Federal Register / Vol. 77, No. 37 / Friday, February 24, 2012 / Notices 11181 

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

10 17 CFR 240.19b–4(f)(2). 

11 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. 

these issuers. As it relates to other 

issuers, the ability of the Exchange to 

attract well-known, recognizable 

companies to list on the Exchange will 

help the Exchange to establish its status 

and reputation as a primary listing 

market. The Exchange’s reputation as a 

primary listing market, in turn, will 

positively impact all issuers that are 

listed on the Exchange. Further, the 

Exchange believes that additional 

revenue generated from the Exchange’s 

auction processes for actively traded 

Exchange-listed securities will offset the 

cost of operating a program for listed 

companies on the Exchange. Because 

issuers with higher CADV are likely to 

generate additional revenue for the 

Exchange, the Exchange believes it is 

reasonable to waive annual listing fees 

for such issuers. Based on the foregoing, 

the Exchange believes that waiver of 

annual listing fees to companies with 

certain CADV is a fair and equitable 

allocation of fees to issuers. 

Finally, the Exchange believes it is 

reasonable and equitable to assess 

annual fees as of a security’s initial 

listing date, rather than pro-rating 

annual fees and billing on a calendar 

basis. In particular, the Exchange 

believes that this annual billing will 

provide for more certainty to issuers 

than a billing model that requires 

proration. 

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. 

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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A)(ii) of 

the Act 9 and Rule 19b–4(f)(2) 

thereunder,10 the Exchange has 

designated this proposal as establishing 

or changing a due, fee, or other charge 

applicable to the Exchange’s Members 

and non-members, which renders the 

proposed rule change effective upon 

filing. 

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 email to rulecomments@sec.gov. Please include File 

Number SR–BATS–2012–010 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–2012–010. 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 a.m. and 3 p.m. Copies of the 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– 

2012–010 and should be submitted on 

or before March 16, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4283 Filed 2–23–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66421; File No. SR–NYSE– 

2012–05] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change 

Amending NYSE Rule 476A To Update 

Its ‘‘List of Exchange Rule Violations 

and Fines Applicable Thereto Pursuant 

to Rule 476A’’ 

February 17, 2012. 

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 

7, 2012, 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 476A to update its ‘‘List of 

Exchange Rule Violations and Fines 

Applicable Thereto Pursuant to Rule 

476ARule XX [sic]. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and 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, 


srobinson on DSK4SPTVN1PROD with NOTICES
11182 Federal Register / Vol. 77, No. 37 / Friday, February 24, 2012 / Notices 

4Rule 476A(a) includes a reference to ‘‘allied 

member’’. The Exchange proposes to replace that 

term with ‘‘principal executive,’’ which is 

consistent with a prior rule change eliminating the 

category of ‘‘allied member’’ on the Exchange. See 

Securities Exchange Act Release No. 58549 

(September 15, 2008), 73 FR 54444 (September 19, 

2008) (SR–NYSE–2008–80). 

5The Exchange’s Minor Rule Violation Plan, Rule 

476A, was originally adopted by the Exchange and 

approved by the Commission in 1985. See Exchange 

Act Release No. 34–21688 (January 25, 1985), 50 FR 

5025 (February 5, 1985). It has been amended 

numerous times since its adoption. 

6The Exchange also proposes to fix a 

typographical error in the entry concerning Rule 

343 and replace the term ‘‘officer’’ with ‘‘office.’’ 

7The Exchange also proposes to add a reference 

to ‘‘Rule 123C’’ to the amended description, and 

move it up on the Rule 476A List. 

8Rule 104 currently operates on a pilot basis, set 

to end on July 31, 2012. The Exchange believes that 

the Rule 476A List should reference those rules that 

are currently operational, even if operating on a 

pilot basis. 

9See Exchange Act Release No. 58845 (October 

24, 2008), 73 FR 64379 (October 29, 2008) (SR– 

NYSE–2008–46). 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Rule 476A to update its ‘‘List of 

Exchange Rule Violations and Fines 

Applicable Thereto Pursuant to Rule 

476A’’ (‘‘Rule 476A List’’) to (i) make 

technical, non-substantive changes to 

conform the list to previously-approved 

changes in Exchange rules, (ii) update 

the rules relating to conduct by 

Designated Market Makers (‘‘DMM’’), 

and (iii) add rules relating to conduct by 

DMMs. 

Background 

Under the Exchange’s Minor Rule 

Violation Plan, NYSE Rule 476A, the 

Exchange may impose a fine, not to 

exceed $5,000, on any member, member 

organization, approved person or 

registered or non-registered employee 4

of a member or member organization for 

a minor violation of certain specified 

Exchange rules (a ‘‘summary fine’’). 

Summary fines provide a meaningful 

sanction for rule violations when the 

violation calls for stronger discipline 

than an admonition or cautionary letter, 

but the facts and circumstances of the 

violation do not warrant initiation of a 

formal disciplinary proceeding under 

Rule 476.5

Proposed Non-Substantive Changes to 

Rule 476A List 

The Exchange proposes the following 

non-substantive changes to update the 

Rule 476A List to conform it to 

approved changes to Exchange rules, as 

follows: 

• Update the titles of Rules 15, 15A, 

and 105 

• Update rule references that have 

been renumbered or harmonized with a 

FINRA rule: Rule 72(b) to 72(d); 79A.30 

to 79A.20; 103.12 to 103.11; and 346(b) 

to 3270 

• Delete references to rules that have 

been deleted: Rules 97.40 (reporting rule 

violation); 104.12 (DMM investment 

account rule); 107A.30 (reporting rule 

violation); 112A.10 (reporting rule 

violation); 123A.30 (percentage orders); 

304(h)(2) (reporting rule violation); 

346(c), (e), and (f) (Limitations on 

member organization employment and 

failure to obtain Exchange approval rule 

violations); 421 (reporting rule 

violation); 440F (reporting rule 

violation); and 440G (reporting rule 

violation) 6

• Update the description to rules that 

have been amended: Rules 123C7

(deleting references to expiration 

Fridays and quarterly expiration days); 

411(b) (replacing the description to 

reflect the amended rule); and 345(a) 

(deleting the reference to Securities 

Trader Supervisor) 

Proposed Updates to Rule 476A List for 

DMM Conduct Rules 

The current Rule 476A List includes 

rules that govern DMM conduct, e.g., 

Rules 104(a)(1)(A), 104.10, and 

Exchange policies regarding procedures 

to be followed in delayed opening 

situations. The Exchange proposes to 

update the Rule 476A List with current 

rules governing DMM conduct, and in 

particular, to include Rules 104 and 

123D in the Rule 476A List. The 

Exchange further proposes to expand 

the references to Rules 104 and 123D to 

add new elements to the Rule 476A List 

[sic] 

The Exchange believes that the 

updates proposed below will provide 

the Exchange with sufficient flexibility 

to address DMM failure to meet their 

obligations. The Exchange recognizes 

that DMMs may, for many reasons, fail 

to meet their affirmative obligations as 

prescribed under Rules [sic] 104 or 

duties under Rule 123D. In some 

circumstances, formal disciplinary 

measures in accordance with Rule 476 

are warranted. However, in other 

instances, formal discipline may be 

unwarranted, and the Exchange believes 

that the addition of these Rules to Rule 

476A List will provide a more flexible 

and appropriate tool to enforce potential 

failure by DMMs to adhere to the 

requirements set forth in those rules, 

while preserving the Exchange’s 

discretion to seek formal discipline 

under the appropriate circumstances. 

The Exchange believes that the 

proposed updated rule references cover 

the same subject matter as are already 

addressed in the Rule 476A List, albeit 

in outdated references. In addition, the 

Exchange believes it is also appropriate 

to add new elements relating to Rule 

[sic] 104 and 123D to the Rule 476A 

List. 

Rule 104 

NYSE Rule 104 requires, inter alia, 

DMMs registered in one or more 

securities traded on the Exchange to 

engage in a course of dealings for their 

own account to assist in the 

maintenance of a fair and orderly 

market, insofar as reasonably 

practicable, by contributing liquidity 

when lack of price continuity and 

depth, or disparity between supply and 

demand exists or is reasonably to be 

anticipated.8

The Rule 476A List currently includes 

Rule 104(a)(1)(A), which requires DMMs 

to maintain a bid or an offer at the 

National Best Bid and National Best 

Offer (‘‘inside’’) at least 15% of the 

trading day for securities in which the 

DMM unit is registered with a 

consolidated average daily volume of 

less than one million shares, and at least 

10% for securities in which the DMM 

unit is registered with a consolidated 

average daily volume equal to or greater 

than one million shares. 

The Rule 476A List also includes an 

outdated reference to Rule 104.10. 

When the Exchange adopted the New 

Market Model, it adopted current Rule 

104 (on a pilot basis), which does not 

include a rule reference of 104.10 that 

is the same as the former Rule 104.10.9

However, the subject matter formerly 

covered in Rule 104.10 continues in the 

current Rule 104. For example, the text 

of former Rules 104.10(5) and (6) has 

been moved in substantially similar 

form to current Rules 104(g), (h), and (i). 

More generally, although the 

Exchange has deleted former Rule 

104.10(1)–(3), the subject matter of those 

rules has been carried forward in 

various sections of current Rule 104. For 

example, former Rule 104.10 specified 

the functions of DMMs, including the 

maintenance, in so far as reasonably 

practicable, of a fair and orderly market. 

This topic is now covered by Rules 

104(a) and (f). 

More specifically, former Rule 

104.10(1) stated that the maintenance of 

a fair and orderly market implies the 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 37 / Friday, February 24, 2012 / Notices 11183 

10See Exchange Act Release No. 63255 (Nov. 5, 

2010), 75 FR 69484 (Nov. 12, 2010) (SR–NYSE– 

2010–69). 

11The Exchange notes that it has separately 

proposed to delete NYSE Rule 104(a)(6). See 

Securities Exchange Act Release No. 65736 (Nov. 

10, 2011) (SR–NYSE–2011–56). The Exchange 

further notes that other elements of Rule 104, i.e., 

Rule 104(j) and supplementary material .05 and .10, 

are not related to DMM obligations, but rather 

reflect operational aspects of the Exchange. 

12 15 U.S.C. 78f(b)(5). 

13 15 U.S.C. 78f(b)(6). 

maintenance of price continuity with 

reasonable depth and the minimizing of 

the effects of temporary disparity 

between supply and demand. This 

subject matter is now covered in Rule 

104(f)(ii). Former Rule 104.10(2) 

concerned a DMM trading for his or her 

own account when there is [sic] lack of 

price continuity, lack of depth, or 

disparity between supply and demand 

exists or is reasonably to be anticipated. 

This subject matter is similarly covered 

in Rule 104(f)(ii). Finally, former Rule 

104.10(3) provided that DMM dealings 

for his own account must constitute a 

course of dealings reasonably calculated 

to contribute to the maintenance of 

price continuity with reasonable depth, 

and to minimizing the effects of 

temporary disparity between supply and 

demand. This is similarly covered in 

Rule 104(f)(ii). The Exchange further 

believes that Rule 104(f)(iii), which 

provides more details about Depth 

Guidelines, is also related to former 

Rule 104.10(3). In particular, the 

Exchange was publishing Depth 

Guidelines when Rule 104.10 was in 

effect and the only change in the New 

Market Model’s version of the rule is to 

codify this aspect of DMM obligations. 

The Exchange also believes that the 

subject matter of former Rules 

104.10(1)–(3) is now covered in current 

Rules 104(a)(2)–(5). Current Rules 

104(a)(2)–(5) describe with specificity 

how a DMM can meet his or her 

responsibilities and duties to maintain a 

fair and orderly market, including 

facilitating openings and re-openings, 

the close of trading, trading when a 

liquidity replenishment point is 

reached, and trading when a ‘‘gap’’ 

quote procedure is being used. These 

rule provisions simply provide detail of 

how a DMM is to meet its fair and 

orderly obligation. These were functions 

that specialists formerly performed 

when they were subject to former Rule 

104.10(1)–(3), the difference now being 

that these functions have been codified 

in the rule text. 

The Exchange further proposes to add 

to the Rule 476A list Rules 104(b), (c), 

(d), and (e). The Exchange believes that, 

similar to Rule 104(a), (f), (g), (h), and 

(i), the requirements applicable to 

DMMs in Rules 104(b), (c), (d), and (e) 

relate to the functions of the DMMs. 

Because these are DMM obligations for 

which potential violations can range in 

severity, including these elements of 

Rule 104 in the Rule 476A List is 

consistent with the current inclusion of 

other aspects of Rule 104. 

In addition, the Exchange believes it 

is appropriate to add Rule 104(a)(1)(B) 

to the Rule 476A List. Rule 104(a)(1)(B) 

governs the DMM’s new pricing 

obligations, which were implemented 

by all equities markets on December 6, 

2010.10 Accordingly, this provision was 

not previously included in the Minor 

Rule Violation Plan. The Exchange 

believes it is appropriate to add this 

element of Rule 104 to the Minor Rule 

Violation Plan to provide greater 

flexibility with respect to the type of 

disciplinary measures that may be 

invoked if there were a violation of this 

rule. For example, a potential situation 

that may warrant a summary fine rather 

than formal disciplinary action could be 

if a DMM fails to maintain a quote 

consistent with Rule 104(a)(1)(B), but 

which does not result in any harm to the 

market. 

As noted above, summary fines 

provide the Exchange with flexibility to 

impose an appropriate level of 

discipline for violations that are more 

serious than an admonition letter, but 

for which the facts and circumstances 

do not warrant formal discipline. The 

Exchange believes that providing 

flexibility for violations related to the 

DMM’s new pricing obligations and 

Rules 104(b), (c), (d), and (e) is in 

keeping with the spirit of the existing 

Rule 476A List, which already includes 

DMM conduct rules. 

To reflect these changes, the Exchange 

proposes to include a single reference to 

‘‘Rule 104 requirements for the dealings 

and responsibilities of DMMs’’ to the 

Rule 476A List, which would include 

all of the subsections of Rule 104 as 

described above.11 The Exchange 

further notes that these summary fines 

may be imposed, as applicable, on 

either an individual DMM, or the DMM 

unit, as specified in the subsections to 

Rule 104. 

Rule 123D 

The Exchange also proposes to update 

the reference relating to delayed 

openings in the Rule 476A list to 

instead reference a specific rule, i.e., 

Rule 123D, and to add all elements of 

Rule 123D as they relate to DMM 

conduct as being eligible under the 

Minor Rule Violation Plan. 

The Rule 476A List currently provides 

that ‘‘violations of Exchange policies 

regarding procedures to be followed in 

delayed opening situations’’ are eligible 

for summary fines under the Minor Rule 

Violation Plan. Such Exchange policies 

are codified in Rule 123D. Accordingly, 

the Exchange proposes to delete the 

general statement of ‘‘violations of 

Exchange policies regarding procedures 

to be followed in delayed opening 

situations’’ and replace it with a 

reference to Rule 123D. In so doing, the 

Exchange further proposes to add the 

other requirements of DMMs that are set 

forth in Rule 123D relating to openings, 

re-openings, trading halts, and tape 

indications. The Exchange believes that 

the additional flexibility of determining 

the appropriate level of discipline for 

DMM violations of Rule 123D conforms 

to the purpose of the existing Rule 476A 

List. In particular, the Exchange notes 

that adding Rule 123D in its entirety as 

it relates to DMM conduct is consistent 

with the existing inclusion of Rule 15 in 

the Rule 476A List, which similarly 

governs DMM’s conduct with respect to 

pre-opening indications. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with, and further the objectives of, 

Section 6(b)(5) of the Securities 

Exchange Act of 1934, as amended,12

(the ‘‘Act’’), in that they are designed to 

prevent fraudulent and manipulative 

acts and practices, 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. The proposed rule 

changes also further the objectives of 

Section 6(b)(6),13 in that they provide 

for appropriate discipline for violations 

of provisions of the Act, the rules and 

regulations thereunder, and Exchange 

rules and regulations. 

The Exchange believes that the 

proposed rule changes are designed to 

prevent fraudulent and manipulative 

acts and practices because they will 

provide the Exchange with greater 

regulatory flexibility to enforce the 

DMM requirements set forth in NYSE 

Rules 104 and 123D in a more informal 

manner while also preserving the 

Exchange’s discretion to seek formal 

discipline for more serious 

transgressions as warranted. In addition, 

the proposed rule change removes 

impediments to and perfects the 

mechanism of a free and open market by 

updating the Minor Rule Violation Plan 

by updating rule cite references, 

deleting references to obsolete rules, 

and for DMM-related rules, both 

updating the rule references to reflect 


srobinson on DSK4SPTVN1PROD with NOTICES
11184 Federal Register / Vol. 77, No. 37 / Friday, February 24, 2012 / Notices 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

the current rules that govern the topics 

currently identified in outdated rule 

references in the Minor Rule Violation 

Plan as well as adding additional 

elements of the rules governing DMM 

conduct. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

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 

such 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 email to rulecomments@sec.gov. Please include File 

Number SR–NYSE–2012–05 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–NYSE–2012–05. 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 

a.m. and 3 p.m. Copies of the 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–NYSE– 

2012–05 and should be submitted on or 

before March 16, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4282 Filed 2–23–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66414; File No. SR–BX– 

2012–009] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change to BX Rule 

7021 

February 16, 2012. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that, on February 

8, 2012, NASDAQ OMX BX, Inc. (‘‘BX’’ 

or ‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. 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 [sic] a rule 

change to BX Rule 7021 to make 

available at no cost and on a voluntary 

basis certain market data about market 

participants’ own trading on BX. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

nasdaqomxbx.cchwallstreet.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 

Exchange 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 these 

statements may be examined at the 

places specified in Item IV below. The 

self-regulatory organization has 

prepared summaries, set forth in 

Sections A, B and C below, of the most 

significant aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

BX is proposing to make available to 

members the Trading and Compliance 

Data Package under BX Rule 7021 

(‘‘Data Package’’). The Data Package 

allows member firms to obtain via 

NasdaqTrader.com information 

regarding their own historical quoting 

and trading activity on BX. The Data 

Package will provide BX Participants 

with historical data reports containing 

trade reporting information about the 

Participant’s own trades in BX, for 

delivery on an end-of-day or T+1 basis. 

The Exchange may modify the contents 

of the BX Trading and Compliance Data 

Package from time to time based on 

subscriber interest. 

The Data Package also provides 

member firms with information 

concerning their compliance with BX 

and FINRA rules. In this regard, member 

firms that subscribe to the Data Package 

can obtain the following reports: (1) 


srobinson on DSK4SPTVN1PROD with NOTICES