Self-Regulatory Organizations; NYSE Alternext US LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the Minimum Price Variation of $0.01 for Orders and Quotations in Bonds Admitted to Dealings on NYSE Alternext, 79962-79964 [E8-30898]

Download as PDF 79962 Federal Register / Vol. 73, No. 250 / Tuesday, December 30, 2008 / Notices pwalker on PROD1PC71 with NOTICES with the protection of investors and the public interest. The Exchange provided the Commission with 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 the filing of the proposed rule change as required by Rule 19b–4(f)(6).8 A proposed rule change filed under Rule 19b–4(f)(6) normally does not become operative for 30 days after the date of filing. However, Rule 19b– 4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. NYSE has requested that the Commission waive the 30-day delayed operative date, as permitted by Rule 19b– 4(f)(6)(iii), so that the proposed rule change may become operative immediately. The Exchange believes that such waiver is appropriate so that a company that qualifies for the exemption and is filing its annual report with the Commission during the 30 days after the effective date of the proposal may be relieved of the obligation to issue a press release in relation to its filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it relieves companies of an obligation that may be redundant for companies that already meet the delivery requirements applicable to annual reports set forth in the U.S. proxy rules, and that in any case will no longer be applicable to companies similarly situated after the 30-day period.9 Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate 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 Exchange 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 Exchange Act. Comments may be submitted by any of the following methods: CFR 240.19b–4(f)(6). 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). Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSE–2008–128 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. Florence E. Harmon, Acting Secretary. [FR Doc. E8–30897 Filed 12–29–08; 8:45 am] BILLING CODE 8011–01–P 9 For 22:55 Dec 29, 2008 Jkt 217001 [Release No. 34–59120; File No. SR– NYSEALTR–2008–13] Self-Regulatory Organizations; NYSE Alternext US LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the Minimum Price Variation of $0.01 for Orders and Quotations in Bonds Admitted to Dealings on NYSE Alternext December 18, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 All submissions should refer to File (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Number SR–NYSE–2008–128. This file notice is hereby given that on December number should be included on the 16, 2008, NYSE Alternext US LLC subject line if e-mail is used. To help the (‘‘NYSE Alternext’’ or ‘‘Exchange’’) filed Commission process and review your with the Securities and Exchange comments more efficiently, please use Commission (‘‘Commission’’) the only one method. The Commission will proposed rule change as described in post all comments on the Commission’s Items I and II below, which Items have Internet Web site (http://www.sec.gov/ been prepared by the Exchange. The rules/sro.shtml). Copies of the Commission is publishing this notice to submission, all subsequent solicit comments on the proposed rule change from interested persons. amendments, all written statements with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the The Exchange proposes to amend proposed rule change between the Rule 86—NYSE Alternext Equities to Commission and any person, other than conform with amendments to NYSE those that may be withheld from the Rule 86 recently filed by the New York public in accordance with the Stock Exchange LLC (‘‘NYSE’’). provisions of 5 U.S.C. 552, will be II. Self-Regulatory Organization’s available for inspection and copying in Statement of the Purpose of, and the Commission’s Public Reference Room, on official business days between Statutory Basis for, the Proposed Rule Change the hours of 10 a.m. and 3 p.m. Copies In its filing with the Commission, the of the filing also will be available for self-regulatory organization included inspection and copying at the principal statements concerning the purpose of, office of the Exchange. All comments received will be posted without change; and basis for, the proposed rule change and discussed any comments it received the Commission does not edit personal on the proposed rule change. The text identifying information from of those statements may be examined at submissions. You should submit only the places specified in Item IV below. information that you wish to make The Exchange has prepared summaries, available publicly. All submissions set forth in sections A, B, and C below, should refer to File Number SR–NYSE– of the most significant parts of such 2008–128 and should be submitted on statements. or before January 20, 2009. A. Self-Regulatory Organization’s For the Commission, by the Division of Statement of the Purpose of, and Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule 10 authority. Change 8 17 VerDate Aug<31>2005 SECURITIES AND EXCHANGE COMMISSION 1. Purpose The purpose of the proposed rule change is to amend Rule 86—NYSE Alternext Equities to conform with amendments to NYSE Rule 86 recently filed by the NYSE that establish a 1 15 10 17 PO 00000 CFR 200.30–3(a)(12). Frm 00174 Fmt 4703 Sfmt 4703 2 17 E:\FR\FM\30DEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 30DEN1 Federal Register / Vol. 73, No. 250 / Tuesday, December 30, 2008 / Notices minimum price variation of $0.01 for orders and quotations in bonds admitted to dealings through the NYSE Bonds system. Background Alternext Equities Rules, which became operative on December 1, 2008, are substantially identical to the current NYSE Rules 1–1004 and the Exchange continues to update the NYSE Alternext Equities Rules as necessary to conform with rule changes to corresponding NYSE Rules filed by the NYSE. pwalker on PROD1PC71 with NOTICES As described more fully in a related rule filing,3 NYSE Euronext acquired The Amex Membership Corporation (‘‘AMC’’) pursuant to an Agreement and Plan of Merger, dated January 17, 2008 (the ‘‘Merger’’). In connection with the Merger, the Exchange’s predecessor, the American Stock Exchange LLC (‘‘Amex’’), a subsidiary of AMC, became a subsidiary of NYSE Euronext called NYSE Alternext US LLC, and continues to operate as a national securities exchange registered under Section 6 of the Act.4 The effective date of the Merger was October 1, 2008. In connection with the Merger, on December 1, 2008, the Exchange relocated all equities trading conducted on the Exchange legacy trading systems and facilities located at 86 Trinity Place, New York, New York, to trading systems and facilities located at 11 Wall Street, New York, New York (the ‘‘Equities Relocation’’). The Exchange’s equity trading systems and facilities at 11 Wall Street (the ‘‘NYSE Alternext Trading Systems’’) are operated by the NYSE on behalf of the Exchange.5 Similarly, on December 1, 2008, the Exchange relocated the trading of certain debt securities conducted on the 86 Trinity Trading Systems to an automated bond trading system (‘‘NYSE Alternext Bonds’’) that is operated by the NYSE on behalf of the Exchange (the ‘‘Bonds Relocation’’).6 As part of the Equities and Bonds Relocations, NYSE Alternext adopted NYSE Rules 1–1004, subject to such changes as necessary to apply the rules to the Exchange, as the NYSE Alternext Equities Rules to govern trading on the NYSE Alternext Trading Systems and NYSE Alternext Bonds.7 The NYSE Proposed Amendments to Rule 86— NYSE Alternext Equities The Exchange proposes to amend Rule 86—NYSE Alternext Equities to conform to amendments to NYSE Rule 86 recently filed by the NYSE that establish a minimum price variation to $0.01 for orders and quotations in bonds admitted to dealings through the NYSE Bonds system.9 Rule 86(f)—NYSE Alternext Equities currently provides that NYSE Alternext Bonds will accept bids and offers in bonds priced to three decimal places ($0.001). The Exchange proposes to amend that paragraph to provide that, like NYSE Bonds, NYSE Alternext Bonds will accept bids and offers in bonds priced to two decimal places ($0.01). The Exchange believes that the proposed rule change is necessary and appropriate to update the NYSE Alternext Bonds platform in conformity with changes made to the NYSE Bonds 3 See Securities Exchange Act Release No. 58673 (September 29, 2008), 73 FR 57707 (October 3, 2008) (SR–NYSE–2008–60 and SR–Amex 2008–62) (approving the Merger). 4 15 U.S.C. 78f. 5 See Securities Exchange Act Release No. 58705 (October 1, 2008), 73 FR 58995 (October 8, 2008) (SR–Amex 2008–63) (approving the Equities Relocation). 6 See Securities Exchange Act Release No. 58833 (October 22, 2008), 73 FR 64642 (October 30, 2008) (SR–NYSE–2008–106) and Securities Exchange Act Release No. 58839 (October 23, 2008), 73 FR 64645 (October 30, 2008) (SR–NYSEALTR–2008–03) (together, approving the Bonds Relocation). 7 See Securities Exchange Act Release No. 58705 (October 1, 2008), 73 FR 58995 (October 8, 2008) (SR–Amex 2008–63) (approving the Equities Relocation); Securities Exchange Act Release No. 58833 (October 22, 2008), 73 FR 64642 (October 30, 2008) (SR–NYSE–2008–106) and Securities Exchange Act Release No. 58839 (October 23, 2008), 73 FR 64645 (October 30, 2008) (SR–NYSEALTR– 2008–03) (together, approving the Bonds Relocation); Securities Exchange Act Release No. 59022 (November 26, 2008), 73 FR 73683 (December 3, 2008) (SR–NYSEALTR–2008–10) (adopting amendments to NYSE Alternext Equities Rules to track changes to corresponding NYSE Rules); Securities Exchange Act Release No. 59027 (November 28, 2008), 73 FR 73681 (December 3, 2008) (SR–NYSEALTR–2008–11) (adopting amendments to Rule 62—NYSE Alternext Equities to track changes to corresponding NYSE Rule 62). 8 See Securities Exchange Act Release No. 58833 (October 22, 2008), 73 FR 64642 (October 30, 2008) (SR–NYSE–2008–106) and Securities Exchange Act Release No. 58839 (October 23, 2008), 73 FR 64645 (October 30, 2008) (SR–NYSEALTR–2008–03) (together, approving the Bonds Relocation). 9 See SR–NYSE–2008–129 (formally submitted on December 16, 2008). VerDate Aug<31>2005 22:55 Dec 29, 2008 Jkt 217001 NYSE Alternext Bonds NYSE Alternext Bonds is the Exchange’s electronic system for receiving, processing, executing and reporting bids, offers and executions in bonds. Rule 86—NYSE Alternext Equities prescribes how bonds are traded through the NYSE Alternext Bonds platform, including the receipt, execution and reporting of bond transactions. As noted above, and as described more fully in the filing adopting the platform for the Exchange, NYSE Alternext Bonds is based on NYSE Bonds and is operated by the NYSE on behalf of the Exchange.8 PO 00000 Frm 00175 Fmt 4703 Sfmt 4703 79963 platform on which it is based. In addition, the Exchange believes this change will place its bond trading on a more competitive basis with how bonds are traded on other systems. Since the implementation of NYSE Alternext Bonds, the Exchange has sought to increase liquidity on the platform. The Exchange believes that some of its potential liquidity providers, e.g., retail customers, have been reluctant to place orders representing such liquidity when there is a high possibility that their orders can be ‘‘stepped ahead’’ by other orders that ‘‘improve’’ the price by a sub-penny. To address this, the Exchange believes that a two decimal minimum price variation will act to level the playing field among its bond customers, and serve to make the Exchange bond market more attractive to a retail customer base. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,10 in general, and furthers the objectives of Section 6(b)(5) of the Act,11 in particular, in that it is designed to promote just and equitable principles of trade, 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 of a free and open market and a national market system, and, in general, to protect investors and the public interest. The proposal also supports the principles of Section 11A(a)(1) 12 of the Act in that it seeks to ensure the economically efficient execution of securities transactions, to make it practicable for brokers to execute investors’ orders in the best market, and to provide an opportunity for investors’ orders to be executed without the participation of a dealer. The Exchange believes that the proposed rule change is necessary and appropriate to update Rule 86—NYSE Alternext Equities, governing the NYSE Alternext Bonds platform, to conform with changes made to the NYSE Bonds platform on which it is based. In addition, the Exchange believes the proposed rule change will place the NYSE Alternext Bonds platform on a more competitive basis with other markets trading bonds. 10 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 12 15 U.S.C. 78k–1(a)(1). 11 15 E:\FR\FM\30DEN1.SGM 30DEN1 79964 Federal Register / Vol. 73, No. 250 / Tuesday, December 30, 2008 / Notices 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 either solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange represented that the proposed rule change qualifies for immediate effectiveness pursuant to Section 19(b)(3)(A) of the Act 13 and Rule 19b–4(f)(6) thereunder 14 because it: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) by its terms, does not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest.15 The Exchange has requested that the Commission waive the 30-day operative delay, so that the proposed rule change may become operative upon filing. The Commission hereby grants the Exchange’s request and believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest.16 As a result of this action, the Exchange will be able to implement without undue delay a proposed rule change that reduces the likelihood of quotations or orders on NYSE Alternext Bonds from being stepped ahead of by an insignificant amount. Accordingly, the Commission designates the proposed rule change operative upon filing with the Commission. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate 13 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 15 In addition, Rule 19b–4(f)(6)(iii) requires a selfregulatory organization to give the Commission written notice of its intent to file 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 Commission has determined to waive the five-day pre-filing notice requirement in this case. 16 For the 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). pwalker on PROD1PC71 with NOTICES 14 17 VerDate Aug<31>2005 22:55 Dec 29, 2008 Jkt 217001 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. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Florence E. Harmon, Acting Secretary. [FR Doc. E8–30898 Filed 12–29–08; 8:45 am] 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: BILLING CODE 8011–01–P Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSEALTR–2008–13 on the subject line. Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by NYSE Arca, Inc. To Amend the Sanctioning Guidelines SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59117; File No. SR– NYSEArca–2008–134] December 18, 2008. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on December Paper Comments 11, 2008, NYSE Arca, Inc. (‘‘NYSE • Send paper comments in triplicate Arca’’ or the ‘‘Exchange’’) filed with the to Secretary, Securities and Exchange Securities and Exchange Commission Commission, 100 F Street, NE., (the ‘‘Commission’’) the proposed rule Washington, DC 20549–1090. change as described in Items I, II, and All submissions should refer to File III below, which Items have been Number SR-NYSEALTR–2008–13. This prepared by the self-regulatory file number should be included on the organization. The Commission is subject line if e-mail is used. To help the publishing this notice to solicit Commission process and review your comments on the proposed rule change comments more efficiently, please use from interested persons. only one method. The Commission will post all comments on the Commission’s I. Self-Regulatory Organization’s Statement of the Terms of Substance of Internet Web site (http://www.sec.gov/ the Proposed Rule Change rules/sro.shtml). Copies of the submission, all subsequent The Exchange proposes to amend amendments, all written statements Rule 10.16 (‘‘Sanctioning Guidelines’’). with respect to the proposed rule A copy of this filing is available on the change that are filed with the Exchange’s Web site at http:// Commission, and all written www.nyse.com, at the Exchange’s communications relating to the principal office and at the Commission’s proposed rule change between the Public Reference Room. Commission and any person, other than II. Self-Regulatory Organization’s those that may be withheld from the Statement of the Purpose of, and public in accordance with the Statutory Basis for, the Proposed Rule provisions of 5 U.S.C. 552, will be Change available for inspection and copying in the Commission’s Public Reference In its filing with the Commission, the Room, 100 F Street, NE., Washington, self-regulatory organization included DC 20549, on official business days statements concerning the purpose of, between the hours of 10 a.m. and 3 p.m. and basis for, the proposed rule change Copies of the filing also will be available and discussed any comments it received for inspection and copying at the on the proposed rule change. The text principal office of the Exchange. All of those statements may be examined at comments received will be posted the places specified in Item IV below. without change; the Commission does The Exchange has prepared summaries, not edit personal identifying set forth in sections A, B, and C below, information from submissions. You of the most significant parts of such should submit only information that statements. you wish to make available publicly. All submissions should refer to File 17 17 CFR 200.30–3(a)(12). Number SR–NYSEALTR–2008–13 and 1 15 U.S.C.78s(b)(1). 2 15 U.S.C. 78a. should be submitted on or before 3 17 CFR 240.19b–4. January 20, 2009. PO 00000 Frm 00176 Fmt 4703 Sfmt 4703 E:\FR\FM\30DEN1.SGM 30DEN1

Agencies

[Federal Register Volume 73, Number 250 (Tuesday, December 30, 2008)]
[Notices]
[Pages 79962-79964]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30898]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59120; File No. SR-NYSEALTR-2008-13]


Self-Regulatory Organizations; NYSE Alternext US LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Establish 
the Minimum Price Variation of $0.01 for Orders and Quotations in Bonds 
Admitted to Dealings on NYSE Alternext

December 18, 2008.
    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 December 16, 2008, NYSE Alternext US LLC (``NYSE Alternext'' 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.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend Rule 86--NYSE Alternext Equities to 
conform with amendments to NYSE Rule 86 recently filed by the New York 
Stock Exchange LLC (``NYSE'').

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
    The purpose of the proposed rule change is to amend Rule 86--NYSE 
Alternext Equities to conform with amendments to NYSE Rule 86 recently 
filed by the NYSE that establish a

[[Page 79963]]

minimum price variation of $0.01 for orders and quotations in bonds 
admitted to dealings through the NYSE Bonds system.
Background
    As described more fully in a related rule filing,\3\ NYSE Euronext 
acquired The Amex Membership Corporation (``AMC'') pursuant to an 
Agreement and Plan of Merger, dated January 17, 2008 (the ``Merger''). 
In connection with the Merger, the Exchange's predecessor, the American 
Stock Exchange LLC (``Amex''), a subsidiary of AMC, became a subsidiary 
of NYSE Euronext called NYSE Alternext US LLC, and continues to operate 
as a national securities exchange registered under Section 6 of the 
Act.\4\ The effective date of the Merger was October 1, 2008.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 58673 (September 29, 
2008), 73 FR 57707 (October 3, 2008) (SR-NYSE-2008-60 and SR-Amex 
2008-62) (approving the Merger).
    \4\ 15 U.S.C. 78f.
---------------------------------------------------------------------------

    In connection with the Merger, on December 1, 2008, the Exchange 
relocated all equities trading conducted on the Exchange legacy trading 
systems and facilities located at 86 Trinity Place, New York, New York, 
to trading systems and facilities located at 11 Wall Street, New York, 
New York (the ``Equities Relocation''). The Exchange's equity trading 
systems and facilities at 11 Wall Street (the ``NYSE Alternext Trading 
Systems'') are operated by the NYSE on behalf of the Exchange.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 58705 (October 1, 
2008), 73 FR 58995 (October 8, 2008) (SR-Amex 2008-63) (approving 
the Equities Relocation).
---------------------------------------------------------------------------

    Similarly, on December 1, 2008, the Exchange relocated the trading 
of certain debt securities conducted on the 86 Trinity Trading Systems 
to an automated bond trading system (``NYSE Alternext Bonds'') that is 
operated by the NYSE on behalf of the Exchange (the ``Bonds 
Relocation'').\6\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 58833 (October 22, 
2008), 73 FR 64642 (October 30, 2008) (SR-NYSE-2008-106) and 
Securities Exchange Act Release No. 58839 (October 23, 2008), 73 FR 
64645 (October 30, 2008) (SR-NYSEALTR-2008-03) (together, approving 
the Bonds Relocation).
---------------------------------------------------------------------------

    As part of the Equities and Bonds Relocations, NYSE Alternext 
adopted NYSE Rules 1-1004, subject to such changes as necessary to 
apply the rules to the Exchange, as the NYSE Alternext Equities Rules 
to govern trading on the NYSE Alternext Trading Systems and NYSE 
Alternext Bonds.\7\ The NYSE Alternext Equities Rules, which became 
operative on December 1, 2008, are substantially identical to the 
current NYSE Rules 1-1004 and the Exchange continues to update the NYSE 
Alternext Equities Rules as necessary to conform with rule changes to 
corresponding NYSE Rules filed by the NYSE.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 58705 (October 1, 
2008), 73 FR 58995 (October 8, 2008) (SR-Amex 2008-63) (approving 
the Equities Relocation); Securities Exchange Act Release No. 58833 
(October 22, 2008), 73 FR 64642 (October 30, 2008) (SR-NYSE-2008-
106) and Securities Exchange Act Release No. 58839 (October 23, 
2008), 73 FR 64645 (October 30, 2008) (SR-NYSEALTR-2008-03) 
(together, approving the Bonds Relocation); Securities Exchange Act 
Release No. 59022 (November 26, 2008), 73 FR 73683 (December 3, 
2008) (SR-NYSEALTR-2008-10) (adopting amendments to NYSE Alternext 
Equities Rules to track changes to corresponding NYSE Rules); 
Securities Exchange Act Release No. 59027 (November 28, 2008), 73 FR 
73681 (December 3, 2008) (SR-NYSEALTR-2008-11) (adopting amendments 
to Rule 62--NYSE Alternext Equities to track changes to 
corresponding NYSE Rule 62).
---------------------------------------------------------------------------

NYSE Alternext Bonds

    NYSE Alternext Bonds is the Exchange's electronic system for 
receiving, processing, executing and reporting bids, offers and 
executions in bonds. Rule 86--NYSE Alternext Equities prescribes how 
bonds are traded through the NYSE Alternext Bonds platform, including 
the receipt, execution and reporting of bond transactions. As noted 
above, and as described more fully in the filing adopting the platform 
for the Exchange, NYSE Alternext Bonds is based on NYSE Bonds and is 
operated by the NYSE on behalf of the Exchange.\8\
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 58833 (October 22, 
2008), 73 FR 64642 (October 30, 2008) (SR-NYSE-2008-106) and 
Securities Exchange Act Release No. 58839 (October 23, 2008), 73 FR 
64645 (October 30, 2008) (SR-NYSEALTR-2008-03) (together, approving 
the Bonds Relocation).
---------------------------------------------------------------------------

Proposed Amendments to Rule 86--NYSE Alternext Equities
    The Exchange proposes to amend Rule 86--NYSE Alternext Equities to 
conform to amendments to NYSE Rule 86 recently filed by the NYSE that 
establish a minimum price variation to $0.01 for orders and quotations 
in bonds admitted to dealings through the NYSE Bonds system.\9\
---------------------------------------------------------------------------

    \9\ See SR-NYSE-2008-129 (formally submitted on December 16, 
2008).
---------------------------------------------------------------------------

    Rule 86(f)--NYSE Alternext Equities currently provides that NYSE 
Alternext Bonds will accept bids and offers in bonds priced to three 
decimal places ($0.001). The Exchange proposes to amend that paragraph 
to provide that, like NYSE Bonds, NYSE Alternext Bonds will accept bids 
and offers in bonds priced to two decimal places ($0.01).
    The Exchange believes that the proposed rule change is necessary 
and appropriate to update the NYSE Alternext Bonds platform in 
conformity with changes made to the NYSE Bonds platform on which it is 
based. In addition, the Exchange believes this change will place its 
bond trading on a more competitive basis with how bonds are traded on 
other systems. Since the implementation of NYSE Alternext Bonds, the 
Exchange has sought to increase liquidity on the platform. The Exchange 
believes that some of its potential liquidity providers, e.g., retail 
customers, have been reluctant to place orders representing such 
liquidity when there is a high possibility that their orders can be 
``stepped ahead'' by other orders that ``improve'' the price by a sub-
penny. To address this, the Exchange believes that a two decimal 
minimum price variation will act to level the playing field among its 
bond customers, and serve to make the Exchange bond market more 
attractive to a retail customer base.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\10\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\11\ in particular, in that it is designed to 
promote just and equitable principles of trade, 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 of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. The proposal 
also supports the principles of Section 11A(a)(1) \12\ of the Act in 
that it seeks to ensure the economically efficient execution of 
securities transactions, to make it practicable for brokers to execute 
investors' orders in the best market, and to provide an opportunity for 
investors' orders to be executed without the participation of a dealer.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
    \12\ 15 U.S.C. 78k-1(a)(1).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is necessary 
and appropriate to update Rule 86--NYSE Alternext Equities, governing 
the NYSE Alternext Bonds platform, to conform with changes made to the 
NYSE Bonds platform on which it is based. In addition, the Exchange 
believes the proposed rule change will place the NYSE Alternext Bonds 
platform on a more competitive basis with other markets trading bonds.

[[Page 79964]]

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 either solicited or received with respect 
to the proposed rule change.

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

    The Exchange represented that the proposed rule change qualifies 
for immediate effectiveness pursuant to Section 19(b)(3)(A) of the Act 
\13\ and Rule 19b-4(f)(6) thereunder \14\ because it: (i) Does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) by its terms, does not become operative for 30 days from the 
date on which it was filed, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest.\15\
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ In addition, Rule 19b-4(f)(6)(iii) requires a self-
regulatory organization to give the Commission written notice of its 
intent to file 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 Commission has 
determined to waive the five-day pre-filing notice requirement in 
this case.
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    The Exchange has requested that the Commission waive the 30-day 
operative delay, so that the proposed rule change may become operative 
upon filing. The Commission hereby grants the Exchange's request and 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest.\16\ As a result of 
this action, the Exchange will be able to implement without undue delay 
a proposed rule change that reduces the likelihood of quotations or 
orders on NYSE Alternext Bonds from being stepped ahead of by an 
insignificant amount. Accordingly, the Commission designates the 
proposed rule change operative upon filing with the Commission.
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    \16\ For the 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 may summarily abrogate 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 e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSEALTR-2008-13 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-NYSEALTR-2008-13. This 
file number should be included on the subject line if e-mail 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 inspection 
and copying 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 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-NYSEALTR-2008-13 and should 
be submitted on or before January 20, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-30898 Filed 12-29-08; 8:45 am]
BILLING CODE 8011-01-P