Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2593 

7 15 U.S.C. 78s(b)(3)(A)(iii). 

8 17 CFR 240.19b–4(f)(6). 

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

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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 satisfied this requirement. 11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 7 and Rule 

19b–4(f)(6) thereunder.8 Because the 

proposed rule change does not: (i) 

significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, 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 9 and Rule 19b–4(f)(6)(iii) 

thereunder.10

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 

No. SR–NYSE–2011–68 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 No. 

SR–NYSE–2011–68. 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 such 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 No. SR–NYSE– 

2011–68 and should be submitted on or 

before February 8, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–774 Filed 1–17–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66133; File No. SR– 

NYSEAmex–2011–105] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Amending NYSE Amex 

Equities Rule 80C, Which Provides for 

Trading Pauses in Individual Securities 

Due to Extraordinary Market Volatility, 

To Extend the Effective Date of The 

Pilot Until July 31, 2012 

January 11, 2012. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on December 

28, 2011, NYSE Amex LLC (the 

‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 amend 

NYSE Amex Equities Rule 80C, which 

provides for trading pauses in 

individual securities due to 

extraordinary market volatility, to 

extend the effective date of the pilot by 

which such rule operates from the 

current scheduled expiration date of 

January 31, 2012, until July 31, 2012. 

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 

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 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant parts of such 

statements. 


tkelley on DSK3SPTVN1PROD with NOTICES
2594 Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 

3See Securities Exchange Act Release No. 65089 

(August 10, 2011), 76 FR 50791 (August 16, 2011) 

(SR–NYSEAmex–2011–57). 

4The Exchange notes that the other national 

securities exchanges and the Financial Industry 

Regulatory Authority have adopted the pilot in 

substantially similar form. See Securities Exchange 

Act Release No. 62252 (June 10, 2010), 75 FR 34186 

(June 16, 2010) (File Nos. SR–BATS–2010–014; SR– 

EDGA–2010–01; SR–EDGX–2010–01; SR–BX–2010– 

037; SR–ISE–2010–48; SR–NYSE–2010–39; SR– 

NYSEAmex–2010–46; SR–NYSEArca–2010–41; SR– 

NASDAQ–2010–061; SR–CHX–2010–10; SR–NSX– 

2010–05; and SR–CBOE–2010–047) and Securities 

Exchange Act Release No. 62251 (June 10, 2010), 75 

FR 34183 (June 16, 2010) (SR–FINRA–2010–025). 

See also Securities Exchange Act Release No. 62884 

(September 10, 2010), 75 FR 56618 (September 16, 

2010) (File Nos. SR–BATS–2010–018; SR–BX– 

2010–044; SR–CBOE–2010–065; SR–CHX–2010–14; 

SR–EDGA–2010–05; SR–EDGX–2010–05; SR–ISE– 

2010–66; SR–NASDAQ–2010–079; SR–NYSE– 

2010–49; SR–NYSEAmex–2010–63; SR–NYSEArca– 

2010–61; and SR–NSX–2010–08 and Securities 

Exchange Act Release No. 62883 (September 10, 

2010), 75 FR 56608 (September 16, 2010) (SR– 

FINRA–2010–033). See also Securities Exchange 

Act Release No. 63501 (December 9, 2010), 75 FR 

78307 (December 15, 2010) (SR–NYSEAmex–2010– 

117). A proposal to, among other things, expand the 

pilot to include all NMS stocks not already 

included therein was implemented on August 8, 

2011. See Securities Exchange Act Release No. 

64735 (June 23, 2011), 76 FR 38243 (June 29, 2011) 

(File Nos. SR–BATS–2011–016; SR–BYX–2011– 

011; SR–BX–2011–025; SR–CBOE–2011–049; SR– 

CHX–2011–09; SR–EDGA–2011–15; SR–EDGX– 

2011–14; SR–FINRA–2011–023; SR–ISE–2011–028; 

SR–NASDAQ–2011–067; SR–NYSE–2011–21; SR– 

NYSEAmex–2011–32; SR–NYSEArca–2011–26; SR– 

NSX–2011–06; and SR–Phlx–2011–64). 

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

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A)(iii). 

8 17 CFR 240.19b–4(f)(6). 

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

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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 satisfied this requirement. 

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 Amex Equities Rule 80C, which 

provides for trading pauses in 

individual securities due to 

extraordinary market volatility, to 

extend the effective date of the pilot by 

which such rule operates from the 

current scheduled expiration date of 

January 31, 2012,3 until July 31, 2012. 

NYSE Amex Equities Rule 80C 

requires the Exchange to pause trading 

in an individual security listed on the 

Exchange if the price moves by a 

specified percentage as compared to 

prices of that security in the preceding 

five-minute period during a trading day, 

which period is defined as a ‘‘Trading 

Pause.’’ The pilot was developed and 

implemented as a market-wide initiative 

by the Exchange and other national 

securities exchanges in consultation 

with the Commission staff and is 

currently applicable to all NMS stocks 

and specified exchange-traded 

products.4

The extension proposed herein would 

allow the pilot to continue to operate 

without interruption while the 

Exchange, other national securities 

exchanges and the Commission further 

assess the effect of the pilot on the 

marketplace or whether other initiatives 

should be adopted in lieu of the current 

pilot. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Securities Exchange Act of 1934 

(the ‘‘Act’’),5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,6

in particular, in that it is 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 Exchange believes 

that the change proposed herein meets 

these requirements in that it promotes 

uniformity across markets concerning 

decisions to pause trading in a security 

when there are significant price 

movements. Additionally, extension of 

the pilot until July 31, 2012 would 

allow the pilot to continue to operate 

without interruption while the 

Exchange and the Commission further 

assess the effect of the pilot on the 

marketplace or whether other initiatives 

should be adopted in lieu of the current 

pilot. 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 7 and Rule 

19b–4(f)(6) thereunder.8 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, 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 Act9 and Rule 19b–4(f)(6)(iii) 

thereunder.10

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 

No. SR–NYSEAmex–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 No. 

SR–NYSEAmex–2011–105. 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 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2595 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See BOX Rules Chapter V, Section 18. 

4See ISE Rule 723. 

5AIM, PIP and PIM have certain characteristics in 

common with each other. All three mechanisms (a) 

provide for the opportunity for customer price 

improvement, (b) have certain periods where the 

initial orders are exposed for potential price 

improvement, (c) have certain guidelines regarding 

the types of orders that may be eligible for price 

improvement, and (d) have certain defined rules 

related to the allocation of trades within price 

improvement auctions. 

6See C2 Rule 6.51(b)(1)(A). 

7See supra note 3; see also Securities Exchange 

Act Release No. 34–59654 (March 30, 2009), 74 FR 

15551 (April 6, 2009) (SR–BX–2009–08) (order 

approving proposed rule change allowing entry of 

orders into PIP at the NBBO when BOX’s best bid 

Continued 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of 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 No. SR– 

NYSEAmex–2011–105 and should be 

submitted on or before February 8, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–773 Filed 1–17–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66131; File No. SR–C2– 

2011–043] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing of a Proposed Rule 

Change Relating to Changes to Rule 

6.51 

January 11, 2012. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on December 

30, 2011, C2 Options Exchange, 

Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) 

filed with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III 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 the Substance 

of the Proposed Rule Change 

The filing proposes to make changes 

to C2’s Automated Improvement 

Mechanism (‘‘AIM’’) rule. The text of 

the proposed rule change is available on 

the Exchange’s Web site (http:// 

www.c2exchange.com), at the 

Exchange’s Office of the Secretary, and 

at the Commission’s Public Reference 

Room. 

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 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend C2 Rule 6.51 to (i) 

allow TPHs to enter Agency Orders for 

fewer than 50 contracts into AIM at the 

NBBO; and (ii) allow Initiating TPHs to 

designate a limit price if it elects to 

auto-match. 

This proposed rule change would 

make AIM more similar to current rules 

of the Boston Options Exchange Group, 

LLC (‘‘BOX’’) 3 and the International 

Securities Exchange, LLC (‘‘ISE’’) 4

relating to the Price Improvement 

Period (‘‘PIP’’) and Price Improvement 

Mechanism (‘‘PIM’’), respectively, 

which are automated price 

improvement mechanisms.5

AIM allows a TPH to submit an 

Agency Order along with a contra-side 

second order (a principal order or a 

solicited order for the same size as the 

Agency Order) into an Auction where 

other participants could compete with 

the Initiating TPH’s second order to 

execute against the Agency Order, 

which guarantees that the Agency Order 

will receive an execution. Once an 

Auction commences, the Initiating TPH 

cannot cancel it.6

Under this proposal, Agency Orders 

of all sizes submitted to AIM will be 

guaranteed execution at a price at least 

as good as the NBBO while providing 

the opportunity for execution at a price 

better than the NBBO. The proposal will 

incent more TPHs to initiate and 

participate in Auctions and will allow 

even broader participation in Auctions 

by all types of market participants. As 

a result, C2 expects the proposal will 

increase the number of and 

participation in Auctions, which would 

enhance competition in the Auctions. 

The Exchange believes that this 

proposal will ultimately provide 

additional opportunities for price 

improvement over the NBBO for its 

customers. 

Elimination of Entry Price Restriction 

on Agency Orders for Fewer Than 50 

Contracts 

C2 Rule 6.51(a)(2) and (3) currently 

provides that if an Initiating TPH 

submits an Agency Order to AIM for 50 

contracts or more, the Initiating TPH 

must enter its contra-side second order 

(or stop the Agency Order) at the better 

of the NBBO or the Agency Order’s limit 

price (if the order is a limit order); 

however, if an Initiating TPH submits an 

Agency Order to AIM for fewer than 50 

contracts, the Initiating TPH must stop 

the entire Agency Order at the better of 

the NBBO price improved by one 

minimum price improvement increment 

or the Agency Order’s limit price (if the 

order is a limit order). The Exchange is 

proposing to eliminate this distinction 

and allow Initiating TPHs to submit to 

AIM Agency Orders of any size at the 

NBBO. 

The Exchange believes this proposal 

will increase the likelihood that TPHs 

will initiate Auctions for Agency Orders 

for fewer than 50 contracts because the 

TPH will only be required to guarantee 

an execution at the NBBO, which will 

provide additional customer orders with 

an opportunity for price improvement 

over the NBBO. The Exchange believes 

the proposal will also encourage 

increased participation in AIM by TPHs 

willing to trade with an Agency Order 

for fewer than 50 contracts at the NBBO 

but not better than the NBBO. 

In support of this proposal, the 

Exchange notes that both BOX 7 and 


tkelley on DSK3SPTVN1PROD with NOTICES