[Federal Register Volume 75, Number 65 (Tuesday, April 6, 2010)]
[Notices]
[Pages 17459-17460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7696]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61813; File No. SR-NYSEArca-2010-19]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Extending the Pilot
Period To Receive Inbound Routes of Equities Orders from Archipelago
Securities LLC
March 31, 2010.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on March 30, 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. 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 extend the pilot period of the Exchange's
prior approvals to receive inbound routes of equities orders from
Archipelago Securities LLC (``Arca Securities''), an NYSE Arca
affiliated ETP Holder. 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
Currently, Arca Securities is the approved outbound order routing
facility of the Exchange.\3\ Arca Securities is also the approved
outbound order routing facility of the New York Stock Exchange LLC
(``NYSE'') and NYSE Amex LLC (``NYSE Amex'').\4\ The Exchange, through
its wholly-owned subsidiary, NYSE Arca Equities, Inc., has also been
previously approved to receive inbound routes of equities orders by
Arca Securities in its capacity as an order routing facility of NYSE
Amex and the NYSE.\5\ The Exchange's authority to receive inbound
routes of equities orders by Arca Securities is subject to a pilot
period ending March 31, 2010.\6\ The Exchange hereby seeks to extend
the previously approved pilot period (with the attendant obligations
and conditions) for an additional 6 months, through September 30, 2010.
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\3\ See Securities Exchange Act Release No. 53238 (July 28,
2006), 71 FR 44758 (August 7, 2006) (order approving SR-NYSEArca-
2006-13); see also, Securities Exchange Act Release No. 52497
(September 22, 2005), 70 FR 56949 (September 29, 2005) (SR-PCX-2005-
90); see also, Securities Exchange Act Release No. 44983 (October
25, 2001), 66 FR 55225 (November 1, 2001) (SR-PCX-00-25); see also,
Securities Exchange Act Release No. 58681 (September 29, 2008), 73
FR 58285 (October 6, 2008) (order approving NYSEArca-2008-90).
\4\ See Securities Exchange Act Release No. 55590 (April 5,
2007), 72 FR 18707 (April 13, 2007) (notice of immediate
effectiveness of SR-NYSE-2007-29); see also, Securities Exchange Act
Release No. 58680 (September 29, 2008), 73 FR 58283 (October 6,
2008) (order approving SR-NYSE-2008-76). See Securities Exchange Act
Release No. 59009 (November 24, 2008), 73 FR 73363 (December 2,
2008) (order approving SR-NYSEALTR-2008-07); see also, Securities
Exchange Act Release No. 59473 (February 27, 2009) 74 FR 9853 (March
6, 2009) (order approving SR-NYSEALTR-2009-18).
\5\ See Securities Exchange Act Release No. 58681 (September 29,
2008), 73 FR 58285 (October 6, 2008) (order approving NYSEArca-2008-
90); see also, Securities Exchange Act Release No. 59010 (November
24, 2008), 73 FR 73373 (December 2, 2008) (order approving SR-
NYSEArca-2008-130).
\6\ See Securities Exchange Act Release No. 61267 (December 31,
2009), 75 FR 1096 (January 8, 2010) (notice of immediate
effectiveness of SR-NYSEArca-2009-115).
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers
the objectives of Section 6(b)(5) \8\ in particular in that it is
designed to prevent fraudulent and manipulative acts and practices, 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
proposed rule change will allow the Exchange to continue receiving
inbound routes of equities orders from Arca Securities acting in its
capacity as a facility of the NYSE and NYSE Amex, in a manner
consistent with prior approvals and established protections. The
Exchange believes that extending the previously approved pilot period
for six months will permit both the Exchange and the Commission to
further assess the impact of the Exchange's authority to receive direct
inbound routes of equities orders via Arca Securities (including the
attendant obligations and conditions).\9\
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ The Exchange is currently analyzing the condition regarding
non-public information and system changes in order to better reflect
the operation of Arca Securities.
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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.
[[Page 17460]]
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
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii)\13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay. The Exchange notes that
the proposal will allow the Exchange to continue receiving inbound
routes of equities orders from Arca Securities, in a manner consistent
with prior approvals and established protections, while also permitting
the Exchange and the Commission to assess the impact of the pilot.\14\
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 pilot period to be extended without
interruption through September 30, 2010. For this reason, the
Commission designates the proposed rule change to be operative upon
filing with the Commission.\15\
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\12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission 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 satisfied this requirement.
\13\ Id.
\14\ See supra note 9 and accompanying text.
\15\ 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 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-2010-19 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-2010-19. 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 inspection
and copying in the Commission's Public Reference Room on official
business days between the hours of 10 a.m. and 3 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-2010-19 and should be submitted on or before
April 27, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Florence E. Harmon,
Deputy Secretary.
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\16\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2010-7696 Filed 4-5-10; 8:45 am]
BILLING CODE 8011-01-P