Document ID: SEC-2010-1166-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2010-08-04T04:00Z

[Federal Register: August 4, 2010 (Volume 75, Number 149)]
[Notices]               
[Page 47051-47052]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04au10-103]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62600; File No. SR-NYSEArca-2010-72]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Rule 
7.31(x)

July 29, 2010.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on July 22, 2010, NYSE Arca, Inc. (``NYSE Arca'' or the 
``Exchange'') 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. NYSE Arca filed the proposed rule change as a ``non-
controversial'' proposal pursuant to Section 19(b)(3)(A) of the Act \4\ 
and Rule 19b-4(f)(6) thereunder, \5\ which renders the proposal 
effective upon filing with the Commission. 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.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 7.31(x). The text of the 
proposed rule change is available on the Exchange's Web site at http://
www.nyse.com, on the Commission's Web site at http://www.sec.gov, at 
the Exchange, and at the Commission's Public Reference Room. A copy of 
this filing is available on the Exchange's Web site at http://
www.nyse.com, at the Exchange's principal office 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
    NYSE Arca Equities Rule 7.31(x) defines the Primary Only (``PO'') 
Order, which allows ETP Holders to direct an order to the primary 
listing market without first sweeping the NYSE Arca Book. ETP Holders 
may use PO Orders to direct Market-on-Close (``MOC'') or Limit-on-Close 
(``LOC'') to NYSE and NYSE Amex. However, pursuant to NYSE and NYSE 
Amex rules, orders entered for execution on those markets that are 
designated as MOC or LOC may not be cancelled or reduced in size after 
3:45 PM ET unless the cancellation is entered to correct a legitimate 
error. MOC and LOC orders entered on NYSE and NYSE Amex may not be 
cancelled or reduced in size for any reason after 3:58 p.m. ET.
    By this filing, NYSE Arca proposes to amend its rules to allow for 
a new system control that, after 3:45 p.m. ET, will automatically 
reject any attempt to electronically cancel or reduce in size a PO 
Order designated as MOC or LOC that has been directed to the NYSE or 
NYSE Amex. ETP Holders that wish to cancel or cancel and replace, after 
3:45 p.m., a PO Order that has been directed to the NYSE or NYSE Amex 
and designated as MOC or LOC must do so manually by contacting the NYSE 
Arca Trade Operations Desk.
    The Exchange believes this new system control will prevent the 
cancellation of MOC and LOC orders directed to the NYSE and NYSE Amex 
that potentially violate the NYSE and NYSE Amex rules. In order to 
accommodate the cancellation of PO orders designated as MOC or LOC 
after 3:45 p.m. but before 3:58 p.m. ET that were entered with 
legitimate errors, NYSE Arca will allow ETP Holders to contact the NYSE 
Arca Trade Operations Desk via e-mail with an explanation of the 
legitimate nature of the error claimed to be the reason for the 
cancellation. Consistent with NYSE and NYSE Amex Equities Rule 
123C(3)(c), the NYSE Arca Trade Operations Desk will not process any 
cancellations or cancel or replace, after 3:58 p.m. ET. NYSE Arca will 
issue a client notice to all ETP Holders detailing this process prior 
to implementation of this new system control.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \6\ of the Act, in general, and furthers the 
objectives of Section 6(b)(5), \7\ in particular in that it is designed 
to facilitate transactions in securities, to promote just and equitable 
principles of trade, to enhance competition, and to protect investors 
and the public interest. Specifically, the changes proposed herein will 
prevent the cancellation of MOC and LOC orders directed to the NYSE and 
NYSE Amex that potentially violate the NYSE and NYSE Amex rules.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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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 \8\ and Rule 19b-4(f)(6) thereunder.\9\ 
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

[[Page 47052]]

Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6)(iii) 
thereunder.\11\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires a self-regulatory organization to provide the 
Commission with written notice of its intent to file the proposed 
rule change, along with a brief description and 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. The Exchange has fulfilled this requirement.
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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 e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2010-72 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-2010-72. 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-
NYSEArca-2010-72 and should be submitted on or before August 25, 2010.

    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)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19224 Filed 8-3-10; 8:45 am]
BILLING CODE 8010-01-P