Federal Register / Vol. 77, No. 65 / Wednesday, April 4, 2012 / Notices 20451 

30 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 Nos. 65437 

(September 28, 2011), 76 FR 61466; 65428 

(September 28, 2011), 76 FR 61435; 65429 

(September 28, 2011), 76 FR 61432; 65433 

(September 28, 2011), 76 FR 61453; 65438 

(September 28, 2011), 76 FR 61447; 65426 

(September 28, 2011), 76 FR 61460; 65431 

(September 28, 2011), 76 FR 61425; 65440 

(September 28, 2011), 76 FR 61444; 65430 

(September 28, 2011), 76 FR 61429; 65425 

(September 28, 2011), 76 FR 61438; 65435 

(September 28, 2011), 76 FR 61416 ; 65436 

(September 28, 2011), 76 FR 61450; 65427 

(September 28, 2011), 76 FR 61457; 65432 

(September 28, 2011), 76 FR 61422; 65439 

(September 28, 2011), 76 FR 61463; 65434 

(September 28, 2011), 76 FR 61419 (collectively, the 

‘‘Notices’’). 

4See Letter to Elizabeth M. Murphy, Secretary, 

Commission, from Ann L. Vlcek, Managing Director 

and Associate General Counsel, the Securities 

Industry and Financial Markets Association, dated 

October 27, 2011; Letter to Commission, from James 

J. Angel, Ph.D., CFA, Associate Professor of 

Finance, Georgetown University, McDonough 

School of Business, dated October 25, 2011; Letter 

to Elizabeth M. Murphy, Secretary, Commission, 

from Craig S. Donohue, CME Group, Inc., dated 

October 25, 2011; Letter to Elizabeth M. Murphy, 

Secretary, Commission, from Commissioner Bart 

Chilton, Commodity Futures Trading Commission, 

dated October 25, 2011; Letter to Elizabeth M. 

Murphy, Secretary, Commission, from Richard H. 

Baker, President and CEO, Managed Funds 

Association, dated October 25, 2011; Letter from 

Suzanne H. Shatto, dated October 20, 2011; Letter 

from Mark Roszak, dated October 4, 2011. 

5See Securities Exchange Act Release No. 65770 

(November 17, 2011), 76 FR 72492 (November 23, 

2011). 

6See Securities Exchange Act Release No. 66065 

(December 28, 2011), 77 FR 316 (January 4, 2012) 

(‘‘Order Instituting Proceedings’’). 

7See letters to Elizabeth Murphy, Secretary, 

Commission, from Timothy Quast, Managing 

Director, ModernIR, dated January 20, 2012; Craig 

S. Donohue, Chief Executive Officer, CME Group, 

Inc., dated January 25, 2012, and Ann L. Vlcek, 

Managing Director and Associate General Counsel, 

the Securities Industry and Financial Markets 

Association, dated February 7, 2012. 

8 15 U.S.C. 78s(b)(2). 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the proposed rule change or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

Electronic Comments 

• Use the Commissions Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml) or Send an email to 

rule-comments@sec.gov. Please include 

File Number SR–FICC–2012–03 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–FICC–2012–03. 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 Section, 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 FICC 

and on FICC’s Web site at http:// 

www.dtcc.com/downloads/legal/ 

rule_filings/2012/ficc/ 

SR_FICC_2012_03.pdf. 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–FICC– 

2012–03 and should be submitted on or 

before April 25, 2012. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–8042 Filed 4–3–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66680; File Nos. SR–BATS– 

2011–038; SR–BYX–2011–025; SR–BX– 

2011–068; SR–CBOE–2011–087; SR–C2– 

2011–024; SR–CHX–2011–30; SR–EDGA– 

2011–31; SR–EDGX–2011–30; SR–FINRA– 

2011–054; SR–ISE–2011–61; SR–NASDAQ– 

2011–131; SR–NSX–2011–11; SR–NYSE– 

2011–48; SR–NYSEAmex–2011–73; SR– 

NYSEArca–2011–68; SR–Phlx–2011–129] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; BATS Y–Exchange, 

Inc.; NASDAQ OMX BX, Inc.; Chicago 

Board Options Exchange, 

Incorporated; C2 Options Exchange, 

Incorporated; Chicago Stock 

Exchange, Inc.; EDGA Exchange, Inc.; 

EDGX Exchange, Inc.; Financial 

Industry Regulatory Authority, Inc.; 

International Securities Exchange LLC; 

The NASDAQ Stock Market LLC; New 

York Stock Exchange LLC; NYSE 

Amex LLC; NYSE Arca, Inc.; National 

Stock Exchange, Inc.; NASDAX OMX 

PHLX LLC; Notice of Designation of 

Longer Period for Commission Action 

on Proceedings To Determine Whether 

To Disapprove Proposed Rule 

Changes Relating to Trading Halts Due 

to Extraordinary Market Volatility 

March 29, 2012. 

On September 27, 2011, each of BATS 

Exchange, Inc. (‘‘BATS’’), BATS Y– 

Exchange, Inc. (‘‘BYX’’), NASDAQ OMX 

BX, Inc. (‘‘BX’’), Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’), C2 

Options Exchange, Incorporated (‘‘C2’’), 

Chicago Stock Exchange, Inc. (‘‘CHX’’), 

EDGA Exchange, Inc. (‘‘EDGA’’), EDGX 

Exchange, Inc. (‘‘EDGX’’), Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’), International Securities 

Exchange LLC (‘‘ISE’’), The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’), National 

Stock Exchange, Inc. (‘‘NSX’’), New 

York Stock Exchange LLC (‘‘NYSE’’), 

NYSE Amex LLC (‘‘NYSE Amex’’), 

NYSE Arca, Inc. (‘‘NYSE Arca’’), and 

NASDAQ OMX PHLX LLC (‘‘Phlx’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 proposed rule 

changes (the ‘‘SRO Proposals’’) to 

amend certain of their respective rules 

relating to trading halts due to 

extraordinary market volatility. The 

SRO Proposals were published for 

comment in the Federal Register on 

October 4, 2011.3 The Commission 

received seven comment letters on the 

SRO Proposals.4

On November 17, 2011, the 

Commission extended the time period 

in which to either approve the SRO 

Proposals, disapprove the SRO 

Proposals, or to institute proceedings to 

determine whether to disapprove the 

SRO Proposals, to December 30, 2011.5

On December 28, 2011, the Commission 

instituted proceedings to determine 

whether to approve or disapprove the 

SRO Proposals.6 The Commission 

thereafter received an additional three 

comment letters on the SRO Proposals.7

Section 19(b)(2) of the Act 8 provides 

that, after initiating disapproval 

proceedings, the Commission shall issue 

an order approving or disapproving the 


emcdonald on DSK29S0YB1PROD with NOTICES
20452 Federal Register / Vol. 77, No. 65 / Wednesday, April 4, 2012 / Notices 

9See Order Instituting Proceedings, supra note 6 

at 318, 319. 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 64984 (July 28, 

2011), 76 FR 46870 (August 3, 2011) (‘‘Original 

Proposal’’). The comment period closed on August 

24, 2011. 

4See letter from Peter J. Mougey, Public Investors 

Arbitration Bar Association, dated August 23, 2011 

(‘‘PIABA August Letter’’); letter from Oscar S. 

Hackett, BrightScope, Inc., dated August 23, 2011 

(‘‘BrightScope August Letter’’); letter from Z. Jane 

Riley, The Leaders Group, Inc., dated August 24, 

2011 (‘‘TLGI August Letter’’); letter from Dorothy M. 

Donohue, Investment Company Institute, dated 

August 24, 2011 (‘‘ICI August Letter’’); letter from 

Sandra J. Burke, Vanguard, dated August 24, 2011 

(‘‘Vanguard August Letter’’); letter from Alexander 

C. Gavis, Fidelity Investments, dated August 24, 

2011 (‘‘Fidelity August Letter’’); letter from David 

T. Bellaire, Esq., Financial Services Institute, Inc., 

dated August 24, 2011 (‘‘FSI August Letter’’); letter 

from John Polanin and Claire Santaniello, Securities 

Industry and Financial Markets Association, dated 

August 24, 2011 (‘‘SIFMA August Letter’’); and 

letter from Yoon-Young Lee, Wilmer Hale LLP, on 

behalf of Citigroup Global Markets, Inc., Credit 

Suisse Securities (USA) LLC, Goldman, Sachs & 

Co., JP Morgan Securities Inc., Merrill Lynch, 

Pierce, Fenner & Smith Incorporated, Morgan 

Stanley & Co., LLC, and UBS Securities LLC, dated 

August 26, 2011 (‘‘Wilmer August Letter’’). 

Comment letters are available at www.sec.gov. 

5See letter from Joseph P. Savage, FINRA, dated 

October 31, 2011 (‘‘October Response Letter’’). The 

text of proposed Amendment No. 1 and FINRA’s 

Response Letter are available on FINRA’s Web site 

at http://www.finra.org, at the principal office of 

FINRA and at the Commission’s Public Reference 

Room. FINRA’s Response Letter is also available on 

the Commission’s Web site at http://www.sec.gov. 

6See Exchange Act Release No. 65663 (November 

1, 2011), 76 FR 68800 (November 7, 2011) (Notice 

of Filing of Amendment No. 1 and Order Instituting 

Proceedings SR–FINRA–2011–035) (‘‘Notice and 

Proceedings Order’’). The comment period closed 

on December 7, 2011. 

7See letter from Melissa Callison, Vice President, 

Compliance, Charles Schwab & Co., Inc., dated 

December 7, 2011 (‘‘Schwab December Letter’’); 

letter from Alexander C. Gavis, Vice President & 

Associate General Counsel, Fidelity Investments, 

dated December 7, 2011 (‘‘Fidelity December 

Letter’’); letter from David T. Bellaire, General 

Counsel and Director of Government Affairs, 

Financial Services Institute, dated December 7, 

2011 (‘‘FSI December Letter’’); letter from Dorothy 

M. Donohue, Senior Associate Counsel, Investment 

Company Institute, dated December 7, 2011 (‘‘ICI 

December Letter’’); letter from John Polanin and 

Claire Santaniello, Co-Chairs, Compliance and 

Regulatory Policy Committee of the Securities 

Industry and Financial Markets Association, dated 

December 7, 2011 (‘‘SIFMA December Letter’’); 

letter from Sandra J. Burke, Principal, Vanguard, 

dated December 7, 2011 (‘‘Vanguard December 

Letter’’); and letter from Jeremiah McGair, Attorney, 

Wolverine Execution Services, LLC, dated 

December 7, 2011 (‘‘Wolverine Letter’’). Comment 

letters are available at www.sec.gov. 

8 Joseph P. Savage, FINRA, dated December 22, 

2011 (‘‘December Response Letter’’). The text of 

proposed Amendment No. 2 and FINRA’s Response 

Letter are available on FINRA’s Web site http:// 

www.finra.org, at the principal office of FINRA and 

at the Commission’s Public Reference Room. 

FINRA’s Response Letter is also available on the 

Commission’s Web site at http://www.sec.gov. 

SRO Proposals not later than 180 days 

after the date of publication of notice of 

the filing of the proposed rule change. 

The Commission may extend the period 

for issuing an order approving or 

disapproving the SRO Proposals, 

however, by not more than 60 days if 

the Commission determines that a 

longer period is appropriate and 

publishes the reasons for such 

determination. The SRO Proposals were 

published for notice and comment in 

the Federal Register on October 4, 2011. 

April 1, 2012 is 180 days from that date, 

and May 31, 2012 is an additional 60 

days from that date. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the SRO Proposals so that 

it has sufficient time to consider the 

SRO Proposals and the issues raised in 

the comment letters that have been 

submitted in connection with the SRO 

Proposals. Specifically, as the 

Commission noted in the Order 

Instituting Proceedings, the SRO 

Proposals raise issues including the 

potential interaction between the 

mechanisms for moderating volatility in 

individual securities and those for 

moderating volatility market-wide. In 

addition, the Commission is also 

considering commenters’ concerns with 

the details of the SRO Proposals, 

including whether only the Level III 

circuit breaker should halt trading after 

3:25 p.m. and whether the market-wide 

circuit breakers should be triggered if a 

significant number of volatility 

moderators for individual securities are 

triggered.9

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the 

Act,10 designates May 31, 2012, as the 

date by which the Commission shall 

either approve or disapprove the SRO 

Proposals. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–8060 Filed 4–3–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66681; File No. SR–FINRA– 

2011–035] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Amendment No. 3 and Order Granting 

Accelerated Approval of a Proposed 

Rule Change, as Modified by 

Amendments Nos. 1, 2 and 3, To Adopt 

FINRA Rules 2210 (Communications 

With the Public), 2212 (Use of 

Investment Companies Rankings in 

Retail Communications), 2213 

(Requirements for the Use of Bond 

Mutual Fund Volatility Ratings), 2214 

(Requirements for the Use of 

Investment Analysis Tools), 2215 

(Communications With the Public 

Regarding Security Futures), and 2216 

(Communications With the Public 

About Collateralized Mortgage 

Obligations (CMOs)) in the 

Consolidated FINRA Rulebook 

March 29, 2012. 

I. Introduction 

On July 14, 2011, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Exchange Act’’ or ‘‘Act’’) 1 and 

Rule 19b–4 thereunder,2 a proposed rule 

change to adopt NASD Rules 2210 and 

2211 and NASD Interpretive Materials 

2210–1 and 2210–3 through 2210–8 as 

FINRA Rules 2210 and 2212 through 

2216, and to delete paragraphs (a)(1), (i), 

(j) and (l) of Incorporated NYSE Rule 

472, Incorporated NYSE Rule 

Supplementary Material 472.10(1), (3), 

(4) and (5) and 472.90, and Incorporated 

NYSE Rule Interpretations 472/01 and 

472/03 through 472/11. The proposed 

rule change was published for comment 

in the Federal Register on August 3, 

2011.3 The Commission received nine 

comment letters in response to the 

Original Proposal.4 On October 31, 

2011, FINRA filed Amendment No. 1 to 

the proposed rule change and a letter 

responding to comments.5 In order to 

solicit additional input from interested 

parties on the issues presented in 

FINRA’s proposed rule change, on 

November 1, 2011, the Commission 

published notice of Amendment No. 1 

and instituted proceedings pursuant to 

Section 19(b)(2)(B) of the Act, to 

determine whether to approve or 

disapprove FINRA’s proposal as 

modified by Amendment No. 1.6 The 

Commission received seven comment 

letters in response to the Notice and 

Proceedings Order.7 On December 22, 

2011, FINRA filed Amendment No. 2 to 

the proposed rule change and a letter 

responding to comments.8 The 


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