Federal Register / Vol. 76, No. 160 / Thursday, August 18, 2011 / Notices 51457 

14 17 CFR 200.30–3(a)(12). 

1See 17 CFR 240.15c3–5(f). 

2See also Exchange Act Section 36(a)(1), 15 

U.S.C. 78mm(a)(1) (providing general authority for 

Commission to grant exemptions from provisions of 

Exchange Act and rules thereunder, provided the 

Commission makes certain required findings). 

3See 17 CFR 240.15c3–5(c)(1)(ii). 

4See 17 CFR 240.15c3–5(c)(2). 

5On June 27, 2011, the Commission extended the 

compliance date, until November 30, 2011, for all 

of the requirements of Rule 15c3–5 for fixed income 

securities, and the requirements of Rule 15c3– 

5(c)(1)(i) for all securities. See Securities Exchange 

Act Release No. 64748 (June 27, 2011), 76 FR 38293 

(June 30, 2011). 

6See Exchange Act Release No. 63241 (Nov. 3, 

2010), 75 FR 69792 (Nov. 15, 2010) (‘‘Rule 15c3– 

5 Adopting Release’’). 

7Rule 15c3–5 applies to trading in all securities 

on an exchange or ATS. Id. at 69765. 

8See 17 CFR 240.15c3–5(c)(1). 

9See 17 CFR 240.15c3–5(c)(2). 

10See 17 CFR 240.15c3–5(c)(1)(i). 

11See 17 CFR 240.15c3–5(c)(1)(ii). 

12See 17 CFR 240.15c3–5(c)(2)(i). 

13See 17 CFR 240.15c3–5(c)(2)(ii). 

14See 17 CFR 240.15c3–5(c)(2)(iii). 

15See 17 CFR 240.15c3–5(c)(2)(iv). 

16See letter from Janet McGinness, Senior Vice 

President—Legal and Corporate Secretary, NYSE 

Euronext, on behalf of NYSE Amex, NYSE Arca, 

and NYSE, to Elizabeth Murphy, Secretary, 

Continued 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–NASDAQ–2011–105 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–NASDAQ–2011–105. 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 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 NASDAQ. 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–NASDAQ–2011–105 and 

should be submitted on or before 

September 8, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–21034 Filed 8–17–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65132] 

Order Temporarily Exempting the Floor 

Broker Operations of Broker-Dealers 

With Market Access That Handle 

Orders on a Manual Basis From the 

Automated Controls Requirement of 

Rule 15c3–5(c)(1)(ii) and Rule 

15c3–5(c)(2) Under the Securities 

Exchange Act of 1934 

August 15, 2011. 

I. Introduction 

Pursuant to Rule 15c3–5(f) under the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’),1 the Securities and 

Exchange Commission (‘‘Commission’’), 

by order, may exempt from the 

provisions of Rule 15c3–5 (‘‘Rule’’), 

either unconditionally or on specified 

terms and conditions, any broker or 

dealer, if the Commission determines 

that such exemption is necessary or 

appropriate in the public interest, and is 

consistent with the protection of 

investors.2 As discussed below, the 

Commission temporarily is exempting 

the floor broker operations of brokerdealers with market access that handle 

orders on a manual basis (‘‘Floor 

Brokers’’) from the automated controls 

requirement of Rules 15c3–5(c)(1)(ii) 3

and (c)(2) 4 until November 30, 2011.5

II. Background 

On November 3, 2010, the 

Commission adopted Rule 15c3–5 under 

the Exchange Act.6 Among other things, 

Rule 15c3–5 requires each broker-dealer 

with access to trading securities 7

directly on an exchange or ATS, 

including a broker-dealer providing 

sponsored or direct market access to 

customers or other persons, and each 

broker-dealer operator of an ATS that 

provides access to trading securities 

directly on its ATS to a person other 

than a broker-dealer, to establish, 

document, and maintain a system of risk 

management controls and supervisory 

procedures that, among other things, is 

reasonably designed to (1) 

Systematically limit the financial 

exposure of the broker-dealer that could 

arise as a result of market access,8 and 

(2) ensure compliance with all 

regulatory requirements that are 

applicable in connection with market 

access.9 The required financial risk 

management controls and supervisory 

procedures must be reasonably designed 

to prevent the entry of orders that 

exceed appropriate pre-set credit or 

capital thresholds,10 or that appear to be 

erroneous.11 The regulatory risk 

management controls and supervisory 

procedures must also be reasonably 

designed to prevent the entry of orders 

unless there has been compliance with 

all regulatory requirements that must be 

satisfied on a pre-order entry basis,12

prevent the entry of orders that the 

broker-dealers or customer is restricted 

from trading,13 restrict market access 

technology and systems to authorized 

persons,14 and assure appropriate 

surveillance personnel receive 

immediate post-trade execution 

reports.15

The Commission has received a 

request from NYSE Amex LLC (‘‘NYSE 

Amex’’), NYSE Arca, Inc. (‘‘NYSE 

Arca’’), and New York Stock Exchange 

LLC (‘‘NYSE’’) (collectively, ‘‘NYSE 

Euronext’’) to extend the compliance 

date for the automated controls 

requirement pursuant to Rules 15c3– 

5(c)(1)(ii) and (c)(2) for Floor Brokers 

until November 30, 2011.16 Specifically, 

mstockstill on DSK4VPTVN1PROD with NOTICES

51458 Federal Register / Vol. 76, No. 160 / Thursday, August 18, 2011 / Notices 

Commission, dated June 29, 2011 (‘‘NYSE Euronext 

Letter’’). 17 Id. 18 Id. at 2. 19See Rule 15c3–5 Adopting Release. 

20NYSE Euronext Letter at 2. 

21See 17 CFR 240.15c3–5(c)(1)(ii). 

22See 17 CFR 240.15c3–5(c)(2). 

23See 17 CFR 240.15c3–5(f). 

24See 17 CFR 240.15c3–5(c)(1)(ii). 

25See 17 CFR 240.15c3–5(c)(2). 

NYSE Euronext indicated that more 

time is needed to complete the 

implementation of the automated 

controls required pursuant to Rules 

15c3–5(c)(1)(ii) and (c)(2) for orders 

handled on a manual basis because the 

floor broker operations of broker-dealers 

with market access historically have 

used manual systematic controls for 

their risk management and regulatory 

purposes with respect to manual orders, 

and they will need additional time to 

complete the development and 

implementation of automated controls 

for such manual orders.17 NYSE 

Euronext explained that certain Floor 

Brokers initially believed that their 

existing combination of automated and 

manual controls would be sufficient for 

compliance with Rule 15c3–5,18 and 

only recently became aware that the 

required pre-trade controls under the 

Rule must be systemic and automated 

for compliance purposes.19 NYSE 

Euronext also explained that additional 

time would provide the NYSE Euronext 

with an opportunity to update Floor 

Broker-related systems and thereby 

facilitate compliance with the Rule by 

Floor Brokers.20

III. Discussion 

The Commission is temporarily 

exempting Floor Brokers from the 

automated controls requirement of 

Rules 15c3–5(c)(1)(ii) 21 and (c)(2) 22

until November 30, 2011. The 

Commission believes that providing 

additional time for such Floor Brokers 

to complete the development and 

implementation of automated controls 

pursuant to Rules 15c3–5(c)(1)(ii) and 

(c)(2) for orders handled on a manual 

basis, where manual systematic controls 

historically were used for risk 

management and regulatory purposes, is 

reasonable. In addition, the Commission 

believes that temporarily exempting 

Floor Brokers from the automated 

controls requirement of Rules 15c3– 

5(c)(1)(ii) and (c)(2) until November 30, 

2011, should facilitate the orderly and 

meaningful implementation of the 

required automated risk management 

controls for those Floor Brokers that 

need more time to be in compliance 

with the Rule. 

For the foregoing reasons, the 

Commission finds that granting the 

foregoing temporary exemption is 

necessary and appropriate in the public 

interest, and is consistent with the 

protection of investors. 

IV. Conclusion 

It Is Hereby Ordered, pursuant to Rule 

15c3–5(f),23 that the floor broker 

operations of broker-dealers with market 

access that handle orders on a manual 

basis are temporarily exempted from the 

automated controls requirement of 

Rules 15c3–5(c)(1)(ii) 24 and (c)(2) 25

until November 30, 2011. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–21099 Filed 8–17–11; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 7557] 

Culturally Significant Objects Imported 

for Exhibition Determinations: 

‘‘Wonder of the Age: Master Painters 

of India, 1100–1900’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, and Delegation of 

Authority No. 236–3 of August 28, 2000 

(and, as appropriate, Delegation of 

Authority No. 257 of April 15, 2003), I 

hereby determine that the objects to be 

included in the exhibition ‘‘Wonder of 

the Age: Master Painters of India, 1100– 

1900,’’ imported from abroad for 

temporary exhibition within the United 

States, are of cultural significance. The 

objects are imported pursuant to loan 

agreements with the foreign owners or 

custodians. I also determine that the 

exhibition or display of the exhibit 

objects at the Metropolitan Museum of 

Art, New York, New York, from on or 

about September 28, 2011, until on or 

about January 8, 2012, and at possible 

additional exhibitions or venues yet to 

be determined, is in the national 

interest. I have ordered that Public 

Notice of these Determinations be 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact Paul W. 

Manning, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6469). The 

mailing address is U.S. Department of 

State, SA–5, L/PD, Fifth Floor (Suite 

5H03), Washington, DC 20522–0505. 

Dated: August 11, 2011. 

J. Adam Ereli, 

Principal Deputy Assistant Secretary, Bureau 

of Educational and Cultural Affairs, 

Department of State. 

[FR Doc. 2011–21129 Filed 8–17–11; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF TRANSPORTATION 

Office of the Secretary 

Notice of Applications for Certificates 

of Public Convenience and Necessity 

and Foreign Air Carrier Permits Filed 

Under Subpart B (Formerly Subpart Q) 

During the Week Ending July 30, 2011 

The following Applications for 

Certificates of Public Convenience and 

Necessity and Foreign Air Carrier 

Permits were filed under subpart B 

(formerly subpart Q) of the Department 

of Transportation’s Procedural 

Regulations (See 14 CFR 301.201 et. 

seq.). The due date for Answers, 

Conforming Applications, or Motions to 

Modify Scope are set forth below for 

each application. Following the Answer 

period DOT may process the application 

by expedited procedures. Such 

procedures may consist of the adoption 

of a show-cause order, a tentative order, 

or in appropriate cases a final order 

without further proceedings. 

Docket Number: DOT–OST–2011– 

0143. 

Date Filed: July 29, 2011. 

Due Date for Answers, Conforming 

Applications, or Motion to Modify 

Scope: August 19, 2011. 

Description: Application of TwinAir 

Calypso Limited, Inc. requesting 

authority to conduct scheduled 

passenger operations as a commuter air 

carrier. 

Renee V. Wright, 

Program Manager, Docket Operations, 

Federal Register Liaison. 

[FR Doc. 2011–21083 Filed 8–17–11; 8:45 am] 

BILLING CODE 4910–9X–P 

mstockstill on DSK4VPTVN1PROD with NOTICES