Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC Extending to September 1, 2009, the Operative Date of New York Stock Exchange Rule 2 Requirement That NYSE-Only Member Organizations Apply for and be Approved as a Member of the Financial Industry Regulatory Authority, Inc., 15538-15540 [E9-7662]
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<![CDATA[
15538
Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of 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–NYSE–
2009–34 and should be submitted on or
before April 27, 2009.
pwalker on PROD1PC71 with NOTICES
IV. Commission’s Findings and Order
Granting Accelerated Approval of a
Proposed Rule Change
The Commission finds that the
proposed rule change, to extend the
pilot program for three months, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.12 In particular, it is
consistent with Section 6(b)(4) of the
Act,13 which requires that the rules of
a national securities exchange provide
for the equitable allocation of reasonable
dues, fees, and other charges among its
members and issuers and other parties
using its facilities, and Section 6(b)(5) of
the Act,14 which requires, among other
things, that the rules of a national
securities exchange be designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system and, in general, to protect
investors and the public interest, and
not be designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Commission also finds that the
proposed rule change is consistent with
12 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
13 15 U.S.C. 78f(b)(4).
14 15 U.S.C. 78f(b)(5).
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19:48 Apr 03, 2009
Jkt 217001
the provisions of Section 6(b)(8) of the
Act,15 which requires that the rules of
an exchange not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. Finally, the
Commission finds that the proposed
rule change is consistent with Rule
603(a) of Regulation NMS,16 adopted
under Section 11A(c)(1) of the Act,
which requires an exclusive processor
that distributes information with respect
to quotations for or transactions in an
NMS stock to do so on terms that are
fair and reasonable and that are not
unreasonably discriminatory.17
The Commission approved the fee for
NYSE Realtime Reference Prices for a
pilot period which runs until March 31,
2009.18 The Commission notes that the
Exchange proposes to extend the pilot
program for three months. The
Exchange proposes no other changes to
the existing pilot program. In addition,
the Commission notes that it did not
receive any comments on the previous
extensions of the pilot program.19
On December 2, 2008, the
Commission issued an approval order
(‘‘Order’’) that sets forth a market-based
approach for analyzing proposals by
self-regulatory organizations to impose
fees for ‘‘non-core’’ market data
products, such as NYSE Realtime
Reference Prices.20 The Commission
believes that NYSE’s proposal to
temporarily extend the pilot program is
consistent with the Act for the reasons
noted in the Order.21 The Commission
believes that approving NYSE’s
proposal to temporarily extend the pilot
program that imposes a fee for NYSE
Realtime Reference Prices for an
additional three months will be
beneficial to investors and in the public
interest, in that it is intended to allow
continued broad public dissemination
of increased real-time pricing
information. In addition, extending the
pilot program for an additional three
months will allow the public to
15 15
U.S.C. 78f(b)(8).
CFR 242.603(a).
17 NYSE is an exclusive processor of its last sale
data under Section 3(a)(22)(B) of the Act, 15 U.S.C.
78c(a)(22)(B), which defines an exclusive processor
as, among other things, an exchange that distributes
data on an exclusive basis on its own behalf.
18 See supra notes 3, 7, and 8. NYSE reduced the
flat monthly fee for NYSE Realtime Reference Prices
from $100,000 per month to $70,000 per month. See
Securities Exchange Act Release No. 58443 (August
29, 2008), 73 FR 52436 (September 9, 2008) (SR–
NYSE–2008–79).
19 See supra notes 7 and 8.
20 See Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770 (December 9,
2008) (Order Setting Aside Action by Delegated
Authority and Approving Proposed Rule Change
Relating to NYSE Arca Data).
21 See supra notes 3, 7, and 8.
16 17
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Frm 00110
Fmt 4703
Sfmt 4703
comment on, and the Commission to
analyze consistent with the Order and
in light of Section 19(b) of the Act, a
proposal to permanently approve the fee
for NYSE Realtime Reference Prices.22
The Commission finds good cause for
approving the proposed rule change, as
modified by Amendment No. 1, before
the thirtieth day after the date of
publication of notice of filing thereof in
the Federal Register. Accelerating
approval of this proposal is expected to
benefit investors by continuing to
facilitate their access to widespread,
free, real-time pricing information
contained in NYSE Realtime Reference
Prices. Therefore, the Commission finds
good cause, consistent with Section
19(b)(2) of the Act,23 to approve the
proposed rule change, as modified by
Amendment No. 1, on an accelerated
basis to extend the operation of the pilot
until June 30, 2009.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (SR–NYSE–2009–
34), as modified by Amendment No. 1,
is hereby approved on an accelerated
basis until June 30, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7587 Filed 4–3–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59659; File No. SR–NYSE–
2009–36]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change by New York
Stock Exchange LLC Extending to
September 1, 2009, the Operative Date
of New York Stock Exchange Rule 2
Requirement That NYSE-Only Member
Organizations Apply for and be
Approved as a Member of the Financial
Industry Regulatory Authority, Inc.
March 31, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
22 The Exchange has represented that it will file
a proposed rule change within thirty days of filing
Amendment No. 1 to the proposal seeking to make
the NYSE Realtime Reference Price service a
permanent service rather than a pilot program. See
supra note 9.
23 15 U.S.C. 78s(b)(2).
24 17 CFR 200.30–3(a)(12).
E:\FR\FM\06APN1.SGM
06APN1
Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 25,
2009, the New York Stock Exchange,
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend to
September 1, 2009, the operative date of
New York Stock Exchange (‘‘NYSE’’ or
the ‘‘Exchange’’) Rule 2 requirement
that NYSE-only member organizations
apply for and be approved as a member
of the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’). The text of
the proposed rule change is available at
the Exchange, the Commission’s Public
Reference Room, and https://
www.nyse.com.
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
pwalker on PROD1PC71 with NOTICES
1. Purpose
The Exchange is proposing to extend
to September 1, 2009, the grace period
for NYSE-only member organizations to
apply for and be approved as a FINRA
member, as required by NYSE Rule 2.
In connection with the consolidation
of NASD and NYSE Regulation member
firm regulation operations into FINRA,
which closed on July 30, 2007, the
Exchange amended NYSE Rule 2 to
require NYSE member organizations to
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Nov<24>2008
19:48 Apr 03, 2009
Jkt 217001
also be FINRA members.3 In connection
with those rule changes, the
Commission approved a 60-day grace
period within which NYSE-only
member organizations must apply for
and be approved for FINRA
membership. In that rule filing, NYSEonly member organizations were
defined as those member organizations
that were not NASD members as of the
date of the closing of the FINRA
transaction. This grace period began on
October 12, 2007, the date of
Commission approval of the Exchange’s
rule filing. In furtherance of the
consolidation, FINRA adopted NASD
IM–1013–1 to enable eligible NYSE
member organizations to become FINRA
members though an expedited process
(the ‘‘FINRA Waive-in application
process’’).4
At the close of the 60-day grace
period, all but two of the former NYSEonly member organizations had applied
for and been approved as FINRA
members. On December 12, 2007, the
Exchange filed for an extension of the
grace period to June 30, 2008 for those
two firms.5 On June 30, 2008, the
Exchange filed for another extension of
the grace period to December 31, 2008.6
On December 22, 2009, the Exchange
filed for an additional extension to
March 27, 2009.7 In that filing, the
Exchange noted that those two firms
had unique member qualification issues
and were ineligible to participate in the
FINRA Waive-in application process. As
of December 19, 2008, one of those two
firms has been approved as a FINRA
member. With respect to the other firm,
because the Exchange is working on a
rule filing to amend Rule 2 to permit a
broker dealer to be an NYSE member
organization without a FINRA
membership, the Exchange believes that
the grace period should be further
extended so that the remaining firm
does not have to re-apply for Exchange
membership if the proposed change to
Rule 2 is approved. Accordingly, the
NYSE proposes to extend the grace
period to September 1, 2009 for the firm
that was an NYSE member organization
3 See Securities Exchange Act Release No. 56654
(Oct. 12, 2007), 72 FR 59129 (Oct. 18, 2007) (SR–
NYSE–2007–67).
4 See Securities Exchange Act Release No. 56653
(Oct. 12, 2007), 72 FR 59127 (Oct. 18, 2007) (SR–
NASD–2007–56.
5 See Securities Exchange Act Release No. 56953
(Dec. 12, 2007), 72 FR 71990 (Dec. 19, 2007) (SR–
NYSE–2007–115).
6 See Securities Exchange Act Release No. 58096
(July 3, 2008), 73 FR 39764 (July 10, 2008) (SR–
NYSE–2008–54).
7 See Securities Exchange Act Release No. 59143
(Dec. 22, 2008), 73 FR 80491 (Dec. 31, 2008) (SR–
NYSE–2008–135).
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
15539
as of July 30, 2007, but not a FINRA
member.8
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,9 in that it is designed to
prevent fraudulent and manipulative
practices, to promote just and equitable
principles of trade, to 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
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 is being
filed for immediate effectiveness
pursuant to Section 19(b)(3)(A) 10 of the
Act and Rule 19b–4(f)(3) 11 promulgated
thereunder. The proposed rule change
goes solely to the administration of the
self-regulatory organization in that it is
not a substantive change to NYSE Rule
2 and simply extends a pre-existing
grace period.
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.
8 The proposed September 1, 2009 date conforms
to the grace period available under NYSE Rule
300.10T for eligible NYSE Amex US LLC (‘‘NYSE
Amex’’) member organizations that are seeking to be
waived in as an NYSE member organization
pursuant to NYSE Rule 2.10. Pursuant to Rule
300.10T, such NYSE Amex member organizations
have six months from March 2, 2009, which is the
date that the 86 Trinity Permits expired, to comply
with Exchange rules, including the Rule 2(b)
requirement pertaining to FINRA membership.
9 15 U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(3).
E:\FR\FM\06APN1.SGM
06APN1
15540
Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
BILLING CODE 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–2009–36 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.
pwalker on PROD1PC71 with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7662 Filed 4–3–09; 8:45 am]
[Release No. 34–59656; File No. SR–
NYSEALTR–2009–26]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
NYSE Alternext US LLC, as Modified
by Amendment No. 1, Changing
Certain NYSE Amex Equities Rules To
Conform Them With Changes to
Corresponding Rules Submitted in a
Companion Filing by the New York
Stock Exchange LLC
March 30, 2009.
March 9, 2009), as amended.
19:48 Apr 03, 2009
Jkt 217001
PO 00000
Frm 00112
Fmt 4703
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
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
All submissions should refer to File
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Number SR–NYSE–2009–36. This file
notice is hereby given that on March 9,
number should be included on the
2009, NYSE Alternext US LLC (n/k/a
subject line if e-mail is used. To help the NYSE Amex LLC) (‘‘Exchange’’ or
‘‘NYSE Amex’’) filed with the Securities
Commission process and review your
and Exchange Commission
comments more efficiently, please use
only one method. The Commission will (‘‘Commission’’ or ‘‘SEC’’) the proposed
post all comments on the Commission’s rule change as described in Items I, II,
and III below, which Items have been
Internet Web site (https://www.sec.gov/
prepared by the self-regulatory
rules/sro.shtml). Copies of the
organization. On March 27, 2009, the
submission, all subsequent
Exchange filed Amendment No. 1 to the
amendments, all written statements
proposed rule change.3 The Commission
with respect to the proposed rule
is publishing this notice to solicit
change that are filed with the
comments on the proposed rule change,
Commission, and all written
as amended, from interested persons.
communications relating to the
I. Self-Regulatory Organization’s
proposed rule change between the
Commission and any person, other than Statement of the Terms of Substance of
the Proposed Rule Change
those that may be withheld from the
public in accordance with the
The Exchange, formerly the American
provisions of 5 U.S.C. 552, will be
Stock Exchange LLC and NYSE
available for inspection and copying in
Alternext US LLC,4 proposes changes to
the Commission’s Public Reference
certain NYSE Amex Equities Rules,
Room, 100 F Street, NE., Washington,
retroactively effective to December 15,
DC 20549, on official business days
2008, to conform them with changes to
between the hours of 10 a.m. and 3 p.m. corresponding rules submitted in a
companion filing by the New York
Copies of such filing also will be
Stock Exchange LLC (‘‘NYSE’’).5 The
available for inspection and copying at
the principal office of the Exchange. All text of the proposed rule change is
available at the Exchange, the
comments received will be posted
without change; the Commission does
12 17 CFR 200.30–3(a)(12).
not edit personal identifying
1 15 U.S.C. 78s(b)(1).
information from submissions. You
2 17 CFR 240.19b–4.
should submit only information that
3 Amendment No. 1 to SR–NYSEALTR–2009–26
you wish to make publicly available. All replaces the original filing in its entirety.
4 On March 3, 2009, the Exchange formally
submissions should refer to File
Number SR–NYSE–2009–36 and should submitted a filing with the Commission changing
its name to NYSE Amex LLC. See SR–NYSEALTR–
be submitted on or before April 27,
2009–24.
5 See SR–NYSE–2009–25 (formally submitted on
2009.
VerDate Nov<24>2008
Commission’s Public Reference Room,
and https://www.nyse.com.
Sfmt 4703
The purpose of the proposed rule
changes is to change certain NYSE
Amex Equities Rules to conform them
with amendments to corresponding
NYSE Rules submitted in a companion
filing by the NYSE.
Background
As described more fully in a rule
filing,6 NYSE Euronext acquired The
Amex Membership Corporation
(‘‘AMC’’) pursuant to an Agreement and
Plan of Merger, dated January 17, 2008
(the ‘‘Merger’’). In connection with the
Merger, the Exchange’s predecessor, the
American Stock Exchange LLC
(‘‘Amex’’), a subsidiary of AMC, became
a subsidiary of NYSE Euronext called
NYSE Amex US LLC, and continues to
operate as a national securities exchange
registered under Section 6 of the Act.7
The effective date of the Merger was
October 1, 2008.
In connection with the Merger, on
December 1, 2008, the Exchange
relocated all equities trading conducted
on the Exchange legacy trading systems
and facilities located at 86 Trinity Place,
New York, New York, to trading systems
and facilities located at 11 Wall Street,
New York, New York (the ‘‘Equities
Relocation’’). The Exchange’s equity
trading systems and facilities at 11 Wall
Street (the ‘‘NYSE Amex Trading
Systems’’) are operated by the NYSE on
behalf of the Exchange.8
6 See Securities Exchange Act Release No. 58673
(September 29, 2008), 73 FR 57707 (October 3,
2008) (SR–NYSE–2008–60 and SR–Amex–2008–62)
(approving the Merger).
7 15 U.S.C. 78f.
8 See Securities Exchange Act Release No. 58705
(October 1, 2008), 73 FR 58995 (October 8, 2008)
E:\FR\FM\06APN1.SGM
06APN1
]]>Agencies
[Federal Register Volume 74, Number 64 (Monday, April 6, 2009)]
[Notices]
[Pages 15538-15540]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7662]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59659; File No. SR-NYSE-2009-36]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change by
New York Stock Exchange LLC Extending to September 1, 2009, the
Operative Date of New York Stock Exchange Rule 2 Requirement That NYSE-
Only Member Organizations Apply for and be Approved as a Member of the
Financial Industry Regulatory Authority, Inc.
March 31, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 15539]]
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 25, 2009, the New York Stock Exchange, LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III 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\ 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 to September 1, 2009, the operative
date of New York Stock Exchange (``NYSE'' or the ``Exchange'') Rule 2
requirement that NYSE-only member organizations apply for and be
approved as a member of the Financial Industry Regulatory Authority,
Inc. (``FINRA''). The text of the proposed rule change is available at
the Exchange, the Commission's Public Reference Room, and https://www.nyse.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to extend to September 1, 2009, the grace
period for NYSE-only member organizations to apply for and be approved
as a FINRA member, as required by NYSE Rule 2.
In connection with the consolidation of NASD and NYSE Regulation
member firm regulation operations into FINRA, which closed on July 30,
2007, the Exchange amended NYSE Rule 2 to require NYSE member
organizations to also be FINRA members.\3\ In connection with those
rule changes, the Commission approved a 60-day grace period within
which NYSE-only member organizations must apply for and be approved for
FINRA membership. In that rule filing, NYSE-only member organizations
were defined as those member organizations that were not NASD members
as of the date of the closing of the FINRA transaction. This grace
period began on October 12, 2007, the date of Commission approval of
the Exchange's rule filing. In furtherance of the consolidation, FINRA
adopted NASD IM-1013-1 to enable eligible NYSE member organizations to
become FINRA members though an expedited process (the ``FINRA Waive-in
application process'').\4\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 56654 (Oct. 12,
2007), 72 FR 59129 (Oct. 18, 2007) (SR-NYSE-2007-67).
\4\ See Securities Exchange Act Release No. 56653 (Oct. 12,
2007), 72 FR 59127 (Oct. 18, 2007) (SR-NASD-2007-56.
---------------------------------------------------------------------------
At the close of the 60-day grace period, all but two of the former
NYSE-only member organizations had applied for and been approved as
FINRA members. On December 12, 2007, the Exchange filed for an
extension of the grace period to June 30, 2008 for those two firms.\5\
On June 30, 2008, the Exchange filed for another extension of the grace
period to December 31, 2008.\6\ On December 22, 2009, the Exchange
filed for an additional extension to March 27, 2009.\7\ In that filing,
the Exchange noted that those two firms had unique member qualification
issues and were ineligible to participate in the FINRA Waive-in
application process. As of December 19, 2008, one of those two firms
has been approved as a FINRA member. With respect to the other firm,
because the Exchange is working on a rule filing to amend Rule 2 to
permit a broker dealer to be an NYSE member organization without a
FINRA membership, the Exchange believes that the grace period should be
further extended so that the remaining firm does not have to re-apply
for Exchange membership if the proposed change to Rule 2 is approved.
Accordingly, the NYSE proposes to extend the grace period to September
1, 2009 for the firm that was an NYSE member organization as of July
30, 2007, but not a FINRA member.\8\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 56953 (Dec. 12,
2007), 72 FR 71990 (Dec. 19, 2007) (SR-NYSE-2007-115).
\6\ See Securities Exchange Act Release No. 58096 (July 3,
2008), 73 FR 39764 (July 10, 2008) (SR-NYSE-2008-54).
\7\ See Securities Exchange Act Release No. 59143 (Dec. 22,
2008), 73 FR 80491 (Dec. 31, 2008) (SR-NYSE-2008-135).
\8\ The proposed September 1, 2009 date conforms to the grace
period available under NYSE Rule 300.10T for eligible NYSE Amex US
LLC (``NYSE Amex'') member organizations that are seeking to be
waived in as an NYSE member organization pursuant to NYSE Rule 2.10.
Pursuant to Rule 300.10T, such NYSE Amex member organizations have
six months from March 2, 2009, which is the date that the 86 Trinity
Permits expired, to comply with Exchange rules, including the Rule
2(b) requirement pertaining to FINRA membership.
---------------------------------------------------------------------------
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,\9\ in that
it is designed to prevent fraudulent and manipulative practices, to
promote just and equitable principles of trade, to 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.
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\9\ 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
result in 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 is being filed for immediate
effectiveness pursuant to Section 19(b)(3)(A) \10\ of the Act and Rule
19b-4(f)(3) \11\ promulgated thereunder. The proposed rule change goes
solely to the administration of the self-regulatory organization in
that it is not a substantive change to NYSE Rule 2 and simply extends a
pre-existing grace period.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(3).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
[[Page 15540]]
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2009-36 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-2009-36. 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 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 publicly available. All
submissions should refer to File Number SR-NYSE-2009-36 and should be
submitted on or before April 27, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7662 Filed 4-3-09; 8:45 am]
BILLING CODE 8010-01-P
