Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending Equities Rule 48.10 To Extend the Temporary Provisions of the Rule Relating to the Ability of the Exchange To Declare an Extreme Market Volatility Condition and Suspend Certain Exchange Requirements Relating to the Closing of Securities at the Exchange, 15804-15806 [E9-7732]
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15804
Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Notices
requirements of Section 6 of the Act 10
and the rules and regulations
thereunder applicable to a national
securities exchange.11 In particular, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,12 which requires, among other
things, that the Exchange’s rules be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transaction in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
The Commission notes that it has
previously approved the listing and
trading of the Trusts under NYSE Arca
Equities Rule 8.400.13 The Commission
also notes that the Exchange has
represented that, with the exception of
the change to the leverage factor
applicable to the Trusts, and a change
to the distribution date, all prior
representations made in the Initial
Notice will continue to apply.14 This
approval order is based on the
Exchange’s representations.
The Commission believes that the
increase from 2 to 3 of the leverage
factor applicable to the Up MacroShares
and the Down MacroShares,
respectively, is reasonable to facilitate
the listing and trading of the Shares.
Additionally, the Commission believes
that the increase of the leverage factor
should help to increase competition
among market participants and benefit
investors. The Commission also notes
that it has previously approved the
listing and trading of other exchangetraded products with up to 300%
leverage.15
10 15
U.S.C. 78f.
11 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).
12 15 U.S.C. 78f(b)(5).
13 See Approval Order, supra note 3.
14 See supra notes 5 and 8.
15 See e.g., Securities Exchange Act Release Nos.
58825 (October 21, 2008), 73 FR 63756 (October 27,
2008) (SR–NYSEArca–2008–89) (approving
amendment to Rule 5.2(j)(3) to permit listing of
Investment Company Units where the issuer seeks
to provide investment results, before fees and
expenses, up to ¥300% of the percentage
performance on a given day of a particular equity
index); 59332 (January 30, 2009), 74 FR 6338
(February 2, 2009) (SR–NYSEArca–2008–136)
(approving amendment to NYSE Arca Equities Rule
5.2(j)(6) to permit a loss or negative payment at
maturity with respect to an issue of Index-Linked
Securities to be accelerated by a multiple up to
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III. Accelerated Approval
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,16 for approving the proposal prior
to the thirtieth day after the date of
publication of the Notice in the Federal
Register. The Commission has received
no comments regarding the proposed
rule change, and the Commission finds
that the proposed rule change does not
raise any novel regulatory issues.
Additionally, the Commission believes
that accelerating approval of this
proposal should benefit the market by
making available to investors, without
undue delay, additional products in the
market for Paired Trust Shares.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,17 that the
proposed rule change (SR–NYSEArca–
2009–14) be, and it hereby is, approved
on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7775 Filed 4–6–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59665; File No. SR–
NYSEAmex–2009–05]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Amending Equities Rule
48.10 To Extend the Temporary
Provisions of the Rule Relating to the
Ability of the Exchange To Declare an
Extreme Market Volatility Condition
and Suspend Certain Exchange
Requirements Relating to the Closing
of Securities at the Exchange
March 31, 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
23, 2009, NYSE Amex LLC 4 (the
three times the performance of an underlying
Reference Asset, as defined in NYSE Arca Equities
Rule 5.2(j)(6)).
16 15 U.S.C. 78s(b)(2).
17 Id.
18 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 See e-mail from Clare F. Saperstein, Managing
Director, Office of General Counsel, NYSE
Regulation, Inc., to David Liu, Assistant Director,
Commission, dated March 31, 2009.
PO 00000
Frm 00116
Fmt 4703
Sfmt 4703
‘‘Exchange’’ or ‘‘NYSE Amex’’) filed
with the Securities and Exchange
Commission (the ‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 5 and Rule 19b–4(f)(6) thereunder,6
which renders it effective upon filing
with the Commission. 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
Equities Rule 48.10 to extend the
temporary provisions of the rule relating
to the ability of the Exchange to declare
an extreme market volatility condition
and suspend certain Exchange
requirements relating to the closing of
securities at the Exchange. 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 proposes to amend
NYSE Amex Equities Rule 48.10 to
temporarily extend the provisions of the
rule relating to declaring an extreme
market volatility condition at the close.7
On November 26, 2008, NYSE Amex
filed a rule proposal to conform its rules
to those of the New York Stock
5 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
7 See SR–NYSE–2009–35 (formally submitted on
March 23, 2009).
6 17
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07APN1
Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Notices
Exchange LLC (‘‘NYSE’’).8 Among the
rules amended in that filing was Rule
48, which was previously amended by
the NYSE. On October 2, 2008, the
NYSE filed for immediate effectiveness
to amend NYSE Rule 48 to provide the
NYSE with the ability to suspend
certain rules at the close when
extremely high market volatility could
negatively affect the ability to ensure a
fair and orderly close.9 The NYSE
amended Rule 48 on an immediate
effectiveness basis in order to respond
swiftly to market conditions at that
time. Those amendments were adopted
on a temporary basis with the
understanding that if the NYSE would
like to adopt the closing provisions on
a permanent basis, such proposal must
be filed for notice and comment.
The Exchange has filed a rule
proposal to amend NYSE Amex Equities
Rules 48 and 123C to delete from Rule
48 the provisions relating to declaring
an extreme market volatility condition
at the close and add them in modified
form to Rule 123C (the ‘‘Rule 48/123C
filing’’).10 That rule proposal has been
filed under Section 19(b)(2) of the
Securities Exchange Act of 1934 (the
‘‘Act’’)11 and has been noticed for public
comment. The comment period for that
filing ends on March 31, 2009. In
anticipation of the Rule 48/123C filing,
the Exchange previously amended Rule
48.10 to extend from December 31, 2009
to March 27, 2009 the temporary time
period that the Rule 48 at-the-close
provisions would be in effect.12 The
Exchange now proposes to temporarily
extend the NYSE Amex Equities Rule 48
at-the-close provisions pending the
outcome of the Rule 48/123C filing.
Accordingly, the Exchange proposes to
amend Rule 48.10 to provide that the
provisions of that rule relating to
declaring an extreme market volatility
condition at the close will end April 30,
2009.
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. In particular, this rule
proposal will permit the temporary
provisions of Rule 48 to continue
without interruption pending the
outcome of the Rule 48/123C filing.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change:
(i) Does not significantly affect the
protection of investors or the public
interest;
(ii) Does not impose any significant
burden on competition; and
(iii) By its terms, does not become
operative for 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, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
The Exchange has requested that the
Commission waive the 30-day operative
delay in order to permit the temporary
2. Statutory Basis
provisions of NYSE Amex Equities Rule
The basis under the Act for this
48 to continue without interruption
proposed rule change is the requirement pending the outcome of the Rule 48/
under Section 6(b)(5)13 that an Exchange 123C filing. The Commission believes
such waiver is consistent with the
8 See Securities Exchange Act Release No. 59022
protection of investors and the public
(Nov. 26, 2008), 73 FR 73683 (Dec. 3, 2008) (SR–
interest.16 Accordingly, the Commission
NYSEALTR–2008–10).
9 See SEC Release No. 58743 (Oct. 7, 2008), 73 FR
60742 (Oct. 14, 2008) (SR–NYSE–2008–102).
10 See SEC Release No. 59488 (Mar. 3, 2009), 74
FR 10334 (Mar. 10, 2009) (SR–NYSEALTR–2009–
15). The NYSE has filed a companion rule filing.
See SEC Release No. 59489 (Mar. 3, 2009), 74 FR
10330 (Mar. 10, 2009) (SR–NYSE–2009–18).
11 15 U.S.C. 78s(b)(2).
12 See SEC Release No. 59169 (Dec. 29, 2008), 74
FR 485 (Jan. 6, 2009) (SR–NYSEALTR–2008–18).
The NYSE also filed a companion rule filing. See
SEC Release No. 59168 (Dec. 29, 2008), 74 FR 483
(Jan. 6, 2009) (SR–NYSE–2008–139).
13 15 U.S.C. 78f(b)(5).
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17:13 Apr 06, 2009
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14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the self-regulatory organization
to submit to 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 has satisfied this requirement.
16 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
15 17
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
15805
designates the proposed rule change
operative upon filing with the
Commission.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEAmex–2009–05 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–NYSEAmex–2009–05. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of such filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\07APN1.SGM
07APN1
15806
Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Notices
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–
NYSEAmex–2009–05 and should be
submitted on or before April 28, 2009.
Below is the text of the proposed rule
change. Proposed deletions are in
brackets.
*
*
*
*
*
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
12206. Time Limits
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7732 Filed 4–6–09; 8:45 am]
(c) Effect of Rule on Time Limits for
Filing Claim in Court
1. Purpose
Currently, Rule 12206, the ‘‘eligibility
rule,’’ provides that, ‘‘no claim shall be
eligible for submission to arbitration
under the Code where six years have
elapsed from the occurrence or event
giving rise to the claim.’’ 3 The
eligibility rule does not extend
applicable statutes of limitation, but
Rule 12206(c) does provide that, ‘‘where
permitted by applicable law, when a
claimant files a statement of claim in
arbitration, any time limits for the filing
of the claim in court will be tolled while
FINRA retains jurisdiction of the
claim.’’ 4 This means that, where
permitted by applicable law, state
statutes of limitation will be tolled (i.e.,
temporarily suspended) when a person
files an arbitration claim with FINRA.
For many years, FINRA has
interpreted the rule to mean that any
applicable statutes of limitation would
be tolled in all cases when a person files
an arbitration claim with FINRA. In
Friedman v. Wheat First Securities, Inc.,
however, the court found that the
phrase ‘‘where permitted by applicable
law,’’ means that State or Federal law,
as applicable, must permit tolling
expressly, or the period will not be
tolled.5 In light of the court’s
interpretation of the phrase and the
negative effect it could have on
investors’ arbitration claims, FINRA is
proposing to remove the phrase, ‘‘where
permitted by applicable law,’’ from
Rules 12206(c) and 13206(c) to make
tolling automatic as part of the
arbitration agreement.
The Friedman court granted the
defendant’s request to dismiss the
plaintiff’s complaint on statute of
limitations grounds. In arguing against
dismissal, the plaintiff sought to rely on
old Rule 10307(a) 6 of the Code of
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59672; File No. SR–FINRA–
2009–013]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change To Amend the
Tolling Provisions in Rules 12206 and
13206 of the Codes of Arbitration
Procedure for Customer and Industry
Disputes
April 1, 2009.
(a)–(b) No change.
The rule does not extend applicable
statutes of limitations; nor shall the sixyear time limit on the submission of
claims apply to any claim that is
directed to arbitration by a court of
competent jurisdiction upon request of
a member or associated person.
However, [where permitted by
applicable law,] when a claimant files a
statement of claim in arbitration, any
time limits for the filing of the claim in
court will be tolled while FINRA retains
jurisdiction of the claim.
(d) No change.
*
*
*
*
*
13206. Time Limits
(a)–(b) No change.
(c) Effect of Rule on Time Limits for
Filing Claim in Court
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 Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) (f/k/a National Association
of Securities Dealers, Inc. (‘‘NASD’’))
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
on March 11, 2009, the proposed rule
change as described in Items I, II, and
III below, which Items have been
substantially prepared by FINRA. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
The rule does not extend applicable
statutes of limitations; nor shall the sixyear time limit on the submission of
claims apply to any claim that is
directed to arbitration by a court of
competent jurisdiction upon request of
a member or associated person.
However, [where permitted by
applicable law,] when a claimant files a
statement of claim in arbitration, any
time limits for the filing of the claim in
court will be tolled while FINRA retains
jurisdiction of the claim.
(d) No change.
*
*
*
*
*
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
FINRA Dispute Resolution is
proposing to amend the tolling
provisions in Rules 12206 and 13206 of
the Code of Arbitration Procedure for
Customer Disputes (‘‘Customer Code’’)
and for Industry Disputes (‘‘Industry
Code’’), respectively, to clarify that the
rules toll the applicable statutes of
limitation when a person files an
arbitration claim with FINRA.
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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17:13 Apr 06, 2009
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In its filing with the Commission,
FINRA 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 these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
PO 00000
Frm 00118
Fmt 4703
Sfmt 4703
3 FINRA describes the eligibility rule using the
rule number from the Customer Code for simplicity.
However, the proposal also applies to the identical
eligibility rule of the Industry Code. See Rule
13206.
4 See also Rule 13206(c) of the Industry Code.
5 64 F. Supp. 2d 338 (S.D.N.Y. 1999). The case
involved claims under Section 10(b) of the
Securities Exchange Act of 1934.
6 Rule 10307(a) (Tolling of Time Limitation(s) for
the Institution of Legal Proceedings and Extension
of Time Limitation(s) for Submission to Arbitration)
states in relevant part that:
Where permitted by applicable law, the time
limitations which would otherwise run or accrue
for the institution of legal proceedings shall be
tolled where a duly executed Submission
Agreement is filed by the CLaimant(s). The tolling
shall continue for such period as the Association
shall retain jurisdiction upon the matter submitted.
E:\FR\FM\07APN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 65 (Tuesday, April 7, 2009)]
[Notices]
[Pages 15804-15806]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7732]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59665; File No. SR-NYSEAmex-2009-05]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending
Equities Rule 48.10 To Extend the Temporary Provisions of the Rule
Relating to the Ability of the Exchange To Declare an Extreme Market
Volatility Condition and Suspend Certain Exchange Requirements Relating
to the Closing of Securities at the Exchange
March 31, 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 23, 2009, NYSE Amex LLC \4\ (the ``Exchange'' or
``NYSE Amex'') filed with the Securities and Exchange Commission (the
``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the self-
regulatory organization. The Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(6)
thereunder,\6\ which renders it effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ See e-mail from Clare F. Saperstein, Managing Director,
Office of General Counsel, NYSE Regulation, Inc., to David Liu,
Assistant Director, Commission, dated March 31, 2009.
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Equities Rule 48.10 to extend the
temporary provisions of the rule relating to the ability of the
Exchange to declare an extreme market volatility condition and suspend
certain Exchange requirements relating to the closing of securities at
the Exchange. 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 proposes to amend NYSE Amex Equities Rule 48.10 to
temporarily extend the provisions of the rule relating to declaring an
extreme market volatility condition at the close.\7\
---------------------------------------------------------------------------
\7\ See SR-NYSE-2009-35 (formally submitted on March 23, 2009).
---------------------------------------------------------------------------
On November 26, 2008, NYSE Amex filed a rule proposal to conform
its rules to those of the New York Stock
[[Page 15805]]
Exchange LLC (``NYSE'').\8\ Among the rules amended in that filing was
Rule 48, which was previously amended by the NYSE. On October 2, 2008,
the NYSE filed for immediate effectiveness to amend NYSE Rule 48 to
provide the NYSE with the ability to suspend certain rules at the close
when extremely high market volatility could negatively affect the
ability to ensure a fair and orderly close.\9\ The NYSE amended Rule 48
on an immediate effectiveness basis in order to respond swiftly to
market conditions at that time. Those amendments were adopted on a
temporary basis with the understanding that if the NYSE would like to
adopt the closing provisions on a permanent basis, such proposal must
be filed for notice and comment.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 59022 (Nov. 26,
2008), 73 FR 73683 (Dec. 3, 2008) (SR-NYSEALTR-2008-10).
\9\ See SEC Release No. 58743 (Oct. 7, 2008), 73 FR 60742 (Oct.
14, 2008) (SR-NYSE-2008-102).
---------------------------------------------------------------------------
The Exchange has filed a rule proposal to amend NYSE Amex Equities
Rules 48 and 123C to delete from Rule 48 the provisions relating to
declaring an extreme market volatility condition at the close and add
them in modified form to Rule 123C (the ``Rule 48/123C filing'').\10\
That rule proposal has been filed under Section 19(b)(2) of the
Securities Exchange Act of 1934 (the ``Act'')\11\ and has been noticed
for public comment. The comment period for that filing ends on March
31, 2009. In anticipation of the Rule 48/123C filing, the Exchange
previously amended Rule 48.10 to extend from December 31, 2009 to March
27, 2009 the temporary time period that the Rule 48 at-the-close
provisions would be in effect.\12\ The Exchange now proposes to
temporarily extend the NYSE Amex Equities Rule 48 at-the-close
provisions pending the outcome of the Rule 48/123C filing. Accordingly,
the Exchange proposes to amend Rule 48.10 to provide that the
provisions of that rule relating to declaring an extreme market
volatility condition at the close will end April 30, 2009.
---------------------------------------------------------------------------
\10\ See SEC Release No. 59488 (Mar. 3, 2009), 74 FR 10334 (Mar.
10, 2009) (SR-NYSEALTR-2009-15). The NYSE has filed a companion rule
filing. See SEC Release No. 59489 (Mar. 3, 2009), 74 FR 10330 (Mar.
10, 2009) (SR-NYSE-2009-18).
\11\ 15 U.S.C. 78s(b)(2).
\12\ See SEC Release No. 59169 (Dec. 29, 2008), 74 FR 485 (Jan.
6, 2009) (SR-NYSEALTR-2008-18). The NYSE also filed a companion rule
filing. See SEC Release No. 59168 (Dec. 29, 2008), 74 FR 483 (Jan.
6, 2009) (SR-NYSE-2008-139).
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2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5)\13\ 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. In particular, this rule proposal
will permit the temporary provisions of Rule 48 to continue without
interruption pending the outcome of the Rule 48/123C filing.
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\13\ 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 necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change:
(i) Does not significantly affect the protection of investors or
the public interest;
(ii) Does not impose any significant burden on competition; and
(iii) By its terms, does not become operative for 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, it has become effective pursuant to Section
19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the self-regulatory organization to submit to 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 has satisfied this requirement.
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The Exchange has requested that the Commission waive the 30-day
operative delay in order to permit the temporary provisions of NYSE
Amex Equities Rule 48 to continue without interruption pending the
outcome of the Rule 48/123C filing. The Commission believes such waiver
is consistent with the protection of investors and the public
interest.\16\ Accordingly, the Commission designates the proposed rule
change operative upon filing with the Commission.
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\16\ For purposes only of waiving the 30-day operative delay of
this proposal, 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 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-NYSEAmex-2009-05 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-NYSEAmex-2009-05. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change;
[[Page 15806]]
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-
NYSEAmex-2009-05 and should be submitted on or before April 28, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7732 Filed 4-6-09; 8:45 am]
BILLING CODE 8010-01-P
