[Federal Register Volume 78, Number 206 (Thursday, October 24, 2013)]
[Notices]
[Pages 63547-63548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-24914]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70713; SR-NYSE-2013-21; SR-NYSEMKT-2013-25]
Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE
MKT LLC; Notice of Designation of Longer Period for Commission Action
on Proceedings To Determine Whether To Disapprove Proposed Rule
Changes, as Modified by Amendment Nos. 1, Amending NYSE Rule 104 and
NYSE MKT Rule 104--Equities to Codify Certain Traditional Trading Floor
Functions That May Be Performed by Designated Market Makers, To Make
Exchange Systems Available to DMMs That Would Provide DMMs With Certain
Market Information, To Amend the Exchanges' Rules Governing the Ability
of DMMs To Provide Market Information To Floor Brokers, and To Make
Conforming Amendments to Other Rules
October 18, 2013.
On April 9, 2013, the New York Stock Exchange LLC (``NYSE'') and
NYSE MKT LLC (``NYSE MKT'') (collectively, the ``Exchanges'') each
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act
[[Page 63548]]
of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ proposed rule
changes (``Proposals'') to amend certain of their respective rules
relating to Designated Market Makers (``DMMs'') \3\ and floor brokers.
The SRO Proposals were published for comment in the Federal Register on
April 29, 2013.\4\ The Commission received two comment letters on the
NYSE proposal.\5\ On June 11, 2013, the Commission extended to July 26,
2013 the period in which to approve, disapprove, or institute
proceedings to determine whether to disapprove the Proposals.\6\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See NYSE Rule 98(b)(2). ``DMM unit'' means any member
organization, or division or department within an integrated
proprietary aggregation unit of a member organization that (i) has
been approved by NYSE Regulation pursuant to section (c) of NYSE
Rule 98, (ii) is eligible for allocations under NYSE Rule 103B as a
DMM unit in a security listed on NYSE, and (iii) has met all
registration and qualification requirements for DMM units assigned
to such unit. The term ``DMM'' means any individual qualified to act
as a DMM on the Floor of the Exchange under NYSE Rule 103. See also
NYSE MKT Equities Rule 2(i). NYSE MKT Rule 2(i) defines the term
``DMM'' to mean an individual member, officer, partner, employee or
associated person of a DMM unit who is approved by the Exchange to
act in the capacity of a DMM. NYSE MKT Equities Rule 2(j) defines
the term ``DMM unit'' as a member organization or unit within a
member organization that has been approved to act as a DMM unit
under NYSE MKT Equities Rule 98.
\4\ See Securities Exchange Act Release Nos. 69427 (April 23,
2013), 78 FR 25118 (SR-NYSE-2013-21) (``NYSE Notice''); 69428 (April
23, 2013), 78 FR 25102 (SR-NYSEMKT-2013-25). On April 18, 2013, the
Exchanges each filed Partial Amendment No. 1 to the Proposals. The
purpose of the amendment was to file the Exhibit 3, which was not
included in the April 9, 2013 filings.
\5\ See Letter to Elizabeth M. Murphy, Secretary, Commission,
from Daniel Buenza, Lecturer in Management, London School of
Economics and Yuval Millo, Professor of Social Studies of Finance,
University of Leicester, dated May 20, 2013 (``LSE Letter I'');
Letter to Commission, from James J. Angel, Ph.D., CFA, Associate
Professor of Finance, Georgetown University, McDonough School of
Business, dated May 14, 2013 (``Angel Letter''). Although the
comment letters addressed only the NYSE proposal, the NYSE and NYSE
MKT proposals are essentially identical for relevant purposes.
\6\ See Securities Exchange Act Release No. 69736, 78 FR 36284
(June 17, 2013) (SR-NYSE-2013-21); Release No. 69733, 78 FR 36284
(SR-NYSEMKT-2012-25) (June 17, 2013).
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On July 26, 2013, the Commission instituted proceedings to
determine whether to approve or disapprove the Proposals.\7\ The
Commission thereafter received one comment letter on the NYSE
proposal.\8\ NYSE Euronext, on behalf of the Exchanges, submitted a
response letter on September 5, 2013.\9\
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\7\ See Securities Exchange Act Release No. 70047, 78 FR 46661
(August 1, 2013) (``Order Instituting Proceedings'').
\8\ See Letter to Elizabeth M. Murphy, Secretary, Commission,
from Daniel Buenza, Lecturer in Management, London School of
Economics and Yuval Millo, Professor of Social Studies of Finance,
University of Leicester, dated August 22, 2013 (``LSE Letter II'').
\9\ See Letter to Elizabeth M. Murphy, Secretary, Commission,
from Janet McGinness, Executive Vice President and Corporate
Secretary, NYSE Euronext, dated September 5, 2013.
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Section 19(b)(2) of the Act \10\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the Federal Register publishes notice of the proposed rule change,
unless the Commission determines that a longer period is appropriate
and publishes the reasons for this determination, in which case the
Commission may extend the period for issuing an order approving or
disapproving the proposed rule change by not more than 60 days. The
proposed rule changes were published for notice and comment in the
Federal Register on April 29, 2013. October 26, 2013 is 180 days from
that date, and December 25, 2013 (which is a Federal holiday) is an
additional 60 days from that date.
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\10\ 15 U.S.C. 78s(b)(2).
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The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the Proposals
so that the Commission has sufficient time to consider the Proposals,
the issues raised in the comment letters that have been submitted in
connection with the Proposals, and the response to these issues in the
NYSE Euronext response letter. Accordingly, the Commission, pursuant to
Section 19(b)(2) of the Act,\11\ designates December 24, 2013, as the
date by which the Commission must either approve or disapprove the
proposed rule changes SR-NYSE-2013-21 and SR-NYSEMKT-2013-25.
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\11\ 15 U.S.C. 78s(b)(2).
\12\ 17 CFR 200.30-3(a)(57).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24914 Filed 10-23-13; 8:45 am]
BILLING CODE 8011-01-P