Document ID: SEC-2011-0317-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2011-03-08T05:00Z

[Federal Register Volume 76, Number 45 (Tuesday, March 8, 2011)]
[Notices]
[Pages 12774-12775]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-5191]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64013; File No. SR-NYSE-2011-08]

Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Extending the Pilot Period of the Exchange's Prior Approvals To Receive 
Inbound Routes of Certain Equities Orders From Archipelago Securities 
LLC

March 2, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on February 24, 2011, New York Stock Exchange LLC (the 
``Exchange'' or ``NYSE'') 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 NYSE. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the pilot period of the Exchange's 
prior approvals to receive inbound routes of certain equities orders 
from Archipelago Securities LLC (``Arca Securities''), an NYSE 
affiliated member. The text of the proposed rule change is available at 
the Exchange, the Commission's Public Reference Room, and http://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 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
    Currently, Arca Securities is the approved outbound order routing 
facility of the Exchange.\3\ Arca Securities is also the approved 
outbound order routing facility of NYSE Arca, Inc. (``NYSE Arca'') and 
NYSE Amex LLC (``NYSE Amex'').\4\ The Exchange has also been previously 
approved to receive inbound routes of equities orders by Arca 
Securities in its capacity as an order routing facility of NYSE Arca 
and NYSE Amex.\5\ The Exchange's authority to receive inbound routes of 
equities orders by Arca Securities is subject to a pilot period ending 
March 31, 2011.\6\ The Exchange

[[Page 12775]]

hereby seeks to extend the previously approved pilot period (with the 
attendant obligations and conditions) for an additional six months, 
through September 30, 2011.
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    \3\ See Securities Exchange Act Release No. 55590 (April 5, 
2007), 72 FR 18707 (April 13, 2007) (notice of immediate 
effectiveness of SR-NYSE-2007-29); see also Securities and Exchange 
Act Release No. 58680 (September 29, 2008), 73 FR 58283 (October 6, 
2008) (order approving SR-NYSE-2008-76).
    \4\ See Securities Exchange Act Release No. 54238 (July 28, 
2006), 71 FR 44758 (August 7, 2006) (order approving SR-NYSE-2006-
13); see also Securities Exchange Act Release No. 52497 (September 
22, 2005), 70 FR 56949 (September 29, 2005) (SR-PCX-2005-90); see 
also Securities Exchange Act Release No. 44983 (October 25, 2001), 
66 FR 55225 (November 1, 2001) (SR-PCX-00-25); see also Securities 
Exchange Act Release No. 58681 (September 29, 2008), 73 FR 58285 
(October 6, 2008) (order approving NYSEArca-2008-90). See Securities 
Exchange Act Release No. 59009 (November 24, 2008), 73 FR 73363 
(December 2, 2008) (order approving SR-NYSEALTR-2088-07); see also 
Securities Exchange Act Release No. 59473 (February 27, 2009), 74 FR 
9853 (March 6, 2009) (order approving SR-NYSEALTR-2009-18).
    \5\ See Securities Exchange Act Release No. 58680 (September 29, 
2008), 73 FR 58283 (October 6, 2008) (order approving SR-NYSE-2008-
76); see also Securities Exchange Act Release No. 59011 (November 
24, 2008), 73 FR 73360 (December 2, 2008) (order approving SR-NYSE-
2008-122); see also Securities Exchange Act Release No. 60255 (July 
7, 2009), 74 FR 34065 (July 14, 2009) (order approving SR-NYSE-2009-
58).
    \6\ See Securities Exchange Act Release No. 62832 (September 2, 
2010), 75 FR 55391 (September 10, 2010) (Notice of immediate 
effectiveness of SR-NYSE-2010-64).
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\7\ 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, and to remove impediments to and perfect 
the mechanism of a free and open market and a national market system. 
Specifically, the proposed rule change will allow the Exchange to 
continue receiving inbound routes of equities orders from Arca 
Securities acting in its capacity as a facility of the NYSE Arca and 
NYSE Amex, in a manner consistent with prior approvals and established 
protections. The Exchange believes that extending the previously 
approved pilot period for six months will permit both the Exchange and 
the Commission to further assess the impact of the Exchange's authority 
to receive direct inbound routes of equities orders via Arca Securities 
(including the attendant obligations and conditions).\9\
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ The Exchange is currently analyzing the condition regarding 
non-public information and system changes in order to better reflect 
the operation of Arca Securities.
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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 \10\ and Rule 19b-4(f)(6) thereunder.\11\ 
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.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
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    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 e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2011-08 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-2011-08. This file 
number should be included on the subject line if e-mail 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 the 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 Number SR-NYSE-2011-08 and should be 
submitted on or before March 29, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5191 Filed 3-7-11; 8:45 am]
BILLING CODE 8011-01-P