Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.16(f)(v) To Provide That Proactive if Locked Modifiers Will Be Ignored for Short Sale Orders During a Short Sale Period, 65273-65275 [2014-26013]
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Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices
The Exchange believes that its
proposal to debit NSCC accounts is
equitable and not unfairly
discriminatory because it will apply to
all BX members in a uniform manner.
Today, the debit process is applied to all
Options Participants.
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. With this
proposal, the proposed debit process
would apply uniformly to all BX
members as it does today with all
Options Participants.
Further, this proposal would provide
a cost savings to the Exchange in that it
would alleviate administrative
processes related to the collection of
monies owed to the Exchange for BX
members conducting an equities
business, as it does today for BX
Options Participants. Collection matters
divert staff resources away from the
Exchange’s regulatory and business
purposes. In addition, the debiting
process would prevent BX member
accounts from becoming overdue.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
mstockstill on DSK4VPTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not significantly affect the
protection of investors or the public
interest; does not impose any significant
burden on competition; and by its terms
does not become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, it has become effective
pursuant to Section 19(b)(3)(A) 13 of the
Act and Rule 19b–4(f)(6) thereunder.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: Necessary or appropriate in
the public interest; for the protection of
investors; or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
13 15
14 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
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17:37 Oct 31, 2014
Jkt 235001
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2014–050 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–BX–2014–050. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 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
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BX–
2014–050, and should be submitted on
or before November 24, 2014.
PO 00000
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65273
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’ Neill,
Deputy Secretary.
[FR Doc. 2014–26007 Filed 10–31–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73453; File No. SR–
NYSEARCA–2014–118]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Arca
Equities Rule 7.16(f)(v) To Provide That
Proactive if Locked Modifiers Will Be
Ignored for Short Sale Orders During a
Short Sale Period
October 28, 2014.
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 October
15, 2014, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (the ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Equities Rule 7.16(f)(v) to
provide that Proactive if Locked
Modifiers will be ignored for short sale
orders during a Short Sale Period. 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
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\03NON1.SGM
03NON1
65274
Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices
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
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
The Exchange is proposing to amend
NYSE Arca Equities Rule 7.16(f)(v)
(‘‘Rule 7.16’’) to provide that Proactive
if Locked Modifiers will be ignored for
short sale orders during a Short Sale
Period.
Rule 7.16(f) sets forth how the
Exchange handles short sale orders
when the provisions of paragraph (b)(1)
of Rule 201 of Regulation SHO are in
effect.4 Rule 7.16(f)(b)(ii)(sic) provides
that the Exchange will not execute or
display a short sale order for a covered
security, as defined in Rule 201 of
Regulation SHO, at a price that is less
than or equal to the current national
best bid (‘‘NBB’’) if the listing market for
such security has determined that the
price of the covered security decreased
by 10% or more from the prior day’s
closing price (‘‘Short Sale Price Test’’).
Consistent with paragraph (b)(1)(ii) of
Rule 201 of Regulation SHO,5 Exchange
Rule 7.16(f)(iv) defines a Short Sale
Period as the period during which sell
orders marked short are subject to a
Short Sale Price Test. Rule 7.16(f)(v)
further specifies how the Exchange
handles short sale orders during the
Short Sale Period.
The Exchange proposes to add new
Rule 7.16(f)(v)(G) to specify how the
Exchange will handle short sale orders
that include a Proactive if Locked
Modifier during a Short Sale Period. As
defined in Rule 7.31(hh), a Proactive if
Locked Modifier is available for limit
orders and if so designated, the
Exchange will route the order to another
market center pursuant to Rule 7.37(d)
for the away market’s displayed size in
the instance in which the other market
center has locked the order and the
locking market has not resolved the
locked market situation in a timely
manner based upon average response
times from other market centers. If the
order routed from the Exchange to
another market center is not executed in
its entirety, the Exchange shall post the
order or portion thereof on the
Exchange’s book. Proactive if Locked
4 17
5 17
CFR 242.201(b)(1).
CFR 242.201(b)(1)(ii).
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17:37 Oct 31, 2014
Jkt 235001
Modifiers are only available for
Exchange-listed securities.
As proposed, the Exchange will
ignore Proactive if Locked Modifiers
applied to short sale orders for a
security that is in a Short Sale Period.
The Exchange believes that it is
appropriate to ignore the Proactive if
Locked Modifier for short sale orders
during a Short Sale Period because it
would reduce the possibility that the
Exchange will route a short sale order
priced at or below the NBB to another
market center. Instead, the Exchange
will handle the short sale order
consistent with the existing provisions
of Rule 7.16(f)(v), as applicable, which
may include re-pricing the order to a
Permitted Price 6 or rejecting the order,
if so designated by the ETP Holder.7
The Exchange will announce the
implementation date of the systems
functionality associated with the
proposed rule change by Trader Update
to be published no later than 30 days
following the effective date. The
implementation date will be no later
than 30 days following the issuance of
the Trader Update.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act,8 in general, and furthers the
objectives of Section 6(b)(5),9 in
particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to, and
perfect the mechanism of a free and
open market and, in general, to protect
investors and the public interest.
The Exchange believes that ignoring
the Proactive if Locked Modifier for
short sale orders during a Short Sale
Period will remove impediments to and
perfect the mechanism of a free and
open market because it will reduce the
possibility that the Exchange will route
a sell short order priced at or below the
NBB to another market center. Rule
201(b)(1)(i) of Regulation SHO 10
requires that a trading center prevent
the execution or display of a short sale
order at a price that is less than or equal
to the NBB, but is silent on whether a
trading center can route a short sale
order during a Short Sale Period that is
priced less than or equal to the NBB.
The Exchange believes, however, that it
is appropriate and promotes just and
equitable principles of trade to reduce
the possibility that the Exchange would
6 A Permitted Price is one minimum price
increment above the NBB. Rule 7.16(b)(v)(C).
7 See Rule 7.16(b)(v)(A).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 17 CFR 242.201(b)(1)(i)
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
route a sell short order during a Short
Sale Period that is priced less than or
equal to the NBB, as the receiving away
market would otherwise be required to
prevent the display or execution of such
order consistent with Rule 201 of
Regulation SHO. The Exchange
therefore believes that by ignoring
Proactive if Locked Modifiers for short
sale orders during a Short Sale Period,
the Exchange would comply with Rule
201 of Regulation SHO by handling the
order consistent with other provisions
of Rule 7.16(f)(v) and not shift that
responsibility to an away market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes the proposed rule
change removes a burden on
competition because it reduces the
possibility that the Exchange would
route a sell short order during a Short
Sale Period that is priced less than or
equal to the NBB, which otherwise
would have shifted the responsibility
for that sell short order to an away
market. As proposed, the Exchange
would instead be responsible for
handling that sell short order, consistent
with existing Rule 7.16(f)(v) and Rule
201 of Regulation SHO.
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 11 and Rule
19b–4(f)(6) thereunder.12 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)
11 15
12 17
E:\FR\FM\03NON1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
03NON1
Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
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) 13 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:
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–2014–118 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–2014–118.
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 Section, 100 F Street NE.,
Washington, DC 20549–1090. Copies of
the filing will also be available for
13 15
U.S.C. 78s(b)(2)(B).
VerDate Sep<11>2014
17:37 Oct 31, 2014
Jkt 235001
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–2014–118 and should be
submitted on or before November 24,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–26013 Filed 10–31–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73445; File No. SR–CME–
2014–46]
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Make Changes to
Settlement Procedures Regarding
Seven CME Cleared OTC FX Spot,
Forward and Swap Contracts
October 28, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2
notice is hereby given that, on October
20, 2014, Chicago Mercantile Exchange
Inc. (‘‘CME’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
primarily by CME. CME filed the
proposal pursuant to Section 19(b)(3)(A)
of the Act,3 and Rule 19b–4(f)(4)(ii) 4
thereunder, so that the proposal was
effective upon filing with the
Commission. 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
CME is proposing rule changes that
are limited to its business as a
derivatives clearing organization
14 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4)(ii).
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
65275
(‘‘DCO’’). More specifically, the
proposed rule change contains
amendments to certain aspects of CME’s
settlement procedures for seven of
CME’s Cleared Over-the-Counter
(‘‘OTC’’) Foreign Exchange (‘‘FX’’) Spot,
Forward and Swap Contracts.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CME 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. CME has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of these statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
CME is registered as a DCO with the
Commodity Futures Trading
Commission (‘‘CFTC’’) and offers
clearing services for many different
futures and swaps products. The
proposed rule changes that are the
subject of this filing are limited to
CME’s business as a DCO offering
clearing services for CFTC-regulated
swaps products. CME currently offers
clearing services for cleared-only OTC
FX contracts on a number of different
currency pairs. These CME Cleared OTC
FX Spot, Forward and Swap Contracts
are non-deliverable foreign currency
forward contracts and, as such, are
considered to be ‘‘swaps’’ under
applicable regulatory definitions.5 CME
proposes to make amendments to five of
these contracts.
The amendments would impact the
following CME contracts and associated
rules:
• Rule 270H.02.A. Day of Cash
Settlement of Cleared OTC U.S. Dollar/
Chinese Renminbi (USD/RMB) Spot,
Forwards and Swaps (Rulebook Chapter
270H: Commodity Code: USDCNY);
Rule 270H.02.B.—Procedures if No Cash
Settlement Price is Available for the
USD/RMB Cleared OTC Spot, Forwards
and Swaps Contracts;
• Rule 271H.02.A. Day of Cash
Settlement of Cleared OTC U.S. Dollar/
5 See Commodity Futures Trading Commission
and Securities and Exchange Commission Joint
Final Rule Defining ‘‘Swap,’’ ‘‘Security-Based
Swap,’’ and ‘‘Security-Based Swap Agreement;’’
Mixed Swaps; Security-Based Swap Agreement
Recordkeeping, 77 FR 48207, 48255 (August 13,
2012).
E:\FR\FM\03NON1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 212 (Monday, November 3, 2014)]
[Notices]
[Pages 65273-65275]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26013]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73453; File No. SR-NYSEARCA-2014-118]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Equities Rule 7.16(f)(v) To Provide That Proactive if Locked Modifiers
Will Be Ignored for Short Sale Orders During a Short Sale Period
October 28, 2014.
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 October 15, 2014, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III 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 amend NYSE Arca Equities Rule 7.16(f)(v)
to provide that Proactive if Locked Modifiers will be ignored for short
sale orders during a Short Sale Period. 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
[[Page 65274]]
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 is proposing to amend NYSE Arca Equities Rule
7.16(f)(v) (``Rule 7.16'') to provide that Proactive if Locked
Modifiers will be ignored for short sale orders during a Short Sale
Period.
Rule 7.16(f) sets forth how the Exchange handles short sale orders
when the provisions of paragraph (b)(1) of Rule 201 of Regulation SHO
are in effect.\4\ Rule 7.16(f)(b)(ii)(sic) provides that the Exchange
will not execute or display a short sale order for a covered security,
as defined in Rule 201 of Regulation SHO, at a price that is less than
or equal to the current national best bid (``NBB'') if the listing
market for such security has determined that the price of the covered
security decreased by 10% or more from the prior day's closing price
(``Short Sale Price Test''). Consistent with paragraph (b)(1)(ii) of
Rule 201 of Regulation SHO,\5\ Exchange Rule 7.16(f)(iv) defines a
Short Sale Period as the period during which sell orders marked short
are subject to a Short Sale Price Test. Rule 7.16(f)(v) further
specifies how the Exchange handles short sale orders during the Short
Sale Period.
---------------------------------------------------------------------------
\4\ 17 CFR 242.201(b)(1).
\5\ 17 CFR 242.201(b)(1)(ii).
---------------------------------------------------------------------------
The Exchange proposes to add new Rule 7.16(f)(v)(G) to specify how
the Exchange will handle short sale orders that include a Proactive if
Locked Modifier during a Short Sale Period. As defined in Rule
7.31(hh), a Proactive if Locked Modifier is available for limit orders
and if so designated, the Exchange will route the order to another
market center pursuant to Rule 7.37(d) for the away market's displayed
size in the instance in which the other market center has locked the
order and the locking market has not resolved the locked market
situation in a timely manner based upon average response times from
other market centers. If the order routed from the Exchange to another
market center is not executed in its entirety, the Exchange shall post
the order or portion thereof on the Exchange's book. Proactive if
Locked Modifiers are only available for Exchange-listed securities.
As proposed, the Exchange will ignore Proactive if Locked Modifiers
applied to short sale orders for a security that is in a Short Sale
Period. The Exchange believes that it is appropriate to ignore the
Proactive if Locked Modifier for short sale orders during a Short Sale
Period because it would reduce the possibility that the Exchange will
route a short sale order priced at or below the NBB to another market
center. Instead, the Exchange will handle the short sale order
consistent with the existing provisions of Rule 7.16(f)(v), as
applicable, which may include re-pricing the order to a Permitted Price
\6\ or rejecting the order, if so designated by the ETP Holder.\7\
---------------------------------------------------------------------------
\6\ A Permitted Price is one minimum price increment above the
NBB. Rule 7.16(b)(v)(C).
\7\ See Rule 7.16(b)(v)(A).
---------------------------------------------------------------------------
The Exchange will announce the implementation date of the systems
functionality associated with the proposed rule change by Trader Update
to be published no later than 30 days following the effective date. The
implementation date will be no later than 30 days following the
issuance of the Trader Update.
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(5),\9\ in particular, in that it is designed to promote just and
equitable principles of trade, to remove impediments to, and perfect
the mechanism of a free and open market and, in general, to protect
investors and the public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that ignoring the Proactive if Locked
Modifier for short sale orders during a Short Sale Period will remove
impediments to and perfect the mechanism of a free and open market
because it will reduce the possibility that the Exchange will route a
sell short order priced at or below the NBB to another market center.
Rule 201(b)(1)(i) of Regulation SHO \10\ requires that a trading center
prevent the execution or display of a short sale order at a price that
is less than or equal to the NBB, but is silent on whether a trading
center can route a short sale order during a Short Sale Period that is
priced less than or equal to the NBB. The Exchange believes, however,
that it is appropriate and promotes just and equitable principles of
trade to reduce the possibility that the Exchange would route a sell
short order during a Short Sale Period that is priced less than or
equal to the NBB, as the receiving away market would otherwise be
required to prevent the display or execution of such order consistent
with Rule 201 of Regulation SHO. The Exchange therefore believes that
by ignoring Proactive if Locked Modifiers for short sale orders during
a Short Sale Period, the Exchange would comply with Rule 201 of
Regulation SHO by handling the order consistent with other provisions
of Rule 7.16(f)(v) and not shift that responsibility to an away market.
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\10\ 17 CFR 242.201(b)(1)(i)
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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 Exchange believes the
proposed rule change removes a burden on competition because it reduces
the possibility that the Exchange would route a sell short order during
a Short Sale Period that is priced less than or equal to the NBB, which
otherwise would have shifted the responsibility for that sell short
order to an away market. As proposed, the Exchange would instead be
responsible for handling that sell short order, consistent with
existing Rule 7.16(f)(v) and Rule 201 of Regulation SHO.
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 \11\ and Rule 19b-4(f)(6) thereunder.\12\
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)
[[Page 65275]]
of the Act and Rule 19b-4(f)(6)(iii) thereunder.
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
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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) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 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-2014-118 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-2014-118. 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 Section, 100 F Street
NE., Washington, DC 20549-1090. 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-2014-118 and should be
submitted on or before November 24, 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. 2014-26013 Filed 10-31-14; 8:45 am]
BILLING CODE 8011-01-P
