Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2577 

budget most recently approved by the Commission 

were continuing in effect. See 17 CFR 202.190(e)(3). 

5The PCAOB’s Office of Internal Oversight and 

Performance Assurance provides internal 

examination of the programs and operations of the 

PCAOB. A public summary of the Office’s report on 

IT is available here: http://pcaobus.org/ 

InternalOversight/Documents/ 

2011_Information_Technology.pdf. 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 65088 

(August 10, 2011), 76 FR 50793 (August 16, 2011) 

(SR–NYSEArca–2011–55). 

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– 

Continued 

After considering the above, the 

Commission did not identify any 

proposed disbursements in the 2012 

budget adopted by the PCAOB that are 

not properly recoverable through the 

annual accounting support fee, and the 

Commission believes that the aggregate 

proposed 2012 annual accounting 

support fee does not exceed the 

PCAOB’s aggregate recoverable budget 

expenses for 2012. The Commission also 

acknowledges the PCAOB’s updated 

strategic plan and looks forward to 

providing views to the PCAOB as future 

updates are made to the plan. 

In light of the recent report on 

information technology (‘‘IT’’) 

governance and staffing by the PCAOB’s 

Office of Internal Oversight and 

Performance Assurance,5 the 

Commission understands that the 

PCAOB has recently taken, and plans to 

continue to take, significant steps 

designed to improve its IT program. 

These steps include IT staffing changes, 

conducting a review of the IT program, 

implementing IT governance structures, 

and strengthening Board oversight over 

its IT program. In addition to these 

important steps, the Commission directs 

the Board to continue to provide in its 

quarterly reports to the Commission 

detailed information about the state of 

the PCAOB’s IT program, including 

planned, estimated, and actual costs for 

IT projects, and the level of involvement 

of consultants. These reports also 

should include: (a) a discussion of the 

Board’s assessment of the progress and 

implementation of the Board actions 

mentioned above; and (b) the quarterly 

IT report that will be prepared by 

PCAOB staff and submitted to the 

Board. 

The Commission also directs the 

PCAOB during the 2012 budget cycle to 

continue to include in its quarterly 

reports to the Commission information 

about the PCAOB’s inspections 

program. Such information is to 

include: (a) Statistics relative to the 

numbers and types of firms budgeted 

and expected to be inspected in 2012, 

including by location and by year the 

inspections that are required to be 

conducted in accordance with the 

Sarbanes-Oxley Act and PCAOB rules; 

(b) information about the timing of the 

issuance of inspections reports for 

domestic and non-U.S. inspections; and 

(c) updates on the PCAOB’s efforts to 

establish cooperative arrangements with 

respective non-U.S. authorities for 

inspections required in those countries. 

The Commission has determined that 

the PCAOB’s 2012 budget and annual 

accounting support fee are consistent 

with Section 109 of the Sarbanes-Oxley 

Act. Accordingly, 

It is ordered, pursuant to Section 109 

of the Sarbanes-Oxley Act, that the 

PCAOB budget and annual accounting 

support fee for calendar year 2012 are 

approved. 

By the Commission. 

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–764 Filed 1–17–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66132; File No. SR– 

NYSEArca–2011–99] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Amending NYSE Arca 

Equities Rule 7.11, 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 Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 Arca Equities Rule 7.11, 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. 

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 7.11, 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 Arca Equities Rule 7.11 

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


tkelley on DSK3SPTVN1PROD with NOTICES
2578 Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 

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. 63496 (December 9, 2010), 75 FR 

78285 (December 15, 2010) (SR–NYSEArca–2010– 

114). 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. 11 17 CFR 200.30–3(a)(12). 

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 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–NYSEArca–2011–99 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–NYSEArca–2011–99. 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–NYSEArca– 

2011–99 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. 2012–772 Filed 1–17–12; 8:45 am] 

BILLING CODE 8011–01–P 


tkelley on DSK3SPTVN1PROD with NOTICES