Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Deleting NYSE Arca Rule 9.1(b) To Harmonize NYSE Arca's Rules With the Rules of Other Self-Regulatory Organizations Concerning Office Space Sharing, 28779-28781 [2014-11440]
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Federal Register / Vol. 79, No. 96 / Monday, May 19, 2014 / Notices
(AARM) (Public Meeting) (Contact:
Michael Balazik, 301–415–2856)
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the Web address—https://www.nrc.gov/.
Week of June 9, 2014—Tentative
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the week of June 9, 2014.
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9:30 a.m. Strategic Programmatic
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This meeting will be webcast live at
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Dated: May 14, 2014.
Rochelle Bavol,
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[FR Doc. 2014–11562 Filed 5–15–14; 11:15 am]
Thursday, June 19, 2014
BILLING CODE 7590–01–P
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This meeting will be webcast live at
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COMMISSION
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VerDate Mar<15>2010
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Jkt 232001
[Release No. 34–72160; File No. SR–
NYSEARCA–2014–55]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Deleting NYSE Arca Rule
9.1(b) To Harmonize NYSE Arca’s
Rules With the Rules of Other SelfRegulatory Organizations Concerning
Office Space Sharing
May 13, 2014.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on May 1,
2014, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) 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 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 delete
NYSE Arca Rule 9.1(b) to harmonize
NYSE Arca’s rules with the rules of
other self-regulatory organizations
(‘‘SROs’’) concerning office space
sharing. The text of the proposed rule
change is available on the Exchange’s
Web site at www.nyse.com, at the
principal office of the Exchange, and at
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00109
Fmt 4703
28779
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to delete
NYSE Arca Rule 9.1(b) to harmonize
NYSE Arca’s rules with the rules of
other SROs concerning office space
sharing.
Background
On July 30, 2007, the Financial
Industry Regulatory Authority Inc.’s
(‘‘FINRA) predecessors, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’), and NYSE Regulation, Inc.
(‘‘NYSER’’), consolidated their member
firm regulation operations into a
combined organization, FINRA.
Pursuant to Rule 17d–2 under the Act,
New York Stock Exchange, LLC
(‘‘NYSE’’), NYSER and FINRA entered
into an agreement (the ‘‘Agreement’’) to
reduce regulatory duplication for their
members by allocating to FINRA certain
regulatory responsibilities for NYSE
rules and rule interpretations (‘‘FINRA
Incorporated NYSE Rules’’). NYSE MKT
LLC (‘‘NYSE MKT’’) became a party to
the Agreement effective December 15,
2008.
As part of its effort to reduce
regulatory duplication and relieve firms
that are members of FINRA, NYSE and
NYSE MKT of conflicting or
unnecessary regulatory burdens, FINRA
is now engaged in the process of
reviewing and amending the NASD and
FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA
rulebook.4 FINRA recently harmonized
4 FINRA’s rulebook currently has three sets of
rules: (1) NASD Rules, (2) FINRA Incorporated
NYSE Rules, and (3) consolidated FINRA Rules.
The FINRA Incorporated NYSE Rules apply only to
those members of FINRA that are also members of
the NYSE (‘‘Dual Members’’), while the
Continued
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19MYN1
28780
Federal Register / Vol. 79, No. 96 / Monday, May 19, 2014 / Notices
NASD and FINRA Incorporated NYSE
Rules and interpretations concerning
supervision.5 FINRA’s supervisory rule
changes will become effective on
December 1, 2014.6
As part of this filing, FINRA deleted
Incorporated NYSE Rule 343 and its
interpretation. These provisions set
forth certain pre-approval requirements
for space sharing.7 As part of the
harmonization process, FINRA
determined that a pre-approval process
was no longer necessary and instead
NASD’s notice filing model would be
utilized.
FINRA also recently amended the
Uniform Branch Office Registration
Form (‘‘Form BR’’), which is used by
firms to register their branch offices
with participating SROs and states via
the Central Registration Depository.8
Among other things, the amendments to
Form BR eliminated Section 6, which
incorporated space sharing arrangement
questions relating to NYSE Rule 343. As
such, FINRA accelerated the effective
date for the deletion of Incorporated
NYSE Rule 343 and the related
interpretations to April 7, 2014, to
correspond to the effective date of the
revised Form BR.9 Thus, there are no
longer any pre-approval requirements
for FINRA members that are also
members of NYSE.
mstockstill on DSK4VPTVN1PROD with NOTICES
Proposed Rule Change
As a result of the changes to Form BR,
there is no longer a mechanism to
collect the information used for the
consolidated FINRA Rules apply to all FINRA
members. For more information about the FINRA
rulebook consolidation process, see FINRA
Information Notice, March 12, 2008.
5 See Securities Exchange Act Release No. 71179
(December 23, 2013), 78 FR 79542 (December 30,
2013) (SR–FINRA–2013–025).
6 See FINRA Regulatory Notice 14–10.
7 NYSE Rule 343(a) provides that, unless
otherwise permitted by the NYSE, an office or
foreign incorporated branch of a member or member
organization may not be occupied jointly with any
other broker or dealer, investment advisor, or other
person who conducts a securities or commodities
business with the public. Certain types of office
space arrangements that were deemed permissible
are described in the rule. NYSE Rule 343(b)
provides that members and member organizations
may share office space with any person who is not
a broker or dealer, an investment advisor, or who
does not conduct a securities or commodities
business with the public. NYSE Rule 343(c) also
provides that, unless otherwise permitted by the
NYSE, the main office of every member
organization must remain open for business on
every full business day during the trading hours on
the NYSE. Supplementary Material 343.10 provides
additional guidance relating to office space
arrangements. The related NYSE Rule 343
Interpretation provides additional guidance relating
to space sharing.
8 See Securities Exchange Act Release No. 71626
(February 27, 2014), 79 FR 12547 (March 5, 2014)
(SR–FINRA–2013–051).
9 See FINRA Regulatory Notice 14–11.
VerDate Mar<15>2010
17:17 May 16, 2014
Jkt 232001
space sharing pre-approval process
under NYSE Rule 343. As such, NYSE
has eliminated NYSE Rule 343 and its
interpretations, and NYSE MKT also has
eliminated NYSE MKT Rule 343—
Equities, which is substantially the
same as NYSE Rule 343.10 To harmonize
its office space sharing requirements
with other SROs, NYSE Arca similarly
proposes to delete NYSE Arca Rule
9.1(b), which requires prior and
continuing approval of the Exchange for
certain space sharing arrangements.11
The Exchange notes that any officesharing arrangements of OTP Holders
and OTP Firms that engage in a public
business would be required to be
disclosed on Form BR.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,12 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,13 in particular, because it is
designed to promote just and equitable
principles of trade and to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system.
Specifically, the Exchange believes that
the proposed rule change supports the
objectives of the Act by providing
greater harmonization between NYSE
Arca rules and NYSE, NYSE MKT, and
FINRA rules of similar purpose,
resulting in less burdensome and more
efficient regulatory compliance. In
particular, deleting NYSE Arca Rule
9.1(b) would promote just and equitable
principles of trade by harmonizing the
Exchange’s rules with the rules of the
NYSE, NYSE MKT, and FINRA and
with Form BR, which is used by the
Securities and Exchange Commission
(‘‘Commission’’), SROs, and states.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not intended to
address competitive issues but rather to
achieve greater consistency between
NYSE Arca’s rules concerning office
space sharing with other SROs.
10 See Securities Exchange Act Release Nos.
71989 (April 22, 2014) (SR–NYSE–2014–21) and
71988 (April 22, 2014) (SR–NYSEMKT–2014–34).
11 NYSE Arca Rule 9.1(b) provides that OTP
Holders and OTP Firms may not occupy joint
quarters with anyone other than another OTP
Holder or OTP Firm without the prior and
continuing approval of the Exchange.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
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.
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 19b4(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
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 harmonize the Exchange’s rules
with the rules of the NYSE, NYSE MKT,
and FINRA and with Form BR, thus
helping to eliminate confusion
regarding broker reporting obligations.18
Therefore, the Commission designates
the proposed rule change to be operative
upon filing.
At any time within 60 days of the
filing of such proposed rule change, the
14 15 U.S.C. 78s(b)(3)(A)(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.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
18 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).
E:\FR\FM\19MYN1.SGM
19MYN1
Federal Register / Vol. 79, No. 96 / Monday, May 19, 2014 / Notices
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) 19 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
site at www.nyse.com. 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–2014–55 and should be
submitted on or before June 9, 2014.
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
self-regulatory organization has
prepared summaries, set forth in
Sections A, B and C below, of the most
significant aspects of such statements.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Kevin M. O’Neill,
Deputy Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2014–11440 Filed 5–16–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSK4VPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEARCA–2014–55 on the subject
line.
[Release No. 34–72161; File No. SR–
ISEGemini-2014–13]
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–NYSEARCA–2014–55. 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 will also be available for
inspection and copying at the NYSE’s
principal office and on its Internet Web
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 May 1,
2014 ISE Gemini, LLC (the ‘‘Exchange’’
or ‘‘ISE Gemini’’) filed with the
Securities and Exchange Commission
the proposed rule change, as described
in Items I, II, and III below, which items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
Self-Regulatory Organizations; ISE
Gemini, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Schedule
of Fees
May 13, 2014.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
ISE Gemini is proposing to amend the
Schedule of Fees to update the
definition of Mini Option to reflect the
recent Google stock split. The text of the
proposed rule change is available on the
Exchange’s Internet Web site at https://
www.ise.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
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
19 15
U.S.C. 78s(b)(2)(B).
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19:11 May 16, 2014
Jkt 232001
28781
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
1. Purpose
The purpose of the proposed rule
change is to amend the Schedule of Fees
to update the definition of Mini Option
to reflect the recent Google stock split.
ISE Gemini’s sister exchange, the
International Securities Exchange, LLC
(‘‘ISE’’), recently amended
Supplementary Material .13 to Rule 504,
listing standards for Mini Options,
which is incorporated by reference into
Chapter 5 of the ISE Gemini rulebook,
to enable the continued trading of Mini
Options on Google Class A shares,
which were assigned a new symbol,
‘‘GOOGL’’, in connection with Google’s
recent stock split.3 The Exchange now
proposes to similarly update the
definition of ‘‘Mini Option’’ in its
Schedule of Fees to indicate that Mini
Options include options overlying ten
shares of ‘‘GOOGL’’. As proposed,
‘‘Mini Options’’ are options overlying
ten (10) shares of AAPL, AMZN, GLD,
GOOGL and SPY.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,4
in general, and Section 6(b)(4) of the
Act,5 in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities.
As part of Google’s recent stock split,
the symbol ‘‘GOOG’’ was assigned to the
new Google Class C shares, while
Google Class A shares were assigned the
symbol ‘‘GOOGL’’. The ISE recently
updated its Mini Options rules, which
are incorporated by reference into the
ISE Gemini rulebook, to clarify that it
will continue listing Mini Options on
the Google Class A shares, i.e., GOOGL,
and the Exchange believes that it is
reasonable, equitable, and not unfairly
3 See Securities Exchange Act Release No. 71932
(April 11, 2014), 79 FR 21816 (April 17, 2014) (SR–
ISE–2014–21).
4 15 U.S.C. 78f.
5 15 U.S.C. 78f(b)(4).
E:\FR\FM\19MYN1.SGM
19MYN1
]]>Agencies
[Federal Register Volume 79, Number 96 (Monday, May 19, 2014)]
[Notices]
[Pages 28779-28781]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-11440]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72160; File No. SR-NYSEARCA-2014-55]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Deleting NYSE Arca
Rule 9.1(b) To Harmonize NYSE Arca's Rules With the Rules of Other
Self-Regulatory Organizations Concerning Office Space Sharing
May 13, 2014.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on May 1, 2014, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') 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 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 delete NYSE Arca Rule 9.1(b) to harmonize
NYSE Arca's rules with the rules of other self-regulatory organizations
(``SROs'') concerning office space sharing. The text of the proposed
rule change is available on the Exchange's Web site at www.nyse.com, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to delete NYSE Arca Rule 9.1(b) to harmonize
NYSE Arca's rules with the rules of other SROs concerning office space
sharing.
Background
On July 30, 2007, the Financial Industry Regulatory Authority
Inc.'s (``FINRA) predecessors, the National Association of Securities
Dealers, Inc. (``NASD''), and NYSE Regulation, Inc. (``NYSER''),
consolidated their member firm regulation operations into a combined
organization, FINRA. Pursuant to Rule 17d-2 under the Act, New York
Stock Exchange, LLC (``NYSE''), NYSER and FINRA entered into an
agreement (the ``Agreement'') to reduce regulatory duplication for
their members by allocating to FINRA certain regulatory
responsibilities for NYSE rules and rule interpretations (``FINRA
Incorporated NYSE Rules''). NYSE MKT LLC (``NYSE MKT'') became a party
to the Agreement effective December 15, 2008.
As part of its effort to reduce regulatory duplication and relieve
firms that are members of FINRA, NYSE and NYSE MKT of conflicting or
unnecessary regulatory burdens, FINRA is now engaged in the process of
reviewing and amending the NASD and FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA rulebook.\4\ FINRA recently
harmonized
[[Page 28780]]
NASD and FINRA Incorporated NYSE Rules and interpretations concerning
supervision.\5\ FINRA's supervisory rule changes will become effective
on December 1, 2014.\6\
---------------------------------------------------------------------------
\4\ FINRA's rulebook currently has three sets of rules: (1) NASD
Rules, (2) FINRA Incorporated NYSE Rules, and (3) consolidated FINRA
Rules. The FINRA Incorporated NYSE Rules apply only to those members
of FINRA that are also members of the NYSE (``Dual Members''), while
the consolidated FINRA Rules apply to all FINRA members. For more
information about the FINRA rulebook consolidation process, see
FINRA Information Notice, March 12, 2008.
\5\ See Securities Exchange Act Release No. 71179 (December 23,
2013), 78 FR 79542 (December 30, 2013) (SR-FINRA-2013-025).
\6\ See FINRA Regulatory Notice 14-10.
---------------------------------------------------------------------------
As part of this filing, FINRA deleted Incorporated NYSE Rule 343
and its interpretation. These provisions set forth certain pre-approval
requirements for space sharing.\7\ As part of the harmonization
process, FINRA determined that a pre-approval process was no longer
necessary and instead NASD's notice filing model would be utilized.
---------------------------------------------------------------------------
\7\ NYSE Rule 343(a) provides that, unless otherwise permitted
by the NYSE, an office or foreign incorporated branch of a member or
member organization may not be occupied jointly with any other
broker or dealer, investment advisor, or other person who conducts a
securities or commodities business with the public. Certain types of
office space arrangements that were deemed permissible are described
in the rule. NYSE Rule 343(b) provides that members and member
organizations may share office space with any person who is not a
broker or dealer, an investment advisor, or who does not conduct a
securities or commodities business with the public. NYSE Rule 343(c)
also provides that, unless otherwise permitted by the NYSE, the main
office of every member organization must remain open for business on
every full business day during the trading hours on the NYSE.
Supplementary Material 343.10 provides additional guidance relating
to office space arrangements. The related NYSE Rule 343
Interpretation provides additional guidance relating to space
sharing.
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FINRA also recently amended the Uniform Branch Office Registration
Form (``Form BR''), which is used by firms to register their branch
offices with participating SROs and states via the Central Registration
Depository.\8\ Among other things, the amendments to Form BR eliminated
Section 6, which incorporated space sharing arrangement questions
relating to NYSE Rule 343. As such, FINRA accelerated the effective
date for the deletion of Incorporated NYSE Rule 343 and the related
interpretations to April 7, 2014, to correspond to the effective date
of the revised Form BR.\9\ Thus, there are no longer any pre-approval
requirements for FINRA members that are also members of NYSE.
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\8\ See Securities Exchange Act Release No. 71626 (February 27,
2014), 79 FR 12547 (March 5, 2014) (SR-FINRA-2013-051).
\9\ See FINRA Regulatory Notice 14-11.
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Proposed Rule Change
As a result of the changes to Form BR, there is no longer a
mechanism to collect the information used for the space sharing pre-
approval process under NYSE Rule 343. As such, NYSE has eliminated NYSE
Rule 343 and its interpretations, and NYSE MKT also has eliminated NYSE
MKT Rule 343--Equities, which is substantially the same as NYSE Rule
343.\10\ To harmonize its office space sharing requirements with other
SROs, NYSE Arca similarly proposes to delete NYSE Arca Rule 9.1(b),
which requires prior and continuing approval of the Exchange for
certain space sharing arrangements.\11\ The Exchange notes that any
office-sharing arrangements of OTP Holders and OTP Firms that engage in
a public business would be required to be disclosed on Form BR.
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\10\ See Securities Exchange Act Release Nos. 71989 (April 22,
2014) (SR-NYSE-2014-21) and 71988 (April 22, 2014) (SR-NYSEMKT-2014-
34).
\11\ NYSE Arca Rule 9.1(b) provides that OTP Holders and OTP
Firms may not occupy joint quarters with anyone other than another
OTP Holder or OTP Firm without the prior and continuing approval of
the Exchange.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\12\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\13\ in particular, because it
is designed to promote just and equitable principles of trade and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. Specifically, the Exchange
believes that the proposed rule change supports the objectives of the
Act by providing greater harmonization between NYSE Arca rules and
NYSE, NYSE MKT, and FINRA rules of similar purpose, resulting in less
burdensome and more efficient regulatory compliance. In particular,
deleting NYSE Arca Rule 9.1(b) would promote just and equitable
principles of trade by harmonizing the Exchange's rules with the rules
of the NYSE, NYSE MKT, and FINRA and with Form BR, which is used by the
Securities and Exchange Commission (``Commission''), SROs, and states.
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\12\ 15 U.S.C. 78f(b).
\13\ 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
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not intended to address competitive issues but rather to achieve
greater consistency between NYSE Arca's rules concerning office space
sharing with other SROs.
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.
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\14\ 15 U.S.C. 78s(b)(3)(A)(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.
\15\ 17 CFR 240.19b-4(f)(6).
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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 19b4(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 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 harmonize the Exchange's
rules with the rules of the NYSE, NYSE MKT, and FINRA and with Form BR,
thus helping to eliminate confusion regarding broker reporting
obligations.\18\ Therefore, the Commission designates the proposed rule
change to be operative upon filing.
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\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ 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 such proposed rule
change, the
[[Page 28781]]
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) \19\ of the Act to determine whether the proposed rule
change should be approved or disapproved.
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\19\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEARCA-2014-55 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-NYSEARCA-2014-55. 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 will also be available
for inspection and copying at the NYSE's principal office and on its
Internet Web site at www.nyse.com. 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-2014-55 and should be submitted on or before
June 9, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-11440 Filed 5-16-14; 8:45 am]
BILLING CODE 8011-01-P
