61360 Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Notices 

8 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. 

4Rule 2(a) states that the term ‘‘member,’’ when 

referring to a natural person, means a natural 

person associated with a member organization who 

has been approved by the Exchange and designated 

by such member organization to effect transactions 

on the Exchange trading Floor or any facility 

thereof. 

5Floor Officials are delegated certain authority 

from the Board of Directors of the Exchange to 

supervise and regulate active openings and unusual 

situations that arise in connection with the making 

of bids, offers or transactions on the trading Floor, 

and to review and approve certain trading actions, 

such as trades to be effected at wide variations in 

price and delayed openings and trading halts. 

6Pursuant to Rules 46 and 46A, Floor Governors 

are one of several ranks of the broader category of 

Floor Officials, including, in order of increasing 

seniority, Floor Officials, Senior Floor Officials, 

Executive Floor Officials, Floor Governors and 

Executive Floor Governors. See Securities Exchange 

Act Release No. 57627 (April 4, 2008), 73 FR 19919 

(April 11, 2008) (SR–NYSE–2008–19). 

7See Securities Exchange Act Release No. 34– 

57627 (April 4, 2008), 73 FR 19919 (April 11, 2008) 

(SR–NYSE–2007–2). 

8NYSE Regulation examined the fitness of 

prospective Floor Officials and administered a 

mandatory education program, which all candidates 

for Floor Official, including Floor Governor, had to 

complete. NYSE Regulation also administered a 

qualifying examination. See Securities Exchange 

Act Release No. 34–57627 (April 4, 2008), 73 FR 

19919 (April 11, 2008) (SR–NYSE–2007–2). On June 

14, 2010, the Exchange, NYSE Regulation and 

FINRA [sic] retained the Financial Industry 

Regulatory Authority (‘‘FINRA’’) pursuant to a 

Regulatory Services Agreement (‘‘RSA’’) to perform 

the market surveillance, enforcement and other 

miscellaneous functions that up to that point had 

been performed by NYSE Regulation, including all 

education and testing-related regulatory services on 

behalf of NYSE Regulation, including the Floor 

Official mandatory education program and 

qualification testing. See Securities Exchange Act 

Release No. 62355 (June 22, 2010), 75 FR 36729 

(June 28, 2010) (SR–NYSE–2010–46). 

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 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

offices 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– 

NASDAQ–2014–096, and should be 

submitted on or before October 31, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24227 Filed 10–9–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73304; File No. SR–NYSE– 

2014–54] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change That 

Constitutes a Stated Interpretation 

With Respect to the Meaning, 

Administration, and Enforcement of 

Rule 46 

October 6, 2014. 

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 October 2, 

2014, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) 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 selfregulatory 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 a rule change 

that constitutes a stated interpretation 

with respect to the meaning, 

administration, and enforcement of Rule 

46. The Exchange is not proposing any 

changes to the text of the current 

version of Rule 46. The proposed rule 

change is available on the Exchange’s 

Web site at www.nyse.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) proposes a 

rule change that constitutes a stated 

interpretation with respect to the 

meaning, administration, and 

enforcement of Rule 46 in connection 

with the transfer of qualified 

Intercontinental Exchange, Inc. (‘‘ICE’’) 

staff Floor Governors to NYSE 

Regulation, Inc. (‘‘NYSE Regulation’’). 

Rule 46 permits the Exchange to 

appoint active NYSE members 4 as Floor 

Officials.5 Rule 46 also permits the 

Exchange to appoint ‘‘qualified’’ ICE 

employees to act as Floor Governors, 

one of the more senior types of Floor 

Officials.6 Supplementary Material .10 

defines ‘‘qualified’’ employees as 

‘‘employees of ICE or any of its 

subsidiaries, excluding employees of 

NYSE Regulation, Inc., who shall have 

satisfied any applicable testing or 

qualification required by the NYSE for 

all Floor Governors.’’ 

The prohibition on appointing NYSE 

Regulation employees to act as Floor 

Governors was put in place when the 

‘‘qualified Exchange employee’’ 

category of Floor Official was adopted 

in 2008.7 The prohibition was necessary 

to avoid potential conflicts of interest 

insofar as the process for qualifying 

Floor Officials, including Floor 

Governors, was performed by NYSE 

Regulation.8 However, while Rule 46 

prohibits appointment of NYSE 

Regulation employees to act as Floor 

Governors, the Exchange believes that 

the Rule does not prohibit already 

qualified Floor Governors from 

becoming NYSE Regulation employees. 

The hiring by NYSE Regulation of ICE 

employees or members who are already 

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Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Notices 61361 

9See Securities Exchange Act Release No. 34– 

57627 (April 4, 2008), 73 FR 19919 (April 11, 2008) 

(SR–NYSE–2007–2). These safeguards include, 

among other things, that qualified Exchange 

employees, like qualified members, need to be 

appointed by the Exchange’s chairman in 

consultation with the Executive Floor Governors 

and NYSE Regulation Board of Directors and 

approved by the Board of Directors. 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(6). 14 17 CFR 200.30–3(a)(12). 

qualified to act as Floor Governors 

would not involve NYSE Regulation in 

qualifying those individuals to act as 

Floor Governors under Rule 46 and 

would therefore not give rise to the real 

or apparent conflict of interest the 

prohibition was intended to avoid. 

The Exchange believes that the 

proposed interpretation would facilitate 

the contemplated transfer of existing 

ICE staff Floor Governors to NYSE 

Regulation. The individuals that would 

transfer to NYSE Regulation are 

experienced former Floor members who 

served as senior-level Floor Officials 

before becoming employees of ICE and 

are already qualified and have been 

appointed to act as staff Floor 

Governors. Because NYSE Regulation is 

not proposing to qualify additional staff 

not already approved as Floor 

Governors, the Exchange believes there 

would be no violation of Rule 46. 

In addition, the interpretation does 

not in any way affect the role of Floor 

Officials or alter the safeguards in place 

to ensure that staff Floor Governors are 

knowledgeable and able to effectively 

intervene when needed on the Exchange 

trading Floor.9 Finally, NYSE 

Regulation does not propose to seek to 

qualify existing NYSE Regulation 

employees as staff Floor Governors. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,10 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,11 in particular, because it is 

designed to prevent fraudulent and 

manipulative acts and practices, 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and protect investors and the 

public interest. The Exchange believes 

that the proposed stated interpretation 

helps prevent fraudulent and 

manipulative acts and practices by 

continuing to require high standards for 

qualified Exchange employees to act as 

Floor Governors in addition to 

members. Similarly, the proposed stated 

interpretation promotes just and 

equitable principles of trade and 

removes impediments to and perfects 

the mechanism of a free and open 

market by ensuring that qualified 

Exchange employees are knowledgeable 

and able to effectively intervene on the 

Exchange trading Floor as needed. For 

the same reasons, the proposal is also 

designed to protect investors as well as 

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. The 

proposed rule change is intended to 

effect a change that constitutes a stated 

policy, practice or interpretation with 

respect to the meaning, administration, 

or enforcement of an existing rule and 

therefore would not impose any burden 

on competition. 

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 foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A) 12 of the Act and Rule 19b– 

4(f)(1) 13 thereunder. The proposed rule 

change effects a change that constitutes 

a stated policy, practice or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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 rule-comments@

sec.gov. Please include File Number SR– 

NYSE–2014–54 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2014–54. 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 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

offices 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–NYSE– 

2014–54, and should be submitted on or 

before October 31, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24228 Filed 10–9–14; 8:45 am] 

BILLING CODE 8011–01–P 

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