Federal Register / Vol. 77, No. 62 / Friday, March 30, 2012 / Notices 19401 

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

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with 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 date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has fulfilled this requirement. 

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. 

Commission noted that if the 

Combination is not consummated, the 

Holdco Proposal would not become 

effective. 

On February 2, 2012, following the 

European Commission’s decision to 

prohibit the Combination, NYSE 

Euronext and Deutsche Bo ̈rse agreed to 

terminate the Business Combination 

Agreement, dated as of February 15, 

2011, as amended by Amendment No. 1 

dated as of May 2, 2011 and by 

Amendment No. 2 dated as of June 16, 

2011, by and among NYSE Euronext, 

Deutsche Bo ̈rse, Holdco and Pomme 

Merger Corporation, a Delaware 

corporation and newly formed wholly 

owned subsidiary of Holdco. 

Accordingly, the Combination 

contemplated by the Holdco Proposal 

will not be completed and, therefore, 

the Holdco Proposal conditionally 

approved by the Commission will not 

become effective. 

2. Statutory Basis 

The Exchange believes that this filing 

is consistent with Section 6(b) 8 of the 

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’) in general, and 

furthers the objectives of Section 

6(b)(5) 9 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, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. Specifically, the Exchange 

believes that the Proposed Rule Change 

will clarify the corporate structure of the 

Exchange, which will promote just and 

equitable principles of trade and help to 

protect 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 Exchange Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

Proposed Rule Change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms, does not become 

operative for 30 days after the date of 

this filing, 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 10 and 

Rule 19b–4(f)(6) thereunder.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 Exchange 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–EDGX–2012–10 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–EDGX–2012–10. 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–EDGX– 

2012–10 and should be submitted on or 

before April 20, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7630 Filed 3–29–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66656; File No. SR– 

NYSEArca–2012–22] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Amending NYSE Arca 

Equities Rule 7.45 Adding a New 

Paragraph (d) That Addresses the 

Authority of the Exchange or 

Archipelago Securities LLC To Cancel 

Orders When a Technical or Systems 

Issue Occurs and Describe the 

Operation of an Error Account for Arca 

Securities 

March 26, 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 

15, 2012, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 

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19402 Federal Register / Vol. 77, No. 62 / Friday, March 30, 2012 / Notices 

4Arca Securities is a facility of the Exchange. 

Accordingly, under NYSE Arca Equities Rule 7.45, 

the Exchange is responsible for filing with the 

Commission rule changes and fees relating to Arca 

Securities’ functions. In addition, the Exchange is 

using the phrase ‘‘Arca Securities or the Exchange’’ 

in this rule filing to reflect the fact that a decision 

to take action with respect to orders affected by a 

technical or systems issue may be made in the 

capacity of Arca Securities or the Exchange 

depending on where those orders are located at the 

time of that decision. 

From time to time, the Exchange also uses nonaffiliate third-party broker-dealers to provide 

outbound routing services (i.e., third-party Routing 

Brokers). In those cases, orders are submitted to the 

third-party Routing Broker through Arca Securities, 

the third-party Routing Broker routes the orders to 

the routing destination in its name, and any 

executions are submitted for clearance and 

settlement in the name of Arca Securities so that 

any resulting positions are delivered to Arca 

Securities upon settlement. As described above, 

Arca Securities normally arranges for any resulting 

securities positions to be delivered to the ETP 

Holder that submitted the corresponding order to 

the Exchange. If error positions (as defined in 

proposed Rule 7.45(d)(2)) result in connection with 

the Exchange’s use of a third-party Routing Broker 

for outbound routing, and those positions are 

delivered to Arca Securities through the clearance 

and settlement process, Arca Securities would be 

permitted to resolve those positions in accordance 

with proposed Rule 7.45(d). If the third-party 

Routing Broker received error positions in 

connection with its role as a routing broker for the 

Exchange, and the error positions were not 

delivered to Arca Securities through the clearance 

and settlement process, then the third-party Routing 

Broker would resolve the error positions itself, and 

Arca Securities would not be permitted to accept 

the error positions, as set forth in proposed Rule 

7.45(d)(2)(B). 

5The Exchange has also been approved to receive 

inbound routes of equities orders by Arca Securities 

from the New York Stock Exchange LLC (‘‘NYSE’’) 

and NYSE Amex LLC (‘‘NYSE Amex’’). See NYSE 

Arca Equities Rule 7.45(c). 

6The examples described in this filing are not 

intended to be exclusive. Proposed NYSE Arca 

Equities Rule 7.45(d) would provide general 

authority for the Exchange or Arca Securities to 

cancel orders in order to maintain fair and orderly 

markets when technical and systems issues are 

occurring, and Rule 7.45(d) also would set forth the 

manner in which error positions may [sic] handled 

by the Exchange or Arca Securities. The proposed 

rule change is not limited to addressing order 

cancellation or error positions resulting only from 

the specific examples described in this filing. 

7 In a normal situation (i.e., one in which a 

technical or systems issue does not exist), Arca 

Securities should receive an immediate response to 

an IOC order from a routing destination, and would 

pass the resulting fill or cancellation on to the ETP 

Holder. After submitting an order that is routed to 

a routing destination, if an ETP Holder sends an 

instruction to cancel that order, the cancellation is 

held by the Exchange until a response is received 

from the routing destination. For instance, if the 

routing destination executes that order, the 

execution would be passed on to the ETP Holder 

and the cancellation instruction would be 

disregarded. 

8 If an ETP Holder did not submit a cancellation 

to the Exchange, however, that initial order would 

remain ‘‘live’’ and thus be eligible for execution or 

posting on the Exchange, and neither the Exchange 

nor Arca Securities would treat any execution of 

that initial order or any subsequent routed order 

related to that initial order as an error. 

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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

NYSE Arca Equities Rule 7.45 by adding 

a new paragraph (d) that addresses the 

authority of the Exchange or 

Archipelago Securities LLC (‘‘Arca 

Securities’’) to cancel orders when a 

technical or systems issue occurs and to 

describe the operation of an error 

account for Arca Securities. 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 the 

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 Arca Equities Rule 7.45 by adding 

a new paragraph (d) that addresses the 

authority of the Exchange or Arca 

Securities to cancel orders when a 

technical or systems issue occurs and to 

describe the operation of an error 

account for Arca Securities.4

Arca Securities is the approved 

routing broker of the Exchange, subject 

to the conditions listed in NYSE Arca 

Equities Rule 7.45. The Exchange relies 

on Arca Securities to provide outbound 

routing services from itself to routing 

destinations of Arca Securities (‘‘routing 

destinations’’).5 When Arca Securities 

routes orders to a routing destination, it 

does so by sending a corresponding 

order in its own name to the routing 

destination. In the normal course, 

routed orders that are executed at 

routing destinations are submitted for 

clearance and settlement in the name of 

Arca Securities, and Arca Securities 

arranges for any resulting securities 

positions to be delivered to the ETP 

Holder that submitted the 

corresponding order to the Exchange. 

However, from time to time, the 

Exchange and Arca Securities encounter 

situations in which it becomes 

necessary to cancel orders and resolve 

error positions.6

Examples of Circumstances That May 

Lead to Canceled Orders 

A technical or systems issue may arise 

at Arca Securities, a routing destination, 

or the Exchange that may cause the 

Exchange or Arca Securities to take 

steps to cancel orders if the Exchange or 

Arca Securities determines that such 

action is necessary to maintain a fair 

and orderly market. The examples set 

forth below describe some of the 

circumstances in which the Exchange or 

Arca Securities may decide to cancel 

orders. 

Example 1. If Arca Securities or a routing 

destination experiences a technical or 

systems issue that results in Arca Securities 

not receiving responses to immediate or 

cancel (‘‘IOC’’) orders that it sent to the 

routing destination, and that issue is not 

resolved in a timely manner, Arca Securities 

or the Exchange would seek to cancel the 

routed orders affected by the issue.7 For 

instance, if Arca Securities experiences a 

connectivity issue affecting the manner in 

which it sends or receives order messages to 

or from routing destinations, it may be 

unable to receive timely execution or 

cancellation reports from the routing 

destinations, and Arca Securities or the 

Exchange may consequently seek to cancel 

the affected routed orders. Once the decision 

is made to cancel those routed orders, any 

cancellation that an ETP Holder submitted to 

the Exchange on its initial order during such 

a situation would be honored.8

Example 2. If the Exchange experiences a 

systems issue, the Exchange may take steps 

to cancel all outstanding orders affected by 

that issue and notify affected ETP holders of 

the cancellations. In those cases, the 

Exchange would seek to cancel any routed 

orders related to the ETP holders’ initial 

orders. 

Examples of Circumstances That May 

Lead to Error Positions 

In some instances, the technical or 

systems issue at Arca Securities, a 

routing destination, the Exchange, or a 

non-affiliate third-party Routing Broker 

may also result in Arca Securities 

acquiring an error position that it must 

resolve. The examples set forth below 

describe some of the circumstances in 

which error positions may arise. 

Example A. Error positions may result from 

routed orders that the Exchange or Arca 

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9To the extent that Arca Securities incurred a loss 

in covering its short position, it would submit a 

reimbursement claim to that routing destination. 

10See, e.g., NYSE Arca Equities Rule 7.10 

(regarding clearly erroneous executions). 

11Such a situation may not cause the Exchange 

to declare self-help against the routing destination 

pursuant to Rule 611 of Regulation NMS. If the 

Exchange or Arca Securities determines to cancel 

orders routed to a routing destination under 

proposed Rule 7.45(d), but does not declare selfhelp against that routing destination, the Exchange 

would continue to be subject to the trade-through 

requirements in Rule 611 with respect to that 

routing destination. 

12As provided in NYSE Arca Equities Rule 

7.41(a), ‘‘the details of each transaction executed 

within the NYSE Arca Marketplace [the Exchange] 

shall be automatically processed for clearance and 

settlement on a locked-in basis. ETP Holders need 

not separately report their transactions to the 

Corporation for trade comparison purposes.’’ 

13The purpose of this provision is to clarify that 

Arca Securities may address error positions under 

the proposed rule that are caused by a technical or 

systems issue, but that Arca Securities may not 

accept from an ETP Holder positions that are 

delivered to the ETP Holder through the clearance 

and settlement process, even if those positions may 

have been related to a technical or systems issue at 

Arca Securities, the Exchange, a routing destination 

of Arca Securities, or a non-affiliate third-party 

Routing Broker. This provision would not apply, 

however, to situations like the one described above 

in which Arca Securities incurred a short position 

to settle an ETP Holder purchase, as the ETP Holder 

did not yet have a position in its account as a result 

of the purchase at the time of Arca Securities’ 

action (i.e., Arca Securities’ action was necessary 

for the purchase to settle into the ETP Holder’s 

account). Moreover, to the extent an ETP Holder 

receives positions pursuant to Rule 7.41(a) in 

connection with a technical or systems issue, that 

ETP Holder may seek to rely on NYSE Arca Equities 

Rule 13.2 if it experiences a loss. That rule provides 

ETP Holders with the ability to file claims against 

the Exchange ‘‘for the failure of its systems or 

facilities.’’ 

14See Example E above. 

Securities attempts to cancel but that are 

executed before the routing destination 

receives the cancellation message or that are 

executed because the routing destination is 

unable to process the cancellation message. 

Using the situation described in Example 1 

above, assume that the Exchange seeks to 

cancel orders routed to a routing destination 

because it is not receiving timely execution 

or cancellation reports from the routing 

destination. In such a situation, Arca 

Securities may still receive executions from 

the routing destination after connectivity is 

restored, which it would not then allocate to 

ETP Holders because of the earlier decision 

to cancel the affected routed orders. Instead, 

Arca Securities would post those positions 

into its error account and resolve the 

positions in the manner described below. 

Example B. Error positions may result from 

an order processing issue at a routing 

destination. For instance, if a routing 

destination experienced a systems problem 

that affects its order processing, it may 

transmit back a message purporting to cancel 

a routed order, but then subsequently submit 

an execution of that same order (i.e., a 

locked-in trade) to The Depository Trust & 

Clearing Corporation (‘‘DTCC’’) for clearance 

and settlement. In such a situation, the 

Exchange would not then allocate the 

execution to the ETP Holder because of the 

earlier cancellation message from the routing 

destination. Instead, Arca Securities would 

post those positions into its error account 

and resolve the positions in the manner 

described below. 

Example C. Error positions may result if 

Arca Securities receives an execution report 

from a routing destination but does not 

receive clearing instructions for the 

execution from the routing destination. For 

instance, assume that an ETP Holder sends 

the Exchange an order to buy 100 shares of 

ABC stock, which causes Arca Securities to 

send an order to a routing destination that is 

subsequently executed, cleared and closed 

out by that routing destination, and the 

execution is ultimately communicated back 

to that ETP Holder. On the next trading day 

(T+1), if the routing destination does not 

provide clearing instructions for that 

execution, Arca Securities would still be 

responsible for settling that ETP Holder’s 

purchase, but would be left with a short 

position in its error account.9 Arca Securities 

would resolve the position in the manner 

described below. 

Example D. Error positions may result from 

a technical or systems issue that causes 

orders to be executed in the name of Arca 

Securities that are not related to Arca 

Securities’ function as the Exchange’s routing 

broker and are not related to any 

corresponding orders of ETP Holders. As a 

result, Arca Securities would not be able to 

assign any positions resulting from such an 

issue to ETP Holders. Instead, Arca Securities 

would post those positions into its error 

account and resolve the positions in the 

manner described below. 

Example E. Error positions may result from 

a technical or systems issue through which 

the Exchange does not receive sufficient 

notice that an ETP Holder that has executed 

trades on the Exchange has lost the ability to 

clear trades through DTCC. In such a 

situation, the Exchange would not have valid 

clearing information, which would prevent 

the trade from being processed pursuant to 

Rule 7.41(a). Accordingly, Arca Securities 

would assume that ETP Holder’s side of the 

trades so that the counterparties can settle 

the trades. Arca Securities would post those 

positions into its error account and resolve 

the positions in the manner described below. 

In the circumstances described above, 

Arca Securities may not learn about an 

error position until T+1, either: (1) 

During the clearing process when a 

routing destination has submitted to 

DTCC a transaction for clearance and 

settlement for which Arca Securities 

never received an execution 

confirmation; or (2) when a routing 

destination does not recognize a 

transaction submitted by Arca Securities 

to DTCC for clearance and settlement. 

Moreover, the affected ETP Holders’ 

trade may not be nullified absent 

express authority under Exchange 

rules.10

Proposed Amendments to NYSE Arca 

Equities Rule 7.45 

The Exchange proposes to amend 

NYSE Arca Equities Rule 7.45 to add 

new paragraph (d) to address the 

cancellation of orders due to technical 

or systems issues and the use of an error 

account by Arca Securities. 

Specifically, under paragraph (d)(1) of 

the proposed rule, the Exchange or Arca 

Securities would be expressly 

authorized to cancel orders as may be 

necessary to maintain fair and orderly 

markets if a technical or systems issue 

occurred at the Exchange, Arca 

Securities, or a routing destination.11

The Exchange or Arca Securities would 

be required to provide notice of the 

cancellation to affected ETP Holders as 

soon as practicable. 

Paragraph (d)(2) of the proposed rule 

would permit Arca Securities to 

maintain an error account for the 

purpose of addressing positions that 

result from a technical or systems issue 

at Arca Securities, the Exchange, a 

routing destination, or a non-affiliate 

third-party Routing Broker that affects 

one or more orders (‘‘error positions’’). 

By definition, an error position would 

not include any position that results 

from an order submitted by an ETP 

Holder to the Exchange that is executed 

on the Exchange and processed 

pursuant to NYSE Arca Rule 7.41(a).12

Arca Securities also would not be 

permitted to accept any positions in its 

error account from an account of an ETP 

Holder and could not permit any ETP 

Holder to transfer any positions from 

the ETP Holder’s account to Arca 

Securities’ error account under the 

proposed rule.13 However, if a technical 

or systems issue results in the Exchange 

not having valid clearing instructions 

for an ETP Holder to a trade, Arca 

Securities may assume that ETP 

Holder’s side of the trade so that the 

trade can be processed pursuant to 

NYSE Arca Rule 7.41(a).14

Under paragraph (d)(3), in connection 

with a particular technical or systems 

issue, Arca Securities or the Exchange 

would be permitted to either (i) assign 

all resulting error positions to ETP 

Holders, or (ii) have all resulting error 

positions liquidated, as described 

below. Any determination to assign or 

liquidate error positions, as well as any 

resulting assignments, would be 

required to be made in a 

nondiscriminatory fashion. 

Arca Securities or the Exchange 

would be required to assign all error 

positions resulting from a particular 

technical or systems issue to the 

applicable ETP Holders affected by that 

technical or systems issue if Arca 

Securities or the Exchange: 

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15 If Arca Securities determines in connection 

with a particular technical or systems issue that 

some error positions can be assigned to some 

affected ETP Holders but other error positions 

cannot be assigned, Arca Securities would be 

required under the proposed rule to liquidate all 

such error positions (including those positions that 

could be assigned to the affected ETP Holders). 

16 15 U.S.C. 78f(b). 

17 15 U.S.C. 78f(b)(5). 

• Determined that it has accurate and 

sufficient information (including valid 

clearing information) to assign the 

positions to all of the applicable ETP 

Holders affected by that technical or 

systems issue; 

• Determined that it has sufficient 

time pursuant to normal clearance and 

settlement deadlines to evaluate the 

information necessary to assign the 

positions to all of the applicable ETP 

Holders affected by that technical or 

systems issue; and 

• Had not determined to cancel all 

orders affected by that technical or 

systems issue. 

For example, a technical or systems 

issue of limited scope or duration may 

occur at a routing destination, and the 

resulting trades may be submitted for 

clearance and settlement by such 

routing destination to DTCC. If there 

were a small number of trades, there 

may be sufficient time to match 

positions with ETP Holder orders and 

avoid using the error account. 

There may be scenarios, however, 

where Arca Securities determines that it 

is unable to assign all error positions 

resulting from a particular technical or 

systems issue to all of the affected ETP 

Holders, or determines to cancel all 

affected routed orders. For example, in 

some cases, the volume of questionable 

executions and positions resulting from 

a technical or systems issue might be 

such that the research necessary to 

determine which ETP Holders to assign 

those executions to could be expected to 

extend past the normal settlement cycle 

for such executions. Furthermore, if a 

routing destination experiences a 

technical or systems issue after Arca 

Securities has transmitted IOC orders to 

it that prevents Arca Securities from 

receiving responses to those orders, 

Arca Securities or the Exchange may 

determine to cancel all routed orders 

affected by that issue. In such a 

situation, Arca Securities or the 

Exchange would not pass on to the ETP 

Holders any executions on the routed 

orders received from the routing 

destination. 

The proposed rule also would require 

Arca Securities to liquidate error 

positions as soon as practicable.15 In 

liquidating error positions, Arca 

Securities would be required to provide 

complete time and price discretion for 

the trading to liquidate the error 

positions to a third-party broker-dealer 

and could not attempt to exercise any 

influence or control over the timing or 

methods of trading to liquidate the error 

positions. Arca Securities also would be 

required to establish and enforce 

policies and procedures reasonably 

designed to restrict the flow of 

confidential and proprietary 

information between the third-party 

broker-dealer and Arca Securities/the 

Exchange associated with the 

liquidation of the error positions. 

Under proposed paragraph (d)(4), 

Arca Securities and the Exchange would 

be required to make and keep records to 

document all determinations to treat 

positions as error positions and all 

determinations for the assignment of 

error positions to ETP Holders or the 

liquidation of error positions, as well as 

records associated with the liquidation 

of error positions through the thirdparty broker-dealer. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 16 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), in general, and furthers the 

objectives of Section 6(b)(5),17 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, and it is not designed to 

permit unfair discrimination among 

customers, brokers, or dealers. The 

Exchange believes that this proposal is 

in keeping with those principles since 

Arca Securities’ or the Exchange’s 

ability to cancel orders during a 

technical and systems issue and to 

maintain an error account facilitates the 

smooth and efficient operations of the 

market. Specifically, the Exchange 

believes that allowing Arca Securities or 

the Exchange to cancel orders during a 

technical or systems issue would allow 

the Exchange to maintain fair and 

orderly markets. Moreover, the 

Exchange believes that allowing Arca 

Securities to assume error positions in 

an error account and to liquidate those 

positions, subject to the conditions set 

forth in the proposed amendments to 

NYSE Arca Equities Rule 7.45, would be 

the least disruptive means to correct 

these errors, except in cases where Arca 

Securities can assign all such error 

positions to all affected ETP Holders of 

the Exchange. Overall, the proposed 

amendments are designed to ensure full 

trade certainty for market participants 

and to avoid disrupting the clearance 

and settlement process. The proposed 

amendments are also designed to 

provide a consistent methodology for 

handling error positions in a manner 

that does not discriminate among ETP 

Holders. The proposed amendments are 

also consistent with Section 6 of the Act 

insofar as they would require Arca 

Securities to establish controls to 

restrict the flow of any confidential 

information between the third-party 

broker and Arca Securities/the 

Exchange associated with the 

liquidation of error positions. 

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 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 77, No. 62 / Friday, March 30, 2012 / Notices 19405 

18 17 CFR 200.30–3(a)(12). 

• Send an email to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2012–22 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–2012–22. 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–2012–22, and should be 

submitted on or before April 20, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7629 Filed 3–29–12; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #13056 and #13057] 

Indiana Disaster #IN–00042 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Indiana (FEMA–4058–DR), 

dated 03/22/2012. 

Incident: Severe Storms, Straight-line 

Winds, and Tornadoes. 

Incident Period: 02/29/2012 through 

03/03/2012. 

Effective Date: 03/22/2012. 

Physical Loan Application Deadline 

Date: 05/21/2012. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 12/24/2012. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: 

A. Escobar, Office of Disaster 

Assistance, U.S. Small Business 

Administration, 409 3rd Street SW., 

Suite 6050, Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

03/22/2012, Private Non-Profit 

organizations that provide essential 

services of governmental nature may file 

disaster loan applications at the address 

listed above or other locally announced 

locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Clark, Jefferson, 

Ripley, Scott, Washington. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Non-Profit Organizations with 

Credit Available Elsewhere ... 3.125 

Non-Profit Organizations without Credit Available Elsewhere ..................................... 3.000 

For Economic Injury: 

Non-Profit Organizations without Credit Available Elsewhere ..................................... 3.000 

The number assigned to this disaster 

for physical damage is 13056C and for 

economic injury is 13057C. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

James E. Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2012–7650 Filed 3–29–12; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #13050 and #13051] 

Kentucky Disaster Number KY–00045 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the Commonwealth of Kentucky 

(FEMA–4057–DR), dated 03/16/2012. 

Incident: Severe Storms, Tornadoes, 

Straight-line Winds, and Flooding. 

Incident Period: 02/29/2012 through 

03/03/2012. 

Effective Date: 03/20/2012. 

Physical Loan Application Deadline 

Date: 05/15/2012. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 12/17/2012. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the Commonwealth of 

Kentucky, dated 03/16/2012, is hereby 

amended to include the following areas 

as adversely affected by the disaster. 

Primary Counties: Ballard, Johnson, 

Kenton, Larue, Pendleton, Trimble, 

Wolfe. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

James E. Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2012–7654 Filed 3–29–12; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #13054 and #13055] 

West Virginia Disaster #WV–00027 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for the State of West Virginia 

(FEMA–4061–DR), dated 03/22/2012. 

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