[Federal Register Volume 77, Number 244 (Wednesday, December 19, 2012)]
[Notices]
[Pages 75225-75226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30494]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68418; File No. SR-NYSEMKT-2012-79]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Adding New Rule 
956.1NY, Which Will Govern the Submission of Automated Trading Data

December 12, 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 December 7, 2012, NYSE MKT LLC (the ``Exchange'' or 
``NYSE MKT'') 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to add new Rule 956.1NY, which will govern 
the submission of automated trading data. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to adopt new Rule 956.1NY, which will govern 
the automated submission of trading data. The proposed rule is 
substantially similar to NYSE Arca Rule 10.2(e) and therefore will 
harmonize the rules between the Exchange and NYSE Arca with respect to 
the automated submission of trading data for options trading.
    The Exchange's rule previously governing the automated submission 
of trading data was NYSE MKT Rule 153A--Automated Submission of Trading 
Data.\4\ Because the Exchange has a rule specific to the automated 
submission of equities trading data, the Exchange believes it should 
also have a rule specific to the automated submission of options 
trading data. Accordingly, the Exchange proposes to adopt a rule 
governing automated submission of trading data that is based upon NYSE 
Arca Rule 10.2(e). To avoid any potential confusion of which rules 
govern options trading, the Exchange also proposes to add New Rule 
956.1NY to the existing rule set relating to the trading of option 
contracts.
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    \4\ On November 14, 2012, the Exchange filed a proposal to 
delete out-of-date and obsolete rules, including Rule 153A, because 
it was duplicative of an existing equities rule governing the 
automated submission of trading data (NYSE MKT Rule 410A--Equities) 
(both of which are substantially similar to proposed Rule 956.1NY). 
See Securities Exchange Act Release No. 68306 (November 28, 2012), 
77 FR 71846 (December 4, 2012) (NYSEMKT-2012-68).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the

[[Page 75226]]

objectives of Section 6(b)(5) of the Act,\6\ in particular, in that, by 
adopting a rule that is based on an existing rule that addresses the 
industry standard for automated submission of trading data, it promotes 
just and equitable principles of trade, removes impediments to and 
perfects the mechanism of a free and open market and a national market 
system, and, in general, helps to protect investors and the public 
interest by assuring that the Exchange has proper data to further its 
regulatory and surveillance programs. The Exchange further believes 
that the proposal to add the rule to the section relating to options 
trading removes impediments to and perfects the mechanism of a free and 
open market by ensuring that members, regulators and the public can 
more easily navigate the Exchange's rulebook and better understand what 
obligations attach and when.
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    \5\ 15 U.S.C. Sec.  78f(b).
    \6\ 15 U.S.C. Sec.  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.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ Id. In addition, Rule 19b-4(f)(6)(iii) 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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    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
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    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 believes that waiver of the operative delay is 
consistent with the protection of investors and the public interest 
because the proposal is substantially similar to NYSE Arca Rule 
10.2(e), as well as former NYSE MKT Rule 153A and current NYSE MKT Rule 
410A, which have all been approved by the Commission and govern the 
submission of trading data. Additionally, the effectiveness of this 
rule will bring NYSE MKT's Rules in line with an industry-wide standard 
governing the submission of trading data. Waiver of the operative delay 
will ensure the Exchange is not without an operative rule governing the 
submission of trading data, as the deletion of former NYSE MKT Rule 
153A becomes effective Dec. 14, 2012. Therefore, the Commission 
designates the proposal operative upon filing.\12\
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    \12\ 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 Number SR-NYSEMKT-2012-79 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-NYSEMKT-2012-79. 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-NYSEMKT-2012-79, and should be submitted on or before 
January 9, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-30494 Filed 12-18-12; 8:45 am]
BILLING CODE 8011-01-P