[Federal Register Volume 86, Number 215 (Wednesday, November 10, 2021)]
[Notices]
[Pages 62582-62584]
[FR Doc No: 2021-24532]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93526; File No. SR-EMERALD-2021-36]

Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule

November 4, 2021.
    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 October 22, 2021, MIAX Emerald, LLC (``MIAX Emerald'' or
``Exchange''), filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I, II,
and III 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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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is filing a proposal to amend the MIAX Emerald Fee
Schedule (the ``Fee Schedule'') to make non-substantive, clarifying
changes.
    The text of the proposed rule change is available on the Exchange's
website at http://www.miaxoptions.com/rule-filings/emerald, at MIAX'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 Exchange 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 these 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 aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the Fee Schedule to make non-
substantive, clarifying changes to Sections (3)(b) and (5)(d)(ii) for
the monthly Trading Permit fees for Market Makers \3\ and the monthly
MIAX Emerald Express Interface (``MEI'') \4\ Port fees for Market
Makers. The Exchange does not propose to amend the amount of Trading
Permit fees or MEI Port fees in this filing. The Exchange also does not
propose to amend the calculation methodology for Trading Permit fees or
MEI Port fees in this filing.
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    \3\ The term ``Market Makers'' refers to ``Lead Market Makers,''
``Primary Lead Market Makers,'' and ``Registered Market Makers''
collectively. See Exchange Rule 100.
    \4\ MIAX Emerald Express Interface (``MEI'') is a connection to
the MIAX Emerald System that enables Market Makers to submit simple
and complex electronic quotes to MIAX Emerald. See the Definitions
Section of the Fee Schedule.
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Monthly Market Maker Trading Permit Fee Clarifying Changes
    First, the Exchange proposes to amend Section 3(b) of the Fee
Schedule to amend the text below the table for the monthly Trading
Permit fees applicable to Market Makers. Specifically, the Exchange
proposes to add the following two clarifying sentences to begin the
explanatory paragraph following the table for the monthly Trading
Permit fees applicable to Market Makers:

    For the calculation of the monthly Market Maker Trading Permits,
the applicable fee rate is the lesser of either the per class basis
or percentage of total national average daily volume measurement.
The amount of monthly Market Maker Trading Permit Fee will be based
upon the number of classes in which the Market Maker was assigned to
quote on any given day within the calendar month, or upon the class
volume percentages set forth in the above table.

    The Exchange also proposes to remove the following sentence, which
is currently the first sentence of the explanatory paragraph below the
table for the monthly Trading Permit fees applicable to Market Makers:

    For the calculation of the monthly Market Maker Trading Permit
Fees, the number of classes is defined as the greatest number of
classes the Market Maker was assigned to quote in on any given day
within the calendar month and the class volume

percentage is based on the total national average daily volume in
classes listed on MIAX Emerald in the prior calendar quarter.

    In place of the deleted sentence described above, the Exchange
proposes to insert the following two sentences, which will become
sentences three and four of the revised explanatory paragraph:

    The Exchange will assess MIAX Emerald Market Makers the monthly
Market Maker Trading Permit Fee based on the greatest number of
classes listed on MIAX Emerald that the MIAX Emerald Market Maker
was assigned to quote in on any given day within a calendar month.
The class volume percentage is based on the total national average
daily volume in classes listed on MIAX Emerald in the prior calendar
quarter.

    The Exchange notes that these two sentences are a combination of
sentences already included in the explanatory paragraph. In connection
with all of the changes described above, the Exchange proposes to
delete the following sentence:

    The Exchange will assess MIAX Emerald Market Makers the monthly
Market Maker Trading Permit Fee based on the greatest number of
classes listed on MIAX Emerald that the MIAX Emerald Market Maker
was assigned to quote in on any given day within a calendar month
and the applicable fee rate that is the lesser of either the per
class basis or percentage of total national average daily volume
measurement.

    The Exchange notes that all of these changes, when taken together,
do not alter the calculation methodology for how the Exchange currently
calculates monthly Trading Permit fees for Market Makers. These changes
are being made solely to clarify the explanatory paragraph below the
table of fees for monthly Trading Permit fees for Market Makers. The
Exchange believes that these revised sentences summarize that the
monthly Market Maker Trading Permit fee rate is the lesser of the per
class basis or the percentage of total national average daily volume
measure and better clarifies how the MIAX Market Maker Trading Permit
fee will continue to be calculated and applied each month. The Exchange
does not propose to amend the amount or calculation of the monthly
Trading Permit fee for Market Makers.
MEI Port Fee Clarifying Changes
    Next, the Exchange proposes to amend Section 5(d)(ii) of the Fee
Schedule to make non-substantive, clarifying changes to the explanatory
paragraph below the table of MEI Port fees applicable to Market Makers.
The Exchange proposes to move the current first sentence of the
explanatory paragraph below the table of MEI Port fees applicable to
Market Makers in Section 5(d)(ii) to now be the final sentence. In its
place, the Exchange proposes to add the following sentence: ``The
applicable fee rate is the lesser of either the per class basis or
percentage of total national average daily volume measurement.'' In
connection with this change, the Exchange proposes to amend the
sentence that will now follow the new first sentence of the explanatory
paragraph. In particular, the Exchange proposes to add ``MIAX Emerald
Express Interface'' to the second sentence of the explanatory paragraph
to contain the full term, ``MIAX Express Interface (`MEI')'' Port. The
final sentence of the explanatory paragraph will now read as follows:
``MIAX Emerald will assess monthly MEI Port Fees on Market Makers in
each month the Member has been credentialed to use the MEI Port in the
production environment and has been assigned to quote in at least one
class.''
    Further, following the above changes, the Exchange proposes to
amend the second sentence of the explanatory paragraph to remove the
word ``and'' that connects the two clauses describing how the Exchange
calculates the monthly MEI Port fee for Market Makers. In place of the
word ``and,'' the Exchange proposes to clarify that the amount of the
monthly MEI Port fee will be based upon the number of classes in which
the Market Maker was assigned to quote on any given day within the
calendar month, or upon the class volume percentages set forth in the
MEI Port fee table.
    The Exchange further proposes to remove the fifth sentence of the
explanatory paragraph below the table of MEI Port fees in Section
5(d)(ii) and move it up in the paragraph, immediately following the
second sentence. With this change, the third sentence of the
explanatory paragraph will be as follows: ``The Exchange will assess
MIAX Emerald Market Makers the monthly MEI Port Fee based on the
greatest number of classes listed on MIAX Emerald that the MIAX Emerald
Market Maker was assigned to quote in on any given day within a
calendar month.'' This phrase is currently contained in the fifth
sentence of the explanatory paragraph and the Exchange now proposes to
make the phrase its own sentence and move it earlier in the paragraph.
The Exchange believes that these revised sentences summarize that the
monthly MEI Port fee rate is the lesser of either the per class basis
or percentage of total national average daily volume measurement and
better clarifies how the monthly MEI Port fee for Market Makers will
continue to be calculated and applied. The Exchange does not propose to
amend the amount or calculation of the monthly MEI Port fee for Market
Makers.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \5\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \6\ in particular, in that
it is an equitable allocation of reasonable fees and other charges
among its members and issuers and other persons using its facilities.
The Exchange also believes the proposal furthers the objectives of
Section 6(b)(5) of the Act 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 a national market system, and,
in general to protect investors and the public interest and is not
designed to permit unfair discrimination between customers, issuers,
brokers, and dealers.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes the proposed changes are consistent with
Section 6(b)(4) of the Act in that they are reasonable, equitable, and
not unfairly discriminatory because they are non-substantive,
clarifying changes regarding the Exchange's monthly Trading Permit and
MEI Port fees applicable to Market Makers and will reduce the risk of
confusion to market participants. The proposed changes promote just and
equitable principles of trade, remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general protect investors and the public interest by clarifying how
the MIAX Emerald Market Maker Trading Permit fee and the MEI Port fee
will be calculated and applied each month. The Exchange believes that
these proposed changes will provide greater clarity to Members and the
public regarding the Exchange's Fee Schedule and that it is in the
public interest for the Fee Schedule to be accurate and concise so as
to eliminate the potential for confusion.

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 not necessary or appropriate in
furtherance of the purposes of the Act. Specifically, the Exchange
believes the proposed change will not impose any burden on

intra-market competition as the proposed rule change will have no
impact on competition as it is not designed to address any competitive
issue but rather is designed to remedy minor non-substantive,
clarifying issues and provide added clarity to the Fee Schedule. In
addition, the Exchange does not believe the proposal will impose any
burden on inter-market competition as the proposal does not address any
competitive issues and is intended to protect investors by providing
further transparency regarding the Exchange's Fee Schedule.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\7\ and Rule 19b-4(f)(2) \8\ thereunder. 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 to determine whether
the proposed rule should be approved or disapproved.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
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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 [email protected]. Please include
File Number SR-EMERALD-2021-36 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-EMERALD-2021-36. 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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-EMERALD-2021-36 and should be submitted
on or before December 1, 2021.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021-24532 Filed 11-9-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 246 (Friday, December 21, 2012)]
[Notices]
[Pages 75683-75686]
[FR Doc No: 2012-30795]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68452; File No. SR-NYSE-2012-73]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Extending the Temporary Suspension of Those Aspects of Rules 36.20 and
36.21 That Would Not Permit Floor Brokers To Use Personal Portable
Phone Devices on the Trading Floor Following the Aftermath of Hurricane
Sandy Until the Earlier of When Phone Service Is Fully Restored or
Friday, January 18, 2013

December 17, 2012.
    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 December 13, 2012, New York Stock Exchange LLC (``NYSE'' 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. 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 extend the temporary suspension of those
aspects of Rules 36.20 and 36.21 that would not permit Floor brokers to
use personal portable phone devices on the Trading Floor following the
aftermath of Hurricane Sandy until the earlier of when phone service is
fully restored or Friday, January 18, 2013. 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.

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
    On Thursday, November 1, 2012, the Exchange filed a rule proposal
to temporarily suspend those aspects of Rules 36.20, 36.21, and 36.30
that would not permit Floor brokers and Designated Market Makers
(``DMMs'') to use personal portable phone devices on the Trading Floor
\4\ following the aftermath of Hurricane Sandy and during the period
that phone service was not fully functional.\5\ Pursuant to that
filing, all other aspects of those rules remained applicable and the
temporary suspensions of Rule 36 requirements were in effect beginning
the first day trading resumed following Hurricane Sandy until Friday,
November 2, 2012.
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    \4\ Pursuant to Rule 6A, the Trading Floor is defined as the
restricted-access physical areas designated by the Exchange for the
trading of securities, but does not include the physical locations
where NYSE Amex Options are traded.
    \5\ See Securities Exchange Act Release No. 68137 (Nov. 1,
2012), 77 FR 66893 (Nov. 7, 2012) (SR-NYSE-2012-58).
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    On November 5, 2012, although power had been restored to the
downtown Manhattan vicinity, other services were not yet fully
operational. Among other things, the telephone services provided by
third-party carriers to the Exchange were still not fully operational
on the Trading Floor, which continued to impact the ability of Floor
members to communicate from the Trading Floor as permitted by Rule 36.
Accordingly, the Exchange filed to extend the temporary suspension of
those aspects of Rules 36.20, 36.21, and 36.30 that would not permit
Floor brokers and DMMs to use personal portable phone devices on the
Trading Floor to the earlier of phone service being restored or
November 9, 2012,\6\ which was subject to the same terms and conditions
of the temporary suspension filed for October 31, 2012 through November
2, 2012, including the record retention requirements related to any use
of personal portable phones.\7\ On November 9, 2012, the Exchange filed
an additional extension of the temporary suspension of those aspects of
Rules 36.20 and 36.21 that would not permit Floor brokers to use
personal portable phone devices on the Trading Floor to the earlier of
phone service being restored or November 16, 2012, again subject to the
same terms and conditions of the original temporary suspension that was
filed.\8\ On November 19, 2012, the Exchange filed to extend the
temporary suspension of those aspects of Rules 36.20 and 36.21 that
would not permit Floor brokers to use personal portable phone devices
on the Trading Floor to the earlier of when phone service is fully
restored or Friday, December 14, 2012, again subject to the same terms
and conditions of the original temporary suspension that was filed.\9\
The continued extension of the temporary suspension was needed because
of the ongoing intermittent phone and internet service. Specifically,
the wired telephone lines and internet connections for Floor brokers
continue to not be functional, many Exchange authorized and provided
portable phones continue to not be functional and therefore Floor
brokers still could not consistently use the Exchange authorized and
provided portable phones, pursuant to Rules 36.20 and 36.21. The
Exchange now seeks another extension of the temporary suspension of
those aspects of Rules 36.20 and 36.21 because of ongoing telephone and
Internet issues.
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    \6\ See Securities Exchange Act Release No. 68161 (Nov. 5,
2012), 77 FR 67704 (Nov. 12, 2012) (SR-NYSE-2012-61).
    \7\ See supra note 5 (notice that describes the terms and
conditions of the temporary suspension).
    \8\ See Securities Exchange Act Release No. 68211 (Nov. 9,
2012), 77 FR 69534 (Nov. 19, 2012) (SR-NYSE-2012-64). Because the
telephone lines for the DMMs were operational, the Exchange did not
need to extend the temporary suspension of Rule 36.30 as it related
to DMMs.
    \9\ See Securities Exchange Act Release No. 68271 (Nov. 20,
2012), 77 FR 70862 (Nov. 27, 2012) (SR-NYSE-2012-67). Relief was not
extended for DMM's. [sic] See infra note 11.
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    The Exchange has been advised by its third-party carrier that the
damage to the telephone connections continues to be more extensive than
previously anticipated. In addition, there has been damage to the
internet connections available to Floor brokers on the Trading Floor,
which has adversely impacted service. In particular, the Exchange notes
that the lines that support both the wired and wireless phone
connections and internet connections for the Floor brokers are based in
an area of lower Manhattan that suffered extensive damage as a result
of Hurricane Sandy. The type of damage that was sustained will, in some
cases, require the third-party carrier to rebuild the infrastructure
that supports these services, rather than engage in repairs of existing
lines. While such rebuilding and repairs are in process, the telephone
line and internet connections for Floor brokers still are not fully
operational and may not be so for at least another month, possibly more
given the type of work that needs to be completed to restore the
telephone services.
    Because of the ongoing intermittent phone and internet service,
many Exchange authorized and provided portable phones continue to not
be functional and therefore many Floor brokers still cannot
consistently use the Exchange authorized and provided portable phones,
pursuant to Rules 36.20 and 36.21. In addition, many of the wired
telephone lines and internet connections for Floor brokers continue to
not be functional. In certain instances, however, the personal cell
phones of Floor brokers are operational on the Trading Floor. The
Exchange believes that because communications with customers is a vital
part of a Floor broker's role as agent and therefore contributes to
maintaining a fair and orderly market, during the period when phone and
internet service continues to be intermittent, Floor brokers should be
permitted to use personal portable phone devices in lieu of the non-

operational Exchange authorized and provided portable phones, wired
phone lines, or internet connections.\10\
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    \10\ To the extent that Exchange-approved telephone or
electronic communications are operational, Floor brokers must use
those connections rather than use a personal portable phone.
Specifically, the Exchange states that Floor brokers must return to
pre-Hurricane Sandy communications at any point when service is
restored even if temporary.
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    Accordingly, the Exchange proposes to extend the temporary
suspension of those aspects of Rules 36.20 and 36.21 that would not
permit Floor brokers to use personal portable phone devices on the
Trading Floor to the earlier of when phone service is fully restored or
Friday, January 18, 2013.\11\ The Exchange proposes that the extension
of the temporary suspension of those aspects of Rules 36.20 and 36.21
to permit use of the personal portable phones by Floor brokers on the
Trading Floor be pursuant to the same terms and conditions of the
temporary suspension filed for October 31, 2012 through November 2,
2012, including the record retention requirements related to any use of
personal portable phones.\12\
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    \11\ Consistent with the existing relief, Exchange is not
proposing to provide any relief to DMMs in this proposal. Because
phone service to DMMs has been restored, the existing relief does
not provide for a temporary suspension of Rule 36.30--Equities,
which prohibits DMMs from using personal portable phones on the
Trading Floor. Similarly, because the off-Floor locations for DMMs
have been restored, the existing relief does not provide for the
temporary suspension for DMMs to be permitted to communicate with
off-Floor personnel who may not be located at their regular physical
location. The Exchange is not proposing to provide such relief in
this proposal. See supra notes 5 and 6 (notices describing the
relief previously requested for DMMs).
    \12\ See supra note 5 (notice that describes the terms and
conditions of the temporary suspension).
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    In particular, as set forth in the prior filings, Floor brokers
that use a portable personal phone must provide the Exchange with the
names of all Floor-based personnel who used personal portable phones
during this temporary suspension period, together with the phone number
and applicable carrier for each number. Floor broker member
organizations must maintain in their books and records all cell phone
records that show both incoming and outgoing calls that were made
during the period that a personal portable phone was used on the
Trading Floor. To the extent the records are unavailable from the
third-party carrier, the Floor broker member organizations must
maintain contemporaneous records of all calls made or received on a
personal portable phone while on the Trading Floor. As with all member
organization records, such cell phone records must be provided to
Exchange regulatory staff, including without limitation staff of the
Financial Industry Regulatory Authority (``FINRA''), on request.
    In addition, to the extent that personal portable phones are used
to replicate internet connections previously approved pursuant to Rule
36 that are not operational on the Trading Floor because of damage
sustained by Hurricane Sandy, such use is subject to the same
requirements that would otherwise be applicable, including record-
retention requirements. This emergency relief is solely meant to
maintain the status quo to the extent provided in Rule 36 and not
intended to broaden the scope of the activities allowed pursuant to the
Rule (e.g., accessing internet only at the booth). As with all member
organization records, such cell phone data records must be provided to
Exchange regulatory staff, including without limitation staff of the
Financial Industry Regulatory Authority (``FINRA''), on request. To the
extent that Exchange-approved telephone or electronic communications
are operational, Floor brokers must use those connections rather than
use a personal portable phone. Specifically, the Exchange states that
Floor brokers must return to pre-Hurricane Sandy communications at any
point when service is restored even if temporary.
    As noted above, because the Exchange is dependent on third-party
carriers for both wired and wireless phone service and internet
connections on the Trading Floor, the Exchange does not know how long
the proposed temporary suspension of Rules 36.20 and 36.21 will be
required. However, based on current estimates, the Exchange understands
that phone service may not be fully restored for at least another
month, possibly more.
    Accordingly, the Exchange proposes that the extension of the
temporary suspensions of those aspects of Rule 36 that do not permit
Floor brokers to use personal portable phones on the Trading Floor
continue until the earlier of when phone service is fully restored or
Friday, January 18, 2013.\13\
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    \13\ The Exchange will provide notice of this rule filing to
Floor brokers, including the applicable recordkeeping and other
requirements. If telephone service is fully restored prior to
January 18, 2013, the Exchange will notify Floor brokers that the
temporary suspension of those aspects of Rule 36 that do not permit
the use of personal portable phones on the Trading Floor has expired
as of the time that phone service is fully restored.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\14\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\15\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
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    In particular, in the aftermath of Hurricane Sandy, while the
Exchange was able to open for trading, many of the services that the
Exchange depends on from third-party carriers, such as wired and
wireless telephone connections, are not fully restored. The Exchange
believes that the proposed extension of the temporary suspensions from
those aspects of Rule 36 that restrict Floor broker's use of personal
portable phones on the Trading Floor removes impediments to and
perfects the mechanism of a free and open market and national market
system because the proposed relief will enable Floor brokers to conduct
their regular business, notwithstanding the ongoing issues with
telephone service. The Exchange further believes that without the
requested relief, Floor brokers would be compromised in their ability
to conduct their regular course of business on the Trading Floor, which
could adversely impact the market generally and investor confidence
during this time of unprecedented weather disruptions. In particular,
for Floor brokers, because they operate as agents for customers, their
inability to communicate with customers could compromise their ability
to represent public orders on the Trading Floor.

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

    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 \16\ and Rule 19b-4(f)(6)(iii) thereunder.\17\
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
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 satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \18\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\19\ 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 Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. The Commission notes
that doing so will allow the Exchange to continue uninterrupted, for
Floor brokers, the emergency temporary relief necessitated by Hurricane
Sandy's disruption of telephone service, as described herein and in the
Exchange's prior filings seeking such relief, and to help maintain the
status quo, until the earlier of when phone service for Floor brokers
is fully restored or January 18, 2013. Therefore, the Commission hereby
waives the 30-day operative delay and designates the proposal operative
upon filing.\20\
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    \18\ 17 CFR 240.19b-4(f)(6).
    \19\ 17 CFR 240.19b-4(f)(6)(iii).
    \20\ 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.

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<EMAIL_ADDRESS>Please include
File Number SR-NYSE-2012-73 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-NYSE-2012-73. 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-NYSE-2012-73 and should be
submitted on or before January 11, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-30795 Filed 12-20-12; 8:45 am]
BILLING CODE 8011-01-P