Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Rule 6.62 To Provide Additional Order Types, 13279-13281 [E9-6702]
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Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices
Exchange believes that the proposed
initial and annual listing fees for all
securities listed under Section 102.03
and traded on NYSE Bonds are
reasonable to cover the costs incurred
for the administrative and regulatory
services provided by the Exchange.
These fees are applicable to both NYSE
and non-NYSE issuers that seek to have
their Section 102.03 bonds or securities
listed on the Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 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
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self regulatory
organization consents, the Commission
will:
(A) By order approve 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:
100 F Street, NE., Washington DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2009–31. 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 will also be available
for inspection and copying at the
NYSE’s principal office and on its
Internet Web site at https://
www.nyse.com. 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 No. SR–NYSE–
2009–31 and should be submitted on or
before April 16, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–6720 Filed 3–25–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2009–31 on the
subject line.
[Release No. 34–59603; File No. SR–
NYSEArca–2009–21]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. Amending Rule 6.62 To
Provide Additional Order Types
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
VerDate Nov<24>2008
20:28 Mar 25, 2009
Jkt 217001
March 19, 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 March 10,
2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 6.62 to provide additional order
types which will give investors greater
control over the circumstances in which
their orders are executed. Changes to the
rule text are shown in the attached
Exhibit 5. 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
The purpose of this proposed rule
change is to provide additional order
types which will give market
participants greater control over the
circumstances in which their orders are
executed.
NYSE Arca’s options market has a
price-time priority market structure,
with automated routing if an incoming
order is marketable against the National
Best Bid/Offer (‘‘NBBO’’), but not
immediately marketable on the
Exchange. While the Exchange
considers this to be a highly desirable
market structure, some investors and
market participants wish to provide
1 15
8 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00107
Fmt 4703
2 17
Sfmt 4703
13279
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\26MRN1.SGM
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Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices
liquidity in some but not all
circumstances; others wish to not have
orders routed but still be available for
execution on NYSE Arca. To help meet
these desires, the Exchange proposes the
following order types:
Tracking Order
A Tracking Order is an undisplayed
limit order that is eligible for execution
in the Working Order Process against
orders equal to or less than the size of
the Tracking Order. While Tracking
Orders are ranked at their limit price,
they are only eligible for execution at a
price that matches the NBBO. A
Tracking Order is intended only to
provide liquidity in the event a
marketable order would otherwise route
to another exchange.
Tracking Orders have no standing
with regard to open outcry trading, as
they are not displayed, nor (unlike a
Price Improving Order or Quote) are
they represented in the disseminated
bid or offer at an indicative price.
Tracking Orders only have standing if
contra interest in the NYSE Arca System
would otherwise be routed to another
market center at the NBBO. If a Floor
Broker needs to enter an order into the
System in order to clear the NBBO prior
to executing at a worse price on the
Floor, that order will trade with any
eligible Tracking Orders.
For instance, the NBBO market in a
series is 2.05–2.15, with a 2.10 Tracking
Order to buy 10 contracts, but the NYSE
Arca displayed bid is 2.00. An order is
received to sell 6 contracts at 2.05; this
order will be matched against the 2.10
buy Tracking Order at a price of 2.05,
matching the NBBO.
Similarly, with the same initial
scenario, a second Tracking Order to
buy 20 contracts paying 2.05 is placed
in the Consolidated Book. An order is
received to sell 15 contracts at 2.05.
This order is matched against the
second Tracking Order, rather than the
first Tracking Order, because it is greater
in size than the first Tracking Order, but
not greater in size than the second
Tracking Order. It will be executed at
2.05, the NBBO price.
If a Tracking Order is executed but
not exhausted, the remaining portion of
the order shall be cancelled, without
routing the order to another market
center or market participant. A Tracking
Order shall not trade-through the NBBO.
Attempts to use a Tracking Order to
execute a cross transaction would be
considered a violation of NYSE Arca
Rule 6.47A, as that rule requires an
order to be exposed (displayed) if it is
part of a cross transaction.
VerDate Nov<24>2008
20:28 Mar 25, 2009
Jkt 217001
Liquidity Adding Order
A Liquidity Adding Order is a limit
order that will only be accepted if it is
not marketable at the time of receipt. It
is intended to provide liquidity and also
will receive a liquidity adding credit if
entered into an issue that credits a Post
Liquidity Fee. Liquidity Adding Orders
are not eligible for routing, but will be
rejected if marketable against the NBBO.
If a Liquidity Adding Order will lock or
cross the market at the time of entry it
will be rejected. Liquidity Adding
Orders that, at the time of entry, would
otherwise interact with undisplayed
orders will be rejected. Liquidity
Adding Orders may have a time-in-force
of Day or GTC, but not IOC.
PNP-Blind Order
NYSE Arca has an existing order type
known as PNP (Post No Preference) 3
which is a limit order that is only to be
executed on the Exchange, and may be
ranked in the Consolidated Book if not
marketable, but is never to be routed. A
PNP order that is marketable against the
NBBO when entered is cancelled back
to the entering OTP Holder.
Certain OTP Holders have asked for a
similar order type that will also not
route if marketable against the NBBO,
but, unlike a PNP order, will not be
cancelled if similarly marketable.
A PNP Blind order is a limit order
that is to be executed on the Exchange,
but never routed to another market. The
unexecuted portion of a PNP Blind
order is to be ranked in the
Consolidated Book. Unlike a
conventional PNP order, a PNP Blind
Order that is marketable against the
NBBO will not be cancelled; however,
the price and size will not be
disseminated to OPRA. If the NBBO
moves so that the PNP Blind Order no
longer locks or crosses the NBBO, the
order’s price and size will be
disseminated. When a PNP Blind order
is not displayed, it provides price
improvement to any incoming contraside order. A PNP Blind order will be
executed at its limit price, if displayed,
or at a price that matches the contra side
of the NBBO, if undisplayed.
PNP Light Order
A conventional PNP Order is a Limit
Order that is to be executed in whole or
in part on the Exchange, and the portion
that is not so executed is to be ranked
in the Consolidated Book, without
routing any portion of the order to
another market center; provided,
however, the Exchange shall cancel a
PNP Order that would lock or cross the
NBBO. A PNP Order is eligible for
execution against any displayed and
undisplayed trading interest in the
Consolidated Book, such as a PNP Blind
Order, or the undisplayed portion of a
Reserve Order.4
A PNP Light Order is a PNP order that
carries the added instruction to cancel
the order if it is marketable against
interest that is not displayed in the
Consolidated Book. This provides OTP
Holders greater ability to control the
circumstances in which their orders are
executed.
As with a conventional PNP order, a
PNP Light order is to be executed in
whole or in part on the Exchange, and
the portion not so executed is to be
ranked in the Consolidated Book,
without routing any portion of the order
to another market center; provided,
however, the Exchange shall cancel a
PNP-Light Order that would (i) lock or
cross the NBBO, or (ii) be marketable
against undisplayed interest in the
Consolidated Book. For example, if
there is a resting PNP Blind order in the
Consolidated Book that is not displayed,
a contra sided PNP Light order will be
cancelled.
A PNP Light order will execute
against a Price Improving Order or
Quote,5 or against the displayed portion
of a Reserve Order, since such orders are
represented and displayed in the
Consolidated Book.
A PNP Light order will be executed at
the NBBO if executed upon receipt, or
else at its limit price (unless priceimproved by a Price Improving Order or
Quote).
PNP, PNP Blind, and PNP Light
orders will never execute against
Tracking Orders.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with and
furthers the objectives of Section 6(b)(5)
of the Act,6 in that it is designed to
promote just and equitable principles of
trade, remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system and, in general, to protect
investors and the public interest, by
providing investors with additional
order types that allow greater flexibility
in managing the circumstances in which
their orders are executed.
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
4 See
NYSE Arca Rule 6.62(d)(3).
NYSE Arca Rule 6.62(s).
6 15 U.S.C. 78f(b)(5).
5 See
3 See
PO 00000
NYSE Arca Rule 6.62(p).
Frm 00108
Fmt 4703
Sfmt 4703
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Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices
13281
necessary or appropriate in furtherance
of the purposes of the Act.
Number SR–NYSEArca-2009–21 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Paper Comments
[Release No. 34–59601; File No. SR–CBOE–
2009–018]
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 7 and Rule
19b–4(f)(6) thereunder.8 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 9 and Rule 19b–4(f)(6)(iii)
thereunder.10
At any time within 60 days of the
filing of such 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 rulecomments@sec.gov. Please include File
7 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
9 15 U.S.C. 78s(b)(3)(A).
10 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.
• 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-2009–21. 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 self-regulatory
organization. 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-2009–21 and should be
submitted on or before April 16, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–6702 Filed 3–25–09; 8:45 am]
BILLING CODE
8 17
VerDate Nov<24>2008
20:28 Mar 25, 2009
Jkt 217001
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change Related to
Short Term Option Series
March 19, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 13,
2009, the Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change, as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to make
permanent its Short Term Option Series
pilot program (the ‘‘Weeklys Program’’).
In addition, the Exchange is proposing
certain non-substantive changes to
reorganize its rule text related to the
Weeklys Program so that applicable
terms are located within a single section
of the relevant rules. Conforming, nonsubstantive changes are being proposed
to the text of the Exchange’s Quarterly
Option Series Pilot Program (the
‘‘Quarterlys Program’’). The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/Legal), at the Office of the
Secretary, CBOE and at the Commission.
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.
1 15
11 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00109
Fmt 4703
Sfmt 4703
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\26MRN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 57 (Thursday, March 26, 2009)]
[Notices]
[Pages 13279-13281]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-6702]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59603; File No. SR-NYSEArca-2009-21]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Rule
6.62 To Provide Additional Order Types
March 19, 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 March 10, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 6.62 to provide additional
order types which will give investors greater control over the
circumstances in which their orders are executed. Changes to the rule
text are shown in the attached Exhibit 5. 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
The purpose of this proposed rule change is to provide additional
order types which will give market participants greater control over
the circumstances in which their orders are executed.
NYSE Arca's options market has a price-time priority market
structure, with automated routing if an incoming order is marketable
against the National Best Bid/Offer (``NBBO''), but not immediately
marketable on the Exchange. While the Exchange considers this to be a
highly desirable market structure, some investors and market
participants wish to provide
[[Page 13280]]
liquidity in some but not all circumstances; others wish to not have
orders routed but still be available for execution on NYSE Arca. To
help meet these desires, the Exchange proposes the following order
types:
Tracking Order
A Tracking Order is an undisplayed limit order that is eligible for
execution in the Working Order Process against orders equal to or less
than the size of the Tracking Order. While Tracking Orders are ranked
at their limit price, they are only eligible for execution at a price
that matches the NBBO. A Tracking Order is intended only to provide
liquidity in the event a marketable order would otherwise route to
another exchange.
Tracking Orders have no standing with regard to open outcry
trading, as they are not displayed, nor (unlike a Price Improving Order
or Quote) are they represented in the disseminated bid or offer at an
indicative price. Tracking Orders only have standing if contra interest
in the NYSE Arca System would otherwise be routed to another market
center at the NBBO. If a Floor Broker needs to enter an order into the
System in order to clear the NBBO prior to executing at a worse price
on the Floor, that order will trade with any eligible Tracking Orders.
For instance, the NBBO market in a series is 2.05-2.15, with a 2.10
Tracking Order to buy 10 contracts, but the NYSE Arca displayed bid is
2.00. An order is received to sell 6 contracts at 2.05; this order will
be matched against the 2.10 buy Tracking Order at a price of 2.05,
matching the NBBO.
Similarly, with the same initial scenario, a second Tracking Order
to buy 20 contracts paying 2.05 is placed in the Consolidated Book. An
order is received to sell 15 contracts at 2.05. This order is matched
against the second Tracking Order, rather than the first Tracking
Order, because it is greater in size than the first Tracking Order, but
not greater in size than the second Tracking Order. It will be executed
at 2.05, the NBBO price.
If a Tracking Order is executed but not exhausted, the remaining
portion of the order shall be cancelled, without routing the order to
another market center or market participant. A Tracking Order shall not
trade-through the NBBO.
Attempts to use a Tracking Order to execute a cross transaction
would be considered a violation of NYSE Arca Rule 6.47A, as that rule
requires an order to be exposed (displayed) if it is part of a cross
transaction.
Liquidity Adding Order
A Liquidity Adding Order is a limit order that will only be
accepted if it is not marketable at the time of receipt. It is intended
to provide liquidity and also will receive a liquidity adding credit if
entered into an issue that credits a Post Liquidity Fee. Liquidity
Adding Orders are not eligible for routing, but will be rejected if
marketable against the NBBO. If a Liquidity Adding Order will lock or
cross the market at the time of entry it will be rejected. Liquidity
Adding Orders that, at the time of entry, would otherwise interact with
undisplayed orders will be rejected. Liquidity Adding Orders may have a
time-in-force of Day or GTC, but not IOC.
PNP-Blind Order
NYSE Arca has an existing order type known as PNP (Post No
Preference) \3\ which is a limit order that is only to be executed on
the Exchange, and may be ranked in the Consolidated Book if not
marketable, but is never to be routed. A PNP order that is marketable
against the NBBO when entered is cancelled back to the entering OTP
Holder.
---------------------------------------------------------------------------
\3\ See NYSE Arca Rule 6.62(p).
---------------------------------------------------------------------------
Certain OTP Holders have asked for a similar order type that will
also not route if marketable against the NBBO, but, unlike a PNP order,
will not be cancelled if similarly marketable.
A PNP Blind order is a limit order that is to be executed on the
Exchange, but never routed to another market. The unexecuted portion of
a PNP Blind order is to be ranked in the Consolidated Book. Unlike a
conventional PNP order, a PNP Blind Order that is marketable against
the NBBO will not be cancelled; however, the price and size will not be
disseminated to OPRA. If the NBBO moves so that the PNP Blind Order no
longer locks or crosses the NBBO, the order's price and size will be
disseminated. When a PNP Blind order is not displayed, it provides
price improvement to any incoming contra-side order. A PNP Blind order
will be executed at its limit price, if displayed, or at a price that
matches the contra side of the NBBO, if undisplayed.
PNP Light Order
A conventional PNP Order is a Limit Order that is to be executed in
whole or in part on the Exchange, and the portion that is not so
executed is to be ranked in the Consolidated Book, without routing any
portion of the order to another market center; provided, however, the
Exchange shall cancel a PNP Order that would lock or cross the NBBO. A
PNP Order is eligible for execution against any displayed and
undisplayed trading interest in the Consolidated Book, such as a PNP
Blind Order, or the undisplayed portion of a Reserve Order.\4\
---------------------------------------------------------------------------
\4\ See NYSE Arca Rule 6.62(d)(3).
---------------------------------------------------------------------------
A PNP Light Order is a PNP order that carries the added instruction
to cancel the order if it is marketable against interest that is not
displayed in the Consolidated Book. This provides OTP Holders greater
ability to control the circumstances in which their orders are
executed.
As with a conventional PNP order, a PNP Light order is to be
executed in whole or in part on the Exchange, and the portion not so
executed is to be ranked in the Consolidated Book, without routing any
portion of the order to another market center; provided, however, the
Exchange shall cancel a PNP-Light Order that would (i) lock or cross
the NBBO, or (ii) be marketable against undisplayed interest in the
Consolidated Book. For example, if there is a resting PNP Blind order
in the Consolidated Book that is not displayed, a contra sided PNP
Light order will be cancelled.
A PNP Light order will execute against a Price Improving Order or
Quote,\5\ or against the displayed portion of a Reserve Order, since
such orders are represented and displayed in the Consolidated Book.
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\5\ See NYSE Arca Rule 6.62(s).
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A PNP Light order will be executed at the NBBO if executed upon
receipt, or else at its limit price (unless price-improved by a Price
Improving Order or Quote).
PNP, PNP Blind, and PNP Light orders will never execute against
Tracking Orders.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
and furthers the objectives of Section 6(b)(5) of the Act,\6\ in that
it is designed to promote just and equitable principles of trade,
remove impediments to and perfect the mechanisms of a free and open
market and a national market system and, in general, to protect
investors and the public interest, by providing investors with
additional order types that allow greater flexibility in managing the
circumstances in which their orders are executed.
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\6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not
[[Page 13281]]
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 \7\ and Rule 19b-4(f)(6) thereunder.\8\
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 \9\ and Rule 19b-
4(f)(6)(iii) thereunder.\10\
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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.
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At any time within 60 days of the filing of such 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-2009-21 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-2009-21. 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 self-regulatory
organization. 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-2009-21 and should be submitted on or before April 16, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
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\11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-6702 Filed 3-25-09; 8:45 am]
BILLING CODE
