Federal Register / Vol. 79, No. 249 / Tuesday, December 30, 2014 / Notices 78531 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73595 

(November 14, 2014), 79 FR 69153. 

4See letter from Sudhir Bhattacharyya, Vice 

President, New York Stock Exchange, to Kevin M. 

O’Neill, Deputy Secretary, Commission, dated 

November 14, 2014. 

5 15 U.S.C. 78s(b)(2). 

6 Id. 

7 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3The Exchange notes that there are efforts by the 

exchanges to create a uniform trade nullification 

and adjustment rule. Should the uniform rule be 

approved and effective, the Exchange will amend 

its rules appropriately. 

4The Exchange notes that, as proposed, Rule 

966NY would only apply to trades that were 

executed on the Exchange and, as such, any orders 

that were either fully or partially routed to, or 

executed, on another exchange would not be subject 

to the proposed Rule 966NY. 

5See Rule 975NY(a)(3) and (7) and 975NY(d)(3). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73913; File No. SR–

NYSEMKT–2014–95] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Designation of a 

Longer Period for Commission Action 

on a Proposed Rule Change Amending 

Rule 13—Equities and Related Rules 

Governing Order Types and Modifiers, 

as modified by Partial Amendment 

No. 1 

December 22, 2014. 

On October 31, 2014, NYSE MKT LLC 

(‘‘Exchange’’) 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 a proposed rule change to 

amend Exchange Rule 13—Equities and 

other Exchange rules governing order 

types and order modifiers. The 

proposed rule change was published in 

the Federal Register on November 20, 

2014.3 On November 14, 2014, the 

Exchange submitted Partial Amendment 

No. 1 to the Commission and filed the 

Partial Amendment No. 1 to the public 

comment file.4 The Commission has 

received no other comment on the 

proposal. 

Section 19(b)(2) of the Act 5 provides 

that, within 45 days of the publication 

of the notice of the filing of a proposed 

rule change, or within such longer 

period up to 90 days as the Commission 

may designate if it finds such longer 

period to be appropriate and publishes 

its reasons for so finding or as to which 

the self-regulatory organization 

consents, the Commission shall either 

approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether the proposed rule change 

should be disapproved. The 

Commission is extending this 45-day 

time period. 

The Commission finds that it is 

appropriate to designate a longer period 

within which to take action on the 

proposed rule change so that it has 

sufficient time to consider the proposed 

rule change, as modified by Partial 

Amendment No. 1. Accordingly, the 

Commission, pursuant to Section 

19(b)(2) of the Act,6 designates February 

18, 2015, as the date by which the 

Commission should either approve or 

disapprove or institute proceedings to 

determine whether to disapprove the 

proposed rule change (File Number SR– 

NYSEMKT–2014–95). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Brent J. Fields, 

Secretary. 

[FR Doc. 2014–30439 Filed 12–29–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73910; File No. SR–

NYSEMKT–2014–102] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Exchange 

Rules Regarding Trade Nullification 

and Price Adjustment 

December 22, 2014. 

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 

10, 2014, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) 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 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

exchange rules regarding trade 

nullification and price adjustment. The 

text of 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 Exchange is proposing to add 

Rule 966NY, ‘‘Trade Nullification and 

Price Adjustment Procedure.’’ 3 As 

proposed, Rule 966NY would allow for 

transactions to be nullified if both 

parties to the transaction agree to the 

nullification and allow the price of 

executions to be adjusted if the price 

adjustment is agreed to by both parties 

to the transaction and authorized by the 

Exchange.4 The Exchange is also 

proposing to make other conforming 

administrative changes to streamline the 

rules governing this subject with the 

Exchange’s rules. 

Background 

Currently, pursuant to Commentary 

.02 of Rule 965NY, the Exchange allows 

for parties to agree to nullify an 

execution. Commentary .02 of Rule 

965NY also states that once both parties 

agree to the trade nullification, one 

party must ‘‘promptly notify the 

Exchange for dissemination of 

cancellation information to the Options 

Price Reporting Authority.’’ In addition, 

the Exchange currently allows for a 

mutual price adjustment for trades that 

meet the obvious error (or catastrophic 

error) requirements pursuant to 

Exchange Rule 975NY if those mutual 

agreements are done within specific 

timeframes.5 The Exchange is now 

proposing to relocate the 

aforementioned trade nullification 

language and add a provision to allow 

parties to mutually adjust prices of 

executions outside of those done in 

obvious error. The Exchange’s proposal 

is based upon similar rules of the 

Chicago Board Options Exchange 

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