Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Certain Obsolete Rules That Relate to Its Disciplinary Proceedings and Make a Conforming Change
Federal Register, Volume 78 Issue 173 (Friday, September 6, 2013)
Federal Register Volume 78, Number 173 (Friday, September 6, 2013)
Notices
Pages 54943-54944
From the Federal Register Online via the Government Printing Office www.gpo.gov
FR Doc No: 2013-21631
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SECURITIES AND EXCHANGE COMMISSION
Release No. 34-70294; File No. SR-NYSEMKT-2013-72
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Certain Obsolete Rules That Relate to Its Disciplinary Proceedings and Make a Conforming Change
August 30, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that, on August 23, 2013, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. 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\ 17 CFR 240.19b-4.
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Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange proposes to delete certain obsolete rules that relate to its disciplinary proceedings and make a conforming change. 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.
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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.
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Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
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Purpose
The Exchange proposes to delete certain obsolete rules that relate to its disciplinary proceedings and make a conforming change.
In September 2008, NYSE Euronext acquired the American Stock Exchange LLC, now known as NYSE MKT.\3\ As part of the integration of the companies, in October 2008, the Exchange adopted disciplinary rules that were substantially the same as those of the New York Stock Exchange LLC (``NYSE'') and established certain transitional rules.\4\ Thereafter, the Exchange relocated its trading floor from 86 Trinity Place in New York, New York to the NYSE's facilities at 11 Wall Street in New York, New York.
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\3\ See Securities Exchange Act Release No. 58673 (September 29, 2008), 73 FR 57707 (October 3, 2008) (SR-Amex-2008-62 and SR-NYSE-
2008-60).
\4\ See id. and Securities Exchange Act Release Nos. 58705 (October 1, 2008), 73 FR 58995 (October 8, 2008) (SR-Amex-2008-63), and 58286 (August 1, 2008), 73 FR 46097 (August 7, 2008) (SR-Amex-
2008-64).
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It is no longer necessary to maintain the transitional rules because all disciplinary proceedings under such rules have been completed. As such, the Exchange proposes to delete Part 1B of Rule 476A and mark it ``Reserved,'' and delete in their entirety Rules 478T and
Page 54944
590, Parts 1-3, because each of these rules is obsolete. Part 1B of Rule 476A sets forth minor rule violations and fines that were applicable only to trading activity and conduct on legacy Exchange trading systems located at 86 Trinity Place. Similarly, the minor rule violations and fines listed in Parts 1-3 of Rule 590 applied only to transactions and/or conduct that occurred on or through the legacy systems or facilities of the Exchange located at 86 Trinity Place.\5\ Rule 478T sets forth temporary procedures that governed legacy disciplinary proceedings that were commenced by the Exchange and still pending as of October 1, 2008, the date when the Exchange adopted disciplinary rules substantially similar to those of the NYSE.\6\ All legacy proceedings have been completed. The Exchange also proposes a conforming change to Rule 0 to remove references to these obsolete rules.
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\5\ See Rule 590, Part 1.
\6\ See supra n.3.
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Statutory Basis
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\8\ in particular, because it promotes just and equitable principles of trade, removes impediments to and perfects the mechanism of a free and open market and a national market system, and, in general, helps to protect investors and the public interest by providing transparency as to which rules are operable and reducing potential confusion that may result from having obsolete rules in the Exchange's rulebook. The Exchange further believes that the proposal removes impediments to and perfects the mechanism of a free and open market by ensuring that persons subject to the Exchange's jurisdiction, regulators, and the public can more easily navigate the Exchange's rulebook and better understand what obligations attach and when.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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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 proposed change is not designed to address any competitive issue but rather to delete obsolete rules, thereby increasing transparency, reducing confusion, and making the Exchange's rules easier to understand.
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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.
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Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
Because the foregoing proposed rule change does not significantly affect the protection of investors or the public interest, does not impose any significant burden on competition, and, by its terms, does not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 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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The Exchange has requested that the Commission waive the 30-day operative delay. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest in that the rules at issue are no longer operative and the proposed rule change will reduce confusion and add clarity to the Exchange's rulebook. Therefore, the Commission designates the proposal operative upon filing.\11\
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\11\ For purposes only of waiving the 30-day 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 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. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \12\ of the Act to determine whether the proposed rule change should be approved or disapproved.
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\12\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEMKT-2013-72 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-NYSEMKT-2013-72. 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 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-NYSEMKT-2013-72 and should be submitted on or before September 27, 2013.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
FR Doc. 2013-21631 Filed 9-5-13; 8:45 am
BILLING CODE 8011-01-P
