Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Exchange Rule 1500 (“MatchPoint”) To Clarify the Functionality of the Intra-Day Matching Sessions in Relation to Order Entry, Correction and Cancellation Capabilities, and When the MatchPoint System Cancels Unexecuted Orders Back to the User and Disseminates Intra-Day and After Hours Trade Reports, 1746-1749 [E9-415]
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<![CDATA[
1746
Federal Register / Vol. 74, No. 8 / Tuesday, January 13, 2009 / Notices
interrogation.8 Exhibit A to each of
those agreements would need to be
updated to reflect the receipt and use of
NYSE Order Imbalance Information.
The arrangement does not require an
end-user of the information (other than
a data feed recipient) to enter into any
agreement.
2. Statutory Basis
The bases under the Securities
Exchange Act of 1934 (the ‘‘1934 Act’’)
for the proposed rule change are the
requirement under section 6(b)(4) 9 that
an exchange have rules that provide for
the equitable allocation of reasonable
dues, fees and other charges among its
members and other persons using its
facilities and the requirements under
section 6(b)(5) 10 that the rules of an
exchange be 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. The Exchange believes
that the proposal benefits investors by
facilitating their prompt access to
widespread, free NYSE Order Imbalance
Information.
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
The Exchange has not solicited, and
does not intend to solicit, comments
regarding the proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 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
8 The Participants in the CTA and CQ Plans first
submitted the Consolidated Vendor Form to the
Commission for immediate effectiveness in 1990.
See Release No. 34–28407 (September 6, 1990); 55
FR 37276 (September 10, 1990) (File No. 4–281).
The Commission approved a revised version of it
in 1996 in conjunction with the participants’
restatement of the CTA and CQ Plans. See Release
No. 34–37191 (May 9, 1996); 61 FR 24842 (May 16,
1996) (File No. SR–CTA/CQ–96–1).
9 15 U.S.C. 78f(b)(4).
10 15 U.S.C. 78f(b)(5).
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19:10 Jan 12, 2009
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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 Exchange consents,
the Commission will:
(A) By order approve the proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–NYSE–2008–132 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2008–132. 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 (https://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, 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
PO 00000
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should refer to File Number SR–NYSE–
2008–132 and should be submitted on
or before February 3, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–414 Filed 1–12–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59207; File No. SR–NYSE–
2008–134]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending
Exchange Rule 1500 (‘‘MatchPoint’’) To
Clarify the Functionality of the IntraDay Matching Sessions in Relation to
Order Entry, Correction and
Cancellation Capabilities, and When
the MatchPoint System Cancels
Unexecuted Orders Back to the User
and Disseminates Intra-Day and After
Hours Trade Reports
January 6, 2009.
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
22, 2008, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Exchange Rule 1500 (NYSE
MatchPointSM) (‘‘MatchPoint’’) to clarify
the functionality of the intra-day
matching sessions in relation to order
entry, correction and cancellation
capabilities, and when the MatchPoint
system cancels unexecuted orders back
to the User and disseminates intra-day
and after hours trade reports. The text
of the proposed rule change is available
at https://www.nyse.com, NYSE, and the
Commission’s Public Reference Room.
11 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 74, No. 8 / Tuesday, January 13, 2009 / Notices
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 Exchange seeks to amend
Exchange Rule 1500 (‘‘NYSE
MatchPoint’’) to clarify the functionality
of the intra-day matching sessions, and
the timing of the dissemination of intraday and after hours trade reports and
when unexecuted orders are cancelled
back to the User (i.e., those customers
entering orders into MatchPoint). Intraday matching sessions begin at 9:45
a.m., 10:00 a.m., 11:00 a.m., 12:00 p.m.,
1:00 p.m., 2:00 p.m. and 3:00 p.m. A
MatchPoint after hours matching
session occurs at 4:45 p.m.
The MatchPoint rule provides that a
User can only enter, correct and cancel
an order prior to commencement of a
pre-determined one-minute matching
session (see subsection (d)(2) of Rule
1500). However, subsequent to the
September 2008 launch of the intra-day
matching sessions, Exchange staff
became aware that the MatchPoint
system permits orders to be entered,
corrected and cancelled during the oneminute intra-day matching sessions up
to and including the time the algorithm
randomly selects the Reference Price
and commences the ‘‘matching
process.’’ The ‘‘matching process’’
continues with the execution of orders
and allocation of executed shares among
the orders. MatchPoint orders cannot be
entered, corrected or cancelled once the
‘‘matching process’’ has commenced.
For example, in the intended
MatchPoint model, if a User entered an
order into the MatchPoint system at
10:00:05 a.m. (5 seconds after the
commencement of the 10:00 a.m.
matching session), such order would be
rejected by the MatchPoint system as
untimely, and the order would not
participate in the 10:00 a.m. matching
session. However, as the system is
functioning today, the User is able to
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19:54 Jan 12, 2009
Jkt 217001
enter, correct or cancel an order up to
and including the time that the
MatchPoint algorithm randomly selects
the Reference Price and commences the
matching process. Therefore, if a User
enters a MatchPoint order into the
MatchPoint system after the
commencement of the 10:00 a.m.
matching session at 10:00:05, the order
may participate in the 10:00 a.m.
matching session as long as the order is
entered prior to the time the MatchPoint
algorithm randomly selects the
Reference Price and commences the
matching process. Thus, if the Reference
Price in this example is randomly
selected at 10:00:10, the order that was
entered at 10:00:05 will participate in
the 10:00 matching session, but an order
entered at 10:00:20 will not participate
in the 10:00 matching session and will
be rejected as untimely and cancelled
back to the User. Thus, to be assured
participation in the 10:00 a.m. matching
session, a User must enter a MatchPoint
order into the system anytime prior to
the commencement of the 10:00 a.m.
matching session.
The proposed rule change will clarify
that the User may enter, correct or
cancel an order up to and including the
time that the MatchPoint algorithm
randomly selects the Reference Price
and commences the matching process.
The Exchange believes the manner in
which the MatchPoint intra-day
matching process currently functions is
appropriate in that it provides
customers with a greater ability to
manage orders because the orders are
not necessarily held in the MatchPoint
system for the entire one-minute
session, and the customers are able to
react more quickly to the market.
Further, more customers may have the
opportunity to enter, correct or cancel
orders for a particular matching session
in a timely fashion without having to
wait a full hour for the next matching
session to commence.
Additionally, the Exchange seeks to
amend and clarify subsection (b)(2)(F) of
NYSE Rule 1500 (‘‘NYSE MatchPoint
Orders’’) to reflect the actual
functionality of the MatchPoint system
and to conform this subsection with the
other proposed amendments to the Rule.
In the intra-day and after hours
MatchPoint matching sessions, the
cancelling back of unexecuted orders
and dissemination of trade reports
actually occur immediately after
completion of the ‘‘matching process’’
and not after completion of the
‘‘matching session.’’ Therefore, the
definition of NYSE MatchPoint orders
will include language that indicates that
unexecuted orders will be cancelled
back to the User ‘‘immediately upon
PO 00000
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Fmt 4703
Sfmt 4703
1747
completion of the matching process in
the relevant one-minute matching
session,’’ and that trade reports will be
disseminated immediately after
completion of the ‘‘matching process.’’ 4
Additionally, the Exchange seeks to
amend and clarify subsections (c)(1)(B)
and (c)(1)(C) of NYSE Rule 1500
regarding MatchPoint intra-day
matching sessions when the market is
crossed. The MatchPoint rule provides
the following:
(B) If the NBBO for a particular security is
locked at the time of a MatchPoint matching
session during the regular trading hours of
the Exchange, the matching session shall
execute orders at the locked price.
Unexecuted MatchPoint orders in that
security shall be immediately cancelled back
to the User upon completion of the matching
session.
(C) If the NBBO for a particular security is
crossed at the time of a MatchPoint matching
session during the regular trading hours of
the Exchange, the matching session in that
particular security shall not occur.
Unexecuted MatchPoint orders in that
security shall be immediately cancelled back
to the User upon completion of the matching
session.
The Exchange is proposing to amend
the rule text in subsections (c)(1)(B) to
clarify that during any intra-day
matching session, the MatchPoint
system will execute orders at the locked
price when the market is locked at the
time the MatchPoint algorithm
randomly selects the Reference Price
and commences the matching process—
and not at the commencement of the
particular matching session. Further, the
proposed text will indicate that
unexecuted orders will be cancelled
back to the User immediately upon
completion of the ‘‘matching process’’—
and not at the completion of the
‘‘matching session.’’
The Exchange is proposing to amend
the rule text in subsections (c)(1)(C) to
clarify that during any intra-day
matching session, if the NBBO for a
particular security is crossed at the time
the ‘‘MatchPoint algorithm randomly
selects the Reference Price,’’ the
matching session in that particular
security will not occur, and unexecuted
orders will be cancelled back to the User
immediately upon completion of the
‘‘matching process’’—and not at the
completion of the ‘‘matching session.’’
The Exchange believes that the way
the MatchPoint system currently
functions in relation to the
dissemination of trade reports, crossed
markets and the time the unexecuted
orders are cancelled back to the User are
beneficial functionalities for all
customers. These functionalities will,
4 See
E:\FR\FM\13JAN1.SGM
proposed NYSE Rule 1500 (c)(1).
13JAN1
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Federal Register / Vol. 74, No. 8 / Tuesday, January 13, 2009 / Notices
among other things, provide customers
with more immediate information
regarding the processing of their orders
and enable them to better manage their
order flow. The immediacy of this
information allows the customer to
respond more quickly and more
strategically to the movement of the
market.
2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Act’’) 5 for
this proposed rule change is the
requirement under Section 6(b)(5) 6 that
an Exchange have rules that are
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. The Exchange believes
that the proposed rule change is
consistent with the provisions of
Section 6 of the Act because it clarifies
the operation of the MatchPoint trading
platform in relation to order entry,
correction and cancellation capabilities
during the intra-day matching sessions,
and when the MatchPoint system
cancels unexecuted orders back to the
User and disseminates intra-day and
after hours trade reports.7 By clarifying
these functionalities of the MatchPoint
trading platform, a trading platform that
is available to all members of the
Exchange and those non-members who
are authorized to access the platform as
a Sponsored Participant, the proposed
rule change promotes just and equitable
principles of trade, removes
impediments to and perfects the
mechanism of a free and open market
and a national market system, and, in
general, protects investors and the
public interest.8
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to the 30th day
after the date of filing.11 However, Rule
19b–4(f)(6)(iii) 12 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
interest. The Exchange requested that
the Commission waive the 30-day
operative delay and designate the
proposed rule change to become
operative upon filing. The Exchange
believes that the operative date should
be waived so that NYSE Rule 1500 will
accurately reflect the technological
functioning of the MatchPoint system
and will immediately provide customers
transparency regarding how their
MatchPoint orders are being processed.
The Exchange believes this will permit
customers to better manage their order
flow and trading decisions by being able
to rely on the MatchPoint system.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. In
particular, the Commission believes that
the proposed rule change should clarify
the functioning of MatchPoint intra-day
matching sessions in relation to
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the self-regulatory
organization to give the Commission notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
NYSE has satisfied this requirement.
12 Id.
10 17
5 15
U.S.C. 78f(a).
U.S.C. 78f(b)(5).
7 See e-mail, dated January 6, 2009, from Jean
Walsh, Managing Director, NYSE, to Nathan
Saunders, Special Counsel, and Steve Varholik,
Attorney, Division of Trading and Markets,
Commission.
8 See id.
6 15
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19:10 Jan 12, 2009
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PO 00000
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Fmt 4703
Sfmt 4703
automated order entry, correction and
cancellation capabilities, when locked
and crossed markets are identified,
when the MatchPoint system cancels
unexecuted orders back to the User, and
when the system disseminates intra-day
and after hours trade reports. The
Commission further believes that
investors should have access to accurate
information regarding how their
MatchPoint orders are being processed
without delay. Accordingly, the
Commission designates the proposed
rule change to be operative upon filing
with the Commission.13
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2008–134 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–2008–134. 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 (https://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
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
E:\FR\FM\13JAN1.SGM
13JAN1
Federal Register / Vol. 74, No. 8 / Tuesday, January 13, 2009 / Notices
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 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–2008–134 and
should be submitted on or before
February 3, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–415 Filed 1–12–09; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Notice is
hereby given that as a result of the
President’s major disaster declaration on
01/05/2009, Private Non-Profit
organizations that provide essential
services of governmental nature may file
disaster loan applications at the address
listed above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: City and County of
Honolulu, Kauai.
The Interest Rates are:
SUPPLEMENTARY INFORMATION:
Percent
Other (Including Non-Profit Organizations) With Credit Available
Elsewhere .................................
Businesses and Non-Profit Organizations Without Credit Available Elsewhere .........................
The number assigned to this disaster for physical damage is
11614B and for economic injury
is 11615B.
4.500
4.000
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. E9–421 Filed 1–12–09; 8:45 am]
BILLING CODE 8025–01–P
Hawaii Disaster #HI–00016
SMALL BUSINESS ADMINISTRATION
AGENCY: U.S. Small Business
Administration.
ACTION: Notice.
[Disaster Declaration # 11612 and # 11613]
VerDate Nov<24>2008
19:10 Jan 12, 2009
Jkt 217001
For Physical Damage
Homeowners With Credit Available Elsewhere ......................
Homeowners Without Credit
Available Elsewhere ..............
Businesses With Credit Available Elsewhere ......................
Other (Including Non-Profit Organizations)
With
Credit
Available Elsewhere ..............
Businesses and Non-Profit Organizations Without Credit
Available Elsewhere ..............
For Economic Injury:
Businesses & Small Agricultural
Cooperatives Without Credit
Available Elsewhere ..............
5.375
2.687
7.750
4.500
4.000
4.000
The number assigned to this disaster
for physical damage is 11612B and for
economic injury is 116130.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Hawaii Disaster #HI–00015
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Hawaii (FEMA–1814–DR),
dated 01/05/2009.
Incident: Severe Storms and Flooding.
Incident Period: 12/10/2008 through
12/16/2008.
Effective Date: 01/05/2009.
Physical Loan Application Deadline
Date: 03/06/2009.
Economic Injury (EIDL) Loan
Application Deadline Date: 10/05/2009.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
CFR 200.30–3(a)(12).
Notice is
hereby given that as a result of the
President’s major disaster declaration on
01/05/2009, applications for disaster
loans may be filed at the address listed
above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties (Physical Damage and
Economic Injury Loans): City and
County of Honolulu.
The Interest Rates are:
SUPPLEMENTARY INFORMATION:
Percent
[Disaster Declaration #11614 and #11615]
14 17
1749
AGENCY: U.S. Small Business
Administration.
ACTION: Notice.
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. E9–422 Filed 1–12–09; 8:45 am]
BILLING CODE 8025–01–P
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for the State of Hawaii (FEMA–
1814–DR), dated 01/05/2009.
Incident: Severe Storms and Flooding.
Incident Period: 12/10/2008 through
12/16/2008.
Effective Date: 01/05/2009.
Physical Loan Application Deadline
Date: 03/06/2009.
Economic Injury (EIDL) Loan
Application Deadline Date: 10/05/2009.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster
Assistance,U.S. Small Business
Administration, 409 3rd Street, SW.,
Suite 6050, Washington, DC 20416.
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 11604]
Maine Disaster # ME–00016
Declaration of Economic Injury
AGENCY: U.S. Small Business
Administration.
ACTION: Notice.
SUMMARY: This is a notice of an
Economic Injury Disaster Loan (EIDL)
declaration for the State of Maine, dated
01/06/2009.
Incident: Fire.
Incident Period: 09/14/2008.
DATES: Effective Date: 01/06/2009.
EIDL Loan Application Deadline Date:
10/06/2009.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
E:\FR\FM\13JAN1.SGM
13JAN1
]]>Agencies
[Federal Register Volume 74, Number 8 (Tuesday, January 13, 2009)]
[Notices]
[Pages 1746-1749]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-415]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59207; File No. SR-NYSE-2008-134]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending Exchange Rule 1500 (``MatchPoint'') To Clarify the
Functionality of the Intra-Day Matching Sessions in Relation to Order
Entry, Correction and Cancellation Capabilities, and When the
MatchPoint System Cancels Unexecuted Orders Back to the User and
Disseminates Intra-Day and After Hours Trade Reports
January 6, 2009.
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 22, 2008, 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.
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\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Exchange Rule 1500 (NYSE
MatchPoint\SM\) (``MatchPoint'') to clarify the functionality of the
intra-day matching sessions in relation to order entry, correction and
cancellation capabilities, and when the MatchPoint system cancels
unexecuted orders back to the User and disseminates intra-day and after
hours trade reports. The text of the proposed rule change is available
at https://www.nyse.com, NYSE, and the Commission's Public Reference
Room.
[[Page 1747]]
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 Exchange seeks to amend Exchange Rule 1500 (``NYSE
MatchPoint'') to clarify the functionality of the intra-day matching
sessions, and the timing of the dissemination of intra-day and after
hours trade reports and when unexecuted orders are cancelled back to
the User (i.e., those customers entering orders into MatchPoint).
Intra-day matching sessions begin at 9:45 a.m., 10:00 a.m., 11:00 a.m.,
12:00 p.m., 1:00 p.m., 2:00 p.m. and 3:00 p.m. A MatchPoint after hours
matching session occurs at 4:45 p.m.
The MatchPoint rule provides that a User can only enter, correct
and cancel an order prior to commencement of a pre-determined one-
minute matching session (see subsection (d)(2) of Rule 1500). However,
subsequent to the September 2008 launch of the intra-day matching
sessions, Exchange staff became aware that the MatchPoint system
permits orders to be entered, corrected and cancelled during the one-
minute intra-day matching sessions up to and including the time the
algorithm randomly selects the Reference Price and commences the
``matching process.'' The ``matching process'' continues with the
execution of orders and allocation of executed shares among the orders.
MatchPoint orders cannot be entered, corrected or cancelled once the
``matching process'' has commenced.
For example, in the intended MatchPoint model, if a User entered an
order into the MatchPoint system at 10:00:05 a.m. (5 seconds after the
commencement of the 10:00 a.m. matching session), such order would be
rejected by the MatchPoint system as untimely, and the order would not
participate in the 10:00 a.m. matching session. However, as the system
is functioning today, the User is able to enter, correct or cancel an
order up to and including the time that the MatchPoint algorithm
randomly selects the Reference Price and commences the matching
process. Therefore, if a User enters a MatchPoint order into the
MatchPoint system after the commencement of the 10:00 a.m. matching
session at 10:00:05, the order may participate in the 10:00 a.m.
matching session as long as the order is entered prior to the time the
MatchPoint algorithm randomly selects the Reference Price and commences
the matching process. Thus, if the Reference Price in this example is
randomly selected at 10:00:10, the order that was entered at 10:00:05
will participate in the 10:00 matching session, but an order entered at
10:00:20 will not participate in the 10:00 matching session and will be
rejected as untimely and cancelled back to the User. Thus, to be
assured participation in the 10:00 a.m. matching session, a User must
enter a MatchPoint order into the system anytime prior to the
commencement of the 10:00 a.m. matching session.
The proposed rule change will clarify that the User may enter,
correct or cancel an order up to and including the time that the
MatchPoint algorithm randomly selects the Reference Price and commences
the matching process. The Exchange believes the manner in which the
MatchPoint intra-day matching process currently functions is
appropriate in that it provides customers with a greater ability to
manage orders because the orders are not necessarily held in the
MatchPoint system for the entire one-minute session, and the customers
are able to react more quickly to the market. Further, more customers
may have the opportunity to enter, correct or cancel orders for a
particular matching session in a timely fashion without having to wait
a full hour for the next matching session to commence.
Additionally, the Exchange seeks to amend and clarify subsection
(b)(2)(F) of NYSE Rule 1500 (``NYSE MatchPoint Orders'') to reflect the
actual functionality of the MatchPoint system and to conform this
subsection with the other proposed amendments to the Rule. In the
intra-day and after hours MatchPoint matching sessions, the cancelling
back of unexecuted orders and dissemination of trade reports actually
occur immediately after completion of the ``matching process'' and not
after completion of the ``matching session.'' Therefore, the definition
of NYSE MatchPoint orders will include language that indicates that
unexecuted orders will be cancelled back to the User ``immediately upon
completion of the matching process in the relevant one-minute matching
session,'' and that trade reports will be disseminated immediately
after completion of the ``matching process.'' \4\
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\4\ See proposed NYSE Rule 1500 (c)(1).
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Additionally, the Exchange seeks to amend and clarify subsections
(c)(1)(B) and (c)(1)(C) of NYSE Rule 1500 regarding MatchPoint intra-
day matching sessions when the market is crossed. The MatchPoint rule
provides the following:
(B) If the NBBO for a particular security is locked at the time
of a MatchPoint matching session during the regular trading hours of
the Exchange, the matching session shall execute orders at the
locked price. Unexecuted MatchPoint orders in that security shall be
immediately cancelled back to the User upon completion of the
matching session.
(C) If the NBBO for a particular security is crossed at the time
of a MatchPoint matching session during the regular trading hours of
the Exchange, the matching session in that particular security shall
not occur. Unexecuted MatchPoint orders in that security shall be
immediately cancelled back to the User upon completion of the
matching session.
The Exchange is proposing to amend the rule text in subsections
(c)(1)(B) to clarify that during any intra-day matching session, the
MatchPoint system will execute orders at the locked price when the
market is locked at the time the MatchPoint algorithm randomly selects
the Reference Price and commences the matching process--and not at the
commencement of the particular matching session. Further, the proposed
text will indicate that unexecuted orders will be cancelled back to the
User immediately upon completion of the ``matching process''--and not
at the completion of the ``matching session.''
The Exchange is proposing to amend the rule text in subsections
(c)(1)(C) to clarify that during any intra-day matching session, if the
NBBO for a particular security is crossed at the time the ``MatchPoint
algorithm randomly selects the Reference Price,'' the matching session
in that particular security will not occur, and unexecuted orders will
be cancelled back to the User immediately upon completion of the
``matching process''--and not at the completion of the ``matching
session.''
The Exchange believes that the way the MatchPoint system currently
functions in relation to the dissemination of trade reports, crossed
markets and the time the unexecuted orders are cancelled back to the
User are beneficial functionalities for all customers. These
functionalities will,
[[Page 1748]]
among other things, provide customers with more immediate information
regarding the processing of their orders and enable them to better
manage their order flow. The immediacy of this information allows the
customer to respond more quickly and more strategically to the movement
of the market.
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Act'')
\5\ for this proposed rule change is the requirement under Section
6(b)(5) \6\ that an Exchange have rules that are 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.
The Exchange believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act because it clarifies the
operation of the MatchPoint trading platform in relation to order
entry, correction and cancellation capabilities during the intra-day
matching sessions, and when the MatchPoint system cancels unexecuted
orders back to the User and disseminates intra-day and after hours
trade reports.\7\ By clarifying these functionalities of the MatchPoint
trading platform, a trading platform that is available to all members
of the Exchange and those non-members who are authorized to access the
platform as a Sponsored Participant, the proposed rule change promotes
just and equitable principles of trade, removes impediments to and
perfects the mechanism of a free and open market and a national market
system, and, in general, protects investors and the public interest.\8\
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\5\ 15 U.S.C. 78f(a).
\6\ 15 U.S.C. 78f(b)(5).
\7\ See e-mail, dated January 6, 2009, from Jean Walsh, Managing
Director, NYSE, to Nathan Saunders, Special Counsel, and Steve
Varholik, Attorney, Division of Trading and Markets, Commission.
\8\ See id.
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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
Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days after the date of filing, or such shorter time as the Commission
may designate if consistent with the protection of investors and the
public interest, the proposed rule change has become effective pursuant
to Section 19(b)(3)(A) of the Act \9\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to the 30th day after the date of
filing.\11\ However, Rule 19b-4(f)(6)(iii) \12\ permits the Commission
to designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requested
that the Commission waive the 30-day operative delay and designate the
proposed rule change to become operative upon filing. The Exchange
believes that the operative date should be waived so that NYSE Rule
1500 will accurately reflect the technological functioning of the
MatchPoint system and will immediately provide customers transparency
regarding how their MatchPoint orders are being processed. The Exchange
believes this will permit customers to better manage their order flow
and trading decisions by being able to rely on the MatchPoint system.
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\11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the
Commission notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. NYSE has satisfied this requirement.
\12\ Id.
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest. In
particular, the Commission believes that the proposed rule change
should clarify the functioning of MatchPoint intra-day matching
sessions in relation to automated order entry, correction and
cancellation capabilities, when locked and crossed markets are
identified, when the MatchPoint system cancels unexecuted orders back
to the User, and when the system disseminates intra-day and after hours
trade reports. The Commission further believes that investors should
have access to accurate information regarding how their MatchPoint
orders are being processed without delay. Accordingly, the Commission
designates the proposed rule change to be operative upon filing with
the Commission.\13\
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\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2008-134 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-2008-134. 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 (https://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
[[Page 1749]]
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 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-2008-134 and should be submitted on or before
February 3, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-415 Filed 1-12-09; 8:45 am]
BILLING CODE 8011-01-P
