[Federal Register Volume 77, Number 233 (Tuesday, December 4, 2012)]
[Notices]
[Pages 71846-71848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-29216]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68306; File No. SR-NYSEMKT-2012-68]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending Its Rules To
Delete Obsolete and Out-Dated Rules
November 28, 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 November 14, 2012, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules to delete obsolete and
out-dated rules. 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 amend its rules to delete obsolete and
out-dated rules. By removing these obsolete and out-dated rules, the
Exchange is not proposing to change or alter any obligations, rights,
policies or practices enumerated within its rules. Rather, the proposal
to delete obsolete and out-dated rules will reduce any potential
confusion that may result from having obsolete rules continue to appear
in the Exchange's rulebook.
As part of its review to identify obsolete and out-dated rules, the
Exchange proposes to delete rules that relate to trading systems that
have since been decommissioned by the Exchange and rules that were
superseded by later-implemented rules governing the same conduct or
circumstances. In particular, the proposed rule changes relate to
Exchange rules that previously governed equity trading at the Exchange.
Background
In September 2008, NYSE Euronext acquired the American Stock
Exchange LLC (``Amex'').\5\ As part of the integration of the
companies, in December 2008, the Exchange relocated trading in its
listed equity securities from Amex's trading floor located at 86
Trinity Place in New York to the New York Stock Exchange's (``NYSE'')
trading floor located at 11 Wall Street, and adapted the NYSE equities
trading platform to trade those securities. The Exchange also adopted
equity trading rules for NYSE MKT based on the NYSE's equities trading
rules.\6\ By their terms, the Exchange's new equities trading rules
superseded the AEMI rules (and certain other Amex rules that were
[[Page 71847]]
inconsistent with the new rules) for all trading in Exchange-listed
equity securities.\7\
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\5\ See Securities Exchange Act Release No. 58673 (September 29,
2008), 73 FR 57707 (October 3, 2008) (SR-Amex-2008-62 and SR-NYSE-
2008-60).
\6\ See Securities Exchange Act Release No. 58705 (October 1,
2008), 73 FR 58995 (October 8, 2008) (SR-Amex-2008-63) (Order
Granting Approval of Proposed Rule Change to Establish New
Membership, Member Firm Conduct, and Equity Trading Rules Following
the Exchange's Acquisition by NYSE Euronext).
\7\ See NYSE MKT Rule 0(b) and NYSE MKT Rule 0--Equities.
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Specifically, pursuant to Rule 0(b), all transactions conducted on
or through the systems and facilities of the NYSE are governed by the
Equities Rules in accordance with Rule 0-Equities. Rule 0-Equities
further provides that the Equities Rules govern all transactions
conducted on the Equities Trading System, i.e., the systems operated by
the NYSE.
Proposed Rule Deletions
The following identifies by category the legacy Amex, now NYSE MKT
Rules that can be deleted in their entirety as obsolete and out-dated:
AEMI Rules
Many of the rules being proposed for deletion relate to the
``Auction & Electronic Market Integration'' (``AEMI'') platform, which
Amex operated from September 2006 to November 2008 for trading of
listed equity securities. The so-called AEMI rules were adopted in
September 2006 in conjunction with the rollout of the AEMI trading
system.\8\ As noted in Rule 0(a), the AEMI rules governed trading on
the systems formerly located at 86 Trinity Place, which are no longer
operating. NYSE MKT is now proposing to delete the AEMI rules on the
basis that the system that they govern is no longer operative.\9\
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\8\ See Securities Exchange Act Release No. 54552 (Sept. 29,
2006), 71 FR 59546 (Oct. 10, 2006) (SR-Amex-2005-104).
\9\ See NYSE MKT Rules 1-AEMI through 719-AEMI and AEMI-One
Rules.
Although the Exchange is proposing to delete most of the AEMI
rules, it is retaining certain rules that contain definitions that
are relevant to current listing and trading in Portfolio Depository
Receipts (Rule 1000-AEMI); Index Fund Shares (Rule 1000A-AEMI);
Rules of General Applicability (relating to trading of Trust Issued
Receipts) (Rule 1200-AEMI); Commodity-Based Trust Shares (Rule
1200A-AEMI); Currency Trust Shares (Rule 1200B-AEMI); and Trading of
Partnership Units (Rule 1500-AEMI). The Exchange intends to review
the placement of these rules, and their possible relocation, in a
subsequent phase of its rule review project. In addition, the
Exchange is not proposing to delete NYSE MKT Rule 910--AEMI until
such time that the Amex Company Guide is similarly updated to
reflect the appropriate cross reference.
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Rules That Were Superseded by Aemi but never deleted
The AEMI system was rolled out in phases starting in 2006. Although
the AEMI rules were intended to supersede the Amex's then-existing
equities trading rules, certain of those equities trading rules were
left in place pending the completion of the AEMI rollout, and upon
completion, were to have been deleted via a rule filing with the
Commission.\10\ To the best of the Exchange's knowledge, that filing
was never made. Because of the provision in the AEMI rules making those
rules definitively obsolete, the adoption of new equities trading rules
in December 2008, and the fact that those rules are no longer
consistent with current Exchange systems, the Exchange proposes to
delete those enumerated rules now in order to avoid any confusion
within the rulebook.\11\ For example, NYSE MKT Rule 100 is now
addressed in NYSE MKT Rule 51- Equities (for equities trading) and NYSE
MKT Rule 901NY (for options trading). As another example, NYSE MKT Rule
108, which governs priority and parity at openings for equities
trading, is now governed by NYSE MKT Rules 72--Equities and 115A--
Equities. In summary, the rules being deleted are now all covered in
the equities rules that govern trading at the Exchange.\12\
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\10\ See Section (e) of NYSE MKT Rule 1A-AEMI.
\11\ See NYSE MKT Rules 100, 108, 109, 110, 112, 115, 118, 119,
123, 124, 126, 127, 131, 131A, 132, 135, 135A, 151, 152, 153, 154,
155, 156, 157, 178, 179, 200, 205, 206 and 207.
\12\ See supra, notes 6 and 7.
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Equities Trading Rules That Are Superseded by Later-Adopted Trading
Rules
As noted above, in connection with its integration into NYSE
Euronext, the Exchange adopted new equities trading rules based on the
NYSE equities trading rules. Because the rules were adopted while NYSE
MKT continued to operate at the 86 Trinity Place location, the Exchange
did not simultaneously delete previous rules that were being superseded
by the new equities trading rules. Instead, the Exchange adopted Rule
0- Equities, which explained that the new rules superseded any of the
old rules that were inconsistent. For the sake of clarity, the Exchange
now proposes to delete the former Amex equities trading rules that,
pursuant to Rule 0-Equities are now superseded by the equities
rules.\13\
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\13\ See NYSE MKT Rules 5, 6, 7, 8, 9, 10, 13, 14, 15, 16, 17,
18, 19, 20, 23, 25, 26, 27, 28, 29, 30A, 60, 62, 63, 101, 102, 103,
104, 105, 106, 107, 111, 114, 116, 117, 117A, 119A, 120, 121, 122,
125, 128, 129, 130, 133, 134, 136, 140, 150, 153A, 176, 177, 180,
181, 182, 183, 184, 185, 186, 187, 188, 189, 190, 191, 192, 193,
201, 202, 203, 204 and 208.
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After-Hours Trading Rules
Since the integration of the Exchange into NYSE Euronext, the
Exchange has conducted its after-hours trading through the NYSE's
trading systems, and consequently adopted a version of the NYSE's
after-hours trading rules.\14\ Because the Exchange has adopted
superseding rules for after-hours trading, the Exchange proposes to
delete the prior set of rules relating to after-hours trading.\15\
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\14\ See NYSE MKT Rules 900-Equities--907-Equities.
\15\ See NYSE MKT Rules 1300 through 1306.
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Cross-References
The Exchange is also proposing to amend those rules that cross-
reference rules that are being deleted pursuant to this filing.\16\
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\16\ See NYSE MKT Rules 905G and Commentary .02 to 906.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\17\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\18\ in particular, in that, by deleting obsolete
and out-dated rules, it promotes just and equitable principles of
trade, removes impediments to and perfects the mechanism of a free and
open market and a national market system, and, in general, helps to
protect investors and the public interest by providing transparency as
to which rules are operable and reducing potential confusion that may
result from having obsolete or out-dated rules in the Exchange's
rulebook. The Exchange further believes that the proposal removes
impediments to and perfects the mechanism of a free and open market by
ensuring that members, regulators and the public can more easily
navigate the Exchange's rulebook and better understand what obligations
attach and when.
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\17\ 15 U.S.C. 78f(b)
\18\ 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.
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
Because the foregoing proposed rule does not (i) Significantly
affect the protection of investors or the public
[[Page 71848]]
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, provided that the
self-regulatory organization has given the Commission written notice of
its intent to file 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 proposed rule change has
become effective pursuant to Section 19(b)(3)(A) of the Act \19\ and
Rule 19b-4(f)(6) thereunder.\20\
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\19\ 15 U.S.C. 78s(b)(3)(A).
\20\ 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.
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 Number SR-NYSEMKT-2012-68 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-NYSEMKT-2012-68. 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
10:00 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-NYSEMKT-2012-68 and should
be submitted on or before December 26, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 C.F.R. 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-29216 Filed 12-3-12; 8:45 am]
BILLING CODE 8011-01-P