[Federal Register Volume 77, Number 194 (Friday, October 5, 2012)]
[Notices]
[Pages 61035-61036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24578]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67957; File No. SR-ISE-2012-74]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Amend ISE Rule 711 To Provide for the Nullification of Trades
by Mutual Agreement of the Parties Thereto
October 1, 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 September 19, 2012, the International Securities Exchange, LLC
(the ``Exchange'' or the ``ISE'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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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 the
Substance of the Proposed Rule Change
The Exchange proposes to amend ISE Rule 711 to provide for the
nullification of trades by mutual agreement of the parties thereto. The
text of the proposed rule change is available on the Exchange's Web
site www.ise.com, at the principal office of the Exchange, at the
Commission's Web site http://www.sec.gov, and at the Commission's
Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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 self-regulatory organization has prepared summaries,
set forth in Sections A, B and C below, of the most significant aspects
of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is to amend ISE Rule 711
to provide for the nullification of trades by mutual agreement of the
parties thereto. Under Proposed ISE Rule 711(b), a trade would be
nullified if all parties to the trade agree to the nullification.\3\
After agreement has been reached between the parties to nullify a
trade, one party would be required to notify the Exchange and the
Exchange promptly will disseminate the nullification to the Options
Price Reporting Authority (``OPRA''). Proposed ISE Rule 711(b) would
provide the parties to a trade with the ability to nullify a trade
under circumstances where, for example, an obvious or catastrophic
error is not deemed to have occurred, but the parties to the trade
nonetheless desire that the trade be nullified.
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\3\ The changes proposed to ISE Rule 711 are based on NYSE MKT
LLC (formerly known as NYSE Amex LLC) Rule 965NY, Commentary .02.
The Exchange believes that, though not required, parties generally
would need to agree to nullify a trade prior to that trade being
settled.
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2. Statutory Basis
The Exchange believes that the proposed rule change, which would
permit a trade to be nullified upon the mutual agreement of all parties
to the trade, is consistent with Section 6(b) of the Securities
Exchange Act of 1934 (the ``Exchange Act''),\4\ in general, and
furthers the objectives of Section 6(b)(5) of the Exchange Act,\5\ in
particular, because it is designed to promote just and equitable
principles of trade, remove impediments to and perfect the mechanism
for a free and open market and a national market system, and in
general, to protect investors and the public interest. The proposed
rule change makes clear the contractual rights of the parties to a
trade to nullify the trade upon mutual agreement. The Exchange believes
that the proposed rule change is consistent with a free and open market
and the public interest because it gives effect to the contractual
rights of the parties to a trade.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
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 unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) 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) \6\ of the Act and
Rule 19b-4(f)(6) \7\ thereunder.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6). 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 text of the proposed rule change, at least
five business days prior to the date of filing the proposed rule
change.
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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
[[Page 61036]]
Number SR-ISE-2012-74 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2012-74. 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 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-ISE-2012-74, and should be submitted on or before
October 26, 2012.
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\8\ 17 CFR 200.30-3(a)(12).
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-24578 Filed 10-4-12; 8:45 am]
BILLING CODE 8011-01-P