Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend a Pilot Program Related to Rule 11.19, Titled “Clearly Erroneous Executions”, 18108-18110 [2014-07040]
Download as PDF
18108
Federal Register / Vol. 79, No. 61 / Monday, March 31, 2014 / Notices
offered under CME’s authority to act as
a DCO, the proposed changes are
properly classified as effecting a change
in an existing service of CME that:
(a) primarily affects the clearing
operations of CME with respect to
products that are not securities,
including futures that are not security
futures, and swaps that are not securitybased swaps or mixed swaps; and
(b) does not significantly affect any
securities clearing operations of CME or
any rights or obligations of CME with
respect to securities clearing or persons
using such securities-clearing service.
As such, the changes are therefore
consistent with the requirements of
Section 17A of the Exchange Act 7 and
are properly filed under Section
19(b)(3)(A) 8 and Rule 19b–4(f)(4)(ii) 9
thereunder.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CME does not believe that the
proposed rule changes will have any
impact, or impose any burden, on
competition. The rule changes simply
facilitate the offering of two new series
of credit default swap index products.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Changes Received From
Members, Participants, or Others
CME has not solicited, and does not
intend to solicit, comments regarding
the proposed rule changes. CME has not
received any unsolicited written
comments from interested parties.
tkelley on DSK3SPTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Changes and Timing for
Commission Action
The foregoing rule changes has
become effective pursuant to Section
19(b)(3)(A) 10 of the Act and Rule 19b–
4(f)(4)(ii) 11 thereunder. At any time
within 60 days of the filing of the
proposed rule changes, the Commission
summarily may temporarily suspend
such rule changes if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
changes are consistent with the Act.
7 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(4)(ii).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(4)(ii).
18:10 Mar 28, 2014
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 No. SR–
CME–2014–09 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CME–2014–09. 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
changes that are filed with the
Commission, and all written
communications relating to the
proposed rule changes 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 CME and on CME’s Web site at
https://www.cmegroup.com/marketregulation/rule-filings.html.
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–CME–2014–09 and should
be submitted on or before April 21,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–07042 Filed 3–28–14; 8:45 am]
8 15
VerDate Mar<15>2010
Comments may be submitted by any of
the following methods:
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71797; File No. SR–NSX–
2014–07]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Extend a
Pilot Program Related to Rule 11.19,
Titled ‘‘Clearly Erroneous Executions’’
March 25, 2014.
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 March 24,
2014, National Stock Exchange, Inc.
(‘‘NSX’’ or the ‘‘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 the Substance
of the Proposed Rule Change
The Exchange is proposing to amend
Rule 11.19, titled ‘‘Clearly Erroneous
Executions’’ in order to extend the
operation of a pilot program under
which certain portions of the Rule are
currently operating.
The Exchange has designated this
proposal as non-controversial and
provided the Commission with the
notice required by Rule 19b–4(f)(6)(iii)
under the Act.3
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nsx.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 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 parts of such
statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6)(iii).
2 17
12 17
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2. Statutory Basis
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to extend
the effectiveness of the Exchange’s
current rule applicable to Clearly
Erroneous Executions. Portions of Rule
11.19, explained in further detail below,
are currently operating as a pilot
program set to expire on April 8, 2014.4
The Exchange proposes to extend the
pilot program to coincide with the pilot
period for the Plan to Address
Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS
under the Act (the ‘‘Limit Up-Limit
Down Plan’’ or the ‘‘Plan’’), including
any extensions to the pilot period for
the Plan.5
On September 10, 2010, the
Commission approved, on a pilot basis,
changes to NSX Rule 11.19 to provide
for uniform treatment: (1) Of clearly
erroneous execution reviews in multistock events involving twenty or more
securities; and (2) in the event
transactions occur that result in the
issuance of an individual stock trading
pause by the primary listing market and
subsequent transactions that occur
before the trading pause is in effect on
the Exchange.6 The Exchange also
adopted additional changes to Rule
11.19 that reduced the ability of the
Exchange to deviate from the objective
standards set forth in Rule 11.19,7 and
in 2013, adopted a provision designed
to address the operation of the Plan.8
The Exchange believes the benefits to
market participants from the more
objective clearly erroneous executions
rule should continue on a pilot basis to
coincide with the operation of the Limit
Up-Limit Down Plan. The Exchange
believes that continuing the pilot 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 Plan.
tkelley on DSK3SPTVN1PROD with NOTICES
4 See
Securities Exchange Act Release No. 70589
(Oct. 1, 2013), 78 FR 62782 (Oct. 22, 2013) (SR–
NSX–2013–19).
5 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012) (the
‘‘Limit Up-Limit Down Release’’).
6 Securities Exchange Act Release No. 62886
(Sept. 10, 2010), 75 FR 56613 (Sept. 16, 2010) (SR–
NSX–2010–07).
7 Id.
8 See Securities Exchange Act Release No. 68803
(Feb 1, 2013), 78 FR 9078 (Feb. 7, 2013) (SR–NSX–
2013–06); see also NSX Rule 11.19(j).
VerDate Mar<15>2010
18:10 Mar 28, 2014
Jkt 232001
The Exchange believes that its
proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the Act.9
In particular, the proposal is consistent
with Section 6(b)(5) of the Act,10
because it would promote just and
equitable principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system. Although
the Limit Up-Limit Down Plan is
operational, the Exchange believes that
maintaining the pilot will help to
protect against unanticipated
consequences. Thus, the Exchange
believes that the protections of the
Clearly Erroneous Rule should continue
while the industry gains further
experience operating the Plan. The
Exchange also believes that the pilot
program promotes just and equitable
principles of trade in that it promotes
transparency and uniformity across
markets concerning review of
transactions as clearly erroneous. Thus,
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. Based on the foregoing, the
Exchange believes the benefits to market
participants from the more objective
clearly erroneous executions rule
should continue on a pilot basis to
coincide with the operation of the Limit
Up-Limit Down Plan.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change implicates any
competitive issues. To the contrary, the
Exchange believes that the Financial
Industry Regulatory Authority
(‘‘FINRA’’) and other national securities
exchanges are also filing similar
proposals, and thus, that the proposal
will help to ensure consistency across
market centers.
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
18109
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from Equity Trading Permit
Holders or other interested parties.
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)
of the Act 11 and Rule 19b–4(f)(6)(iii)
thereunder.12
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 clearly erroneous pilot
program to continue uninterrupted
while the industry gains further
experience operating under the Limit
Up-Limit Down Plan, and avoid any
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.13
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.
11 15
U.S.C. 78s(b)(3)(A).
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.
13 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).
12 17
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Federal Register / Vol. 79, No. 61 / Monday, March 31, 2014 / 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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014–07040 Filed 3–28–14; 8:45 am]
BILLING CODE 8011–01–P
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
Paper Comments
March 27, 2014.
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
tkelley on DSK3SPTVN1PROD with NOTICES
[File No. 500–1]
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Hendrx
Corp. because it has not filed any
periodic reports since the period ended
September 30, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Plastinum
Polymer Technologies Corp. because it
has not filed any periodic reports since
the period ended September 30, 2010.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Vertical
Branding, Inc. because it has not filed
any periodic reports since the period
ended September 30, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of WHY USA
Financial Group, Inc. because it has not
filed any periodic reports since the
period ended June 30, 2009.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of XNE, Inc.
because it has not filed any periodic
reports since the period ended
September 30, 2008.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed companies
is suspended for the period from 9:30
a.m. EDT on March 27, 2014, through
11:59 p.m. EDT on April 9, 2014.
In the Matter of Hendrx Corp.,
Plastinum Polymer Technologies
Corp., Vertical Branding, Inc., WHY
USA Financial Group, Inc., and XNE,
Inc.; Order of Suspension of Trading
14 17
VerDate Mar<15>2010
18:10 Mar 28, 2014
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PO 00000
CFR 200.30–3(a)(12).
Frm 00107
Fmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
• 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–
NSX–2014–07 on the subject line.
All submissions should refer to File
Number SR–NSX–2014–07. 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–NSX–
2014–07, and should be submitted on or
before April 21, 2014.
[FR Doc. 2014–07229 Filed 3–27–14; 4:15 pm]
Sfmt 9990
In the Matter of Citadel EFT, Inc.; Order
of Suspension of Trading
March 21, 2014.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Citadel EFT,
Inc. (‘‘Citadel’’) because of questions
regarding the accuracy of assertions by
Citadel in public statements regarding
the company’s business operations and
assets. In particular, there are questions
regarding the accuracy, completeness,
and validity of Citadel’s several recent
press releases, Form 8-Ks, and other
public statements since January 2014
relating to transactions involving
standby letters of credit (‘‘SBLC’s’’), see
Prime Bank Instrument Fraud,
TreasuryDirect.gov (U.S. Department of
the Treasury), https://
www.treasurydirect.gov/instit/statreg/
fraud/fraud_primebank.htm (last visited
Mar. 20, 2014) and Brazilian Letras
Tesouro Nacional (‘‘LTN’s’’), see Frauds
Related to Public Bonds, Tesouro
Nacional (Brazil), https://
www.tesouro.fazenda.gov.br/en/aboutthe-federal-public-debt/frauds-relatedto-public-bonds (last visited Mar. 20,
2014). Citadel is a Wyoming corporation
based in Oceanside, California. It is
quoted on OTC Link under the symbol
CDFT.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed company is
suspended for the period from 9:30 a.m.
EDT on March 21, 2014 through 11:59
p.m. EDT, on April 3, 2014.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014–07230 Filed 3–27–14; 4:15 pm]
BILLING CODE 8011–01–P
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Agencies
[Federal Register Volume 79, Number 61 (Monday, March 31, 2014)]
[Notices]
[Pages 18108-18110]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07040]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71797; File No. SR-NSX-2014-07]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Extend a Pilot Program Related to Rule 11.19, Titled ``Clearly
Erroneous Executions''
March 25, 2014.
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 March 24, 2014, National Stock Exchange, Inc. (``NSX'' or the
``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 the
Substance of the Proposed Rule Change
The Exchange is proposing to amend Rule 11.19, titled ``Clearly
Erroneous Executions'' in order to extend the operation of a pilot
program under which certain portions of the Rule are currently
operating.
The Exchange has designated this proposal as non-controversial and
provided the Commission with the notice required by Rule 19b-
4(f)(6)(iii) under the Act.\3\
---------------------------------------------------------------------------
\3\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nsx.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 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 parts of such
statements.
[[Page 18109]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to extend the effectiveness of the
Exchange's current rule applicable to Clearly Erroneous Executions.
Portions of Rule 11.19, explained in further detail below, are
currently operating as a pilot program set to expire on April 8,
2014.\4\ The Exchange proposes to extend the pilot program to coincide
with the pilot period for the Plan to Address Extraordinary Market
Volatility Pursuant to Rule 608 of Regulation NMS under the Act (the
``Limit Up-Limit Down Plan'' or the ``Plan''), including any extensions
to the pilot period for the Plan.\5\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 70589 (Oct. 1,
2013), 78 FR 62782 (Oct. 22, 2013) (SR-NSX-2013-19).
\5\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (the ``Limit Up-Limit Down
Release'').
---------------------------------------------------------------------------
On September 10, 2010, the Commission approved, on a pilot basis,
changes to NSX Rule 11.19 to provide for uniform treatment: (1) Of
clearly erroneous execution reviews in multi-stock events involving
twenty or more securities; and (2) in the event transactions occur that
result in the issuance of an individual stock trading pause by the
primary listing market and subsequent transactions that occur before
the trading pause is in effect on the Exchange.\6\ The Exchange also
adopted additional changes to Rule 11.19 that reduced the ability of
the Exchange to deviate from the objective standards set forth in Rule
11.19,\7\ and in 2013, adopted a provision designed to address the
operation of the Plan.\8\
---------------------------------------------------------------------------
\6\ Securities Exchange Act Release No. 62886 (Sept. 10, 2010),
75 FR 56613 (Sept. 16, 2010) (SR-NSX-2010-07).
\7\ Id.
\8\ See Securities Exchange Act Release No. 68803 (Feb 1, 2013),
78 FR 9078 (Feb. 7, 2013) (SR-NSX-2013-06); see also NSX Rule
11.19(j).
---------------------------------------------------------------------------
The Exchange believes the benefits to market participants from the
more objective clearly erroneous executions rule should continue on a
pilot basis to coincide with the operation of the Limit Up-Limit Down
Plan. The Exchange believes that continuing the pilot 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 Plan.
2. Statutory Basis
The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\9\ In particular, the
proposal is consistent with Section 6(b)(5) of the Act,\10\ because it
would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system. Although the Limit Up-Limit Down Plan is
operational, the Exchange believes that maintaining the pilot will help
to protect against unanticipated consequences. Thus, the Exchange
believes that the protections of the Clearly Erroneous Rule should
continue while the industry gains further experience operating the
Plan. The Exchange also believes that the pilot program promotes just
and equitable principles of trade in that it promotes transparency and
uniformity across markets concerning review of transactions as clearly
erroneous. Thus, 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. Based on the foregoing, the Exchange
believes the benefits to market participants from the more objective
clearly erroneous executions rule should continue on a pilot basis to
coincide with the operation of the Limit Up-Limit Down Plan.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change
implicates any competitive issues. To the contrary, the Exchange
believes that the Financial Industry Regulatory Authority (``FINRA'')
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
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from Equity Trading Permit Holders or other
interested parties.
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) of the Act \11\ and Rule 19b-
4(f)(6)(iii) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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 clearly erroneous pilot program to continue
uninterrupted while the industry gains further experience operating
under the Limit Up-Limit Down Plan, and avoid any 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.\13\
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\13\ 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.
[[Page 18110]]
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-NSX-2014-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NSX-2014-07. 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-NSX-2014-07, and should be
submitted on or before April 21, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-07040 Filed 3-28-14; 8:45 am]
BILLING CODE 8011-01-P