Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Notices 12157 

11 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. 

12 15 U.S.C. 78s(b)(3)(C). 

13 17 CFR 200.30–3(a)(12). 

1 15 U.S.C.78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 17 CFR 242.201. 

5See notes 23–31 infra and accompanying text. 

6See infra note 22 and accompanying text 

regarding ‘‘clearly erroneous’’ trades and proposed 

Rule 7.16(f)(iv)(A). The proposed rule amendment 

would, among other things, establish the duration 

of the Short Sale Price Test. See infra note 21 and 

accompanying text. 

protection of investors and the public 

interest.11

At any time within 60 days of the 

filing of the 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.12

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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–BATS–2011–007 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–BATS–2011–007. This file 

number should be included on the 

subject line if e-mail 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 website 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 

a.m. and 3 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–BATS– 

2011–007 and should be submitted on 

or before March 25, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–4886 Filed 3–3–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63971; File No. SR– 

NYSEARCA–2011–05] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Arca 

Equities Rule 7.16 (Short Sales) in 

Order To Implement the Provisions of 

Rule 201 of Regulation SHO Under the 

Securities Exchange Act of 1934 

February 25, 2011. 

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 February 

24, 2011, 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 substantially prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

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 7.16 (Short 

Sales) in order to implement the 

provisions of Rule 201 of Regulation 

SHO (‘‘Rule 201’’) 4 under the Act, 

which, if triggered, imposes a restriction 

on the prices at which covered 

securities may be sold short (‘‘Short Sale 

Price Test’’). Among other things, Rule 

201 requires trading centers to establish, 

maintain, and enforce written policies 

and procedures reasonably designed to 

prevent the execution or display of a 

short sale order of a covered security at 

a price that is less than or equal to the 

current national best bid if the price of 

a covered security decreases by 10% or 

more from the covered security’s closing 

price as determined by the listing 

market for the covered security as of the 

end of regular trading hours on the prior 

day. The proposed rule amendment 

would establish procedures for the 

Exchange, as a listing market, to 

determine that a Short Sale Price Test 

has been triggered for a covered 

security. The proposed rule amendment 

would also establish the protocols for 

the handling of short sale orders by the 

Exchange, as a trading center, in the 

event the Short Sale Price Test is 

triggered, including establishing what 

types of short sale orders will be repriced to achieve a permitted price, in 

accordance with Rule 201, during the 

period in which a Short Sale Price Test 

is in effect (‘‘Short Sale Period’’).5

Amended Rule 7.16 would also 

establish Exchange procedures 

regarding the execution and display of 

permissible orders during the Short Sale 

Period, and the execution of orders 

marked ‘‘short exempt.’’ Finally, the 

proposed rule amendment would also 

establish Exchange procedures for 

addressing situations where the 

Exchange determines that the Short Sale 

Price Test for a covered security was 

triggered by a ‘‘clearly erroneous’’ 

execution as that term is defined in 

NYSE Arca Equities Rule 7.10.6

The Exchange also proposes to amend 

NYSE Arca Equities Rule 7.65, which 

applies to the Exchange’s Portfolio 

Crossing Service (‘‘PCS’’), to exempt PCS 

transactions from the short sale price 

test restrictions contained in NYSE Arca 

Equities Rule 7.16(f). PCS short sale 

transactions would, however, be subject 

to the order marking and securities 

lending provisions of Paragraphs (a)–(e) 

of NYSE Arca Equities Rule 7.16. The 

text of the proposed rule change is 

available at the Exchange, the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 


jlentini on DSKJ8SOYB1PROD with NOTICES
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7Amendments to Regulation SHO, Securities 

Exchange Act Release No. 61595 (Feb. 26, 2010), 75 

FR 11232 (Mar. 10, 2010) (‘‘Rule 201 Adopting 

Release’’). In the Rule 201 Adopting Release, the 

Commission also adopted amendments to Rule 

200(g) of Regulation SHO to include a ‘‘short 

exempt’’ marking requirement. 17 CFR 242.200(g). 

8The term ‘‘covered security’’ shall have the same 

meaning as in Rule 201 of Regulation SHO. Rule 

201(a)(1) defines the term ‘‘covered security’’ to 

mean any ‘‘NMS stock’’ as defined under Rule 

600(b)(47) of Regulation NMS. Rule 600(b)(47) of 

Regulation NMS defines an ‘‘NMS stock’’ as ‘‘any 

NMS security other than an option.’’ Rule 600(b)(46) 

of Regulation NMS defines an ‘‘NMS security’’ as 

‘‘any security or class of securities for which 

transaction reports are collected, processed, and 

made available pursuant to an effective transaction 

reporting plan, or an effective national market 

system plan for reporting transactions in listed 

options.’’ 17 CFR 242.201(a)(1); 17 CFR 

242.600(b)(47); and 17 CFR 242.600(b)(46). 

9 17 CFR 242.201(b). 

10Rule 201 Adopting Release, 75 FR 11232. The 

Rule 201 compliance date, originally set for 

November 10, 2010, was extended to February 28, 

2011 in Securities Exchange Act Release No. 63247 

(Nov. 4, 2010), 75 FR 68702 (Nov. 9, 2010). The 

May 10th effective date and February 28th 

compliance date also apply to amended Rule 200(g). 

11Rule 201(a)(9) states that the term ‘‘trading 

center’’ shall have the same meaning as in Rule 

600(b)(78) of Regulation NMS. Rule 600(b)(78) 

defines a ‘‘trading center’’ as ‘‘a national securities 

exchange or national securities association that 

operates an SRO trading facility, an alternative 

trading system, an exchange market maker, an OTC 

market maker, or any other broker or dealer that 

executes orders internally by trading as principal or 

crossing orders as agent.’’ 17 CFR 242.600(b)(78). 

12The term ‘‘national best bid’’ shall have the 

same meaning as in Rule 201 of Regulation SHO. 

Rule 201(a)(4) states that such term shall have the 

same meaning as in Rule 600(b)(42) of Regulation 

NMS. 17 CFR 242.201(a)(4). See also 17 CFR 

242.600(b)(42). 

13The term ‘‘listing market’’ shall have the same 

meaning as in Rule 201 of Regulation SHO. Rule 

201(a)(3) defines the term ‘‘listing market’’ to have 

the same meaning as the term ‘‘listing market’’ as 

defined in the effective transaction reporting plan 

for the covered security. 17 CFR 242.201(a)(3). See 

also 17 CFR 242.201(a)(2). 

14 17 CFR 242.201(b)(1)(i). 

15 17 CFR 242.201(b)(1)(ii). In addition, if the 

price of a covered security declines intra-day by at 

least 10% on a day on which the security is already 

subject to the short sale price test restriction of Rule 

201, the restriction will be re-triggered and, 

therefore, will continue in effect for the remainder 

of that day and the following day. See Rule 201 

Adopting Release, 75 FR 11232, 11253, n. 290. Rule 

201 does not place any limit on the frequency or 

number of times the circuit breaker can be retriggered with respect to a particular stock. Division 

of Trading and Markets: Responses to Frequently 

Asked Questions Concerning Rule 201 of 

Regulation SHO, at Q&A 2.2 (‘‘T&M FAQs’’). 

16Rule 201 Adopting Release, 75 FR 11232. 

17Rule 201 Adopting Release, 75 FR 11232, 

11252. 

18See id. 

19See paragraphs (vi) and (vii) of proposed Rule 

7.16(f) regarding the treatment of permissible and 

‘‘short exempt’’ orders. 

20 17 CFR 242.201(b)(3). See also Rule 201(a)(6) 

of Regulation SHO, which defines the term ‘‘plan 

processor’’ to have the same meaning as in Rule 

600(b)(55) of Regulation NMS. 17 CFR 

242.600(b)(55). The single plan processors are 

‘‘exclusive processors’’ as defined under Section 

3(a)(22) of the Act. See 15 U.S.C. 78c(a)(22). 

21The Short Sale Price Test will remain in effect 

at all times when quotation information and the 

national best bid is collected, processed and 

disseminated. This may extend beyond regular 

trading hours. T&M FAQs, supra note 15, at Q&A 

2.1. 

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 

On February 26, 2010, the 

Commission adopted amendments to 

Rule 201.7 Among other things, the 

amendments establish a short salerelated circuit breaker that, if triggered 

with respect to a covered security,8

imposes a short sale price test.9

Amended Rule 201 became effective on 

May 10, 2010 and the compliance date 

for the Rule is February 28, 2011.10

Rule 201(b) requires that trading 

centers,11 including NYSE Arca, 

establish, maintain, and enforce written 

policies and procedures reasonably 

designed to prevent the execution or 

display of a short sale order of a covered 

security at a price that is less than or 

equal to the current national best bid 12

if the price of that covered security 

decreases by 10% or more from the 

covered security’s closing price as 

determined by the listing market 13 for 

the covered security as of the end of 

regular trading hours on the prior day 

(‘‘Trigger Price’’).14 In addition, Rule 

201(b) requires that trading centers 

establish, maintain, and enforce written 

policies and procedures reasonably 

designed to impose the Short Sale Price 

Test for the remainder of the day and 

the following day when a national best 

bid for the covered security is calculated 

and disseminated on a current and 

continuing basis by a plan processor 

pursuant to an effective national market 

system plan.15

In the Rule 201 Adopting Release, the 

Commission stated that it was 

appropriate to adopt a short sale-related 

circuit breaker because, when triggered, 

it will prevent short selling, including 

potentially manipulative or abusive 

short selling, from driving down further 

the price of a security that has already 

experienced a significant intra-day price 

decline, and will facilitate the ability of 

long sellers to sell first upon such a 

decline.16 The Commission further 

stated that this approach establishes a 

narrowly-tailored Rule that strikes an 

appropriate balance between its goal of 

preventing potential short sale abuses 

and the need to limit impediments to 

the normal operations of the market,17

and as such, the Rule will help address 

the erosion of investor confidence in 

markets generally.18 For these reasons, 

the Exchange seeks to amend its short 

sale rule to comply with the 

Commission’s amendment of Rule 201. 

Paragraph (f)(ii) of Rule 7.16, as 

proposed to be amended, makes clear 

that, in compliance with Rule 201, in 

the event a covered security experiences 

a decrease in price of 10% or more, as 

determined by the listing market for the 

security, from the security’s closing 

price on the listing market as of the end 

of regular trading hours on the prior 

day, except for certain permissible and 

‘‘short exempt’’ orders,19 Exchange 

systems will not execute or display a 

short sale order with respect to that 

security at a price that is less than or 

equal to the current national best bid. 

Where the Exchange is the listing 

market for a covered security, Exchange 

systems will determine whether the 

short sale price test restrictions of Rule 

201 have been triggered (i.e., whether a 

transaction in a covered security has 

occurred at a Trigger Price) and will 

notify the single plan processor 

responsible for consolidation of 

information for the covered security 

pursuant to Rule 603(b) of Regulation 

NMS.20 The Trigger Price of a covered 

security will not be calculated until the 

Exchange opens trading for that 

security. In circumstances where a 

covered security did not trade on the 

Exchange on the prior trading day (for 

example, due to a trading halt, trading 

suspension, or otherwise), the Exchange 

will base its determination of the 

Trigger Price on the last sale price on 

the Exchange for that security on the 

most recent day on which the security 

did trade. 

Once a Short Sale Price Test is 

triggered by the listing market, the Short 

Sale Price Test will remain in effect 

until the close of trading on the next 

trading day.21 If, however, the Exchange 

determines that the Short Sale Price 

Test for a covered security was triggered 

because of a clearly erroneous 


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22 Determination of a ‘‘clearly erroneous’’ 

transaction will be made in accordance with Rule 

7.10. 

23Rule 201 Adopting Release, 75 FR 11232, 

11247. 

24See 17 CFR 242.612. 

25NYSE Arca Equities Rule 7.31(h)(5). These 

orders will not be displayed or executed at the 

national best bid in locked markets. 

26Exchange system handling of orders will 

comply with the pricing increment provisions of 

Rule 612 of Regulation NMS. See 17 CFR 242.612. 

27NYSE Arca Equities Rule 7.31(h)(4). 

28NYSE Arca Equities Rule 7.31(mm). 

29NYSE Arca Equities Rule 7.31(e). 

30NYSE Arca Equities Rule 7.31(w) and (jj). 

31NYSE Arca Equities Rule 7.31(s). 

32 17 CFR 242.201(b)(1)(iii)(A). 

33Exchange systems will also follow the guidance 

in the T&M FAQs. See supra note 15. 

34NYSE Arca Equities Rule 1.1 (definition of 

NYSE Arca Book). 

35Cancelled and replaced orders that have been 

re-priced will not retain their priority in the NYSE 

Arca Book. 

36 17 CFR 242.200(g)(2). Under Rule 200(g)(2), an 

order may be marked ‘‘short exempt’’ if the brokerdealer had a reasonable basis for believing that the 

order meets one of the exceptions specified in Rule 

201(d) of Regulation SHO or if it is entered during 

a Short Sale Period and meets the conditions 

specified in Rule 201(c) of Regulation SHO. See 17 

CFR 242.201(d); 17 CFR 242.201(c); T&M FAQs, 

supra note 15, at Q&As 4.2, 5.4 and 5.5. 

37See T&M FAQs, supra note 15, at Q&A 2.1. 

execution,22 the Exchange may lift the 

Short Sale Price Test before the Short 

Sale Period ends for securities for which 

the Exchange is the listing market or, for 

securities listed on another market, 

notify the other market of the 

Exchange’s determination that the 

triggering transaction was a clearly 

erroneous execution. Similarly, if the 

Exchange determines that the prior 

day’s closing price for a covered 

security for which the Exchange is the 

listing market is incorrect in Exchange 

systems and resulted in an incorrect 

determination that the short sale price 

test restriction had been triggered, the 

Exchange may correct the prior day’s 

closing price and lift the Short Sale 

Price Test before the Short Sale Period 

ends. 

During the Short Sale Period, short 

sale orders that are limited to the 

national best bid or lower and short sale 

market orders will be re-priced by 

Exchange systems one minimum price 

increment above the current national 

best bid (‘‘Permitted Price’’) to permit 

their execution at a price that is 

compliant with the Short Sale Price 

Test. Consistent with Rule 201,23 the 

Permitted Price for securities for which 

the national best bid is $1 or more is 

$.01 above the national best bid; the 

Permitted Price for securities for which 

the national best bid is below $1 is 

$.0001 above the national best bid.24

For displayed orders, the Exchange 

will continue to re-price a short sale 

order downward as the national best bid 

moves down but will not re-price 

upwards. For non-displayed orders, the 

Exchange will continue to re-price short 

sale orders both downward and 

upwards to reflect changes in the 

national best bid. The following are the 

pricing protocols during the Short Sale 

Period for specific order types that are 

not marked ‘‘short exempt’’: 

(A) Reject Option—Individual short 

sale orders may be marked to be rejected 

back if entered while a symbol is subject 

to the Short Sale Price Test. 

(B) MPL Orders—Mid-Point Passive 

Liquidity (‘‘MPL’’) orders 25 will 

continue to be priced at the mid-point 

of the national best bid and national 

best offer, including situations where 

the mid-point is not one minimum price 

increment above the national best bid.26

(C) Re-pricing of Marketable Orders— 

All other marketable short sale orders 

will be re-priced at the Permitted Price. 

To reflect declines in the national best 

bid, the Exchange will continue to reprice a short sale order at the lowest 

Permitted Price down to the order’s 

original limit price, or if a market order, 

until the order is filled. 

(D) Undisplayed Orders—Short sale 

orders that are not displayable upon 

entry will be handled as follows by 

Exchange systems: 

(i) Market orders and Passive 

Liquidity (‘‘PL’’) orders 27 will be repriced at a Permitted Price. Market 

orders and PL orders will continuously 

re-price at a Permitted Price as the 

national best bid moves both up and 

down. 

(ii) PNP (‘‘Post No Preference’’) Blind 

(‘‘PNPB’’) orders 28 will be re-priced at a 

Permitted Price. PNPB orders are 

displayed once they are re-priced. PNPB 

orders will re-price down when the 

national best bid moves down but will 

not move up in price if the national best 

bid moves up and will instead remain 

at the price displayed. 

(E) IOC Orders—Immediate or Cancel 

(IOC’’) orders,29 requiring that all of part 

of the order be executed immediately, 

will be executed to the extent possible 

at a Permitted Price and higher and then 

cancelled, and will not be re-priced. 

(F) PNP ISO Orders—PNP Intermarket Sweep orders 30 are rejected if 

the price is at or below the current 

national best bid. 

(G) Short Sale Cross Orders—Short 

sale cross orders 31 priced at or below 

the current national best bid will be 

rejected. 

During the Short Sale Period, 

Exchange systems will execute and 

display a short sale order without regard 

to price if, at the time of initial display 

of the short sale order, the order was at 

a price above the then current national 

best bid.32 Un-displayed short sale 

orders that are entered into the 

Exchange’s systems prior to the Short 

Sale Period will be re-priced as 

described above. 

As permitted by Rule 201, during the 

Short Sale Period, Exchange systems 

will execute and display orders marked 

‘‘short exempt’’ without regard to 

whether the order is at a Permitted 

Price. Exchange systems will also accept 

orders marked ‘‘short exempt’’ at any 

time when such systems are open for 

order entry, regardless of whether the 

Short Sale Price Test has been 

triggered.33

During the Short Sale Period, repriced PNP Blind, PL and MPL 

discretion orders will be ranked in the 

NYSE Arca Book 34 in time order. 

Market orders have priority over all 

other order types. 

In addition, at any time sell orders 

may be cancelled and replaced as 

follows; (1) sell to sell short, (2) sell to 

sell short exempt, (3) sell short to sell, 

(4) sell short to sell short exempt, (5) 

sell short exempt to sell, and (6) sell 

short exempt to sell short. Orders 

modified will retain their priority in the 

NYSE Arca Book provided they are not 

increasing in volume or changing 

price.35

The Exchange is also proposing to 

amend 7.16(a) to define ‘‘short exempt’’ 

orders and to amend 7.16(b) and 7.16(c) 

to add language providing for ‘‘short 

exempt’’ marking in accordance with 

Rule 200(g) of Regulation SHO.36

Finally, the Exchange also proposes to 

amend NYSE Arca Equities Rule 7.65, 

which applies to the Exchange’s PCS, to 

exempt PCS transactions from the short 

sale price test contained in NYSE Arca 

Equities Rule 7.16(f). PCS transactions 

occur after the 8 pm (Eastern time) close 

of the consolidated transaction reporting 

system and consolidated quotation 

dissemination. Accordingly, PCS 

transactions would not be subject to the 

short sale price test restrictions of Rule 

201, as reflected in NYSE Arca Equities 

Rule 7.16, which apply only when the 

national best bid is calculated and 

disseminated.37 PCS short sale 

transactions would, however, be subject 

to the order marking and securities 

lending provisions of Paragraphs (a)–(e) 

of NYSE Arca Equities Rule 7.16. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 


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38 15 U.S.C. 78f(b). 

39 15 U.S.C. 78f(b)(5). 

40 15 U.S.C. 78s(b)(3)(A)(iii). 

41 17 CFR 240.19b–4(f)(6). 

42 15 U.S.C. 78s(b)(3)(A)(iii). 

43 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file 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. 

44 17 CFR 240.19b–4(f)(6). 

45 17 CFR 240.19b–4(f)(6)(iii). 

46For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule change’s impact on efficiency, 

competition, and capital formation. 15 U.S.C. 78c(f). 47 17 CFR 200.30–3(a)(12). 

of the Act,38 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,39

in particular, in that it is designed to, 

among other things, prevent fraudulent 

and manipulative acts and practices, to 

promote just and equitable principles of 

trade, and, in general, to protect 

investors and the public interest. The 

proposal is designed to implement the 

provisions of Rule 201 of Regulation 

SHO by establishing, maintaining and 

enforcing written policies and 

procedures reasonably designed to 

prevent the execution or display of a 

short sale order of a covered security in 

violation of the short sale price 

restrictions established in that rule. To 

that end, the proposed rule change will, 

among other things, establish the 

Exchange’s procedures regarding the 

execution and display of permissible 

orders during the Short Sale Period, and 

the execution of orders marked ‘‘short 

exempt.’’ 

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 40 and Rule 

19b–4(f)(6) thereunder.41 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 42 and Rule 19b–4(f)(6)(iii) 

thereunder.43

A proposed rule change filed under 

Rule 19b–4(f)(6) 44 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),45 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 Commission hereby grants 

the request.46 Waiving the 30-day 

operative delay will allow the Exchange 

to implement the proposed amendments 

by February 28, 2011, which, as noted 

by the Exchange, is the compliance date 

for amendments to Regulation SHO 

under the Act. By waiving the operative 

delay, the Exchange will be able to 

comply with the amendments to 

Regulation SHO by February 28, 2011. 

Therefore, the Commission believes it is 

consistent with the protection of 

investors and the public interest to 

waive the 30-day operative delay and 

designates the proposal as operative 

upon filing. 

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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEARCA–2011–05 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–2011–05. This 

file number should be included on the 

subject line if e-mail 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 20549–1090. Copies of 

the filing will also be available for 

inspection and copying at the 

Exchange’s principal office and on its 

Internet Web site at http:// 

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–2011–05 and should be 

submitted on or before March 25, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.47

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–4889 Filed 3–3–11; 8:45 am] 

BILLING CODE 8011–01–P 


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