[Federal Register Volume 78, Number 30 (Wednesday, February 13, 2013)]
[Notices]
[Pages 10226-10228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-03275]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68861; File No. SR-NYSE-2013-12]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Cease Operating New York Block Exchange and Contemporaneously Delete
the Text of Rule 1600, Which Governs NYBX Functionality
February 7, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the
[[Page 10227]]
``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that,
on February 5, 2013, the New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') 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 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
The Exchange proposes to contemporaneously delete the text of Rule
1600, which governs NYBX functionality. 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 intends to cease operating New York Block Exchange
(``NYBX''), effective February 28, 2013, and as such, proposes to
contemporaneously delete the text of Rule 1600, which governs NYBX's
functionality.\3\ NYBX is an electronic exchange facility that provides
for the continuous matching and execution of all non-displayed NYBX
orders with the aggregate of liquidity in the NYBX Facility, the NYSE
Display Book[supreg] and considers the protected quotations of all
automated trading centers for securities listed on the NYSE. The
Exchange is ceasing operations of NYBX Facility because after years of
operations the facility has not garnered enough volume to achieve
critical mass and does not have strong support customers [sic]. The
Exchange will provide advance notice to its members and member
organizations of the discontinuation of this functionality.
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\3\ In 2011, the Exchange filed a similar filing to cease
operations of NYSE Matchpoint and delete Rules related the exchange
facility. See Securities Exchange Act Release No. 63898 (February
11, 2011), 76 FR 9616 (February 18, 2011) (SR-NYSE-2011-03).
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The Exchange also proposes to make conforming changes to remove
references to Rule 1600 and NYBX from the following other Exchange
rules: Rule 13, Rule 15, Supplementary Materials .15 and .20 to Rule
79A, Rule 80C, Supplementary Material .10 to Rule 104, Supplementary
Material .10, .12, and .13 to Rule 104T, Supplementary Material .40 to
Rule 116, Rule 123B, Supplementary Material .10 to Rule 123C,
Supplementary Material .25 to Rule 123D, and Supplementary Material .11
to Rule 1000.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\4\ in
general, and furthers the objectives of Section 6(b)(5) of the Act,\5\
in particular, in that it is designed 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 protect investors and the public interest. The proposed
rule change, in conjunction with a related communication to members and
member organizations, will provide advance notice to NYSE members and
member organizations that the Exchange will cease operation of NYBX.
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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 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 proposed changes are
being made to remove references for NYBX from the Exchange Rules to
correspond with the Exchange ceasing operations of NYBX facility. The
Exchange is ceasing operations of NYBX Facility because after years of
operations the facility has not garnered enough volume to achieve
critical mass and does not have strong support customers [sic]. The
Exchange is ceasing operations of NYBX because the facility was not
competitive, therefore ceasing operations should not have any burden on
competition.
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 \6\ and Rule 19b-4(f)(6) thereunder.\7\
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.\8\
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6).
\8\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19-b-
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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The Exchange has requested a waiver of the 30-day operative delay
so that the Exchange can cease operations of the NYBX Facility by
February 28, 2013. The Exchange notes that NYBX has not achieved
significant volume during its operations and does not believe that
ceasing its operation will significantly affect the protection of
investors or the public interest. The Exchange further notes that
discontinuing operations of NYBX at month end will coincide with the
Exchange's billing cycle and avoid the expense and inconvenience of
extending operations into a partial month. The Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest because such waiver would allow the
Exchange to cease operations of NYBX without incurring the expense of
extending operations into a partial month. Therefore, the Commission
[[Page 10228]]
designates the proposed rule change as operative as of February 28,
2013.\9\
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\9\ For the 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-NYSE-2013-12 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.
All submissions should refer to File Number SR-NYSE-2013-12. 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-NYSE-2013-12 and should be
submitted on or before March 6, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03275 Filed 2-12-13; 8:45 am]
BILLING CODE 8011-01-P