[Federal Register Volume 75, Number 149 (Wednesday, August 4, 2010)]
[Notices]
[Pages 47051-47052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19224]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62600; File No. SR-NYSEArca-2010-72]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Rule
7.31(x)
July 29, 2010.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on July 22, 2010, NYSE Arca, Inc. (``NYSE Arca'' 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 self-regulatory
organization. NYSE Arca filed the proposed rule change as a ``non-
controversial'' proposal pursuant to Section 19(b)(3)(A) of the Act \4\
and Rule 19b-4(f)(6) thereunder, \5\ which renders the proposal
effective upon filing with the Commission. 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.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(6).
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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 Rule 7.31(x). The text of the
proposed rule change is available on the Exchange's Web site at http://www.nyse.com, on the Commission's Web site at http://www.sec.gov, at
the Exchange, and at the Commission's Public Reference Room. A copy of
this filing is available on the Exchange's Web site at http://www.nyse.com, at the Exchange's principal office 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
NYSE Arca Equities Rule 7.31(x) defines the Primary Only (``PO'')
Order, which allows ETP Holders to direct an order to the primary
listing market without first sweeping the NYSE Arca Book. ETP Holders
may use PO Orders to direct Market-on-Close (``MOC'') or Limit-on-Close
(``LOC'') to NYSE and NYSE Amex. However, pursuant to NYSE and NYSE
Amex rules, orders entered for execution on those markets that are
designated as MOC or LOC may not be cancelled or reduced in size after
3:45 PM ET unless the cancellation is entered to correct a legitimate
error. MOC and LOC orders entered on NYSE and NYSE Amex may not be
cancelled or reduced in size for any reason after 3:58 p.m. ET.
By this filing, NYSE Arca proposes to amend its rules to allow for
a new system control that, after 3:45 p.m. ET, will automatically
reject any attempt to electronically cancel or reduce in size a PO
Order designated as MOC or LOC that has been directed to the NYSE or
NYSE Amex. ETP Holders that wish to cancel or cancel and replace, after
3:45 p.m., a PO Order that has been directed to the NYSE or NYSE Amex
and designated as MOC or LOC must do so manually by contacting the NYSE
Arca Trade Operations Desk.
The Exchange believes this new system control will prevent the
cancellation of MOC and LOC orders directed to the NYSE and NYSE Amex
that potentially violate the NYSE and NYSE Amex rules. In order to
accommodate the cancellation of PO orders designated as MOC or LOC
after 3:45 p.m. but before 3:58 p.m. ET that were entered with
legitimate errors, NYSE Arca will allow ETP Holders to contact the NYSE
Arca Trade Operations Desk via e-mail with an explanation of the
legitimate nature of the error claimed to be the reason for the
cancellation. Consistent with NYSE and NYSE Amex Equities Rule
123C(3)(c), the NYSE Arca Trade Operations Desk will not process any
cancellations or cancel or replace, after 3:58 p.m. ET. NYSE Arca will
issue a client notice to all ETP Holders detailing this process prior
to implementation of this new system control.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \6\ of the Act, in general, and furthers the
objectives of Section 6(b)(5), \7\ in particular in that it is designed
to facilitate transactions in securities, to promote just and equitable
principles of trade, to enhance competition, and to protect investors
and the public interest. Specifically, the changes proposed herein will
prevent the cancellation of MOC and LOC orders directed to the NYSE and
NYSE Amex that potentially violate the NYSE and NYSE Amex rules.
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\6\ 15 U.S.C. 78f(b).
\7\ 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.
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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
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
[[Page 47052]]
Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6)(iii)
thereunder.\11\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires a self-regulatory organization to provide the
Commission with written notice of its 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 fulfilled this requirement.
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At any time within 60 days of the filing of the 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 e-mail to [email protected]. Please include
File Number SR-NYSEArca-2010-72 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-2010-72. 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 printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of the 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-2010-72 and should be submitted on or before August 25, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19224 Filed 8-3-10; 8:45 am]
BILLING CODE 8010-01-P