Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC Extending Until June 9, 2009, the Operation of Interim NYSE Rule 128 Which Permits the Exchange To Cancel or Adjust Clearly Erroneous Executions if They Arise Out of the Use or Operation of Any Quotation, Execution or Communication System Owned or Operated by the Exchange, Including Those Executions That Occur in the Event of a System Disruption or System Malfunction, 12431-12433 [E9-6397]
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Federal Register / Vol. 74, No. 55 / Tuesday, March 24, 2009 / Notices
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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59581; File No. SR–NYSE–
2009–26]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
All submissions should refer to File
Stock Exchange LLC Extending Until
Number SR–NSX–2009–01. This file
June 9, 2009, the Operation of Interim
number should be included on the
subject line if e-mail is used. To help the NYSE Rule 128 Which Permits the
Exchange To Cancel or Adjust Clearly
Commission process and review your
Erroneous Executions if They Arise
comments more efficiently, please use
only one method. The Commission will Out of the Use or Operation of Any
Quotation, Execution or
post all comments on the Commission’s
Communication System Owned or
Internet Web site (https://www.sec.gov/
Operated by the Exchange, Including
rules/sro.shtml). Copies of the
Those Executions That Occur in the
submission, all subsequent
Event of a System Disruption or
amendments, all written statements
System Malfunction
with respect to the proposed rule
March 16, 2009.
change that are filed with the
Pursuant to Section 19(b)(1) 1 of the
Commission, and all written
Securities Exchange Act of 1934 (the
communications relating to the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
proposed rule change between the
notice is hereby given that, on March 9,
Commission and any person, other than
2009, New York Stock Exchange LLC
those that may be withheld from the
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
public in accordance with the
the Securities and Exchange
provisions of 5 U.S.C. 552, will be
Commission (the ‘‘Commission’’) the
available for inspection and copying in
proposed rule change as described in
the Commission’s Public Reference
Items I and II below, which Items have
Room, 100 F Street, NE., Washington,
been prepared by the self-regulatory
DC 20549, on official business days
organization. The Commission is
between the hours of 10 a.m. and 3 p.m. publishing this notice to solicit
Copies of such filing also will be
comments on the proposed rule change
available for inspection and copying at
from interested persons.
the principal office of the Exchange. All
I. Self-Regulatory Organization’s
comments received will be posted
Statement of the Terms of Substance of
without change; the Commission does
the Proposed Rule Change
not edit personal identifying
The Exchange proposes to extend
information from submissions. You
until June 9, 2009, the operation of
should submit only information that
you wish to make publicly available. All interim NYSE Rule 128 (‘‘Clearly
Erroneous Executions for NYSE
submissions should refer to File
Equities’’) which permits the Exchange
Number SR–NSX–2009–01 and should
to cancel or adjust clearly erroneous
be submitted on or before April 14,
executions if they arise out of the use or
2009.
operation of any quotation, execution or
For the Commission, by the Division of
communication system owned or
Trading and Markets, pursuant to delegated
operated by the Exchange, including
20
authority.
those executions that occur in the event
Florence E. Harmon,
of a system disruption or system
Deputy Secretary.
malfunction.
[FR Doc. E9–6352 Filed 3–23–09; 8:45 am]
mstockstill on PROD1PC66 with NOTICES
BILLING CODE 8010–01–P
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
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
20 17
CFR 200.30–3(a)(12).
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01:06 Mar 24, 2009
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12431
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to extend
until June 9, 2009, the operation of
interim NYSE Rule 128 (‘‘Clearly
Erroneous Executions for NYSE
Equities’’) which permits the Exchange
to cancel or adjust clearly erroneous
executions if they arise out of the use or
operation of any quotation, execution or
communication system owned or
operated by the Exchange, including
those executions that occur in the event
of a system disruption or system
malfunction.
Prior to the implementation of NYSE
Rule 128 on January 28, 2008,4 the
NYSE did not have a rule providing the
Exchange with the authority to cancel or
adjust clearly erroneous trades of
securities executed on or through the
systems and facilities of the NYSE.
In order for the NYSE to be consistent
with other national securities exchanges
which have some version of a clearly
erroneous execution rule, the Exchange
is drafting an amended clearly
erroneous rule which will accommodate
such other exchanges but will be
appropriate for the NYSE market model.
The NYSE notes that the Commission
approved an amended clearly erroneous
execution rule for Nasdaq in May 2008.5
On July 28, 2008, the Exchange filed
with the SEC a request to extend the
operation of interim Rule 128 until
October 1, 2008 6 in order to review the
provisions of Nasdaq’s clearly erroneous
rule and to consider integrating similar
standards into its own amendment to
Rule 128. On October 1, 2008,7 the
Exchange filed with the SEC a further
request to extend the operation of
interim Rule 128 until January 9, 2009
in order to consider integrating similar
standards into the amendment to Rule
4 See Securities Exchange Act Release No. 57323
(February 13, 2008), 73 FR 9371 (February 20, 2008)
(SR–NYSE–2008–09).
5 See Securities Exchange Act Release No. 57826
(May 15, 2008), 73 FR 29802 (May 22, 2008) (SR–
NASDAQ–2007–001).
6 See Securities Exchange Act Release No. 58328
(August 8, 2008), 73 FR 47247 (August 13, 2008)
(SR–NYSE–2008–63).
7 See Securities Exchange Act Release No. 58732
(October 3, 2008), 73 FR 61183 (October 15, 2008)
(SR–NYSE–2008–99).
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12432
Federal Register / Vol. 74, No. 55 / Tuesday, March 24, 2009 / Notices
128. On January 9, 2009,8 the Exchange
filed with the SEC a request to extend
the operation of interim Rule 128 until
March 9, 2009, indicating that the
Exchange was still in the process of
reviewing the Nasdaq rule with a view
towards incorporating certain
provisions into the amendment of
interim Rule 128.
On February 10, 2009, NYSE Arca
submitted a proposal to the Commission
to amend its clearly erroneous rule. The
NYSE Arca proposed rule differs in
certain respects from the Nasdaq clearly
erroneous rule. Accordingly, the
Exchange is presently in the process of
finalizing its review of NYSE Arca’s
proposed amended CEE [sic] rule,
which includes market wide CEE [sic]
initiatives, to determine if it is
appropriate to incorporate such
provisions into the Rule 128
amendment. The Exchange is, therefore,
requesting to extend the operation of
interim Rule 128 until June 9, 2009.
Prior to June 9, 2009, the Exchange
intends to file a 19b–4 rule change
amending interim Rule 128, which, if
approved by the SEC, will be effective
after June 9, 2009.
2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Act’’) 9 for
this proposed rule change is the
requirement under Section 6(b)(5)10 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.
As articulated more fully above, the
proposed rule would place the NYSE on
equal footing with other national
securities exchanges. This will promote
the integrity of the market and protect
the public interest, since it would
permit all exchanges to cancel or adjust
clearly erroneous trades when such
trades occur, rather than canceling them
on all other markets, but leaving them
standing on only one market.
mstockstill on PROD1PC66 with 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.
8 See Securities Exchange Act Release No. 59255
(January 15, 2009), 74 FR 4496 (January 26, 2009)
(SR–NYSE–2009–02).
9 15 U.S.C. 78f(a). [sic]
10 15 U.S.C. 78f(b)(5).
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01:06 Mar 24, 2009
Jkt 217001
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 foregoing rule change has become
effective pursuant to Section
19(b)(3)(A) 11 of the Act and Rule 19b–
4(f)(6) 12 thereunder. The proposed rule
change effects a change that (A) does not
significantly affect the protection of
investors or the public interest; (B) does
not impose any significant burden on
competition; and (C) by its terms, does
not become operative for 30 days after
the date of the filing, or such shorter
time as the Commission may designate
if consistent with the protection of
investors and the public interest;
provided that the self-regulatory
organization has given the Commission
written notice of its intent to file the
proposed rule change, along with a brief
description and text of the proposed
rule change, at least five business days
prior to the date of filing of the
proposed rule change, or such shorter
time as designated by the Commission.
The Exchange believes that good
cause, consistent with the provisions of
Rule 19b–4(f)(6), exists to justify making
the rule change immediately effective.
Because the proposed rule is based on
a rule that has been previously
approved by the Commission, and
because the proposed rule would in any
event be operative only until a more
robust and market-appropriate rule was
implemented, the NYSE believes that
the proposed rule is non-controversial.
Moreover, the NYSE believes that the
absence of such a rule in an automated
and fast-paced trading environment
poses a danger to the integrity of the
markets and the public interest, and that
this exigency justifies filing the rule for
immediate effectiveness rather than
using the regular Rule 19b–2 process,
which would require the Exchange to
continue without the protection of the
proposed rule until the expiration of the
prescribed time periods for notice,
comment and approval. In contrast,
immediate effectiveness of the proposed
rule will immediately and timely enable
the NYSE to cancel or adjust clearly
erroneous trades that may present a risk
to the integrity of the equities markets
and all related markets. The proposed
rule will also allow the Exchange to
11 15
12 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
Frm 00130
Fmt 4703
Sfmt 4703
protect customers and the public
interest, and to continue to provide
economically efficient execution of
securities transactions.
The NYSE also requests that the
Commission waive the five-day period
for notice of intent to file this proposed
rule change, and the 30-day period
before the rule becomes operative, both
of which are prescribed by Rule 19b–
4(f)(6), but which may be waived
pursuant to Rule 19b–4(f)(6)(iii) 13 if
such action is consistent with the
protection of investors and public
interest.14 The Exchange believes that
waiver of these time periods so that the
rule may be immediately operative are
consistent with the protection of
investors and the public interest for the
reasons described above.
The Commission believes that
waiving the 30-day operative delay will
allow the Exchange to continue to
immediately and timely cancel or adjust
trades that it determines to be clearly
erroneous under Rule 128. The
Commission believes that the extension
of NYSE Rule 128 until June 9, 2009
will allow the Exchange to continue to
apply the rule without interruption and
is consistent with the protection of
investors and the public interest. The
Commission hereby designates the
proposal as operative upon filing.15 The
Commission has determined to waive
the five-day prefiling period in this case.
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:
13 17
CFR 240.19b–4(f)(6)(iii).
fact, the Commission notes, under Rule 19b–
4(f)(6)(iii), the ‘‘consistent with the protection of
investors and public interest’’ standard applies only
to the Commission’s waiver of the 30-day operative
delay. 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.
15 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).
14 In
E:\FR\FM\24MRN1.SGM
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Federal Register / Vol. 74, No. 55 / Tuesday, March 24, 2009 / Notices
Electronic Comments
SMALL BUSINESS ADMINISTRATION
• 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–2009–26 on the
subject line.
[License No. 03/03–0247]
Solutions Capital I, L.P.; Notice
Seeking Exemption Under Section 312
of the Small Business Investment Act,
Conflicts of Interest
mstockstill on PROD1PC66 with NOTICES
Notice is hereby given that Solutions
Capital I, L.P., 1100 Wilson Blvd., Suite
Paper Comments
3000, Arlington, VA 22209, a Federal
Licensee under the Small Business
• Send paper comments in triplicate
Investment Act of 1958, as amended
to Elizabeth M. Murphy, Secretary,
(‘‘the Act’’), in connection with the
Securities and Exchange Commission,
financing of a small concern, has sought
100 F Street, NE., Washington, DC
an exemption under Section 312 of the
20549–1090.
Act and Section 107.730, Financings
All submissions should refer to File
which Constitute Conflicts of Interest, of
Number SR–NYSE–2009–26. This file
the Small Business Administration
number should be included on the
(‘‘SBA’’) Rules and Regulations (13 CFR
subject line if e-mail is used. To help the 107.730). Solutions Capital I, L.P.,
Commission process and review your
proposes to provide equity/debt security
comments more efficiently, please use
financing to Total Sleep Holdings, Inc.,
only one method. The Commission will 1425 Greenway Drive, Suite 300, Irving,
post all comments on the Commission’s TX 75038. The financing is
contemplated for the pay down of an
Internet Web site (https://www.sec.gov/
existing senior lender and for working
rules/sro.shtml). Copies of the
capital.
submission, all subsequent
The financing is brought within the
amendments, all written statements
purview of § 107.730(a)(1) of the
with respect to the proposed rule
Regulations because MCG Capital
change that are filed with the
Corporation, an Associate of Solutions
Commission, and all written
Capital I, L.P., owns more than ten
communications relating to the
percent of Total Sleep Holdings, Inc.;
proposed rule change between the
Commission and any person, other than therefore Total Sleep Holdings, Inc. is
considered an Associate of Solutions
those that may be withheld from the
Capital I, L.P., as defined in Sec. 105.50
public in accordance with the
of the regulations.
provisions of 5 U.S.C. 552, will be
Notice is hereby given that any
available for inspection and copying in
interested person may submit written
the Commission’s Public Reference
comments on the transaction to the
Room, 100 F Street, NE., Washington,
Associate Administrator for Investment,
DC 20549, on official business days
U.S. Small Business Administration,
between the hours of 10 a.m. and 3 p.m. 409 Third Street, SW., Washington, DC
Copies of such filing also will be
20416.
available for inspection and copying at
Dated: March 15, 2009.
the principal office of the NYSE. All
Harry E. Haskins,
comments received will be posted
Acting Associate Administrator for
without change; the Commission does
Investment.
not edit personal identifying
[FR Doc. E9–6379 Filed 3–23–09; 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–NYSE–2009–26 and should
be submitted on or before April 14,
[Disaster Declaration #11677 and #11678]
2009.
Oregon Disaster Number OR–00029
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–6397 Filed 3–23–09; 8:45 am]
BILLING CODE 8010–01–P
16 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
01:06 Mar 24, 2009
Jkt 217001
AGENCY: U.S. Small Business
Administration.
ACTION: Amendment 1.
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Oregon (FEMA–1824–DR),
dated 03/02/2009.
PO 00000
Frm 00131
Fmt 4703
Sfmt 4703
12433
Incident: Severe winter storm, record
and near record snow, landslides, and
mudslides.
Incident Period: 12/20/2008 through
12/26/2008.
Effective Date: 03/13/2009.
Physical Loan Application Deadline
Date: 05/01/2009.
Economic Injury (EIDL) Loan
Application Deadline Date: 12/02/2009.
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.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of Oregon,
dated 03/02/2009, is hereby amended to
include the following areas as adversely
affected by the disaster.
Primary Counties: Washington.
All other information in the original
declaration remains unchanged.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Herbert L. Mitchell,
Associate Administrator, for Disaster
Assistance.
[FR Doc. E9–6390 Filed 3–23–09; 8:45 am]
BILLING CODE 8025–01–P
DEPARTMENT OF STATE
[Public Notice 6556]
60-Day Notice of Proposed Information
Collection: DS–4096, Reconstruction
and Stabilization; Civilian Response
Corps Database In-Processing Form,
OMB Control Number 1405–0168
ACTION: Notice of request for public
comments.
SUMMARY: The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
The purpose of this notice is to allow 60
days for public comment in the Federal
Register preceding submission to OMB.
We are conducting this process in
accordance with the Paperwork
Reduction Act of 1995.
• Title of Information Collection:
Civilian Response Corps Database InProcessing Form.
• OMB Control Number: 1405–0168.
• Type of Request: Revised
Collection.
E:\FR\FM\24MRN1.SGM
24MRN1
]]>Agencies
[Federal Register Volume 74, Number 55 (Tuesday, March 24, 2009)]
[Notices]
[Pages 12431-12433]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-6397]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59581; File No. SR-NYSE-2009-26]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC
Extending Until June 9, 2009, the Operation of Interim NYSE Rule 128
Which Permits the Exchange To Cancel or Adjust Clearly Erroneous
Executions if They Arise Out of the Use or Operation of Any Quotation,
Execution or Communication System Owned or Operated by the Exchange,
Including Those Executions That Occur in the Event of a System
Disruption or System Malfunction
March 16, 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 March 9, 2009, New York Stock Exchange LLC (``NYSE'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 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 extend until June 9, 2009, the operation
of interim NYSE Rule 128 (``Clearly Erroneous Executions for NYSE
Equities'') which permits the Exchange to cancel or adjust clearly
erroneous executions if they arise out of the use or operation of any
quotation, execution or communication system owned or operated by the
Exchange, including those executions that occur in the event of a
system disruption or system malfunction.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to extend until June 9, 2009, the operation
of interim NYSE Rule 128 (``Clearly Erroneous Executions for NYSE
Equities'') which permits the Exchange to cancel or adjust clearly
erroneous executions if they arise out of the use or operation of any
quotation, execution or communication system owned or operated by the
Exchange, including those executions that occur in the event of a
system disruption or system malfunction.
Prior to the implementation of NYSE Rule 128 on January 28,
2008,\4\ the NYSE did not have a rule providing the Exchange with the
authority to cancel or adjust clearly erroneous trades of securities
executed on or through the systems and facilities of the NYSE.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 57323 (February 13,
2008), 73 FR 9371 (February 20, 2008) (SR-NYSE-2008-09).
---------------------------------------------------------------------------
In order for the NYSE to be consistent with other national
securities exchanges which have some version of a clearly erroneous
execution rule, the Exchange is drafting an amended clearly erroneous
rule which will accommodate such other exchanges but will be
appropriate for the NYSE market model.
The NYSE notes that the Commission approved an amended clearly
erroneous execution rule for Nasdaq in May 2008.\5\ On July 28, 2008,
the Exchange filed with the SEC a request to extend the operation of
interim Rule 128 until October 1, 2008 \6\ in order to review the
provisions of Nasdaq's clearly erroneous rule and to consider
integrating similar standards into its own amendment to Rule 128. On
October 1, 2008,\7\ the Exchange filed with the SEC a further request
to extend the operation of interim Rule 128 until January 9, 2009 in
order to consider integrating similar standards into the amendment to
Rule
[[Page 12432]]
128. On January 9, 2009,\8\ the Exchange filed with the SEC a request
to extend the operation of interim Rule 128 until March 9, 2009,
indicating that the Exchange was still in the process of reviewing the
Nasdaq rule with a view towards incorporating certain provisions into
the amendment of interim Rule 128.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 57826 (May 15,
2008), 73 FR 29802 (May 22, 2008) (SR-NASDAQ-2007-001).
\6\ See Securities Exchange Act Release No. 58328 (August 8,
2008), 73 FR 47247 (August 13, 2008) (SR-NYSE-2008-63).
\7\ See Securities Exchange Act Release No. 58732 (October 3,
2008), 73 FR 61183 (October 15, 2008) (SR-NYSE-2008-99).
\8\ See Securities Exchange Act Release No. 59255 (January 15,
2009), 74 FR 4496 (January 26, 2009) (SR-NYSE-2009-02).
---------------------------------------------------------------------------
On February 10, 2009, NYSE Arca submitted a proposal to the
Commission to amend its clearly erroneous rule. The NYSE Arca proposed
rule differs in certain respects from the Nasdaq clearly erroneous
rule. Accordingly, the Exchange is presently in the process of
finalizing its review of NYSE Arca's proposed amended CEE [sic] rule,
which includes market wide CEE [sic] initiatives, to determine if it is
appropriate to incorporate such provisions into the Rule 128 amendment.
The Exchange is, therefore, requesting to extend the operation of
interim Rule 128 until June 9, 2009. Prior to June 9, 2009, the
Exchange intends to file a 19b-4 rule change amending interim Rule 128,
which, if approved by the SEC, will be effective after June 9, 2009.
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Act'')
\9\ for this proposed rule change is the requirement under Section
6(b)(5)\10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(a). [sic]
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
As articulated more fully above, the proposed rule would place the
NYSE on equal footing with other national securities exchanges. This
will promote the integrity of the market and protect the public
interest, since it would permit all exchanges to cancel or adjust
clearly erroneous trades when such trades occur, rather than canceling
them on all other markets, but leaving them standing on only one
market.
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 foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \11\ of the Act and Rule 19b-4(f)(6) \12\ thereunder. The
proposed rule change effects a change that (A) does not significantly
affect the protection of investors or the public interest; (B) does not
impose any significant burden on competition; and (C) by its terms,
does not become operative for 30 days after the date of the filing, or
such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest; provided that the
self-regulatory organization has given the Commission written notice of
its intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule change,
or such shorter time as designated by the Commission.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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The Exchange believes that good cause, consistent with the
provisions of Rule 19b-4(f)(6), exists to justify making the rule
change immediately effective. Because the proposed rule is based on a
rule that has been previously approved by the Commission, and because
the proposed rule would in any event be operative only until a more
robust and market-appropriate rule was implemented, the NYSE believes
that the proposed rule is non-controversial. Moreover, the NYSE
believes that the absence of such a rule in an automated and fast-paced
trading environment poses a danger to the integrity of the markets and
the public interest, and that this exigency justifies filing the rule
for immediate effectiveness rather than using the regular Rule 19b-2
process, which would require the Exchange to continue without the
protection of the proposed rule until the expiration of the prescribed
time periods for notice, comment and approval. In contrast, immediate
effectiveness of the proposed rule will immediately and timely enable
the NYSE to cancel or adjust clearly erroneous trades that may present
a risk to the integrity of the equities markets and all related
markets. The proposed rule will also allow the Exchange to protect
customers and the public interest, and to continue to provide
economically efficient execution of securities transactions.
The NYSE also requests that the Commission waive the five-day
period for notice of intent to file this proposed rule change, and the
30-day period before the rule becomes operative, both of which are
prescribed by Rule 19b-4(f)(6), but which may be waived pursuant to
Rule 19b-4(f)(6)(iii) \13\ if such action is consistent with the
protection of investors and public interest.\14\ The Exchange believes
that waiver of these time periods so that the rule may be immediately
operative are consistent with the protection of investors and the
public interest for the reasons described above.
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\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ In fact, the Commission notes, under Rule 19b-4(f)(6)(iii),
the ``consistent with the protection of investors and public
interest'' standard applies only to the Commission's waiver of the
30-day operative delay. 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.
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The Commission believes that waiving the 30-day operative delay
will allow the Exchange to continue to immediately and timely cancel or
adjust trades that it determines to be clearly erroneous under Rule
128. The Commission believes that the extension of NYSE Rule 128 until
June 9, 2009 will allow the Exchange to continue to apply the rule
without interruption and is consistent with the protection of investors
and the public interest. The Commission hereby designates the proposal
as operative upon filing.\15\ The Commission has determined to waive
the five-day prefiling period in this case.
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\15\ 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:
[[Page 12433]]
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-2009-26 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-2009-26. 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 such filing also will be available for
inspection and copying at the principal office of the NYSE. 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-2009-26 and should be
submitted on or before April 14, 2009.
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\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-6397 Filed 3-23-09; 8:45 am]
BILLING CODE 8010-01-P
