Document ID: SEC-2013-1842-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2013-10-24T04:00Z

[Federal Register Volume 78, Number 206 (Thursday, October 24, 2013)]
[Notices]
[Pages 63547-63548]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24914]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70713; SR-NYSE-2013-21; SR-NYSEMKT-2013-25]

Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE 
MKT LLC; Notice of Designation of Longer Period for Commission Action 
on Proceedings To Determine Whether To Disapprove Proposed Rule 
Changes, as Modified by Amendment Nos. 1, Amending NYSE Rule 104 and 
NYSE MKT Rule 104--Equities to Codify Certain Traditional Trading Floor 
Functions That May Be Performed by Designated Market Makers, To Make 
Exchange Systems Available to DMMs That Would Provide DMMs With Certain 
Market Information, To Amend the Exchanges' Rules Governing the Ability 
of DMMs To Provide Market Information To Floor Brokers, and To Make 
Conforming Amendments to Other Rules

October 18, 2013.
    On April 9, 2013, the New York Stock Exchange LLC (``NYSE'') and 
NYSE MKT LLC (``NYSE MKT'') (collectively, the ``Exchanges'') each 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act

[[Page 63548]]

of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ proposed rule 
changes (``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 
April 29, 2013.\4\ The Commission received two comment letters on the 
NYSE proposal.\5\ On June 11, 2013, the Commission extended to July 26, 
2013 the period in which to approve, disapprove, or institute 
proceedings to determine whether to disapprove the Proposals.\6\
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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, 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 NYSE, 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 MKT Equities Rule 2(i). NYSE MKT 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 MKT 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 MKT Equities Rule 98.
    \4\ See Securities Exchange Act Release Nos. 69427 (April 23, 
2013), 78 FR 25118 (SR-NYSE-2013-21) (``NYSE Notice''); 69428 (April 
23, 2013), 78 FR 25102 (SR-NYSEMKT-2013-25). On April 18, 2013, the 
Exchanges each filed Partial Amendment No. 1 to the Proposals. The 
purpose of the amendment was to file the Exhibit 3, which was not 
included in the April 9, 2013 filings.
    \5\ See Letter to Elizabeth M. Murphy, Secretary, Commission, 
from Daniel Buenza, Lecturer in Management, London School of 
Economics and Yuval Millo, Professor of Social Studies of Finance, 
University of Leicester, dated May 20, 2013 (``LSE Letter I''); 
Letter to Commission, from James J. Angel, Ph.D., CFA, Associate 
Professor of Finance, Georgetown University, McDonough School of 
Business, dated May 14, 2013 (``Angel Letter''). Although the 
comment letters addressed only the NYSE proposal, the NYSE and NYSE 
MKT proposals are essentially identical for relevant purposes.
    \6\ See Securities Exchange Act Release No. 69736, 78 FR 36284 
(June 17, 2013) (SR-NYSE-2013-21); Release No. 69733, 78 FR 36284 
(SR-NYSEMKT-2012-25) (June 17, 2013).
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    On July 26, 2013, the Commission instituted proceedings to 
determine whether to approve or disapprove the Proposals.\7\ The 
Commission thereafter received one comment letter on the NYSE 
proposal.\8\ NYSE Euronext, on behalf of the Exchanges, submitted a 
response letter on September 5, 2013.\9\
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    \7\ See Securities Exchange Act Release No. 70047, 78 FR 46661 
(August 1, 2013) (``Order Instituting Proceedings'').
    \8\ See Letter to Elizabeth M. Murphy, Secretary, Commission, 
from Daniel Buenza, Lecturer in Management, London School of 
Economics and Yuval Millo, Professor of Social Studies of Finance, 
University of Leicester, dated August 22, 2013 (``LSE Letter II'').
    \9\ See Letter to Elizabeth M. Murphy, Secretary, Commission, 
from Janet McGinness, Executive Vice President and Corporate 
Secretary, NYSE Euronext, dated September 5, 2013.
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    Section 19(b)(2) of the Act \10\ 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 Federal Register publishes notice of the proposed rule change, 
unless the Commission determines that a longer period is appropriate 
and publishes the reasons for this determination, in which case the 
Commission may extend the period for issuing an order approving or 
disapproving the proposed rule change by not more than 60 days. The 
proposed rule changes were published for notice and comment in the 
Federal Register on April 29, 2013. October 26, 2013 is 180 days from 
that date, and December 25, 2013 (which is a Federal holiday) is an 
additional 60 days from that date.
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    \10\ 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 Proposals 
so that the Commission has sufficient time to consider the Proposals, 
the issues raised in the comment letters that have been submitted in 
connection with the Proposals, and the response to these issues in the 
NYSE Euronext response letter. Accordingly, the Commission, pursuant to 
Section 19(b)(2) of the Act,\11\ designates December 24, 2013, as the 
date by which the Commission must either approve or disapprove the 
proposed rule changes SR-NYSE-2013-21 and SR-NYSEMKT-2013-25.
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    \11\ 15 U.S.C. 78s(b)(2).
    \12\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24914 Filed 10-23-13; 8:45 am]
BILLING CODE 8011-01-P