[Federal Register Volume 77, Number 225 (Wednesday, November 21, 2012)]
[Notices]
[Pages 69901-69903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-28259]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68239; File No. SR-NYSEARCA-2012-125]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca 
Equities Rule 7.31(x) To Clarify That When There Is an Early Scheduled 
Close, the 3:45 p.m. ET Time Specified in the Rule Is Adjusted to 15 
Minutes Before the Early Scheduled Close

November 15, 2012
    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 November 6, 2012, 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, II, 
and III 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 7.31(x) to 
clarify that when there is an early scheduled close, the 3:45 p.m. ET 
time specified in the rule is adjusted to 15 minutes before the early 
scheduled close. 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.

[[Page 69902]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend NYSE Arca Equities Rule 7.31(x) to 
clarify that when there is an early scheduled close, the 3:45 p.m. ET 
time specified in the rule is adjusted to 15 minutes before the early 
scheduled close.
    NYSE Arca Equities Rule 7.31(x) defines the Exchange's Primary Only 
Order (``PO Order''), which is a market or limit order to be routed to 
the primary market. The rule currently provides that PO Orders routed 
to the New York Stock Exchange LLC (``NYSE'') or NYSE MKT LLC (``NYSE 
MKT'') that are designated as Market on Close (``MOC'') or Limit on 
Close (``LOC'') may not be electronically cancelled or reduced in size 
after 3:45 p.m. ET and that any electronic submissions after 3:45 p.m. 
ET will be automatically rejected.
    The 3:45 p.m. ET time specified in NYSE Arca Equities Rule 7.31(x) 
is based on NYSE Rule 123C and NYSE MKT Rule 123C--Equities 
requirements governing the entry and cancellation of MOC and LOC Orders 
after 3:45 p.m. ET. In the case of an early scheduled close, NYSE and 
NYSE MKT use a time based on 15 minutes before the early scheduled 
close instead of the 3:45 p.m. time specified in the rule.\4\
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    \4\ The Exchange notes that the NYSE and NYSE MKT have filed 
rule proposals to amend their respective rules to clarify that when 
the scheduled close of trading is before 4:00 p.m., the times 
specified in NYSE Rule 123C and NYSE MKT Rule 123C--Equities shall 
be adjusted based on the early closing time, and specifically, that 
references to 3:45 p.m. shall mean 15 minutes before the early 
scheduled close. See SR-NYSE-2012-62 and SR-NYSEMKT-2012-63.
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    The Exchange proposes to clarify NYSE Arca Equities Rule 7.31(x) to 
similarly provide that in the case of an early scheduled close, the 
3:45 p.m. ET time would instead be 15 minutes before the early 
scheduled close. In addition, because the rules of NYSE MKT regarding 
the designation ``DNS'' are the same as the rules of the NYSE, the 
Exchange proposes to further clarify the rule to add references to NYSE 
MKT in addition to the existing references to NYSE when discussing 
routing PO Orders to the NYSE.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \5\ of the 
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers 
the objectives of Section 6(b)(5),\6\ 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, 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, and it is not designed to 
permit unfair discrimination among customers, brokers, or dealers. In 
particular, the Exchange believes that the proposed rule change to 
clarify that the 3:45 p.m. ET time specified in NYSE Arca Equities Rule 
7.31(x) is adjusted in the case of an early scheduled close removes 
impediments to and perfects the mechanism of a free and open market and 
national market system because it provides transparency in Exchange 
rules of how times are adjusted in NYSE Arca Equities Rule 7.31(x) in 
the case of an early scheduled close.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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 \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 19b4(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. NYSE Arca believes that 
because the proposed rule change proposes to clarify NYSE Arca Equities 
Rule 7.31(x), the public will benefit from immediate implementation of 
the rule due to the additional transparency to the rule. NYSE Arca also 
believes that adding clarity to its rules before the next early 
scheduled close, November 23, 2012, could reduce any potential 
confusion regarding how NYSE Arca treats the routing of PO Orders 
designated as MOC or LOC orders on that day. The Commission believes 
that adding clarity to NYSE Arca's rules before the next early 
scheduled close on November 23, 2012 could reduce potential confusion. 
Therefore, the Commission believes that waiver of the operative delay 
is consistent with investor protection and the public interest. As a 
result, the Commission is hereby waiving the 30-day operative 
delay.\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, 
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 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 email to [email protected]. Please include 
File

[[Page 69903]]

Number SR-NYSEARCA-2012-125 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-NYSE-2012-125. 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 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 offices 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-NYSE-2012-125, and should be submitted on or before 
December 12, 2012.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-28259 Filed 11-20-12; 8:45 am]
BILLING CODE 8011-01-P