[Federal Register Volume 78, Number 124 (Thursday, June 27, 2013)]
[Notices]
[Pages 38779-38780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-15369]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69827; File No. SR-NYSEMKT-2013-54]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Making a Non-
Substantive, Technical Amendment to Exchange Rule 900.3NY(o) To Correct
a Cross Reference To Exchange Rule 964NY
June 21, 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 June 17, 2013, 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 Substance
of the Proposed Rule Change
The Exchange proposes to make a non-substantive, technical
amendment to Exchange Rule 900.3NY(o) to correct a cross reference to
Exchange Rule 964NY. 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, on the Commission's Web site at http://www.sec.gov, 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 is proposing to make a non-substantive, technical
correction to Exchange Rule 900.3NY(o) in order to update a cross
reference to Exchange Rule 964NY. Current Rule 900.3NY(o) incorrectly
cross references Rule 964NY(c)(2)(D) with respect to the routing
instructions for NOW Orders. The Exchange proposes to correct the
citation to cross reference Rule 964NY(c)(2)(E).
As described in Rule 900.3NY(o), a ``NOW Order'' is a Limit Order
that is to be executed in whole or in part on the Exchange, and the
portion not so executed is routed to one or more NOW Recipients for
immediate execution as soon as the order is received by the NOW
Recipient.\4\ Currently, Rule 900.3NY(o) incorrectly provides that a
NOW Order is routed pursuant to Rule 964NY(c)(2)(D), which relates to
the matching of an inbound order against orders in the Working Order
File.
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\4\ A NOW Recipient is defined as ``any Market Center (1) with
which the Exchange maintains an electronic linkage, and (2) that
provides instantaneous responses to NOW Orders routed from the
System.'' NYSE Amex Options Rule 900.2NY(44).
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The routing provisions actually governing the routing of NOW Orders
are found in Rule 964NY(c)(2)(E), and, as applied to NOW Orders,
provide that if the NOW Order has not been executed in its entirety on
the Exchange, the order will be routed for execution to one or more NOW
Recipients. Specifically, Rule 964NY(c)(2)(E)(iii) states that ``if the
order locks or crosses the NBBO, it will be routed via routing broker
to the away market(s) displaying the National Best Bid or Offer
Price.'' Following the routing of the NOW Order, and in accordance with
the terms of such order, any portion not immediately executed by the
NOW Recipient is cancelled. Accordingly, the Exchange proposes to
correct Rule 900.3NY(o) to cross-reference Rule 964NY(c)(2)(E).
[[Page 38780]]
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Section
6(b)(5),\6\ 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, in general, to protect
investors and the public interest. The Exchange believes it is
appropriate to make technical corrections to its rules so that Exchange
members and investors have a clear and accurate understanding of the
meaning of the Exchange's rules. The correction of the cross reference
in Rule 900.3NY(o) will serve to eliminate a potential source of
confusion for Exchange Participants.
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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 proposed rule change is non-substantive and therefore does not
implicate the competition analysis.
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). In addition, Rule 19b-4(f)(6)
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) \9\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(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. The Exchange stated that
it believes that this proposal is non-controversial and will not
significantly affect the protection of investors because the Exchange
is not proposing any substantive changes and is merely correcting an
inaccuracy in the Exchange's rules. According to the Exchange, the
correction of the inaccurate cross reference in the Exchange's rules
will eliminate member confusion and provide clarity on how the rules
apply. Based on the Exchange's statements, the Commission believes that
waiving the operative delay is consistent with the protection of
investors and the public interest. Accordingly, the Commission hereby
grants the Exchange's request and waives 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 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 No. SR-NYSEMKT-2013-54 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 No. SR-NYSEMKT-2013-54. 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 No. SR-NYSEMKT-2013-54 and should be
submitted on or before July 18, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2013-15369 Filed 6-26-13; 8:45 am]
BILLING CODE 8011-01-P