Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Notices 18875 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See e.g., NYSE Arca Rule 6.37(a). 

5See e.g., NYSE Arca Rule 6.37(c). 

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

7 15 U.S.C. 78f(b)(5). 

For the Nuclear Regulatory Commission. 

Eric J. Leeds, 

Director, Office of Nuclear Reactor 

Regulation. 

[FR Doc. 2012–7434 Filed 3–27–12; 8:45 am] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66642; File No. SR– 

NYSEArca–2012–19] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change To Amend Commentary 

.01 to NYSE Arca Rule 6.35 

March 22, 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 March 9, 

2012, 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 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 proposes to 

[sic] amend Commentary .01 to NYSE 

Arca Rule 6.35. 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, 

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 

Commentary .01 to NYSE Arca Rule 

6.35 to allow certain cross trades 

effected on the Trading Floor to count 

toward the Market Maker’s appointment 

trading requirement and to make nonsubstantive changes to NYSE Arca Rules 

6.35, 6.37, 6.84, and 10.12. 

Under NYSE Arca Rule 6.35, a Market 

maker is required to effect at least 75% 

of its trading activity (measured in terms 

of contract volume per quarter) in 

classes within the Market Maker’s 

appointment. Commentary .01 to NYSE 

Arca Rule 6.35 clarifies that a Market 

Maker’s trades effected on the Trading 

Floor to accommodate cross trades 

executed pursuant to NYSE Arca Rule 

6.47 do not count for or against the 

Market Maker’s 75% requirement, 

regardless of whether the trades are in 

issues within or without the Market 

Maker’s appointment. 

The Exchange is proposing to amend 

Commentary .01 to NYSE Arca Rule 

6.35 to allow a Market Maker’s trades 

effected on the Trading Floor to 

accommodate cross trades executed 

pursuant to NYSE Arca Rule 6.47 to 

count toward the Market Maker’s 75% 

requirement, regardless of whether the 

trades are in issues within or without 

the Market Maker’s appointment. 

Transactions of a Market Maker 

should constitute a course of dealings 

reasonably calculated to contribute to 

the maintenance of a fair and orderly 

market.4 Market Makers located on the 

Trading Floor, when trading in option 

classes other than those to which they 

are appointed, must continue to fulfill 

Market Maker obligations for that class 

as if they were appointed to such class. 

In addition, when present anywhere on 

the Options Trading Floor, with regard 

to all securities traded on the Trading 

Floor, not just those to which they are 

appointed, Market Makers may be 

required to undertake the general 

obligations of a Market Maker at any 

time in response to a demand from a 

Trading Official.5 The Exchange 

believes that a Market Maker engaging 

in such trading is fulfilling Market 

Maker obligations in addition to 

providing liquidity to the market and 

the opportunity for price improvement, 

and it is appropriate to encourage such 

activity by counting it toward the 75% 

requirement. 

In addition, the Exchange notes that 

the proposed rule change is similar to 

NYSE Amex LLC Options Rule 

923NY(i), which permits all floor trades 

executed by Floor Market Makers [sic] a 

designated Trading Zone, not just those 

to which they hold an appointment, to 

count toward the Market Maker’s 75% 

requirement. While NYSE Arca Market 

Makers are not appointed to a 

designated Trading Zone, they are 

subject to certain Market Maker 

obligations in all classes of options 

while located on the Trading Floor. As 

such, NYSE Arca believes that counting 

all floor trades, executed to 

accommodate cross transactions, is 

consistent with the application of NYSE 

Amex Rule 923NY(i) when calculating 

compliance with the 75% ‘‘in 

appointment’’ requirement. 

NYSE Arca is also proposing nonsubstantive changes to NYSE Arca Rules 

6.35, 6.37, 6.84, and 10.12. The 

Exchange proposes to replace the term 

‘‘Primary Appointment’’ which is not a 

defined term with the word 

‘‘appointment’’ as it is used elsewhere 

in NYSE Arca Rule 6.35. 

2. Statutory Basis 

The proposed rule change is 

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

in general, and furthers the objectives of 

Section 6(b)(5),7 in particular, in that 

the proposal 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 regulating, clearing, settling, 

processing information with respect to, 

and 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. 

Specifically, the proposed rule change 

will remove impediments to and perfect 

the mechanism of a free and open 

market by providing an appropriate 

incentive for Market Makers to provide 

greater liquidity and the opportunity for 

price improvement on the Trading 

Floor, thereby benefiting all market 

participants. 

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 


tkelley on DSK3SPTVN1PROD with NOTICES
18876 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Notices 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 61698 

(March 12, 2010), 75 FR 13151 (March 18, 2010) 

(hereinafter referred to as the ‘‘Commission’s 

Approval Order’’). 

4Securities Exchange Act Release No. 64362 

(April 28, 2011), 76 FR 25386 (May 4, 2011) (SR– 

EDGA–2011–13). 

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–NYSEArca–2012–19 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–2012–19. 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– 

NYSEArca–2012–19 and should be 

submitted on or before April 18, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7382 Filed 3–27–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66643; File No. SR–EDGA– 

2012–10] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Pilot 

Period of the Inbound Router, as 

Described in EDGA Rule 2.12(b) 

March 22, 2012. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on March 16, 

2012, EDGA Exchange, Inc. (‘‘Exchange’’ 

or ‘‘EDGA’’) 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 extend the 

pilot period of the Exchange’s inbound 

router, as described in Rule 2.12(b), so 

that the Exchange can receive inbound 

routes of equities orders through DE 

Route, the Exchange’s routing broker 

dealer, from EDGX Exchange, Inc. 

(‘‘EDGX’’). The text of the proposed rule 

change is available on the Exchange’s 

Web site at www.directedge.com, at the 

Exchange’s principal office, and at the 

Public Reference Room of the 

Commission. 

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 

Currently, Direct Edge ECN, LLC d/b/ 

a DE Route (‘‘DE Route’’) is the 

approved outbound order routing 

facility of EDGX.3 The Exchange has 

been approved to receive inbound 

routes of equities orders by DE Route 

from EDGX. The Exchange’s authority to 

receive inbound routes of equities 

orders by DE Route from EDGX is 

subject to a pilot period of twelve 

months, ending June 30, 2012. 

The pilot period initially expired on 

July 1, 2011 and was extended once 

through June 30, 2012.4 The Exchange 

now hereby seeks to extend the 

previously approved pilot period (with 

the attendant obligations and conditions 

outlined in the Commission’s Approval 

Order) for an additional twelve months, 

through June 30, 2013. This is reflected 


tkelley on DSK3SPTVN1PROD with NOTICES