[Federal Register Volume 78, Number 30 (Wednesday, February 13, 2013)]
[Notices]
[Pages 10226-10228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-03275]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68861; File No. SR-NYSE-2013-12]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Cease Operating New York Block Exchange and Contemporaneously Delete 
the Text of Rule 1600, Which Governs NYBX Functionality

 February 7, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the

[[Page 10227]]

``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that, 
on February 5, 2013, the New York Stock Exchange LLC (``NYSE'' 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 Exchange. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C.78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to contemporaneously delete the text of Rule 
1600, which governs NYBX functionality. 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 intends to cease operating New York Block Exchange 
(``NYBX''), effective February 28, 2013, and as such, proposes to 
contemporaneously delete the text of Rule 1600, which governs NYBX's 
functionality.\3\ NYBX is an electronic exchange facility that provides 
for the continuous matching and execution of all non-displayed NYBX 
orders with the aggregate of liquidity in the NYBX Facility, the NYSE 
Display Book[supreg] and considers the protected quotations of all 
automated trading centers for securities listed on the NYSE. The 
Exchange is ceasing operations of NYBX Facility because after years of 
operations the facility has not garnered enough volume to achieve 
critical mass and does not have strong support customers [sic]. The 
Exchange will provide advance notice to its members and member 
organizations of the discontinuation of this functionality.
---------------------------------------------------------------------------

    \3\ In 2011, the Exchange filed a similar filing to cease 
operations of NYSE Matchpoint and delete Rules related the exchange 
facility. See Securities Exchange Act Release No. 63898 (February 
11, 2011), 76 FR 9616 (February 18, 2011) (SR-NYSE-2011-03).
---------------------------------------------------------------------------

    The Exchange also proposes to make conforming changes to remove 
references to Rule 1600 and NYBX from the following other Exchange 
rules: Rule 13, Rule 15, Supplementary Materials .15 and .20 to Rule 
79A, Rule 80C, Supplementary Material .10 to Rule 104, Supplementary 
Material .10, .12, and .13 to Rule 104T, Supplementary Material .40 to 
Rule 116, Rule 123B, Supplementary Material .10 to Rule 123C, 
Supplementary Material .25 to Rule 123D, and Supplementary Material .11 
to Rule 1000.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\4\ in 
general, and furthers the objectives of Section 6(b)(5) of the Act,\5\ 
in particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, 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, in conjunction with a related communication to members and 
member organizations, will provide advance notice to NYSE members and 
member organizations that the Exchange will cease operation of NYBX.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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. The proposed changes are 
being made to remove references for NYBX from the Exchange Rules to 
correspond with the Exchange ceasing operations of NYBX facility. The 
Exchange is ceasing operations of NYBX Facility because after years of 
operations the facility has not garnered enough volume to achieve 
critical mass and does not have strong support customers [sic]. The 
Exchange is ceasing operations of NYBX because the facility was not 
competitive, therefore ceasing operations should not have any burden on 
competition.

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 \6\ and Rule 19b-4(f)(6) thereunder.\7\ 
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.\8\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19-b-
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.
---------------------------------------------------------------------------

    The Exchange has requested a waiver of the 30-day operative delay 
so that the Exchange can cease operations of the NYBX Facility by 
February 28, 2013. The Exchange notes that NYBX has not achieved 
significant volume during its operations and does not believe that 
ceasing its operation will significantly affect the protection of 
investors or the public interest. The Exchange further notes that 
discontinuing operations of NYBX at month end will coincide with the 
Exchange's billing cycle and avoid the expense and inconvenience of 
extending operations into a partial month. 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 
Exchange to cease operations of NYBX without incurring the expense of 
extending operations into a partial month. Therefore, the Commission

[[Page 10228]]

designates the proposed rule change as operative as of February 28, 
2013.\9\
---------------------------------------------------------------------------

    \9\ 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).
---------------------------------------------------------------------------

    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-NYSE-2013-12 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.

All submissions should refer to File Number SR-NYSE-2013-12. 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, 100 F Street, NE., Washington, 
DC 20549, 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 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-NYSE-2013-12 and should be 
submitted on or before March 6, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03275 Filed 2-12-13; 8:45 am]
BILLING CODE 8011-01-P