[Federal Register Volume 77, Number 244 (Wednesday, December 19, 2012)]
[Notices]
[Pages 75225-75226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30494]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68418; File No. SR-NYSEMKT-2012-79]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Adding New Rule
956.1NY, Which Will Govern the Submission of Automated Trading Data
December 12, 2012.
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 December 7, 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 self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 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 add new Rule 956.1NY, which will govern
the submission of automated trading data. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to adopt new Rule 956.1NY, which will govern
the automated submission of trading data. The proposed rule is
substantially similar to NYSE Arca Rule 10.2(e) and therefore will
harmonize the rules between the Exchange and NYSE Arca with respect to
the automated submission of trading data for options trading.
The Exchange's rule previously governing the automated submission
of trading data was NYSE MKT Rule 153A--Automated Submission of Trading
Data.\4\ Because the Exchange has a rule specific to the automated
submission of equities trading data, the Exchange believes it should
also have a rule specific to the automated submission of options
trading data. Accordingly, the Exchange proposes to adopt a rule
governing automated submission of trading data that is based upon NYSE
Arca Rule 10.2(e). To avoid any potential confusion of which rules
govern options trading, the Exchange also proposes to add New Rule
956.1NY to the existing rule set relating to the trading of option
contracts.
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\4\ On November 14, 2012, the Exchange filed a proposal to
delete out-of-date and obsolete rules, including Rule 153A, because
it was duplicative of an existing equities rule governing the
automated submission of trading data (NYSE MKT Rule 410A--Equities)
(both of which are substantially similar to proposed Rule 956.1NY).
See Securities Exchange Act Release No. 68306 (November 28, 2012),
77 FR 71846 (December 4, 2012) (NYSEMKT-2012-68).
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the
[[Page 75226]]
objectives of Section 6(b)(5) of the Act,\6\ in particular, in that, by
adopting a rule that is based on an existing rule that addresses the
industry standard for automated submission of trading data, 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 assuring that the Exchange has proper data to further its
regulatory and surveillance programs. The Exchange further believes
that the proposal to add the rule to the section relating to options
trading 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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\5\ 15 U.S.C. Sec. 78f(b).
\6\ 15 U.S.C. Sec. 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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
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.\9\
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ Id. 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) \10\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Commission believes that waiver of the operative delay is
consistent with the protection of investors and the public interest
because the proposal is substantially similar to NYSE Arca Rule
10.2(e), as well as former NYSE MKT Rule 153A and current NYSE MKT Rule
410A, which have all been approved by the Commission and govern the
submission of trading data. Additionally, the effectiveness of this
rule will bring NYSE MKT's Rules in line with an industry-wide standard
governing the submission of trading data. Waiver of the operative delay
will ensure the Exchange is not without an operative rule governing the
submission of trading data, as the deletion of former NYSE MKT Rule
153A becomes effective Dec. 14, 2012. Therefore, the Commission
designates the proposal operative upon filing.\12\
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\12\ For purposes only of waiving the 30-day operative delay,
the Commission has 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 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-2012-79 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-2012-79. 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-NYSEMKT-2012-79, and should be submitted on or before
January 9, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-30494 Filed 12-18-12; 8:45 am]
BILLING CODE 8011-01-P