[Federal Register Volume 75, Number 116 (Thursday, June 17, 2010)]
[Notices]
[Pages 34504-34506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14669]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62281; File No. SR-NYSEARCA-2010-52]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Arca US LLC Amending NYSE
Arca Equities Rule 7.11 To Set Forth How the Exchange Will Handle Order
Flow During a Trading Pause for a Security Listed on an Exchange Other
Than NYSE Arca
June 11, 2010.
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 June 10, 2010, NYSE Arca US LLC (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 Rule 7.11 to set
forth how the Exchange will handle order flow during a Trading Pause
for a security listed on an exchange other than NYSE Arca. The text of
the proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and http://www.nyse.com.
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 Rule 7.11 to set forth how the
Exchange will handle order flow during a Trading Pause for a security
listed on an exchange other than NYSE Arca.
Rule 7.11 was approved by the Commission on June 10, 2010.\4\ The
Exchange proposes to add subsection (f) to the Rule to address how
orders will be handled when another primary listing market issues a
trading pause. Upon the receipt of a trading pause message from another
primary listing market, the Exchange will take the following actions:
(i) Maintain all resting orders in the Book; (ii) cancel any unexecuted
portion of Market Orders and Pegged Orders; (iii) accept
[[Page 34505]]
and process all cancellations; (iv) accept and route new Market Orders
to the primary market; (v) accept and route PO and PO+ Orders to the
primary market; and (vi) reject all other orders until the stock has
reopened. The Exchange proposes to follow these procedures during a
regulatory halt called by another market as well.
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\4\ See Securities Exchange Act Release No. 62252 (June 10,
2010).
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Once trading has resumed on the primary listing market or notice
has been received from the primary listing market that trading may
resume, the Exchange will resume normal order processing in accordance
with its rules.
The Exchange believes that these procedures will ensure that
following a Trading Pause or regulatory halt, the primary listing
market will be able to conduct a fair and orderly reopening because any
new order flow during the pause will be available to the primary market
to conduct price discovery for the reopening.
The Exchange also proposes to amend Rule 7.11 to provide that in
the event of an early scheduled close, the rule would be in effect
until 25 minutes before such scheduled close.
2. Statutory Basis
The statutory basis for the proposed rule change is Section 6(b)(5)
of the Securities Exchange Act of 1934 (the ``Act''),\5\ which requires
the rules of an exchange 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 also is
designed to support the principles of Section 11A(a)(1) \6\ of the Act
in that it seeks to assure fair competition among brokers and dealers
and among exchange markets. The Exchange believes that the proposed
rule meets these requirements in that it promotes transparency for how
order flow will be handled during a Trading Pause for a security listed
on an exchange other than NYSE Arca. The proposed rule also promotes a
fair and orderly market by enabling the primary listing market to
properly price a security for the reopening following a Trading Pause.
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\5\ 15 U.S.C. 78f(b)(5).
\6\ 15 U.S.C. 78k-1(a)(1).
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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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\10\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. 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 notes that
the proposed rule change clarifies how the Exchange will handle order
flow during a Trading Pause for a security listed on an exchange other
than NYSE Arca. The proposed rule change does not raise any new
substantive issues. For these reasons, the Commission believes that the
waiver of the 30-day operative date is consistent with the protection
of investors and the public interest.\11\
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\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition and capital formation. 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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 e-mail to [email protected]. Please include
File Number SR-NYSEARCA-2010-52 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-NYSEARCA-2010-52. This
file number should be included on the subject line if e-mail 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 copying in the Commission's Public Reference Section, 100 F
Street, NE, Washington, DC 20549-1090. Copies of the filing will also
be available for inspection and copying at the NYSE's principal office
and on its Internet Web site at http://www.nyse.com. 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-2010-52 and should
be submitted on or before July 8, 2010.
[[Page 34506]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
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\12\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2010-14669 Filed 6-16-10; 8:45 am]
BILLING CODE 8010-01-P