Document ID: SEC-2013-1159-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE MKT, LLC
Posted Date: 2013-06-27T04:00Z

[Federal Register Volume 78, Number 124 (Thursday, June 27, 2013)]
[Notices]
[Pages 38779-38780]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15369]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69827; File No. SR-NYSEMKT-2013-54]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Making a Non-
Substantive, Technical Amendment to Exchange Rule 900.3NY(o) To Correct 
a Cross Reference To Exchange Rule 964NY

June 21, 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 June 17, 2013, NYSE MKT LLC (the ``Exchange'' or ``NYSE 
MKT'') 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to make a non-substantive, technical 
amendment to Exchange Rule 900.3NY(o) to correct a cross reference to 
Exchange Rule 964NY. 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, on the Commission's Web site at http://www.sec.gov, 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to make a non-substantive, technical 
correction to Exchange Rule 900.3NY(o) in order to update a cross 
reference to Exchange Rule 964NY. Current Rule 900.3NY(o) incorrectly 
cross references Rule 964NY(c)(2)(D) with respect to the routing 
instructions for NOW Orders. The Exchange proposes to correct the 
citation to cross reference Rule 964NY(c)(2)(E).
    As described in Rule 900.3NY(o), a ``NOW Order'' is a Limit Order 
that is to be executed in whole or in part on the Exchange, and the 
portion not so executed is routed to one or more NOW Recipients for 
immediate execution as soon as the order is received by the NOW 
Recipient.\4\ Currently, Rule 900.3NY(o) incorrectly provides that a 
NOW Order is routed pursuant to Rule 964NY(c)(2)(D), which relates to 
the matching of an inbound order against orders in the Working Order 
File.
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    \4\ A NOW Recipient is defined as ``any Market Center (1) with 
which the Exchange maintains an electronic linkage, and (2) that 
provides instantaneous responses to NOW Orders routed from the 
System.'' NYSE Amex Options Rule 900.2NY(44).
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    The routing provisions actually governing the routing of NOW Orders 
are found in Rule 964NY(c)(2)(E), and, as applied to NOW Orders, 
provide that if the NOW Order has not been executed in its entirety on 
the Exchange, the order will be routed for execution to one or more NOW 
Recipients. Specifically, Rule 964NY(c)(2)(E)(iii) states that ``if the 
order locks or crosses the NBBO, it will be routed via routing broker 
to the away market(s) displaying the National Best Bid or Offer 
Price.'' Following the routing of the NOW Order, and in accordance with 
the terms of such order, any portion not immediately executed by the 
NOW Recipient is cancelled. Accordingly, the Exchange proposes to 
correct Rule 900.3NY(o) to cross-reference Rule 964NY(c)(2)(E).

[[Page 38780]]

2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the objectives of Section 
6(b)(5),\6\ in particular, in that it is designed to promote just and 
equitable principles of trade, to remove impediments to, and perfect 
the mechanism of a free and open market and, in general, to protect 
investors and the public interest. The Exchange believes it is 
appropriate to make technical corrections to its rules so that Exchange 
members and investors have a clear and accurate understanding of the 
meaning of the Exchange's rules. The correction of the cross reference 
in Rule 900.3NY(o) will serve to eliminate a potential source of 
confusion for Exchange Participants.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change is non-substantive and therefore does not 
implicate the competition analysis.

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 \7\ and Rule 19b-4(f)(6) thereunder.\8\ 
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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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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 satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\10\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange stated that 
it believes that this proposal is non-controversial and will not 
significantly affect the protection of investors because the Exchange 
is not proposing any substantive changes and is merely correcting an 
inaccuracy in the Exchange's rules. According to the Exchange, the 
correction of the inaccurate cross reference in the Exchange's rules 
will eliminate member confusion and provide clarity on how the rules 
apply. Based on the Exchange's statements, the Commission believes that 
waiving the operative delay is consistent with the protection of 
investors and the public interest. Accordingly, the Commission hereby 
grants the Exchange's request and waives the 30-day operative 
delay.\11\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ For purposes only of waiving the operative delay, the 
Commission has 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 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 email to rule-comments@sec.gov. Please include 
File No. SR-NYSEMKT-2013-54 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 No. SR-NYSEMKT-2013-54. 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, 100 F Street NE., 
Washington, DC 20549, 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 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 No. SR-NYSEMKT-2013-54 and should be 
submitted on or before July 18, 2013.

    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2013-15369 Filed 6-26-13; 8:45 am]
BILLING CODE 8011-01-P