Document ID: SEC-2013-0948-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2013-05-21T04:00Z

[Federal Register Volume 78, Number 98 (Tuesday, May 21, 2013)]
[Notices]
[Pages 29804-29805]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-12038]

[[Page 29804]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69584; File No. SR-NYSEArca-2013-50]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending the 
Listing Standards for Equity Index-Linked Securities in NYSE Arca 
Equities Rule 5.2(j)(6)

May 15, 2013.
    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, on May 8, 2013, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') filed with the Securities and Exchange Commission (the 
``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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend the listing standards for Equity 
Index-Linked Securities in NYSE Arca Equities Rule 5.2(j)(6). 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 proposes to amend the listing standards for Equity 
Index-Linked Securities in NYSE Arca Equities Rule 5.2(j)(6).
    Currently, NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(1) provides that 
the Exchange will consider listing Equity Index-Linked Securities if 
the payment at maturity or earlier redemption is based on an index or 
indexes of equity securities, securities of closed-end management 
investment companies registered under the Investment Company Act of 
1940 and/or investment company units. The issue must meet certain 
initial listing criteria including, among other criteria, that each 
underlying index have at least ten component securities of different 
issuers.
    The Exchange proposes to amend the initial listing criteria to 
eliminate the requirement that the ten component securities be of 
different issuers. The Exchange believes that the current requirement 
is unnecessarily restrictive. At least one other exchange does not 
impose such a requirement in its listing standards for Equity Index-
Linked Securities.\4\
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    \4\ See NASDAQ Stock Market LLC (``NASDAQ'') Rule 5710(k)(i)(A).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \5\ of the Act, in general, and furthers the 
objectives of Section 6(b)(5),\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 foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, and to remove impediments to and perfect the mechanisms of 
a free and open market and a national market system, and, in general, 
to protect investors and the public interest.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change would remove 
impediments to and perfect the mechanisms of a free and open market and 
a national market system because it would provide greater flexibility 
to issuers to list Equity Index-Linked Securities with a wider variety 
of component securities that may meet the investment objectives of 
investors. Offering such products enhance competition, which may 
benefit of investors and the marketplace. Furthermore, the Exchange's 
listing requirements as proposed herein are at least as stringent as 
those of another national securities exchange and, consequently, the 
proposed rule change is consistent with the protection of investors and 
the public interest.\7\
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    \7\ See supra n.4.
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    Additionally, the proposal is designed to prevent fraudulent and 
manipulative acts and practices, as Equity Index-Linked Securities are 
subject to existing trading rules, together with specific requirements 
for market participants, books and record production, surveillance 
procedures, and requisite Exchange approvals.
    Lastly, the proposal is designed to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system by adopting listing standards that would permit the trading of 
additional Equity Index-Linked Securities on the Exchange that are 
already currently traded on at least one other exchange.

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 Exchange notes that 
while the current variance in the listing standards among exchanges 
limits competition, the proposal would allow the listing of additional 
Equity Index-Linked Securities on the Exchange, thereby promoting 
increased competition across markets and liquidity on the Exchange.

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

    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 for 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

[[Page 29805]]

effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6)(iii) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the 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.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest, 
as it will allow the Exchange to immediately harmonize its listing 
requirements with other national securities exchanges enabling the 
Exchange to compete for listings of products on the same basis as other 
national securities exchanges. For this reason, the Commission waives 
the operative delay and designates the proposed rule change to be 
operative upon filing.\10\
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    \10\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2013-50 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-NYSEArca-2013-50. 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 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-NYSEArca-2013-50, and should be submitted on or before 
June 11, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Kevin M. O'Neill,
Deputy Secretary.
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    \11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2013-12038 Filed 5-20-13; 8:45 am]
BILLING CODE 8011-01-P