[Federal Register Volume 78, Number 106 (Monday, June 3, 2013)]
[Notices]
[Pages 33134-33136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13035]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69641; File No. SR-NYSEArca-2013-51]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Deleting NYSE Arca 
Options Rule 6.62(cc) To Remove References to Functionality Described 
as the Post No Preference Light Only Quotation

May 28, 2013.
    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 May 16, 2013, 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 and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to

[[Page 33135]]

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 delete NYSE Arca Options Rule 6.62(cc) to 
remove references to functionality described as the Post No Preference 
Light Only Quotation (``PNPLO Quotation''). 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to delete NYSE Arca Options Rule 6.62(cc) to 
remove references to the PNPLO Quotation. The Exchange adopted Rule 
6.62(cc) in June of 2012.\4\ As set forth in the rule, a PNPLO 
Quotation is an electronic Market Maker quotation that, upon initial 
entry into the NYSE Arca System, is only eligible to execute against 
displayed liquidity on the Consolidated Book. As adopted, a PNPLO 
Quotation that, upon entry, would execute exclusively against non-
displayed liquidity is immediately rejected. Additionally, a PNPLO 
Quotation that, upon entry, would execute against both displayed and 
non-displayed liquidity executes only against the displayed liquidity, 
but not against the non-displayed liquidity, and any remaining size of 
the PNPLO Quotation will be rejected. Furthermore, a PNPLO Quotation 
that, upon entry, would execute exclusively against displayed liquidity 
executes against the displayed liquidity and any remaining size of the 
PNPLO Quotation is placed on the Consolidated Book and treated like a 
standard Market Maker quotation. Lastly, a PNPLO Quotation that would 
not execute against either displayed or non-displayed liquidity is 
placed in the Consolidated Book and treated as a standard Market Maker 
quotation.
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    \4\ See Securities Exchange Act Release No. 67252 (June 25, 
2012), 77 FR 38879 (June 29, 2012) (Order approving PNPLO 
Quotation); see also Securities Exchange Act Release No. 66937 (May 
7, 2012), 77 FR 27820 (May 11, 2012) (``Notice''). The Exchange 
filed for immediate effectiveness to extend the availability of the 
PNPLO Quotation to non-Penny classes. See Securities Exchange Act 
Release No. 68339 (December 3, 2012), 77 FR 73109 (December 7, 2012) 
(SR-NYSEArca-2012-130) (``December 2012 Notice'').
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    In December 2012, the Exchange stated that it would announce the 
implementation date of the proposed rule change in a Trader Update to 
be published within 90 days following the date of filing. The Exchange 
further stated that the implementation date would be within 90 days 
following publication of the Trader Update announcing the date of 
implementation.\5\ However, the development and implementation of the 
technology supporting the PNPLO Quotation functionality has taken 
longer than anticipated to complete. The Exchange currently believes 
that the PNPLO Quotation functionality will not be ready within the 
180-day time period from November 20, 2012, the initial date of filing. 
Additionally, the Exchange is planning to revise the manner by which 
the functionality of the PNPLO Quotation would be offered, which would 
necessitate a rule change. Because the Exchange has not yet finalized 
the implementation of this enhanced functionality, the Exchange 
believes it is appropriate to delete the functionality of the PNPLO 
Quotation from its rules until such time as the new functionality is 
ready to be implemented and file a new rule proposal in connection with 
the proposed new functionality.
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    \5\ See December 2012 Notice at 73110.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\6\ in general, and furthers the objectives of Section 6(b)(5),\7\ 
in particular, in that it is designed 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. Specifically, the 
Exchange believes that the removal of an unavailable functionality will 
add transparency and clarity to the Exchange's rules. Additionally, the 
removal would reduce potential confusion that may result from having 
unavailable functionality in the Exchange's rulebook.
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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 imposes 
any burden on competition. The proposed change is not designed to 
address any competitive issue but rather would delete unavailable 
functionality in the Exchange's rulebook, thereby reducing confusion 
and making the Exchange's rules easier to understand and navigate.

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 Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) 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). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ 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

[[Page 33136]]

Commission to waive the 30-day operative delay, noting that doing so 
would provide clarity as to what functionality is offered by the 
Exchange and would enable the Exchange's rules to immediately reflect 
the functionality available on the Exchange. The Exchange also notes 
that, since the PNPLO Quotation functionality is not actually 
available, its removal would not have a negative effect on investors. 
The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
Therefore, the Commission hereby waives the 30-day operative delay and 
designates the proposal operative upon filing.\14\
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ 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. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) of the Act \15\ to determine whether the proposed 
rule change should be approved or disapproved.
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    \15\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEArca-2013-51 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-2013-51. 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 Section, 100 F Street 
NE., Washington, DC 20549-1090. Copies of the filing will also be 
available for inspection and copying at the NYSE's principal office and 
on its Internet Web site at www.nyse.com. 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-2013-51 and should be submitted 
on or before June 24, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-13035 Filed 5-31-13; 8:45 am]
BILLING CODE 8011-01-P