[Federal Register Volume 77, Number 20 (Tuesday, January 31, 2012)]
[Notices]
[Pages 4842-4843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1978]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66229; File No. SR-NSX-2012-01]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend its Rules To Extend Pilot Program Regarding Trading Pauses in
Individual Securities Due to Extraordinary Market Volatility
January 24, 2012.
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 January 11, 2012, National Stock Exchange, Inc. (the
``Exchange'' or ``NSX'') 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
National Stock Exchange, Inc. (``NSX[supreg]'' or ``Exchange'') is
proposing to amend its rules to extend a certain pilot program
regarding trading pauses in individual securities due to extraordinary
market volatility.
The text of the proposed rule change is available on the Exchange's
Web site at http://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.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
With this rule change, the Exchange is proposing to extend a pilot
program currently in effect regarding trading pauses in individual
securities due to extraordinary market volatility under NSX Rule
11.20B. Currently, unless otherwise extended or approved permanently,
this pilot program will expire on January 31, 2012. The instant rule
filing proposes an extension to the pilot program until July 31, 2012.
NSX Rule 11.20B (Trading Pauses in Individual Securities Due to
Extraordinary Market Volatility) was approved by the Securities and
Exchange Commission (the ``Commission'') on June 10, 2010 on a pilot
basis to end on December 10, 2010.\3\ The pilot program end date was
subsequently extended until April 11, 2011.\4\ Similar rule changes
were adopted by other markets in the national market system in a
coordinated manner. As the Exchange noted in its filing to adopt NSX
Rule 11.20B, during the pilot period, the Exchange, in conjunction with
other markets in the national market system, would continue to assess
whether additional securities need to be added and whether the
parameters of the rule would need to be modified to accommodate trading
characteristics of different securities. NSX Rule 11.20B was expanded
to include additional exchange traded products on September 10,
2010.\5\ The pilot program end date was further extended to August 11,
2011 or the date on which a limit up/limit down mechanism to address
extraordinary market volatility, if adopted applies.\6\ The pilot
program was then again lengthened until January 31, 2012.\7\ The
Exchange, in consultation with the Commission and other markets, is now
proposing that this pilot program be extended until July 31, 2012.
Accordingly, pursuant to the instant rule filing, the expiration date
of the pilot program referenced in
[[Page 4843]]
Commentary .05 to Rule 11.20B is proposed to be changed from ``January
31, 2012'' to ``July 31, 2012.''
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\3\ See Securities Exchange Act Release No. 62252 (June 10,
2010), 75 FR 34186 (June 16, 2010) (SR-NSX-2010 05).
\4\ See Securities Exchange Act Release No. 63512 (December 9,
2010), 75 FR 78786 (December 16, 2010) (SR-NSX-2010-17).
\5\ See Securities Exchange Act Release No. 62884 (September 10,
2010), 75 FR 56618 (September 16, 2010) (SR-NSX-2010-08).
\6\ See Securities and Exchange Act Release No. 34-64213 (April
6, 2011), 76 FR 20409 (April 12, 2011) (SR-NSX-2011-04).
\7\ See Securities Exchange Act Release No. 34-65095 (August 10,
2011), 76 FR 50777 (August 16, 2011) (SR-NSX-2011-08).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) and Section 11A of the Securities
Exchange Act of 1934 \8\ (the ``Act''), in general, and Section 6(b)(5)
of the Act,\9\ in particular, in that it is designed, among other
things, to promote clarity, transparency and full disclosure, in so
doing, to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to maintain fair and orderly markets
and protect investors and the public interest. Moreover, the proposed
rule change is not discriminatory in that it uniformly applies to all
ETP Holders. The Exchange believes that the extension of the pilot
program will promote uniformity among markets with respect to trading
pauses.
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\8\ 15 U.S.C. 78f(b) and 15 U.S.C. 78k-1, respectively.
\9\ 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 inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
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 \10\ and Rule 19b-4(f)(6) thereunder.\11\
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 \12\ and Rule 19b-
4(f)(6)(iii) thereunder.\13\
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\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and 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. The
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6)\14\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii)\15\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest, as
it will allow the pilot program to continue uninterrupted, thereby
avoiding the 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.\16\
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\16\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File No. SR-NSX-2012-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-NSX-2012-01. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 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 No. SR-NSX-2012-01 and should be
submitted on or before February 21, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-1978 Filed 1-30-12; 8:45 am]
BILLING CODE 8011-01-P