Document ID: SEC-2013-0373-0001
Agency: sec
Document Type: Notice
Title: Order Extending Temporary Exemptions from Certain Rules of Regulation SHO Related to Hurricane Sandy
Posted Date: 2013-02-21T05:00Z

[Federal Register Volume 78, Number 35 (Thursday, February 21, 2013)]
[Notices]
[Pages 12109-12110]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-03899]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68934; File No. TP 13-06]

Order Extending Temporary Exemptions From Certain Rules of 
Regulation SHO Related to Hurricane Sandy

February 14, 2013.
    On December 12, 2012, the Commission issued an order (the 
``Order'') pursuant to Section 36 of the Securities Exchange Act of 
1934 (``Exchange Act'') granting exemptions from certain requirements 
of Regulation SHO under the Exchange Act \1\ in response to the impact 
of Hurricane Sandy on the Depository Trust & Clearing Corporation vault 
at 55 Water Street in Manhattan (the ``Vault'').\2\ Specifically, the 
Order granted exemptions from the ``locate,'' short sale price test, 
and close-out requirements of Regulation SHO for sales of Vault 
Securities.\3\ The Order specified that, absent further action by the 
Commission, these exemptions would expire on February 1, 2013.
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    \1\ 17 CFR 242.200 et seq.
    \2\ Order Granting Exemptions from Certain Rules of Regulation 
SHO Related to Hurricane Sandy, Exchange Act Release No. 68419 (Dec. 
12, 2012), 77 FR 74891 (Dec. 18, 2012).
    \3\ The Order defines ``Vault Securities'' as owned securities, 
represented by physical certificates held in the Vault at the time 
Hurricane Sandy made landfall and whose settlement depends on the 
delivery of such physical certificates (or documentation with 
equivalent effect).
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    SIFMA has requested an extension until May 5, 2013, because the 
process for restoring Vault Securities is not complete at the present 
time.\4\ As a result, SIFMA states that sales of Vault Securities 
continue to experience settlement delays that have implications for 
compliance with Regulation SHO. For this reason and the reasons stated 
in the Order, the Commission finds that extending the Order, pursuant 
to our authority under Section 36 of the Exchange Act,\5\ is 
appropriate in the public interest, and is consistent with the 
protection of investors.
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    \4\ See Letter from Theodore R. Lazo, Managing Director and 
Associate General Counsel, Securities Industry and Financial Markets 
Association, dated February 14, 2013. SIFMA informally contacted 
Commission staff on January 31, 2013, to discuss the possibility of 
extending the temporary exemptions.
    \5\ Subject to certain exceptions, Section 36 of the Exchange 
Act authorizes the Commission, by rule, regulation, or order, to 
conditionally or unconditionally exempt any person, security, or 
transaction, or any class or classes of persons, securities, or 
transactions, from any provision or provisions of the Exchange Act 
or any rule or regulation thereunder, to the extent that such 
exemption is necessary or appropriate in the public interest, and is 
consistent with the protection of investors. 15 U.S.C. 78mm.
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    Therefore, it is ordered, pursuant to Section 36 of the Exchange 
Act, that the Order is extended until 11:59 p.m. E.D.T. on May 5, 2013.
    The temporary exemptions granted in the Order and extended herein 
are subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Exchange Act. In addition, persons relying on 
this order are directed to the anti-fraud and anti-

[[Page 12110]]

manipulation provisions of the federal securities laws, particularly 
Section 10(b) of the Exchange Act,\6\ and Rule 10b-5 thereunder.\7\ 
Responsibility for compliance with these and any other applicable 
provisions of the federal securities laws must rest with the persons 
relying on this exemption.
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    \6\ 15 U.S.C. 78j(b).
    \7\ 17 CFR 240.10b-5.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ See 17 CFR 200.30-3(a)(11).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03899 Filed 2-20-13; 8:45 am]
BILLING CODE 8011-01-P