[Federal Register Volume 80, Number 2 (Monday, January 5, 2015)]
[Notices]
[Pages 271-272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30803]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73952; File No. SR-NYSEArca-2014-146]
Self-Regulatory Organizations; NYSE Arca Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Equities Rules 7.32 in Order To Increase the Maximum Order Entry Size
to Five Million Shares
December 29, 2014.
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 18, 2014, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') 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 Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Arca Equities Rules 7.32 in
order to increase the maximum order entry size to five million shares.
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
NYSE Arca Equities Rule 7.32 (``Rule 7.32'') currently provides
that orders entered with a size greater than one million shares shall
be rejected. The Exchange proposes to amend Rule 7.32 to increase the
size of orders that may be entered on the Exchange. As proposed, Rule
7.32 would be amended to specify that orders entered with a size
greater than five million shares would be rejected.\4\ The Exchange
believes that the increased maximum order size would enable ETP Holders
with orders sized larger than one million shares to enter a single
order at the Exchange rather than have to break such order into
separate orders of one million shares or less for purposes of order
entry at the Exchange.\5\ The Exchange notes that ETP Holders entering
such large-sized orders would be subject to the market access control
requirements set forth in Rule 15c3-5 under the Act (``Rule 15c3-5'')
relating to the entry of orders.\6\ The Exchange also proposes, upon at
least 24 hours advance notice to market participants, to decrease the
maximum order size of five million shares on a security-by-security
basis.
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\4\ At the time the current rule was approved, Exchange systems
could not accept orders with a size greater than one million shares.
See Securities Exchange Act Release No. 71331 (January 16, 2014), 79
FR 3907 (January 23, 2014) (SR-NYSEArca-2014-92) [sic]. Exchange
systems are now ready to accept orders up to five million shares.
\5\ The Exchange notes that the New York Stock Exchange, LLC
(``NYSE'') supports the entry of orders up to 25,000,000 in size.
See NYSE Rule 1000.
\6\ 17 CFR 240.15c3-5.
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Because of the technology changes associated with the proposed rule
change, the Exchange proposes to announce the implementation date via
Trader Update.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Act, in general, and furthers the objectives of Section 6(b)(5),\8\ in
particular, in that it is designed to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. Specifically, the Exchange
believes that increasing the maximum order size would remove
impediments to and perfect a national market system by increasing
capacity and providing more efficient methods for ETP Holders to
transmit large-sized orders to the Exchange. The Exchange believes that
the proposed rule change would not be inconsistent with the public
interest and the protection of investors because investors would not be
harmed by the increase in the maximum size of orders that the Exchange
would accept since ETP Holders entering such large-sized orders would
continue to be subject to the market access control requirements of
Rule 15c3-5. The Exchange further believes that the proposed ability
for the Exchange to decrease the maximum order size on a security-by-
security basis following notice to the market also would remove
impediments and perfect the mechanism of a free and open market because
it provides the Exchange with the flexibility to reduce order entry
size to respond to a market event that may warrant a smaller order size
entry for a symbol. The Exchange believes that providing at least 24
hours-notice would be consistent with the public interest and the
protection of investors at is [sic] would provide time for ETP Holders
to adjust their order entry for a symbol should such a decrease be
warranted for a symbol.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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[[Page 272]]
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change imposes
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange operates in a
highly competitive market environment and the proposed change, by
expanding the size of the orders the Exchange would accept, is designed
to attract order flow to the Exchange by making the entry of large-
sized orders more efficient for ETP Holders.
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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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.
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
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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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. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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-NYSEArca-2014-146 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2014-146. 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-NYSEArca-2014-146 and should
be submitted on or before January 26, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2014-30803 Filed 1-2-15; 8:45 am]
BILLING CODE 8011-01-P