period
as the proposed extended pilot, the
Exchange believes that maintaining the
pilot will help to protect against
unanticipated consequences. To that
end, the extension will allow the
Exchange to determine whether Rule
11890 is necessary once the Limit UpLimit Down Plan is fully operational
and, if so, whether improvements can be
made. Finally, the elimination of
references to individual stock trading
pauses will help to avoid confusion
amongst market participants, which is
consistent with the Act. As described
above, individual stock trading pauses
have been replaced by the Limit UpLimit Down Plan with respect to all
Subject Securities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
To the contrary, the Exchange believes
that the Financial Industry Regulatory
Authority and other national securities
exchanges are also filing similar
proposals, and thus, that the proposal
will help to ensure consistency across
market centers.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 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)
E:\FR\FM\03OCN1.SGM
03OCN1
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
of the Act 9 and Rule 19b–4(f)(6)(iii)
thereunder.10
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, as it
will allow the pilot program to continue
uninterrupted, thereby avoiding
investor confusion that could result
from a temporary interruption in the
pilot program. For this reason, the
Commission designates the proposed
rule change to be operative upon
filing.11
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal 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–
BX–2013–053 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–2013–053. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
tkelley on DSK3SPTVN1PROD with NOTICES
9 15
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6)(iii). As required under
Rule 19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the 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.
11 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Mar<15>2010
18:29 Oct 02, 2013
Jkt 232001
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–
2013–053 and should be submitted on
or before October 24, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24160 Filed 10–2–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70555; File No. SR–
NASDAQ–2013–125]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Reduce
the Fees Assessed Under NASDAQ
Rule 7034 for Certain Co-Location
Services
September 30, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on
September 20, 2013, The NASDAQ
Stock Market LLC (‘‘NASDAQ’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
61429
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by NASDAQ. 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
NASDAQ is proposing changes to
reduce the fees assessed under
NASDAQ Rule 7034 for certain colocation services.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaq.cchwallstreet.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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change. The text of
these 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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to repeat a
temporary fee reduction program to
attract new customers to its co-location
facility in Carteret, New Jersey.3
Specifically, the Exchange proposes to
amend Rule 7034 to reduce the monthly
recurring cabinet (‘‘MRC’’) fees assessed
for the installation of certain new colocation cabinets. The reduced MRC
fees will apply to new cabinets ordered
by users using the Co-Lo Console 4 on or
after October 1, 2013 through December
31, 2013. The reduced fee shall apply to
any cabinet that increases the number of
dedicated cabinets beyond the total
number dedicated to that user as of
August 31, 2013 (‘‘Baseline Number’’),
for so long as the total number of
3 See Exchange Act Release No. 69887 (June 29,
2013) [sic], 78 FR 40527 (July 5, 2013) (notice of
publication of SR–NASDAQ–2013–088, a twomonth reduction in co-location cabinet fees);
Exchange Act Release No. 68624 (Jan. 1, 2013), 78
FR 3945 (Jan. 17, 2013).
4 The ‘‘Co-Lo Console’’ is NASDAQ’s Web-based
ordering tool, and it is the exclusive means for
ordering co-location services.
E:\FR\FM\03OCN1.SGM
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Agencies
[Federal Register Volume 78, Number 192 (Thursday, October 3, 2013)]
[Notices]
[Pages 61427-61429]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24160]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70542; File No. SR-BX-2013-053]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to the
Clearly Erroneous Rule
September 27, 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 September 26, 2013, NASDAQ OMX BX, Inc. (``BX'' 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 of recent
amendments to Rule 11890, concerning clearly erroneous transactions, so
that the pilot will now expire on April 8, 2014. The Exchange also
proposes to remove certain references to individual stock trading
pauses contained in Rule 11890(a)(2)(C)(4).
The text of the proposed rule change is available from BX's Web
site at https://nasdaqomxbx.cchwallstreet.com, at BX's principal office,
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 Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
[[Page 61428]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On September 10, 2010, the Commission approved, for a pilot period
to end December 10, 2010, a proposed rule change submitted by the
Exchange, together with related rule changes of the BATS Exchange,
Inc., The NASDAQ Stock Market LLC, Chicago Board Options Exchange,
Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX
Exchange, Inc., International Securities Exchange LLC, New York Stock
Exchange LLC, NYSE MKT LLC (formerly, NYSE Amex LLC), NYSE Arca, Inc.,
and National Stock Exchange, Inc., to amend certain of their respective
rules to set forth clearer standards and curtail discretion with
respect to breaking erroneous trades.\3\ The changes were adopted to
address concerns that the lack of clear guidelines for dealing with
clearly erroneous transactions may have added to the confusion and
uncertainty faced by investors on May 6, 2010. The pilot program was
extended several times since its adoption and is currently set to
expire on September 30, 2013.\4\ In its rule change that extended the
pilot program to September 30, 2013,\5\ the Exchange also adopted a
provision designed to address the operation of the National Market
System Plan to Address Extraordinary Market Volatility \6\ (the ``Limit
Up-Limit Down Plan''). The Exchange believes the benefits to market
participants from the more objective clearly erroneous executions rule
should continue on a pilot basis through April 8, 2014, which is one
year following commencement of operations of the Limit Up-Limit Down
Plan. The Exchange believes that continuing the pilot during this time
will protect against any unanticipated consequences. Thus, the Exchange
believes that the protections of the Clearly Erroneous Rule should
continue while the industry gains further experience operating the
Limit Up-Limit Down Plan.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 62886 (September 10,
2010), 75 FR 56613 (September 16, 2010).
\4\ Securities Exchange Act Release No. 68818 (February 1,
2013), 78 FR 9100 (February 7, 2013) (SR-BX-2013-010).
\5\ Id.
\6\ Securities Exchange Act Release No. 67091 (May 31, 2012), 77
FR 33498 (June 6, 2012); see also Rule 11890(g).
---------------------------------------------------------------------------
The Exchange also proposes to eliminate all references in Rule
11890 to individual stock trading pauses issued by a primary listing
market. Specifically, Rule 11890(a)(2)(C)(4) provides specific rules to
follow with respect to review of an execution as potentially clearly
erroneous when there was an individual stock trading pause issued for
that security and the security is included in the S&P 500 Index, the
Russell 1000 Index, or a pilot list of Exchange Traded Products
(``Subject Securities''). The stock trading pauses described in Rule
11890(a)(2)(C)(4) are being phased out as securities become subject to
the Limit Up-Limit Down Plan pursuant to a phased implementation
schedule. The Limit Up-Limit Down Plan is already operational with
respect to all Subject Securities, and thus, the Exchange believes that
all references to individual stock trading pauses should be removed,
including all cross-references to Rule 11890(a)(2)(C)(4) contained in
other portions of Rule 11890.\7\
---------------------------------------------------------------------------
\7\ The Exchange notes that certain Exchange Traded Products
(``ETPs'') are not yet subject to the Limit Up-Limit Down Plan.
Because such ETPs are not on the pilot list of securities, such ETPs
are not subject to Rule 11890(a)(2)(C)(4). Securities Exchange Act
Release No. 65105 (August 11, 2011), 76 FR 51108 (August 17, 2011)
(SR-BX-2011-56) (notice of filing and immediate effectiveness to
amend the clearly erroneous rule to specify that Rule
11890(a)(2)(C)(4) applies only to the current securities of the
Individual Stock Trading Pause pilot). Accordingly, the proposed
rule change does not change the status quo with respect to such
ETPs. As amended, all securities, including ETPs not subject to the
Limit Up-Limit Down Plan, will continue to be subject to Rule
11890(a)(2)(C)(1)-(3).
---------------------------------------------------------------------------
The Exchange is also making technical amendments to certain
citations within Rule 11890 to make them more accurate.
2. Statutory Basis
The statutory basis for the proposed rule change is Section 6(b)(5)
of the Securities Exchange Act of 1934 (the ``Act''),\8\ which requires
the rules of an exchange 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 the pilot
program promotes just and equitable principals of trade in that it
promotes transparency and uniformity across markets concerning review
of transactions as clearly erroneous. More specifically, the Exchange
believes that the extension of the pilot would help assure that the
determination of whether a clearly erroneous trade has occurred will be
based on clear and objective criteria, and that the resolution of the
incident will occur promptly through a transparent process. The
proposed rule change would also help assure consistent results in
handling erroneous trades across the U.S. markets, thus furthering fair
and orderly markets, the protection of investors and the public
interest. Although the Limit Up-Limit Down Plan will become fully
operational during the same time period as the proposed extended pilot,
the Exchange believes that maintaining the pilot will help to protect
against unanticipated consequences. To that end, the extension will
allow the Exchange to determine whether Rule 11890 is necessary once
the Limit Up-Limit Down Plan is fully operational and, if so, whether
improvements can be made. Finally, the elimination of references to
individual stock trading pauses will help to avoid confusion amongst
market participants, which is consistent with the Act. As described
above, individual stock trading pauses have been replaced by the Limit
Up-Limit Down Plan with respect to all Subject Securities.
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\8\ 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
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended. To
the contrary, the Exchange believes that the Financial Industry
Regulatory Authority and other national securities exchanges are also
filing similar proposals, and thus, that the proposal will help to
ensure consistency across market centers.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 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)
[[Page 61429]]
of the Act \9\ and Rule 19b-4(f)(6)(iii) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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.
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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,
as it will allow the pilot program to continue uninterrupted, thereby
avoiding investor confusion that could result from a temporary
interruption in the pilot program. For this reason, the Commission
designates the proposed rule change to be operative upon filing.\11\
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\11\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal 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-BX-2013-053 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-2013-053. 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-2013-053 and should be
submitted on or before October 24, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24160 Filed 10-2-13; 8:45 am]
BILLING CODE 8011-01-P