Document ID: SEC-2012-0795-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC; NYSE Amex LLC
Posted Date: 2012-05-18T04:00Z

[Federal Register Volume 77, Number 97 (Friday, May 18, 2012)]
[Notices]
[Page 29730]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-12058]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66981; SR-NYSE-2011-56; SR-NYSEAmex-2011-86]

Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE 
Amex LLC; Notice of Designation of Longer Period for Commission Action 
on Proceedings To Determine Whether to Disapprove Proposed Rule Changes 
To Codify Certain Traditional Trading Floor Functions That May Be 
Performed by Designated Market Makers and To Permit Designated Market 
Makers and Floor Brokers Access To Disaggregated Order Information

May 14, 2012.
    On October 31, 2011, the New York Stock Exchange LLC (``NYSE'') and 
NYSE Amex LLC (``NYSE Amex'') (collectively, the ``SROs'') each 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\ proposed rule changes (``SRO 
Proposals'') to amend certain of their respective rules relating to 
Designated Market Makers (``DMMs'') \3\ and floor brokers. The SRO 
Proposals were published for comment in the Federal Register on 
November 17, 2011.\4\ The Commission received no comment letters on the 
proposals. On December 22, 2011, the Commission extended the time 
period in which to either approve the SRO Proposals, disapprove the SRO 
Proposals, or to institute proceedings to determine whether to 
disapprove the SRO Proposals, to February 15, 2012.\5\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See NYSE Rule 98(b)(2). ``DMM unit'' means any member 
organization, aggregation unit within a member organization, or 
division or department within an integrated proprietary aggregation 
unit of a member organization that (i) has been approved by NYSE 
Regulation pursuant to section (c) of NYSE Rule 98, (ii) is eligible 
for allocations under NYSE Rule 103B as a DMM unit in a security 
listed on the Exchange, and (iii) has met all registration and 
qualification requirements for DMM units assigned to such unit. The 
term ``DMM'' means any individual qualified to act as a DMM on the 
Floor of the Exchange under NYSE Rule 103. See also NYSE Amex 
Equities Rule 2(i). Rule 2(i) defines the term ``DMM'' to mean an 
individual member, officer, partner, employee or associated person 
of a DMM unit who is approved by the Exchange to act in the capacity 
of a DMM. NYSE Amex Equities Rule 2(j) defines the term ``DMM unit'' 
as a member organization or unit within a member organization that 
has been approved to act as a DMM unit under NYSE Amex Equities Rule 
98.
    \4\ See Securities Exchange Act Release Nos. 65735 (November 10, 
2011), 76 FR 71405 (SR-NYSEAmex-2011-86) and 65736 (November 10, 
2011), 76 FR 71399 (SR-NYSE-2011-56).
    \5\ See Securities Exchange Act Release No. 66036, 76 FR 82011 
(December 29, 2011).
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    On February 15, 2012, the Commission instituted proceedings to 
determine whether to disapprove the proposed rule changes.\6\ The 
Commission thereafter received five comments on the proposals.\7\ NYSE 
Euronext, on behalf of the SROs, submitted a response letter on March 
28, 2012.\8\
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    \6\ See Securities Exchange Act Release No. 66397, 77 FR 10586 
(February 22, 2012) (``Order Instituting Proceedings'').
    \7\ See Letters to Elizabeth M. Murphy, Secretary, Commission, 
from Kenneth Polcari, dated March 12, 2012; Patrick Armstrong and 
Daniel Tandy, Co-Presidents, Alliance of Floor Brokers, dated March 
13, 2012; Jonathan Corpina, President, and Jennifer Lee, Vice 
President, Organization of Independent Floor Brokers, dated March 
13, 2012; James J. Angel, Ph.D., CFA, dated March 15, 2012; and John 
Petschauer, CEO, EZX, Inc., dated March 14, 2012.
    \8\ See Letter to Elizabeth M. Murphy, Secretary, Commission, 
from Janet McGinness, Executive Vice President and Corporate 
Secretary, NYSE Euronext, dated March 28, 2012.
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    Section 19(b)(2) of the Act \9\ provides that, after initiating 
disapproval proceedings, the Commission shall issue an order approving 
or disapproving the proposed rule change not later than 180 days after 
the date of publication of notice of the filing of the proposed rule 
change. The Commission may extend the period for issuing an order 
approving or disapproving the proposed rule change, however, by not 
more than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for such determination. The 
proposed rule changes were published for notice and comment in the 
Federal Register on November 17, 2011. May 15, 2012 is 180 days from 
that date, and July 14, 2012 is an additional 60 days from that date.
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    \9\ 15 U.S.C. 78s(b)(2).
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    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule changes so that it has sufficient time to consider the proposed 
rule changes, the issues raised in the comment letters that have been 
submitted in connection with the proposed rule changes, and the SROs' 
response to such issues in its response letter. Specifically, while 
commenters and the SROs noted a number of benefits to the proposals, as 
the Commission noted in the Order Instituting Proceedings, the 
proposals raise issues such as whether DMMs and floor brokers would 
receive a benefit under the proposals that is disproportionate to the 
services they provide.\10\
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    \10\ See Order Instituting Proceedings, supra note 6 at 10589.
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    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\11\ designates July 14, 2012, as the date by which the Commission 
should either approve or disapprove the proposed rule changes (SR-NYSE-
2011-56 and SR-NYSEAmex-2011-86).
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    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(57).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-12058 Filed 5-17-12; 8:45 am]
BILLING CODE 8011-01-P