Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2587 

14 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. 

4See Securities Exchange Act Release No. 62886 

(September 10, 2010), 75 FR 56613 (September 16, 

2010) (SR–NYSEAmex–2010–60). See also 

Securities Exchange Act Release Nos. 63480 

(December 9, 2010), 75 FR 78333 (December 15, 

2010) (SR–NYSEAmex–2010–116); 64233 (April 7, 

2011), 76 FR 20736 (April 13, 2011) (SR– 

NYSEAmex–2011–24); and 65066 (August 9, 2011), 

76 FR 50506 (August 15, 2011) (SR–NYSEAmex– 

2011–58). 

5Terms not defined herein are defined in NYSE 

Amex Equities Rule 128. 

6Separately, the Exchange has proposed 

extending the effective date of the trading pause 

pilot under NYSE Amex Equities Rule 80C, which 

requires to 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 fiveminute period during a trading day. See SR– 

NYSEAmex–2011–105. 

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–NYSE–2011–70 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–2011–70. 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 

publicly available. All submissions 

should refer to File Number SR–NYSE– 

2011–70 and should be submitted on or 

before February 8, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–778 Filed 1–17–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66137; File No. SR– 

NYSEAmex–2011–106] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Amex 

Equities Rule 128, Which Governs 

Clearly Erroneous Executions, To 

Extend the Effective Date of The Pilot 

by Which Portions of Such Rule 

Operate Until July 31, 2012 

January 11, 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 December 

28, 2011, NYSE Amex LLC (the 

‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 Amex Equities Rule 128, which 

governs clearly erroneous executions, to 

extend the effective date of the pilot by 

which portions of such Rule operate 

until July 31, 2012. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, www.nyse.com, and 

www.sec.gov. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Amex Equities Rule 128, which 

governs clearly erroneous executions, to 

extend the effective date of the pilot by 

which portions of such Rule operate, 

until July 31, 2012. The pilot is 

currently scheduled to expire on 

January 31, 2012.4

On September 10, 2010, the 

Commission approved, on a pilot basis, 

market-wide amendments to exchanges’ 

rules for clearly erroneous executions to 

set forth clearer standards and curtail 

discretion with respect to breaking 

erroneous trades. In connection with 

this pilot initiative, the Exchange 

amended NYSE Amex Equities Rule 

128(c), (e)(2), (f), and (g). The 

amendments provide for uniform 

treatment of clearly erroneous execution 

reviews (1) in Multi-Stock Events 5

involving twenty or more securities, and 

(2) in the event transactions occur that 

result in the issuance of an individual 

security trading pause by the primary 

market and subsequent transactions that 

occur before the trading pause is in 

effect on the Exchange.6 The 

amendments also eliminated appeals of 

certain rulings made in conjunction 

with other exchanges with respect to 

clearly erroneous transactions and 

limited the Exchange’s discretion to 

deviate from Numerical Guidelines set 


tkelley on DSK3SPTVN1PROD with NOTICES
2588 Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 

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

8 15 U.S.C. 78f(b)(5). 

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

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6). Pursuant to Rule 19b– 

4(f)(6)(iii) under the Act, the Exchange is required 

to give the Commission 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 satisfied this requirement. 12 17 CFR 200.30–3(a)(12). 

forth in the Rule in the event of system 

disruptions or malfunctions. 

If the pilot were not extended, the 

prior versions of paragraphs (c), (e)(2), 

(f), and (g) of NYSE Amex Equities Rule 

128 would be in effect, and the NYSE 

Amex would have different rules than 

other exchanges and greater discretion 

in connection with breaking clearly 

erroneous transactions. The Exchange 

proposes to extend the pilot 

amendments to NYSE Amex Equities 

Rule 128 until July 31, 2012 in order to 

maintain uniform rules across markets 

and allow the pilot to continue to 

operate without interruption during the 

same period that the Rule 80C trading 

pause rule pilot is also in effect. 

Extension of the pilot would permit the 

Exchange, other national securities 

exchanges and the Commission to 

further assess the effect of the pilot on 

the marketplace, including whether 

additional measures should be added, 

whether the parameters of the rule 

should be modified or whether other 

initiatives should be adopted in lieu of 

the current pilot. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 7 of the Act, 

in general, and furthers the objectives of 

Section 6(b)(5) 8 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. More specifically, the 

NYSE Amex believes that the extension 

of the pilot would help assure that the 

determination of whether a clearly 

erroneous trade has occurred will be 

based on clear and objective criteria, 

and that the resolution of the incident 

will occur promptly through a 

transparent process. The proposed rule 

change would also help assure 

consistent results in handling erroneous 

trades across the U.S. markets, thus 

furthering fair and orderly markets, the 

protection of 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 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 9 and Rule 

19b–4(f)(6) thereunder.10 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 and Rule 19b–4(f)(6)(iii) 

thereunder.11

At any time within 60 days of the 

filing of such 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–2011–106 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–2011–106. 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– 

NYSEAmex–2011–106 and should be 

submitted on or before February 8, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–777 Filed 1–17–12; 8:45 am] 

BILLING CODE 8011–01–P 


tkelley on DSK3SPTVN1PROD with NOTICES