Federal Register / Vol. 76, No. 157 / Monday, August 15, 2011 / Notices 50505 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 62886 

(September 10, 2010), 75 FR 56613 (September 16, 

2010) (SR–NYSE–2010–47). See also Securities 

Exchange Act Release Nos. 63479 (December 9, 

2010), 75 FR 78274 (December 15, 2010) (SR– 

NYSE–2010–80) and 64232 (April 7, 2011), 76 FR 

20735 (April 13, 2011) (SR–NYSE–2011–17). 

5Terms not defined herein are defined in NYSE 

Rule 128. 

6Separately, the Exchange has proposed [sic] 

extend the effective date of the trading pause pilot 

under NYSE Rule 80C, which requires to [sic] the 

Exchange to pause trading in an individual security 

listed on the Exchange if the price moves by a 

specified percentage as compared to prices of that 

security in the preceding five-minute period during 

a trading day. See SR–NYSE–2011–40. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65064; File No. SR–NYSE– 

2011–41] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Amending 

NYSE Rule 128, Clearly Erroneous 

Executions, To Extend the Effective 

Date of the Pilot Until January 31, 2012 

August 9, 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 August 5, 

2011, 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 self-regulatory 

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 Rule 128, which governs clearly 

erroneous executions, to extend the 

effective date of the pilot by which 

portions of such Rule operate until 

January 31, 2012. The pilot is currently 

scheduled to expire on August 11, 2011. 

The text of the proposed rule change is 

available at the Exchange, the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 

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 amend 

NYSE Rule 128, which governs clearly 

erroneous executions, to extend the 

effective date of the pilot by which 

portions of such Rule operate, until 

January 31, 2012. The pilot is currently 

scheduled to expire on August 11, 

2011.4

On September 10, 2010, the 

Commission approved, on a pilot basis, 

market-wide amendments to exchanges’ 

rules for clearly erroneous executions to 

set forth clearer standards and curtail 

discretion with respect to breaking 

erroneous trades. In connection with 

this pilot initiative, the Exchange 

amended NYSE Rule 128(c), (e)(2), (f), 

and (g). The amendments provide for 

uniform treatment of clearly erroneous 

execution reviews (1) in Multi-Stock 

Events 5 involving twenty or more 

securities, and (2) in the event 

transactions occur that result in the 

issuance of an individual security 

trading pause by the primary market 

and subsequent transactions that occur 

before the trading pause is in effect on 

the Exchange.6 The amendments also 

eliminated appeals of certain rulings 

made in conjunction with other 

exchanges with respect to clearly 

erroneous transactions and limited the 

Exchange’s discretion to deviate from 

Numerical Guidelines set forth in the 

Rule in the event of system disruptions 

or malfunctions. 

If the pilot were not extended, the 

prior versions of paragraphs (c), (e)(2), 

(f), and (g) of Rule 128 would be in 

effect, and the NYSE would have 

different rules than other exchanges and 

greater discretion in connection with 

breaking clearly erroneous transactions. 

The Exchange proposes to extend the 

pilot amendments to NYSE Rule 128 

until January 31, 2012 in order to 

maintain uniform rules across markets 

and allow the pilot to continue to 

operate without interruption during the 

same period that the Rule 80C trading 

pause rule pilot is also in effect. 

Extension of the pilot would permit the 

Exchange, other national securities 

exchanges and the Commission to 

further assess the effect of the pilot on 

the marketplace, including whether 

additional measures should be added, 

whether the parameters of the rule 

should be modified or whether other 

initiatives should be adopted in lieu of 

the current pilot. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 7 of the Act, 

in general, and furthers the objectives of 

Section 6(b)(5) 8 in particular in that it 

is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 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. More specifically, the 

NYSE believes that the extension of the 

pilot would help assure that the 

determination of whether a clearly 

erroneous trade has occurred will be 

based on clear and objective criteria, 

and that the resolution of the incident 

will occur promptly through a 

transparent process. The proposed rule 

change would also help assure 

consistent results in handling erroneous 

trades across the U.S. markets, thus 

furthering fair and orderly markets, the 

protection of investors and the public 

interest. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 


srobinson on DSK4SPTVN1PROD with NOTICES
50506 Federal Register / Vol. 76, No. 157 / Monday, August 15, 2011 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to 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 filing of the proposed rule change, or 

such shorter time as designated by the Commission. 

The Commission notes that the Exchange has 

satisfied this requirement. 

11For 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). 12 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. 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6)(iii) thereunder.10 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 waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because such waiver will 

allow the pilot program to continue 

uninterrupted and help ensure 

uniformity among the national 

securities exchanges and FINRA with 

respect to the treatment of clearly 

erroneous transactions.11 Accordingly, 

the Commission waives the 30-day 

operative delay requirement and 

designates the proposed rule change as 

operative upon filing with the 

Commission. 

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. 

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–NYSE–2011–41 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–NYSE–2011–41. 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, 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 NYSE. 

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 publicly available. All 

submissions should refer to File 

Number SR–NYSE–2011–41 and should 

be submitted on or before September 6, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20635 Filed 8–12–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65066; File No. SR– 

NYSEAmex–2011–58] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Amex 

Equities Rule 128, Clearly Erroneous 

Executions, To Extend the Effective 

Date of the Pilot Until January 31, 2012 

August 9, 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 August 5, 

2011, NYSE Amex LLC (the ‘‘Exchange’’ 

or ‘‘NYSE Amex’’) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

NYSE Amex Equities Rule 128, which 

governs clearly erroneous executions, to 

extend the effective date of the pilot by 

which portions of such Rule operate 

until January 31, 2012. The pilot is 

currently scheduled to expire on August 

11, 2011. The text of the proposed rule 

change is available at the Exchange, the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 

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. 


srobinson on DSK4SPTVN1PROD with NOTICES