Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Revising Rule 61(a)(iii)-Equities To Harmonize the Existing Rule Text With the Recent Amendment to the CTA Plan, and Concordant Change to the Nasdaq UTP Plan, Which Provides That Odd-Lot Transactions Are To Be Reported On the Consolidated Tape, 70380-70382 [2013-28159]

Download as PDF 70380 Federal Register / Vol. 78, No. 227 / Monday, November 25, 2013 / Notices will enhance competition among market participants, to the benefit of investors and the marketplace. As noted above, the Exchange has in place surveillance procedures that are adequate to properly monitor trading in the Shares in all trading sessions and to deter and detect violations of Exchange rules and applicable federal securities laws. In addition, as noted above, investors will have ready access to information regarding the Fund’s holdings, the Portfolio Indicative Value, the Disclosed Portfolio, and quotation and last-sale information for the Shares. 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 purpose of the Act. The Exchange notes that the proposed rule change will facilitate the listing and trading of an additional type of actively-managed exchange-traded product that primarily holds fixed income securities and that will enhance competition among market participants, to the benefit of investors and the marketplace. 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days after publication (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. sroberts on DSK5SPTVN1PROD with NOTICES 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: VerDate Mar<15>2010 17:53 Nov 22, 2013 Jkt 232001 Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NYSEArca–2013–121 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–NYSEArca–2013–121. 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 (http://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– NYSEArca-2013–121 and should be submitted on or before December 16, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.40 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–28162 Filed 11–22–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–70899; File No. SR–NYSEMKT–2013–94] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Revising Rule 61(a)(iii)— Equities To Harmonize the Existing Rule Text With the Recent Amendment to the CTA Plan, and Concordant Change to the Nasdaq UTP Plan, Which Provides That Odd-Lot Transactions Are To Be Reported On the Consolidated Tape November 19, 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 November 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 to revise Rule 61(a)(iii)—Equities to harmonize the existing rule text with the recent amendment to the CTA Plan (and concordant change to the Nasdaq UTP Plan) which provides that odd-lot transactions are to be reported on the Consolidated Tape. 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, on the Commission’s Web site at http://www.sec.gov, 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 40 17 PO 00000 CFR 200.30–3(a)(12). Frm 00124 Fmt 4703 Sfmt 4703 E:\FR\FM\25NON1.SGM 25NON1 Federal Register / Vol. 78, No. 227 / Monday, November 25, 2013 / Notices 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 the Statutory Basis for, the Proposed Rule Change sroberts on DSK5SPTVN1PROD with NOTICES 1. Purpose The purpose of the proposed change to Rule 61(a)(iii)—Equities is to harmonize the existing rule text with the recent amendment to the CTA Plan (and concordant change to the Nasdaq UTP Plan) which provides that odd-lot transactions are to be reported on the Consolidated Tape. On September 9, 2013, the various exchanges that comprise the Consolidated Tape Association (‘‘CTA’’), including the Exchange, filed with the Commission a proposal to amend the Second Restatement of the CTA Plan (‘‘CTA Plan’’) to remove oddlot transactions from the list of transactions that are not to be reported for inclusion on the Consolidated Tape (the ‘‘Amendment’’).4 The rationale for the Amendment is that odd-lot transactions account for a not insignificant percentage of trading volume, and that including odd-lot transactions on the Consolidated Tape would add post-trade transparency to the marketplace. The Amendment, however, would not include odd-lot transactions in the calculation of last sale prices, given that many of these transactions do lack economic significance.5 Consistent with the Amendment to the CTA Plan, the Nasdaq Unlisted Trading Privileges Plan (‘‘Nasdaq UTP Plan’’) is likewise being modified to similarly remove odd-lot transactions from the list of transactions that are not to be reported for inclusion on the Consolidated Tape.6 Pursuant to the 4 See Securities Exchange Release No. 34–70428 (Sept. 17, 2013), 78 FR 184 (Sept. 28, 2013) (Notice of the Amendment). In 1974, the Commission declared the original CTA Plan effective. See Securities Exchange Release No. 10787 (May 10, 1974), 39 FR 17799. The CTA Plan, pursuant to which markets collect and disseminate last sale price information for non-NASDAQ listed securities, is a ‘‘transactional plan’’ under Rule 601 of the Securities and Exchange Act (the ‘‘Act’’), 17 CFR 242.601, and a ‘‘national market system plan’’ under Rule 608 under the Act, 17 CFR 242.608. 5 Thus, per the Amendment, odd-lot transactions would not be included in calculations of high and low prices and would not be subject to the Regulation NMS Plan to Address Extraordinary Market Volatility rules, nor would including oddlot transactions on the Consolidated Tape trigger any short sale restrictions or trading halts. Odd-lot transactions, however, would be included in calculations of daily volume. 6 See Nasdaq Announcement at http:// www.nasdaqtrader.com/ TraderNews.aspx?id=uva2013-6. VerDate Mar<15>2010 17:53 Nov 22, 2013 Jkt 232001 NYSE MKT Rule 500—Equities Series, the Exchange trades Nasdaq-listed securities, which are subject to the Nasdaq UTP Plan, on an unlisted trading privileges basis. In early October 2013, both the CTA and Nasdaq announced that, subject to approval by the Commission, the release date for the proposed Amendment and modified Nasdaq UTP Plan would be December 9, 2013.7 On October 31, 2013, the Commission approved the Amendment.8 The Exchange, therefore, proposes to amend Rule 61(a)(iii)—Equities to conform this rule with both the Amendment and the modified Nasdaq UTP Plan. Current Rule 61(a)(iii)— Equities states that ‘‘[a] transaction of an amount less than one round lot shall not be published to the Consolidated Tape and does not qualify as a last sale.’’ To harmonize the rule with the Amendment and the revised Nasdaq UTP Plan, the Exchange proposes to modify paragraph (a)(iii) of the current rule to provide that odd-lot sized transactions would be published to the Consolidated Tape, or to the Securities Information Processor accepting trade reports in that security, but would still not qualify as last sale transactions.9 The Exchange proposes to implement the proposed changes to Rule 61(a)(iii)—Equities on the same day that the changes to the CTA Plan and Nasdaq UTP Plan are effective, which is currently scheduled for December 9, 2013. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the requirements of Section 6(b) of the Act,10 in general, and Section 6(b)(5) of the Act,11 in particular, in that it is designed to foster cooperation and coordination with persons facilitating transactions in securities, to remove impediments to and perfect the 7 See CTA Announcement at https:// cta.nyxdata.com/cta/popup/news/2385 (‘‘Pursuant to the latest notice on this subject . . . , pending regulatory approval we are postponing the October testing dates and the implementation which include Odd Lot trade reports to the Consolidated Tape. The new release dat[e] will be December 9, 2013. . . .’’). See also Nasdaq Announcement at http:// www.nasdaqtrader.com/ TraderNews.aspx?id=uva2013-11 (same). 8 See Securities Exchange Release No. 34–70794 (Oct. 31, 2013) (‘‘Approval Order’’). 9 The proposed revision to paragraph (a)(iii) to Rule 61—Equities would thus read: ‘‘A transaction of an amount less than one round lot shall be published to the Consolidated Tape, or to the Securities Information Processor accepting trade reports in that security, but does not qualify as a last sale.’’ 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 70381 mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest and not to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange believes that the proposed rule change will foster cooperation and coordination with persons facilitating transactions in securities because the proposed rule change would harmonize Exchange rules with the Amendment to the CTA Plan, and with the concordant change to the Nasdaq UTP Plan. In addition, the Exchange believes that the proposed change would remove impediments to and perfect the mechanism of a free and open market and a national market system by providing consistency and additional transparency into securities transactions, thus encouraging the proper functioning of the market. Increased post-trade transparency would, in turn, protect investors and the public interest. Indeed, the Commission’s Approval Order concluded that ‘‘including odd-lot transactions on the consolidated tape will enhance post-trade transparency, as well as price discovery, and consequently would further the goals of the Act.’’ 12 The Approval Order likewise concludes, and the Exchange agrees, that ‘‘information about odd lot transactions would provide important information to investors and other market participants and therefore represents a positive development in the provision of market data.’’ 13 Finally, the Exchange believes that the proposed rule change does not unfairly discriminate among the Exchange’s member organizations because all members would equally benefit from the additional transparency provided by the proposed change. 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. The Exchange believes that the proposed change adds to the integrity of trading on the securities markets by increasing post-trade transparency as well as price discovery and, if anything, the level of competition could increase as public confidence in the markets is solidified. 12 Approval Order at 5. 13 Id. E:\FR\FM\25NON1.SGM 25NON1 70382 Federal Register / Vol. 78, No. 227 / Monday, November 25, 2013 / Notices 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 sroberts on DSK5SPTVN1PROD with NOTICES The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 14 and Rule 19b–4(f)(6) thereunder.15 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) 16 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),17 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. According to the Exchange, waiving the 30-day operative delay will enable market participants to benefit from the proposed rule change on the same day that both plans go into effect. The Exchange believes it would be appropriate that the Exchange rules be in conformance with the Amendment to the CTA Plan (and the concordant change to the Nasdaq UTP Plan) on the date that both changes are to become effective (i.e., on December 9, 2013).18 Based on the Exchange’s statements and the non-controversial nature of the proposed rule change, the Commission believes that waiving the operative delay is consistent with the protection of investors and the public interest. Accordingly, the Commission hereby 14 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 16 17 CFR 240.19b–4(f)(6). 17 17 CFR 240.19b–4(f)(6)(iii). 18 The Exchange stated that on the event that this rule proposal is operative prior to December 9, 2013, the Exchange would not implement the proposed rule change until December 9, 2013. 15 17 VerDate Mar<15>2010 17:53 Nov 22, 2013 Jkt 232001 grants the Exchange’s request and waives the 30-day operative delay.19 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) 20 of the Act to determine whether the proposed rule change should be approved or disapproved. 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 will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– NYSEMKT–2013–94 and should be submitted on or before December 16, 2013. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Kevin M. O’Neill, Deputy Secretary. Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NYSEMKT–2013–94 on the subject line. SECURITIES AND EXCHANGE COMMISSION 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–2013–94. 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 (http://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 19 For purposes only of waiving the operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 20 15 U.S.C. 78s(b)(2)(B). PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 [FR Doc. 2013–28159 Filed 11–22–13; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–70900; File No. SR–ISE– 2013–58] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Change the Expiration Date for Most Options Contracts to the Third Friday of the Expiration Month Instead of the Saturday Following the Third Friday November 19, 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 November 7, 2013, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) 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 is proposing to amend its rules to change the expiration date for most option contracts to the third Friday of the expiration month instead 21 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\25NON1.SGM 25NON1

Agencies

[Federal Register Volume 78, Number 227 (Monday, November 25, 2013)]
[Notices]
[Pages 70380-70382]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-28159]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70899; File No. SR-NYSEMKT-2013-94]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Revising Rule 
61(a)(iii)--Equities To Harmonize the Existing Rule Text With the 
Recent Amendment to the CTA Plan, and Concordant Change to the Nasdaq 
UTP Plan, Which Provides That Odd-Lot Transactions Are To Be Reported 
On the Consolidated Tape

November 19, 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 November 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 to revise Rule 61(a)(iii)--Equities to 
harmonize the existing rule text with the recent amendment to the CTA 
Plan (and concordant change to the Nasdaq UTP Plan) which provides that 
odd-lot transactions are to be reported on the Consolidated Tape. 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, on the 
Commission's Web site at http://www.sec.gov, 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,

[[Page 70381]]

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed change to Rule 61(a)(iii)--Equities is 
to harmonize the existing rule text with the recent amendment to the 
CTA Plan (and concordant change to the Nasdaq UTP Plan) which provides 
that odd-lot transactions are to be reported on the Consolidated Tape.
    On September 9, 2013, the various exchanges that comprise the 
Consolidated Tape Association (``CTA''), including the Exchange, filed 
with the Commission a proposal to amend the Second Restatement of the 
CTA Plan (``CTA Plan'') to remove odd-lot transactions from the list of 
transactions that are not to be reported for inclusion on the 
Consolidated Tape (the ``Amendment'').\4\ The rationale for the 
Amendment is that odd-lot transactions account for a not insignificant 
percentage of trading volume, and that including odd-lot transactions 
on the Consolidated Tape would add post-trade transparency to the 
marketplace. The Amendment, however, would not include odd-lot 
transactions in the calculation of last sale prices, given that many of 
these transactions do lack economic significance.\5\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Release No. 34-70428 (Sept. 17, 
2013), 78 FR 184 (Sept. 28, 2013) (Notice of the Amendment). In 
1974, the Commission declared the original CTA Plan effective. See 
Securities Exchange Release No. 10787 (May 10, 1974), 39 FR 17799. 
The CTA Plan, pursuant to which markets collect and disseminate last 
sale price information for non-NASDAQ listed securities, is a 
``transactional plan'' under Rule 601 of the Securities and Exchange 
Act (the ``Act''), 17 CFR 242.601, and a ``national market system 
plan'' under Rule 608 under the Act, 17 CFR 242.608.
    \5\ Thus, per the Amendment, odd-lot transactions would not be 
included in calculations of high and low prices and would not be 
subject to the Regulation NMS Plan to Address Extraordinary Market 
Volatility rules, nor would including odd-lot transactions on the 
Consolidated Tape trigger any short sale restrictions or trading 
halts. Odd-lot transactions, however, would be included in 
calculations of daily volume.
---------------------------------------------------------------------------

    Consistent with the Amendment to the CTA Plan, the Nasdaq Unlisted 
Trading Privileges Plan (``Nasdaq UTP Plan'') is likewise being 
modified to similarly remove odd-lot transactions from the list of 
transactions that are not to be reported for inclusion on the 
Consolidated Tape.\6\ Pursuant to the NYSE MKT Rule 500--Equities 
Series, the Exchange trades Nasdaq-listed securities, which are subject 
to the Nasdaq UTP Plan, on an unlisted trading privileges basis.
---------------------------------------------------------------------------

    \6\ See Nasdaq Announcement at http://www.nasdaqtrader.com/TraderNews.aspx?id=uva2013-6.
---------------------------------------------------------------------------

    In early October 2013, both the CTA and Nasdaq announced that, 
subject to approval by the Commission, the release date for the 
proposed Amendment and modified Nasdaq UTP Plan would be December 9, 
2013.\7\ On October 31, 2013, the Commission approved the Amendment.\8\
---------------------------------------------------------------------------

    \7\ See CTA Announcement at https://cta.nyxdata.com/cta/popup/news/2385 (``Pursuant to the latest notice on this subject . . . , 
pending regulatory approval we are postponing the October testing 
dates and the implementation which include Odd Lot trade reports to 
the Consolidated Tape. The new release dat[e] will be December 9, 
2013. . . .''). See also Nasdaq Announcement at http://www.nasdaqtrader.com/TraderNews.aspx?id=uva2013-11 (same).
    \8\ See Securities Exchange Release No. 34-70794 (Oct. 31, 2013) 
(``Approval Order'').
---------------------------------------------------------------------------

    The Exchange, therefore, proposes to amend Rule 61(a)(iii)--
Equities to conform this rule with both the Amendment and the modified 
Nasdaq UTP Plan. Current Rule 61(a)(iii)--Equities states that ``[a] 
transaction of an amount less than one round lot shall not be published 
to the Consolidated Tape and does not qualify as a last sale.'' To 
harmonize the rule with the Amendment and the revised Nasdaq UTP Plan, 
the Exchange proposes to modify paragraph (a)(iii) of the current rule 
to provide that odd-lot sized transactions would be published to the 
Consolidated Tape, or to the Securities Information Processor accepting 
trade reports in that security, but would still not qualify as last 
sale transactions.\9\
---------------------------------------------------------------------------

    \9\ The proposed revision to paragraph (a)(iii) to Rule 61--
Equities would thus read: ``A transaction of an amount less than one 
round lot shall be published to the Consolidated Tape, or to the 
Securities Information Processor accepting trade reports in that 
security, but does not qualify as a last sale.''
---------------------------------------------------------------------------

    The Exchange proposes to implement the proposed changes to Rule 
61(a)(iii)--Equities on the same day that the changes to the CTA Plan 
and Nasdaq UTP Plan are effective, which is currently scheduled for 
December 9, 2013.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the requirements of Section 6(b) of the Act,\10\ in general, and 
Section 6(b)(5) of the Act,\11\ in particular, in that it is designed 
to foster cooperation and coordination with persons facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest and not to 
permit unfair discrimination between customers, issuers, brokers, or 
dealers.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change will foster 
cooperation and coordination with persons facilitating transactions in 
securities because the proposed rule change would harmonize Exchange 
rules with the Amendment to the CTA Plan, and with the concordant 
change to the Nasdaq UTP Plan. In addition, the Exchange believes that 
the proposed change would remove impediments to and perfect the 
mechanism of a free and open market and a national market system by 
providing consistency and additional transparency into securities 
transactions, thus encouraging the proper functioning of the market. 
Increased post-trade transparency would, in turn, protect investors and 
the public interest. Indeed, the Commission's Approval Order concluded 
that ``including odd-lot transactions on the consolidated tape will 
enhance post-trade transparency, as well as price discovery, and 
consequently would further the goals of the Act.'' \12\ The Approval 
Order likewise concludes, and the Exchange agrees, that ``information 
about odd lot transactions would provide important information to 
investors and other market participants and therefore represents a 
positive development in the provision of market data.'' \13\
---------------------------------------------------------------------------

    \12\ Approval Order at 5.
    \13\ Id.
---------------------------------------------------------------------------

    Finally, the Exchange believes that the proposed rule change does 
not unfairly discriminate among the Exchange's member organizations 
because all members would equally benefit from the additional 
transparency provided by the proposed change.

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. The Exchange 
believes that the proposed change adds to the integrity of trading on 
the securities markets by increasing post-trade transparency as well as 
price discovery and, if anything, the level of competition could 
increase as public confidence in the markets is solidified.

[[Page 70382]]

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 \14\ and Rule 19b-4(f)(6) thereunder.\15\ 
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.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ 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. According to the 
Exchange, waiving the 30-day operative delay will enable market 
participants to benefit from the proposed rule change on the same day 
that both plans go into effect. The Exchange believes it would be 
appropriate that the Exchange rules be in conformance with the 
Amendment to the CTA Plan (and the concordant change to the Nasdaq UTP 
Plan) on the date that both changes are to become effective (i.e., on 
December 9, 2013).\18\ Based on the Exchange's statements and the non-
controversial nature of the proposed rule change, the Commission 
believes that waiving the operative delay is consistent with the 
protection of investors and the public interest. Accordingly, the 
Commission hereby grants the Exchange's request and waives the 30-day 
operative delay.\19\
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    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
    \18\ The Exchange stated that on the event that this rule 
proposal is operative prior to December 9, 2013, the Exchange would 
not implement the proposed rule change until December 9, 2013.
    \19\ For purposes only of waiving the 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) \20\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \20\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NYSEMKT-2013-94 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-2013-94. 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 (http://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 will also be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEMKT-2013-94 and should 
be submitted on or before December 16, 2013.
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    \21\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-28159 Filed 11-22-13; 8:45 am]
BILLING CODE 8011-01-P