[Federal Register Volume 76, Number 112 (Friday, June 10, 2011)]
[Notices]
[Pages 34118-34119]
[FR Doc No: 2011-14389]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64605; File No. SR-DTC-2011-05]

Self-Regulatory Organizations; The Depository Trust Company;
Order Granting Approval of a Proposed Rule Change To Amend Rules
Relating to the Memo Segregation Function

 June 6, 2011.

I. Introduction

    On April 15, 2011, The Depository Trust Company (``DTC'') filed
with the Securities and Exchange Commission (``Commission'') proposed
rule change SR-DTC-2011-05 pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'').\1\ Notice of the proposal
was published in the Federal Register on May 4, 2011.\2\ The Commission
received no comment letters. For the reasons discussed below, the
Commission is granting approval of the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release No. 64360 (April 28, 2011),
76 FR 25389 (May 4, 2011).
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II. Description

    DTC's Memo Segregation Service (``MSEG'') is an optional service
which offers a mechanism for broker-dealer participants to protect
fully-paid or excess margin securities by allowing the participant to
shield from unintended delivery a designated quantity of securities
that are in the participant's DTC free account or that may be received
during the daily processing cycle. Currently, a participant may set a
``counter'' for a specified minimum quantity of each security to be
held in its account as a threshold to any intraday redelivery. When the
counter for a security is greater than the inventory of the
participant, MSEG will prevent the delivery of any quantity of the
security out of the participant's account unless: (1) The delivery is a
permitted delivery (e.g., a free of value ACATS delivery or a
``turnaround'' as described below) or (2) the participant provides DTC
with new instructions to reduce the MSEG counter.
    The MSEG procedures currently support two optional ``turnaround''
MSEG indicators which enable participants to make deliveries for
certain transaction types (including, but not limited to, stock loans
and stock loan returns) from certain positions received intraday
regardless of any MSEG-related deficit. Recently, DTC was advised by
the Regulatory and Clearance Committee of the Securities

Operations Section of SIFMA that several broker-dealer participants had
expressed concern that their practices for turnaround of stock loans
and stock loan returns (i.e., MSEG overrides) may be deemed by FINRA to
be contrary to the Commission's Rule 15c3-3 (``Customer Protection
Rule'').\3\ DTC also communicated directly with participants affected
through their use of this functionality, and they expressed similar
concerns. In order to accommodate its participants in this regard, DTC
is revising its procedures so that MSEG will no longer permit stock
loan or stock loan return-related turnaround deliveries for a security
when there is an MSEG deficit in the account.
---------------------------------------------------------------------------

    \3\ 17 CFR 204.15c3-3.
---------------------------------------------------------------------------

    In order to effect the rule change described above, DTC is amending
its Settlement Service Guide (``Service Guide''), which is incorporated
into DTC's procedures, to make existing indicators that allow for the
turnaround of stock loans and stock loan returns more restrictive. As a
result, the procedures will no longer permit deliveries for stock
loans, stock loan returns, The Options Clearing Corporation (``OCC'')
stock loans, OCC stock loan returns, American Depository Receipt
(``ADR'') stock loans, and ADR stock loan returns to be completed from
turnaround shares when an MSEG deficit exists.\4\
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    \4\ The proposed change will also eliminate references in the
Settlement Service Guide that MSEG-related functions are processed
through the Participant Terminal System (PTS), as participants may
currently use various platforms to communicate with DTC.
---------------------------------------------------------------------------

 III. Discussion

    Section 17A(b)(3)(F) of the Act requires, among other things, that
the rules of a clearing agency be designed to assure the safeguarding
of securities and funds which are in the custody or control of the
clearing agency or for which it is responsible.\5\ The Commission finds
that DTC's rule change, which should reduce the risk of unintended
deliveries by broker-dealer participants of customer fully paid and
excess margin securities in violation of the Customer Protection Rule,
is consistent with this obligation under the Exchange Act because it
should help DTC participants to better protect and have possession of
customer fully-paid and excess margin securities that are held at DTC
and in general, because it helps protect investors and the public
interest.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Accordingly, for the reasons stated above the Commission believes
that the proposed rule change is consistent with DTC's obligation under
Section 17A of the Exchange Act, as amended, and the rules and
regulations thereunder.\6\
---------------------------------------------------------------------------

    \6\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
---------------------------------------------------------------------------

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act,
particularly with the requirements of Section 17A of the Act, and the
rules and regulations thereunder.
    It Is Therefore Ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-DTC-2011-05) be and hereby
is approved.

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-14389 Filed 6-9-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 45 (Thursday, March 7, 2019)]
[Notices]
[Pages 8357-8358]
[FR Doc No: 2019-04079]

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SECURITIES AND EXCHANGE COMMISSION

[Securities Exchange Act of 1934; Release No. 85227/March 1, 2019]

Notice of Intent To Cancel Registration of Certain Municipal
Advisors Pursuant to Section 15b(C)(3) of the Securities Exchange Act
of 1934

    Notice is given that the Securities and Exchange Commission (the
``Commission'') intends to issue an order or orders, pursuant to
Section 15B(c)(3) of the Securities Exchange Act of 1934 (the ``Act''),
cancelling the registrations of municipal advisors whose names appear
in the attached Appendix, herein referred to as the ``registrants''.
    Section 15B(c)(3) of the Act provides, in pertinent part, that if
the Commission finds that any municipal advisor registered under
Section 15B is no longer in existence or has ceased to do business as a
municipal advisor, the Commission, by order, shall cancel the
registration of such municipal advisor. The Commission finds that each
registrant listed in the attached Appendix (i) has not made any
municipal advisor form submissions to the Commission through the
Commission's Electronic Data Gathering and Retrieval (``EDGAR'') system
since 1/1/2016, and/or (ii) does not have an associated person, for
whom there is a Form MA-I available on EDGAR, who is qualified, under
Municipal Securities Rulemaking Board (MSRB) Rule G-3, to lawfully
engage in municipal advisory activities. Accordingly, the Commission
finds that each of the registrants listed in the attached Appendix is
either (i) no longer in existence or (ii) has ceased to do business as
a municipal advisor.
    Notice is also given that any interested person may, by April 1,
2019, at 5:30 p.m. Eastern Time, submit to the Commission in writing a
request for a hearing on the cancellation of the registration of any
registrant listed in the attached Appendix, accompanied by a statement
as to the nature of such person's interest, the reason for such
person's request, and the issues, if any, of fact or law proposed to be
controverted, and the writer may request to be notified if the
Commission should order a hearing thereon. Any such communications
should be addressed to the SEC's Secretary at the address below.
    At any time after April 1, 2019, the Commission may issue an order
or orders cancelling the registrations of any or all of the registrants
listed in the attached Appendix, upon the basis of the information
stated above, unless an order or orders for a hearing on the
cancellation shall be issued upon request or upon the Commission's own
motion. Persons who requested a hearing, or to be advised as to whether
a hearing is ordered, will receive any notices and orders issued in
this matter, including the date of the hearing (if ordered) and any
postponements thereof. Any registrant whose registration is cancelled
under delegated authority may appeal that decision directly to the
Commission in accordance with Rules 430 and 431 of the Commission's
rules of practice (17 CFR 201.430 and 431).

ADDRESSES: The Commission: Secretary, U.S. Securities and Exchange
Commission, 100 F Street NE, Washington, DC 20549-1090.

FOR FURTHER INFORMATION CONTACT: Ahmed Abonamah, Senior Counsel to the
Director, at<PHONE_NUMBER>; U.S. Securities and Exchange Commission,
Office of Municipal Securities, 100 F Street NE, Washington, DC 20549.

    For the Commission, by the Office of Municipal Securities,
pursuant to delegated authority.\1\
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    \1\ 17 CFR 200.30-3a(a)(1)(ii).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Deputy Secretary.

Appendix

------------------------------------------------------------------------
                SEC ID No.                         Full legal name
------------------------------------------------------------------------
867-01224.................................  Aureus Partners, Inc.
867-01674.................................  BBC Consulting LLC.
867-01163.................................  Benecke Robert.
867-01889.................................  BRANDYWINE INVESTMENT
                                             SECURITIES, LLC.
867-01050.................................  Braun Research Consulting,
                                             LLC.
867-01722.................................  DENNING & COMPANY LLC.
867-00750.................................  Evergreen Capital Advisors,
                                             Inc.
867-00802.................................  Financial Consulting
                                             Solutions Group, Inc.
867-01653.................................  Frontera Consultants RGV,
                                             LLC.

867-01695.................................  HARRISON SECURITIES INC/BD.
867-01696.................................  Innovative Utility Solutions
                                             of Alabama LLC.
867-01862.................................  KSR Capital Advisors, Inc.
867-01640.................................  LEBENTHAL & CO., LLC.
867-01727.................................  Madrid Napoleon Roy.
867-00144.................................  Mission Management &
                                             Consultants LLC.
867-01246.................................  PHOENIX INFRASTRUCTURE
                                             ADVISORY GROUP, LLC.
867-00531.................................  PK SECURITIES, INC.
867-01824.................................  PlanScape, Inc.
867-00847.................................  Providence Financial Co.,
                                             LLC.
867-00680.................................  Public Advisory Corp.
867-00427.................................  Rognan & Associates.
867-00769.................................  Stellate Partners LLC.
867-01005.................................  Stoughton Consulting LLC.
867-01545.................................  Tax Credit Management Inc.
867-00030.................................  Ward Group LLC.
------------------------------------------------------------------------

[FR Doc. 2019-04079 Filed 3-6-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: June 8, 2010 (Volume 75, Number 109)]
[Notices]
[Page 32453-32455]
[DOCID:fr08jn10-81]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

May 26, 2010.
    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER10-1093-001.
    Applicants: Delaware City Refining Company LLC.
    Description: Delaware City Refining Company LLC submits tariff
filing per 35.17(b): Amended MBR Application to be effective 6/1/2010.
    Filed Date: 05/26/2010.
    Accession Number: 20100526-5048.

    Comment Date: 5 p.m. Eastern Time on Wednesday, June 16, 2010.

    Docket Numbers: ER10-1097-001.
    Applicants: PBF Power Marketing LLC.
    Description: PBF Power Marketing LLC submits tariff filing per
35.17(b): Amended MBR Application, to be effective 6/1/2010.
    Filed Date: 05/26/2010.
    Accession Number: 20100526-5049.
    Comment Date: 5 p.m. Eastern Time on Wednesday, June 16, 2010.

    Docket Numbers: ER09-1110-002; ER09-1114-003.
    Applicants: RRI Energy Florida, LLC; RRI Energy Services, Inc.
    Description: Supplement to Notice of Change in Status of RRI Energy
Florida, LLC and RRI Energy Services, Inc.
    Filed Date: 05/19/2010.
    Accession Number: 20100519-5105.
    Comment Date: 5 p.m. Eastern Time on Wednesday, June 09, 2010.

    Docket Numbers: ER10-1176-001; ER10-1177-001; ER10-1184-001.
    Applicants: Meadow Lake Wind Farm III LLC; Meadow Lake Wind Farm IV
LLC; Blackstone Wind Farm II LLC.
    Description: Blackstone Wind Farm II LLC submits supplement to
petitions for market-based authorization.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0236.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1305-000.
    Applicants: Xcel Energy Companies.
    Description: Xcel Energy submits a notice of cancellation of the
Diversity Exchange Agreement.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0221.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1306-000.
    Applicants: ISO New England Inc.
    Description: ISO New England Inc submits transmittal letter and
tariff sheet to update the designation on Tariff Sheet 7013 in order to
reflect changes made in filings previously accepted by the FERC.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0220.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1307-000.
    Applicants: USEG, LLP.
    Description: USEG, LLP submits Notice of Cancellation of Rate
Schedule FERC 1.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0219.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1308-000.
    Applicants: Southwest Power Pool Inc.
    Description: Southwest Power Pool, Inc submits revision to several
sheets of its Open Access Transmission Tariff to incorporate on the
appropriate sheets language previously accepted by the Commission.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0218.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1309-000.
    Applicants: Southwest Power Pool Inc.
    Description: Southwest Power Pool, Inc submits the Network
Integration Service Agreements.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0224.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1310-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Southwest Power Pool, Inc submits a Network
Integration Transmission Service Agreement.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0223.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1311-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Southwest Power Pool, Inc submits an executed Service
Agreement for the Resale, Reassignment or Transfer of Point-to-Point
Transmission Service.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0227.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1312-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Southwest Power Pool, Inc submits a notice of
cancellation for two Service Agreements for the Resale, Reassignment or
Transfer of Point-to-Point Transmission Service.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0228.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1313-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Southwest Power Pool, Inc submits an executed Meter
Agent Service agreement.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0229.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1314-000.
    Applicants: Virginia Electric and Power Company.
    Description: Virginia Electric and Power Company submits an
executed Service Agreement for Wholesale Distribution Service.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0230.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1315-000.
    Applicants: Florida Power Corporation.
    Description: Florida Power Corporation submits amendments to Power
Sales Agreement with the City of Williston.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0233.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1317-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Southwest Power Pool, Inc submits an executed Large
Generator Interconnection Agreement.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0235.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1318-000.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: Midwest Independent Transmission System Operator, Inc
submits revisions to their Open Access Transmission, Energy and
Operating Reserves Markets Tariff.
    Filed Date: 05/25/2010.
    Accession Number: 20100525-0237.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 15, 2010.

    Docket Numbers: ER10-1319-000.
    Applicants: CMS Generation Michigan Power, LLC.
    Description: CMS Generation Michigan Power, LLC submits tariff
filing per 35.12: CMS Generation Michigan Power LLC Sched No 1 Electric
Tariff to be effective 5/27/2010.
    Filed Date: 05/26/2010.
    Accession Number: 20100526-5086.
    Comment Date: 5 p.m. Eastern Time on Wednesday, June 16, 2010

    .Docket Numbers: ER10-1320-000.
    Applicants: RRI Energy West, Inc.
    Description: RRI Energy West, Inc submits a Notice of Cancellation
of tariffs with RRI California Companies.
    Filed Date: 05/26/2010.
    Accession Number: 20100525-0263.
    Comment Date: 5 p.m. Eastern Time on Wednesday, June 16, 2010.

    Docket Numbers: ER10-1321-000.
    Applicants: Southern California Edison Company.

    Description: Southern California Edison Company submits revised
rate sheets to the Small Generator Interconnection Agreement and the
Service Agreement for Wholesale Distribution Service etc.
    Filed Date: 05/26/2010.
    Accession Number: 20100525-0261.
    Comment Date: 5 p.m. Eastern Time on Wednesday, June 16, 2010.

    Docket Numbers: ER10-1322-000.
    Applicants: Southern California Edison Company.
    Description: Southern California Edison submits First Revised Sheet
No. 2 et al to FERC Electric Tariff, Second Revised Volume No. 6.
    Filed Date: 05/26/2010.
    Accession Number: 20100525-0262.
    Comment Date: 5 p.m. Eastern Time on Wednesday, June 16, 2010.

    Any person desiring to intervene or to protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214) on or before 5 p.m. Eastern time on the specified comment
date. It is not necessary to separately intervene again in a subdocket
related to a compliance filing if you have previously intervened in the
same docket. Protests will be considered by the Commission in
determining the appropriate action to be taken, but will not serve to
make protestants parties to the proceeding. Anyone filing a motion to
intervene or protest must serve a copy of that document on the
Applicant. In reference to filings initiating a new proceeding,
interventions or protests submitted on or before the comment deadline
need not be served on persons other than the Applicant.
    As it relates to any qualifying facility filings, the notices of
self-certification [or self-recertification] listed above, do not
institute a proceeding regarding qualifying facility status. A notice
of self-certification [or self-recertification] simply provides
notification that the entity making the filing has determined the
facility named in the notice meets the applicable criteria to be a
qualifying facility. Intervention and/or protest do not lie in dockets
that are qualifying facility self-certifications or self-
recertifications. Any person seeking to challenge such qualifying
facility status may do so by filing a motion pursuant to 18 CFR
292.207(d)(iii). Intervention and protests may be filed in response to
notices of qualifying facility dockets other than self-certifications
and self-recertifications.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://
www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First St, NE., Washington, DC 20426.
    The filings in the above proceedings are accessible in the
Commission's eLibrary system by clicking on the appropriate link in the
above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC There is an eSubscription link
on the Web site that enables subscribers to receive e-mail notification
when a document is added to a subscribed dockets(s). For assistance
with any FERC Online service, please e-mail<EMAIL_ADDRESS>
or call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2010-13629 Filed 6-7-10; 8:45 am]
BILLING CODE 6717-01-P


                                 Attachment D

             Work Sheets used to Calculate Industry Labor Costs
This attachment is available as part of the electronic docket EPA-HQ-OPP-2015-0231 and is part of the ICR's Supporting Statement.

NAICS:  325300
Pesticide, Fertilizer, and Other Agricultural Chemical Manufacturing
Labor Category:
Formula
                                  Managerial
                                   Technical
                                   Clerical
Unloaded Hourly Rate1
 = W
                                    $57.76
                                    $32.46
                                    $18.18
Benefits Percentage2
Lb = B/W
                                     45.0%
                                     45.0%
                                     45.0%
Benefits per hour
B = W*Lb
                                    $26.00
                                    $14.61
                                    $8.18
Loaded Hourly Rate
Wb = W + B = W(1+Lb)
                                    $83.76
                                    $47.07
                                    $26.36
Overhead Percentage3
Lo = OH/Wb
                                      50%
                                      50%
                                      50%
Overhead per hour
OH = Wb*Lo
                                    $41.88
                                    $23.54
                                    $13.18
Fully Loaded Hourly Rate
Wf = Wb + OH
 = W + B + OH
                                   $125.64
                                    $70.61
                                    $39.55

1.  Data Source:  BLS http://www.bls.gov/oes/current/naics4_325300.htm     May 2013 data
     NAICS 325300 - Pesticide, Fertilizer, and Other Agricultural Chemical Manufacturing
     Standard Occupational Codes:
       Management:   11-0000, Management Occupations
       Technical:        19-0000, Life, Physical, and Social Science Occupations
       Clerical:           43-0000, Office and Administrative Support Occupations
2. Fringe benefits/wage per hour.
3. U. S. Environmental Protection Agency, EPA Air Pollution Control Cost Manual, Sixth Edition, EPA-452-02-001, January 2002, pg. 2-34.  The loading for indirect costs is within the range of 20-70% of the load labor rate (wage + benefits) suggested in EPA guidance.


[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)]
[Notices]
[Pages 2276-2277]
[FR Doc No: 2018-00527]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82470; File No. SR-Phlx-2018-05]

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend a Cross-
Reference in Rule 1017 (Openings in Options)

January 9, 2018.
    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 January 5, 2018, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') 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.
---------------------------------------------------------------------------

    \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 the
Substance of the Proposed Rule Change

    The Exchange proposes to amend a cross-reference in Rule 1017,
entitled ``Openings in Options.''
    The text of the proposed rule change is available on the Exchange's
website at http://nasdaqphlx.cchwallstreet.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 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 a cross-reference in Rule 1017,
entitled ``Openings in Options.'' Specifically, the Exchange proposes
to amend 1017(h) which currently states, ``In addition, paragraphs
(i)(iii) and (j)(5)-(7) below contain additional provisions related to
Potential Opening Price.'' The first citation is incomplete and
contains a non-existent reference. The Exchange proposes to amend the
sentence to state, ``In addition, paragraphs (i)(A)(iii) and (j)(5)-(7)
below contain additional provisions related to Potential Opening
Price.'' The reference is to the phrase, ``The Exchange will open the
option series for trading with a trade on Exchange interest only at the
Opening Price, if any of these conditions occur where there is no ABBO,
the Potential Opening Price is at or within the Pre-Market BBO which is
also a Quality Opening Market.'' The reference was intended to act as a
roadmap within the rule to direct the reader to the possible outcomes
in the Opening Process.
    The Exchange believes that this non-substantive rule change will
bring greater clarity to the rule text by providing the intended
guidance concerning the manner in which the Exchange could calculate
the Potential Opening Price.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\3\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\4\ 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 a national market system, and, in general to protect
investors and the public interest, by correcting a citation within Rule
1017 which is currently inaccurate. Rule 1017(h) contains a sentence
which was intended to act as a roadmap within the rule to direct the
reader to the possible outcomes in the Opening Process. The Exchange
believes that the amendment is consistent with the Act because it will
amend the rule text to properly specify the intended guidance
concerning the manner in which the Exchange could calculate the
Potential Opening Price.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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. The Exchange believes that this
non-substantive rule change will not impose an undue burden on
competition, rather it will bring greater clarity to the rule text
[sic]

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

    No written comments were either solicited or received.

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

    Because the foregoing 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 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)(iii) of the Act \5\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\6\
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of its filing. However,
Rule 19b-4(f)(6)(iii) \7\ permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange has requested that the Commission
waive the 30-day operative delay so that the proposed rule change will
become operative upon filing. The Commission believes that waiver of
the 30-day operative delay is consistent with the protection of
investors and the public interest because the proposal does not raise
any novel issues and waiver will allow the Exchange to correct the
erroneous cross-reference without delay. Therefore, the Commission
hereby waives the operative delay and designates the proposed rule
change operative upon filing.\8\
---------------------------------------------------------------------------

    \7\ 17 CFR 240.19b-4(f)(6)(iii).
    \8\ For purposes only of waiving the 30-day operative delay, the
Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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.

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-Phlx-2018-05 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-Phlx-2018-05. 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-Phlx-2018-05, and should be submitted on
or before February 6, 2018.
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-00527 Filed 1-12-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 222 (Thursday, November 17, 2011)]
[Notices]
[Pages 71399-71404]
[FR Doc No: 2011-29679]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65736; File No. SR-NYSE-2011-56]

 Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Proposed Rule Change To Codify Certain Traditional
Trading Floor Functions That May Be Performed by Designated Market
Makers (``DMMs'')

November 10, 2011.
    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 31, 2011, New York Stock Exchange LLC (``NYSE'' or
``Exchange'') 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 self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C.78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Rule 104 to codify certain
traditional Trading Floor \3\ functions

that may be performed by Designated Market Makers (``DMMs''),\4\ to
make Exchange systems available to DMMs that would provide DMMs with
certain market information, to amend the Exchange's rules governing the
ability of DMMs to provide market information to Floor brokers, and to
make conforming amendments to other rules. The text of the proposed
rule change is available at the Exchange, the Commission's Public
Reference Room, and www.nyse.com.
---------------------------------------------------------------------------

    \3\ NYSE Rule 6A defines the term ``Trading Floor'' to mean, in
relevant part, ``the restricted-access physical areas designated by
the Exchange for the trading of securities.''
    \4\ NYSE 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 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 Rule 98.
---------------------------------------------------------------------------

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 proposes to amend NYSE Rule 104 to codify certain
traditional Trading Floor functions that may be performed by DMMs;
these functions were previously described in the Exchange's Floor
Official Manual. In addition, the Exchange proposes to amend its rules
to make Exchange systems available to DMMs that would provide DMMs with
certain market information about securities in which the DMM is
registered. The Exchange also proposes to amend its rules governing the
ability of DMMs to provide market information to Floor brokers.
Finally, the Exchange proposes to make clarifying and conforming
amendments to other rules.\5\
---------------------------------------------------------------------------

    \5\ The Exchange's affiliate, NYSE Amex LLC, has submitted
substantially the same proposed rule change to the Commission. See
SR-NYSEAmex-2011-86.
---------------------------------------------------------------------------

Background

    On October 24, 2008, the Commission approved, as a pilot program,
certain of the rules that govern the current operation of the
Exchange.\6\ These rules are all elements of the Exchange's ``New
Market Model.'' \7\ The New Market Model pilot rules include NYSE Rule
104, which sets forth certain affirmative obligations of DMMs, the
category of market participant that replaced specialists. DMMs have
obligations with respect to the quality of the markets in securities to
which they are assigned that are similar to certain obligations
formerly held by specialists.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 48845 (October 24,
2008), 73 FR 64379 (October 29, 2008) (SR-NYSE-2008-46) (``New
Market Model Approval Order'').
    \7\ The New Market Model pilot is currently scheduled to expire
on January 31, 2012. See Securities Exchange Act Release No. 64761
(June 28, 2011), 76 FR 39147 (July 5, 2011) (SR-NYSE-2011-29).
---------------------------------------------------------------------------

    In addition to their trading functions, DMMs provide support on the
Trading Floor to assist in the efficient operation of the Exchange
market and maintain fair and orderly markets. These Trading Floor
functions were performed by specialists before the New Market Model was
adopted, and the functions were described in the Exchange's Floor
Official Manual.\8\ Under the New Market Model, there continues to be a
need for DMMs to be permitted to perform these Trading Floor functions.
As such, the Exchange proposes to codify these Trading Floor functions
into Rule 104 by adding a new subparagraph (j)(i).\9\
---------------------------------------------------------------------------

    \8\ See 2004 Floor Official Manual, Market Surveillance June
2004 Edition, Chapter Two, Section I.A. at 7 (``specialist helps
ensure that such markets are fair, orderly, operationally efficient
and competitive with all other markets in those securities''),
Section I.B.3. at 10-11 (``[i]n opening and reopening trading in a
listed security, a specialist should * * * [s]erve as the market
coordinator for the securities in which the specialist is registered
by exercising leadership and managing trading crowd activity and
promptly identifying unusual market conditions that may affect
orderly trading in those securities, seeking the advice and
assistance of Floor Officials when appropriate'' and ``[a]ct as a
catalyst in the markets for the securities in which the specialist
is registered, making all reasonable efforts to bring buyers and
sellers together to facilitate the public pricing of orders, without
acting as principal unless reasonably necessary''), Section I.B.4.
at 11 (``In view of the specialist's central position in the
Exchange's continuous two-way agency auction market, a specialist
should proceed as follows * * * [e]qually and impartially provide
accurate and timely market information to all inquiring members in a
professional and courteous manner.''), and Section I.B.5. at 12 (A
specialist should ``[p]romptly provide information when necessary to
research the status of an order or a questioned trade and cooperate
with other members in resolving and adjusting errors.''). Relevant
excerpts of the 2004 Floor Official Manual are attached as Exhibit 3
of this filing.
    \9\ The Exchange proposes to redesignate the rule text currently
set forth in section (j) as section (k) of Rule 104.
---------------------------------------------------------------------------

DMM Trading Floor Functions

    There are four categories of Trading Floor functions that DMMs may
perform: (1) Maintaining order among Floor brokers manually trading at
the DMM's assigned panel; (2) bringing Floor brokers together to
facilitate trading; (3) assisting Floor brokers with respect to their
orders; and (4) researching the status of orders or questioned trades.
    First, a DMM may maintain order among Floor brokers manually
trading at the DMM's assigned panel. For example, where there is
significant agency interest in a security, the DMM may help Floor
Officials maintain order by managing trading crowd activity and
facilitating the execution of one or more Floor broker's orders trading
at the post.
    Second, a DMM may bring Floor brokers together to facilitate
trading, which may include the DMM acting as a buyer or seller. This
function is consistent with the floor-based nature of the Exchange's
hybrid market. For example, if a DMM is aware that a Floor broker
representing buying interest inquired about selling interest in one of
his or her assigned securities and later a Floor broker representing
selling interest makes an inquiry about buying interest, the assigned
DMM may inform the Floor broker representing the buying interest of the
other Floor broker's selling interest. In addition, the DMM itself may
provide contra-side interest to a Floor broker representing interest at
the post.
    Third, DMMs may assist Floor brokers with respect to their orders
by providing information regarding the status of a Floor broker's
orders, helping to resolve errors or questioned trades, adjusting
errors, and cancelling or inputting Floor broker agency interest on
behalf of a Floor broker. For example, if a Floor broker's handheld
device is not operational, the DMM may assist the Floor broker by
entering or canceling broker interest on the Floor broker's behalf.\10\
---------------------------------------------------------------------------

    \10\ The Exchange maintains records of whether a Floor broker's
order is entered or cancelled by Exchange systems under such
circumstances.
---------------------------------------------------------------------------

    Fourth, DMMs may research the status of orders or questioned
trades. DMMs may do so on their own initiative or at the request of the
Exchange or a Floor broker when a Floor broker's hand-held device is
not operational, when there is activity indicating that a potentially
erroneous order was entered

or a potentially erroneous trade was executed, or when there otherwise
is an indication that improper activity may be occurring.

DMM Access to Exchange Systems

    The Exchange proposes to amend Rule 104 to add new subparagraph
(j)(ii), which would state that the Exchange may make systems available
to a DMM at the post that display the following types of information
about securities in which the DMM is registered: (A) Aggregated
information about buying and selling interest;\11\ (B) disaggregated
information about the price and size of any individual order or Floor
broker agency interest file, also known as ``e-Quotes,'' except that
Exchange systems would not make available to DMMs information about any
order or e-Quote, or portion thereof, that a market participant has
elected not to display to a DMM; and (C) post-trade information. For
the latter two categories, the DMM would have access to entering and
clearing firm information and, as applicable, the badge number of the
Floor broker representing the order. The systems would not contain any
information about the ultimate customer (i.e., the name of the member
or member organization's customer) in a transaction. Aggregated
information about buying and selling interest and post-trade
information are currently available to DMMs.
---------------------------------------------------------------------------

    \11\ Exchange systems make available to DMMs aggregate
information about the following interest in securities in which the
DMM is registered: (a) All displayable interest submitted by off-
Floor participants; (b) all Minimum Display Reserve Orders,
including the reserve portion; (c) all displayable Floor broker
agency interest files (``e-Quotes''); (d) all Minimum Display
Reserve e-Quotes, including the reserve portion; and (e) the reserve
quantity of Non-Display Reserve e-Quotes, unless the Floor broker
elects to exclude that reserve quantity from availability to the
DMM.
---------------------------------------------------------------------------

    Under the proposed rule change, Exchange systems would make
available to DMMs disaggregated information about the following
interest in securities in which the DMM is registered: (a) The price
and size of all displayable interest submitted by off-Floor
participants; and (b) all e-Quotes, including reserve e-Quotes, that
the Floor broker has not elected to exclude from availability to the
DMM.\12\ The Exchange believes that it is appropriate to provide DMMs
with this disaggregated order information because the information will
assist DMMs in carrying out their Trading Floor functions as described
above. For example, access to the disaggregated order information will
increase DMMs' ability to assist Floor brokers with respect to their
orders and researching the status of orders or questioned trades. In
addition, providing DMMs with access to the disaggregated order
information will contribute to the DMMs' ability to carry out their
responsibility for managing the auction market process at the Exchange,
which includes the function of bringing buyers and sellers together to
facilitate trading. In addition, the proposed rule change would have no
impact on the Exchange's priority and parity rules; DMM manual
transactions would continue to be required to yield to intra-day public
customer orders pursuant to Exchange Rule 72(c)(xi). The Exchange
further notes that the manner by which the DMM would access
disaggregated order information is limited. For example, a DMM can
access the disaggregated order information only while located at the
post on the Trading Floor. In addition, DMMs' ability to access the
disaggregated order information is largely manual, in that the DMM must
query the specific information about a particular security, which
limits the number of securities about which disaggregated order
information can be accessed at any given time. Exchange systems would
not provide any information to the algorithmic trading systems of any
DMM unit,\13\ and would not support any electronic dissemination of the
disaggregated order information to other market participants. The
Exchange notes that market participants who do not want the DMM to have
access to disaggregated order information have the option to
electronically enter dark interest that is not visible to the DMM in
disaggregated form. The Exchange also notes that the proposed rule
change would specifically prohibit DMMs from using any trading
information available to them in Exchange systems, including
disaggregated order information, in a manner that would violate the
Exchange rules or federal securities laws or regulations.\14\
---------------------------------------------------------------------------

    \12\ The Exchange previously permitted DMMs to have access to
Exchange systems that contained the disaggregated order information
described above. The Exchange stopped making such information
available to DMMs on January 19, 2011. See Information Memo 11-03.
    \13\ The order information in these systems would be available
for a DMM to view manually at the post and as such is different from
the advance order-by-order information that DMM trading algorithms
previously received before implementation of the New Market Model
pilot (sometimes referred to as ``the look''). Under the proposed
rule change, as is the case today, DMM trading algorithms would have
the same information with respect to orders entered on the Exchange,
Floor broker agency interest files or reserve interest as is
disseminated to the public by the Exchange. See Rule 104(b)(iii).
    \14\ See Proposed NYSE Rule 104(j)(ii).
---------------------------------------------------------------------------

    In addition, the Exchange notes that any non-public market
information that a DMM receives through Exchange systems would be
subject to specific restrictions as ``non-public order information''
\15\ under Exchange Rule 98. For example, Exchange Rule 98(c)(2)(A)
would require DMMs to maintain the confidentiality of any such non-
public market information and would prohibit the DMM member
organization's departments, divisions, or aggregation units that are
not part of the DMM unit, including investment banking, research, and
customer-facing departments, from having access to that information. In
addition, Rule 98 sets forth restrictions on access to non-public order
information by the off-Floor locations of a DMM unit, including
restrictions on the ability of a DMM located on the Trading Floor from
communicating directly with off-Floor individuals or systems
responsible for making off-Floor trading decisions.\16\
---------------------------------------------------------------------------

    \15\ NYSE Rule 98(b)(7) defines the term ``non-public order'' to
mean ``any order, whether expressed electronically or verbally, or
any information regarding a reasonably imminent non-public
transaction or series of transactions entered or intended for entry
or execution on the Exchange and which is not publicly available on
a real-time basis via an Exchange-provided datafeed, such as NYSE
OpenBook[reg] or otherwise not publicly available. Non-public orders
include order information at the opening, re-openings, the close,
when the security is trading in slow mode, and order information in
the NYSE Display Book[reg] that is not available via NYSE
OpenBook[reg].''
    \16\ See Rules 98(d)(2)(B)(i)-(iii), (f)(1)(A)(i)-(ii), and
(f)(3)(C)(ii). In addition, Rule 98(c)(2)(A)(ii) provides that a DMM
may make available to a Floor broker associated with an approved
person or member organization any information that the DMM would be
permitted to provide under Exchange rules to an unaffiliated Floor
broker.
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change would
contribute substantially to the fair and orderly operation of the
Exchange Trading Floor, and that the benefits of that contribution
would significantly outweigh any incremental benefit to the DMMs by
virtue of having access to disaggregated order information. DMM
assistance at the post through the performance of the Trading Floor
functions is an invaluable resource to minimize any disruption to the
market, particularly if the Exchange is experiencing a systems issue;
the Exchange systems that provide disaggregated order information play
a pivotal role in that assistance, for example by allowing DMMs to
enter or cancel orders on behalf of Floor brokers. Allowing DMMs to
have access to those Exchange systems to perform the Trading Floor
functions is more efficient than diverting Exchange resources to attend
to individual Floor broker issues, particularly when the DMMs are ready

and able to perform the same functions. In contrast, the proposed rule
change would provide DMMs with a disaggregated format of information
that they already have access to on an aggregated basis. Any potential
value to having order information on a disaggregated basis is mitigated
by the fact that DMMs only have information about orders at the
Exchange, which represent just a portion of the overall volume of
trading in Exchange-listed stocks across the market. The information is
likely to be stale upon receipt to the DMMs, thereby diminishing any
likelihood that the information would be useful to DMMs in connection
with their electronic or algorithmic trading. For example, the DMMs
would have to use a manual process to access the information, the DMMs'
access to disaggregated information at any given time would be limited
to a single stock, and the information would not be dynamically updated
to the DMM, in real time or otherwise. In addition, as described above,
all intra-day manual trades entered by the DMM yield to public orders
pursuant to Rule 72 and DMMs are restricted from sharing order
information pursuant to Rule 98, both of which limit any potential for
the DMMs to use the disaggregated order information in connection with
their manual trading.

Conforming Amendments

    To reflect the information that would be available to DMMs through
Exchange systems, the Exchange proposes amendments to Rules 70(e), (f)
and (i) and 70.25(a)(vii) to specify which information is available to
a DMM through Exchange systems. The Exchange also proposes changes to
Rule 70 to specify what information about e-Quotes is available to the
DMM.
    In addition, the Exchange proposes to delete Rule 104(a)(6), which
currently provides that DMMs, trading assistants and anyone acting on
their behalf are prohibited from using the Display Book[reg] system to
access information about Floor broker agency interest excluded from the
aggregated agency interest and Minimum Display Reserve Order
information other than for the purpose of effecting transactions that
are reasonably imminent where such Floor broker agency and Minimum
Display Reserve Order interest information is necessary to effect such
transaction.

Ability of DMMs To Provide Market Information on the Trading Floor

    The Exchange proposes to modify the terms under which DMMs would be
permitted to provide market information to Floor brokers and visitors
on the Trading Floor. Specifically, Rule 104(j)(iii) would permit a DMM
to provide the market information to which he or she has access under
proposed Rule 104(j)(ii) to: (1) A Floor broker in response to an
inquiry in the normal course of business; or (2) a visitor to the
Trading Floor for the purpose of demonstrating methods of trading. This
aspect of the proposal builds on and modifies current NYSE Rule 115,
and the Exchange therefore proposes to delete NYSE Rule 115, which
covers the same subject.\17\
---------------------------------------------------------------------------

    \17\ Rule 115 will be redesignated as ``Reserved.'' The Exchange
further proposes to make conforming amendments to Rules 13, 98
Former, 104(a)(6), and 750.
---------------------------------------------------------------------------

    Currently, NYSE Rule 115 provides that a DMM may disclose market
information for three purposes. First, a DMM may disclose market
information for the purpose of demonstrating the methods of trading to
visitors to the Trading Floor. This aspect of current Rule 115 would be
replicated in proposed Rule 104(j)(iii)(B). Second, a DMM may disclose
market information to other market centers in order to facilitate the
operation of the Intermarket Trading System (``ITS''). This text is
obsolete as the ITS Plan has been eliminated and therefore would not be
included in amended Rule 104.\18\ Third, a DMM may, while acting in a
market making capacity, provide information about buying or selling
interest in the market, including (a) Aggregated buying or selling
interest contained in Floor broker agency interest files other than
interest the broker has chosen to exclude from the aggregated buying
and selling interest, (b) aggregated interest of Minimum Display
Reserve Orders and (c) the interest included in DMM interest files,
excluding Capital Commitment Schedule (``CCS'') interest as described
in Rule 1000(c), in response to an inquiry from a member conducting a
market probe \19\ in the normal course of business.
---------------------------------------------------------------------------

    \18\ See Securities Exchange Act Release No. 55397 (March 5,
2007), 72 FR 11066 (March 12, 2007) (Intermarket Trading System;
Notice of Filing and Immediate Effectiveness of the Twenty Fourth
Amendment to the ITS Plan Relating to the Elimination of the ITS
Plan).
    \19\ Generally, a market probe refers to when a Floor broker is
seeking to ascertain the depth of the market in a security to
determine at what price point a security may trade. However, it is a
term of art whose meaning is not codified.
---------------------------------------------------------------------------

    Proposed Rule 104(j)(iii) would permit DMMs to provide Floor
brokers not only with the same aggregated order information that DMMs
currently are permitted to provide under Rule 115 but also with the
disaggregated and post-trade order information described above.\20\
Broadening the scope of information that DMMs can provide Floor brokers
will assist DMMs with carrying out their historical function of
bringing Floor brokers together to facilitate trading. In addition,
NYSE notes that Rule 115 allowed Exchange specialists to provide
disaggregated order information to Floor brokers prior to adoption of
the Hybrid Market.\21\ Moreover, as noted above, both Floor brokers and
off-Floor participants have the ability to enter partially or
completely ``dark'' orders that are not visible to the DMM, and DMMs
therefore would be unable to disseminate information about such
``dark'' orders or the dark portion of the orders in response to an
inquiry from a Floor broker. When providing information, the individual
DMM is responsible for fairly and impartially providing accurate and
timely information to all inquiring Floor brokers about buying and
selling interest in his or her assigned security.
---------------------------------------------------------------------------

    \20\ Because DMMs on the Trading Floor do not have access to CCS
interest information, the proposed rule does not specify that DMMs
would not be disseminating such information.
    \21\ See NYSE Regulation Information Memo 05-5 (stating that,
under Rule 115, specialists may disclose the identity of the members
or member organizations representing any orders entrusted to the
specialist). The Exchange amended Rule 115 in connection with the
Hybrid Market because at that time, there was no way for Floor
brokers to enter fully dark electronic interest. Now that Exchange
systems can accept fully dark electronic interest from both Floor
brokers and off-Floor participants, the Hybrid Market change to Rule
115 has been obviated and the rule can return to its former status.
---------------------------------------------------------------------------

    Proposed Rule 104(j)(iii) also would permit a DMM to provide market
information to a Floor broker in response to a specific request by the
Floor broker to the DMM at the post, rather than specifying that the
information must be provided ``in response to an inquiry from a member
conducting a market probe in the normal course of business,'' as
currently provided in Rule 115. The Exchange believes that the term
``market probe'' no longer accurately reflects the manner in which DMMs
and Floor brokers interact on the Trading Floor. Rather, the Exchange
believes that the Floor broker's normal course of business, as an agent
for customers, includes both seeking market probes into the depth of
the market as well as seeking out willing contra-side buyers and
sellers in a particular security. In addition, the rule would specify
that a Floor broker may not submit an inquiry to the DMM by electronic
means and that the DMM may not use electronic means to transmit market
information to a Floor broker in response an inquiry. Under the

proposed rule change, Floor brokers would not have access to Exchange
systems that provide disaggregated order information, and they would
only be able to access such market information through a direct
interaction with a DMM at the post.
    The Exchange believes that providing Floor brokers with access to
the disaggregated order information would serve a valuable function by
increasing the ability of Floor brokers to source liquidity and provide
price discovery for block transactions. In particular, the ability of
Floor brokers to receive the disaggregated order information should, in
turn, enhance their ability to facilitate transactions for their
customers by identifying market participants with trading interest that
could trade with the Floor brokers' customers. Floor brokers have
historically served this role on behalf of their customers, which
include institutional clients and block-trading desks, and they
continue to perform this agency function today. The Exchange notes that
Floor brokers continue to be subject to their existing obligations with
respect to Floor trading and access to information. In particular,
Floor brokers remain subject to the restrictions in Section 11(a) of
the Securities Exchange Act of 1934 (the ``Act'') and the rule
thereunder, which effectively prohibit Floor brokers from effecting
transactions for their own account, the account of an associated
person, or an account with respect to which the member, member
organization, or an associated person thereof exercises investment
discretion.\22\
---------------------------------------------------------------------------

    \22\ See also NYSE Rule 90.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the requirements of Section 6(b) of the Act,\23\ in general, and
Section 6(b)(5) of the Act,\24\ in particular, in that it is designed
to foster cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitating transactions in securities, to remove impediments to
and perfect the mechanism for a free and open market and a national
market system and, in general, to protect investors and the public
interest. In particular, the proposed rule change clarifies that DMMs
may perform certain defined Trading Floor functions, which were
previously performed by specialists, in furtherance of the efficient,
fair, and orderly operation of the Exchange. In addition, increasing
the amount of information, including disaggregated order information,
that a DMM is permitted to view and provide to Floor brokers would
further the ability of DMMs to carry out the defined Trading Floor
functions and, as a result, is designed to remove impediments to and
perfect the mechanism of a free and open market through the efficient
operation of the Exchange, in particular by facilitating the bringing
of buyers and sellers together. Although a vast majority of the
transactions executed on the Exchange are automated, Floor brokers
continue to play an important role for customers in those transactions
that require the expertise of a professional trading floor agent,
including engaging in price discovery and sourcing liquidity for block
transactions. While the disaggregated order information that would be
available to DMMs and Floor brokers under the proposed rule change is
important to them in carrying out their unique roles in a floor trading
environment, the Exchange believes this information would not be
material to market participants executing automated orders. In
addition, the means of access by DMMs and Floor brokers to the
disaggregated order information is largely manual. Accordingly, the
Exchange believes that access to disaggregated order information as set
forth in this proposed rule change provides no unfair advantage to DMMs
or Floor brokers. In addition, as noted above, DMMs would be
specifically prohibited from using the market information available
through Exchange systems for any purpose that would violate Exchange
rules or federal securities laws or regulations.
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    \23\ 15 U.S.C. 78f(b).
    \24\ 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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) As the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) by order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be approved.

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-2011-56 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-2011-56. 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
a.m. and 3 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 Number SR-
NYSE-2011-56 and should be submitted on or before December 8, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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    \25\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-29679 Filed 11-16-11; 8:45 am]
BILLING CODE 8011-01-P