Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending Rule 6.87-Obvious Errors, 11396-11397 [E9-5716]
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11396
Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Notices
should be submitted on or before April
7, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–5719 Filed 3–16–09; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[Release No. 34–59556; File No. SR–
NYSEArca–2009–17]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Amending Rule 6.87—
Obvious Errors
March 11, 2009.
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 February
27, 2009, NYSE Arca, Inc. (‘‘NYSE
Arca’’ 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.
NYSE Arca filed the proposed rule
change as a ‘‘non-controversial’’
proposal pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)
thereunder,4 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
dwashington3 on PROD1PC60 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 6.87—Obvious Errors. A copy of
this filing is available on the Exchange’s
Web site at https://www.nyse.com, at the
Exchange’s principal office and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
1 15
VerDate Nov<24>2008
13:44 Mar 16, 2009
Jkt 217001
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.
NYSE Arca proposes to amend Rule
6.87 pertaining to the nullification and
adjustment of options transactions.
Specifically, the Exchange proposes to
adopt a new provision which provides
that in the interest of maintaining a fair
and orderly market and for the
protection of investors, the Chief
Executive Officer of NYSE Arca Inc.
(‘‘CEO’’) or his/her designee
(collectively ‘‘Exchange officer’’),5 may,
on his or her own motion or upon
request, determine to review any
transaction occurring on the Exchange
that is believed to be erroneous.6 A
transaction reviewed pursuant to this
new provision may be nullified or
adjusted only if it is determined by the
Exchange officer that the transaction is
erroneous as provided in Rule
6.87(a)(1)–(5) or Commentary .04
thereof. A transaction would be adjusted
or nullified in accordance with the
provision under which it is deemed an
erroneous transaction. The Exchange
officer may be assisted by a Trading
Official in reviewing a transaction.
The Exchange officer shall act
pursuant to this paragraph as soon as
possible after receiving notification of
the transaction, and ordinarily would be
expected to act on the same day as the
transaction occurred. However, because
a transaction under review may have
occurred near the close of trading or due
to unusual circumstances, the rule
provides that the Exchange officer shall
act no later than 9:30 a.m. (ET) on the
next trading day following the date of
the transaction in question. An OTP
Holder affected by a determination to
nullify or adjust a transaction pursuant
to this new provision may appeal such
5 The Exchange represents that a CEO designee
will be an officer of the Exchange, who has also
been designated as a Trading Official, such as the
Executive Vice President of Trading Operations or
the Vice President of Trading Services. Exchange
officers are employees of the Exchange, and are not
affiliated with OTP Holders or OTP Firms.
6 In the event a party to a transaction requests that
the CEO or his/her designee review a transaction,
the Exchange officer nonetheless would need to
determine, on his or her own motion, whether to
review the transaction.
PO 00000
Frm 00052
Fmt 4703
Sfmt 4703
determination in accordance with Rule
6.87(a)(6); however, a determination by
an Exchange officer not to review a
transaction, or a determination not to
nullify or adjust a transaction for which
a review was requested or conducted, is
not appealable. NYSE Arca believes it is
appropriate to limit review on appeal to
only those situations in which a
transaction is actually nullified or
adjusted.
This new provision is not intended to
replace a party’s obligation to request a
review, within the required time periods
under Rule 6.87(a)(3), of any transaction
that it believes meets the criteria for an
obvious error. And, if a transaction is
reviewed and a determination has been
rendered pursuant to Rules 6.87(a)(1)–
(5) or Commentary .04 thereof, no
additional relief may be granted under
this new provision. Moreover, NYSE
Arca does not anticipate exercising this
new authority in every situation in
which a party fails to make a timely
request for review of a transaction
pursuant to Rule 6.87(a)(3). NYSE Arca
believes this provision will help to
protect the integrity of its marketplace
by vesting an Exchange officer with the
authority to review a transaction that
may be erroneous, in those situations
where a party failed to make a timely
request for a review.
The Exchange also proposes at this
time to revise Rule 6.87(a)(3)(A) in order
to clarify that the time period in which
a Market Maker or other OTP Holder
must notify the Exchange, when
requesting relief from a possible
erroneous transaction, applies to all
transactions that are subject to
adjustment or nullification, pursuant to
Rule 6.87(a)(1)–(5).
2. Statutory Basis
This proposed rule change is designed
to allow an Exchange officer to review
a transaction in order to provide the
opportunity for potential relief to a
party affected by an obvious error. The
Exchange believes that for these reasons
the proposed rule change is consistent
with Section 6(b) of the Act 7 in general,
and furthers the objectives of Section
6(b)(5) of the Act 8 in particular, because
it is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. NYSE Arca notes that the
7 15
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
E:\FR\FM\17MRN1.SGM
17MRN1
Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Notices
Exchange officer can adjust or nullify a
transaction under the authority granted
by this new provision only if the
transaction meets the objective criteria
for an obvious error under NYSE Arca
rules.
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and Rule
19b–4(f)(6) thereunder.10 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and Rule 19b–4(f)(6)(iii)
thereunder.12
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,
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied the pre-filing requirement.
dwashington3 on PROD1PC60 with NOTICES
10 17
VerDate Nov<24>2008
13:44 Mar 16, 2009
Jkt 217001
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–NYSEArca–2009–17 on the
subject line.
11397
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #11643 and #11644]
Kentucky Disaster Number KY–00019
AGENCY: U.S. Small Business
Administration.
ACTION: Amendment 2.
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Kentucky (FEMA–1818–
DR), dated 02/05/2009.
Paper Comments
Incident: Severe winter storm and
• Send paper comments in triplicate
flooding.
to Elizabeth M. Murphy, Secretary,
Incident Period: 01/26/2009 through
Securities and Exchange Commission,
02/13/2009.
100 F Street, NE., Washington, DC
Effective Date: 03/09/2009.
20549–1090.
Physical Loan Application Deadline
All submissions should refer to File
Date: 04/06/2009.
Number SR–NYSEArca–2009–17. This
Economic Injury (EIDL) Loan
file number should be included on the
Application Deadline Date: 11/05/2009.
subject line if e-mail is used. To help the ADDRESSES: Submit completed loan
Commission process and review your
applications to: U.S. Small Business
comments more efficiently, please use
Administration, Processing and
only one method. The Commission will Disbursement Center, 14925 Kingsport
post all comments on the Commission’s Road, Fort Worth, TX 76155.
Internet Web site (https://www.sec.gov/
FOR FURTHER INFORMATION CONTACT: A.
rules/sro.shtml). Copies of the
Escobar, Office of Disaster Assistance,
submission, all subsequent
U.S. Small Business Administration,
amendments, all written statements
409 3rd Street, SW., Suite 6050,
with respect to the proposed rule
Washington, DC 20416.
change that are filed with the
SUPPLEMENTARY INFORMATION: The notice
Commission, and all written
of the President’s major disaster
communications relating to the
declaration for private non-profit
proposed rule change between the
Commission and any person, other than organizations in the State of Kentucky,
dated 02/05/2009, is hereby amended to
those that may be withheld from the
include the following areas as adversely
public in accordance with the
affected by the disaster.
provisions of 5 U.S.C. 552, will be
Primary Counties: Boone, Casey,
available for inspection and copying in
Gallatin, Hancock, Henry, Kenton,
the Commission’s Public Reference
Simpson, Taylor, Wolfe, Trimble
Room, 100 F Street, NE., Washington,
All other information in the original
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. declaration remains unchanged.
Copies of the filing also will be available (Catalog of Federal Domestic Assistance
for inspection and copying at the
Numbers 59002 and 59008)
principal office of the Exchange. All
Herbert L. Mitchell,
comments received will be posted
Associate Administrator for Disaster
without change; the Commission does
Assistance.
not edit personal identifying
[FR Doc. E9–5736 Filed 3–16–09; 8:45 am]
information from submissions. You
BILLING CODE 8025–01–P
should submit only information that
you wish to make available publicly. All
submissions should refer to File
SMALL BUSINESS ADMINISTRATION
Number SR–NYSEArca–2009–17 and
should be submitted on or before April
[Disaster Declaration #11690 and #11691]
7, 2009.
Texas Disaster Number TX–00334
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–5716 Filed 3–16–09; 8:45 am]
BILLING CODE 8011–01–P
13 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00053
Fmt 4703
Sfmt 4703
Small Business Administration.
Notice.
AGENCY:
ACTION:
SUMMARY: This is a notice of an
Administrative declaration of a disaster
for the State of Texas dated: 03/10/2009.
Incident: Bastrop County Wildland
Fire.
E:\FR\FM\17MRN1.SGM
17MRN1
]]>Agencies
[Federal Register Volume 74, Number 50 (Tuesday, March 17, 2009)]
[Notices]
[Pages 11396-11397]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-5716]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59556; File No. SR-NYSEArca-2009-17]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change Amending Rule
6.87--Obvious Errors
March 11, 2009.
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 February 27, 2009, NYSE Arca, Inc. (``NYSE Arca'' 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. NYSE Arca filed
the proposed rule change as a ``non-controversial'' proposal pursuant
to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 6.87--Obvious Errors. A copy of
this filing is available on the Exchange's Web site at https://
www.nyse.com, at the Exchange's principal office and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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
NYSE Arca proposes to amend Rule 6.87 pertaining to the
nullification and adjustment of options transactions. Specifically, the
Exchange proposes to adopt a new provision which provides that in the
interest of maintaining a fair and orderly market and for the
protection of investors, the Chief Executive Officer of NYSE Arca Inc.
(``CEO'') or his/her designee (collectively ``Exchange officer''),\5\
may, on his or her own motion or upon request, determine to review any
transaction occurring on the Exchange that is believed to be
erroneous.\6\ A transaction reviewed pursuant to this new provision may
be nullified or adjusted only if it is determined by the Exchange
officer that the transaction is erroneous as provided in Rule
6.87(a)(1)-(5) or Commentary .04 thereof. A transaction would be
adjusted or nullified in accordance with the provision under which it
is deemed an erroneous transaction. The Exchange officer may be
assisted by a Trading Official in reviewing a transaction.
---------------------------------------------------------------------------
\5\ The Exchange represents that a CEO designee will be an
officer of the Exchange, who has also been designated as a Trading
Official, such as the Executive Vice President of Trading Operations
or the Vice President of Trading Services. Exchange officers are
employees of the Exchange, and are not affiliated with OTP Holders
or OTP Firms.
\6\ In the event a party to a transaction requests that the CEO
or his/her designee review a transaction, the Exchange officer
nonetheless would need to determine, on his or her own motion,
whether to review the transaction.
---------------------------------------------------------------------------
The Exchange officer shall act pursuant to this paragraph as soon
as possible after receiving notification of the transaction, and
ordinarily would be expected to act on the same day as the transaction
occurred. However, because a transaction under review may have occurred
near the close of trading or due to unusual circumstances, the rule
provides that the Exchange officer shall act no later than 9:30 a.m.
(ET) on the next trading day following the date of the transaction in
question. An OTP Holder affected by a determination to nullify or
adjust a transaction pursuant to this new provision may appeal such
determination in accordance with Rule 6.87(a)(6); however, a
determination by an Exchange officer not to review a transaction, or a
determination not to nullify or adjust a transaction for which a review
was requested or conducted, is not appealable. NYSE Arca believes it is
appropriate to limit review on appeal to only those situations in which
a transaction is actually nullified or adjusted.
This new provision is not intended to replace a party's obligation
to request a review, within the required time periods under Rule
6.87(a)(3), of any transaction that it believes meets the criteria for
an obvious error. And, if a transaction is reviewed and a determination
has been rendered pursuant to Rules 6.87(a)(1)-(5) or Commentary .04
thereof, no additional relief may be granted under this new provision.
Moreover, NYSE Arca does not anticipate exercising this new authority
in every situation in which a party fails to make a timely request for
review of a transaction pursuant to Rule 6.87(a)(3). NYSE Arca believes
this provision will help to protect the integrity of its marketplace by
vesting an Exchange officer with the authority to review a transaction
that may be erroneous, in those situations where a party failed to make
a timely request for a review.
The Exchange also proposes at this time to revise Rule
6.87(a)(3)(A) in order to clarify that the time period in which a
Market Maker or other OTP Holder must notify the Exchange, when
requesting relief from a possible erroneous transaction, applies to all
transactions that are subject to adjustment or nullification, pursuant
to Rule 6.87(a)(1)-(5).
2. Statutory Basis
This proposed rule change is designed to allow an Exchange officer
to review a transaction in order to provide the opportunity for
potential relief to a party affected by an obvious error. The Exchange
believes that for these reasons the proposed rule change is consistent
with Section 6(b) of the Act \7\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \8\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
NYSE Arca notes that the
[[Page 11397]]
Exchange officer can adjust or nullify a transaction under the
authority granted by this new provision only if the transaction meets
the objective criteria for an obvious error under NYSE Arca rules.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 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 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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6)(iii) thereunder.\12\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied the pre-filing requirement.
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2009-17 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-NYSEArca-2009-17. 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, 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-NYSEArca-2009-17 and should
be submitted on or before April 7, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-5716 Filed 3-16-09; 8:45 am]
BILLING CODE 8011-01-P
