Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Deleting Rule 936C, Cancellation and Adjustment of Index Option Transactions, 15802-15803 [E9-7831]
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15802
Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59660; File No. SR–
NYSEAmex–2009–03]
1. Purpose
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Deleting Rule 936C,
Cancellation and Adjustment of Index
Option Transactions
March 31, 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
20, 2009, NYSE Amex LLC (‘‘NYSE
Amex’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
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 delete Rule
936C governing the Cancellation and
Adjustment of Index Options Contracts.
The text of the proposed rule change is
attached as Exhibit 5 to the 19b–4 form.
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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
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The Exchange recently received
approval of SR–NYSEALTR–2008–14 ,5
which proposed new Rule Section
900NY for the trading of options
contracts, and also filed as immediately
effective SR–NYSEALTR–2009–17 ,6
which deleted certain rules that were no
longer relevant or were superseded by
Rules in Section 900NY.
SR–NYSEALTR–2009–17
inadvertently omitted deleting Rule
936C, Cancellation and Adjustment of
Index Options Contracts, which has
been replaced by Rule 975NY, Obvious
Errors and Catastrophic Errors. Rule
975NY governs Obvious Errors and
Catastrophic Errors in all options
products, including options on indexes,
exchange-traded funds, and trust issued
receipts.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 7 of the
Securities Exchange Act of 1934 (the
‘‘Act’’), in general, and furthers the
objectives of Section 6(b)(5) 8 in
particular in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system.
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.
5 See Exchange Act Release No. 34–59472
(February 27, 2009), 74 FR 9843.
6 See Exchange Act Release No. 34–59454
(February 25, 2009), 74 FR 9461.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
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III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 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 9 and Rule 19b–4(f)(6) thereunder.10
The Exchange has requested that the
Commission waive the 30-day operative
delay to the extent that such action is
necessary to clarify the applicable rule
in cases of Obvious Errors and
Catastrophic Errors involving options on
indexes, exchange-traded funds, and
trust issued receipts. The Commission
hereby grants the Exchange’s request.11
The Commission believes that such
action is consistent with the protection
of investors and the public interest
because the Exchange is merely deleting
an obsolete rule.
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
9 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.
11 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
10 17
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07APN1
Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Notices
Number SR–NYSEAmex–2009–03 on
the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–59678; File No. SR–
NYSEArca–2009–14]
• 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–2009–03. 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;
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–2009–03 and should be
submitted on or before April 28, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7831 Filed 4–6–09; 8:45 am]
BILLING CODE 8010–01–P
12 17
CFR 200.30–3(a)(12).
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Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Granting Accelerated
Approval of a Proposed Rule Change
Relating to the Leverage Factor
Applicable to the MacroShares Major
Metro Housing Trusts
April 1, 2009.
On March 3, 2009, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’), through
its wholly owned subsidiary, NYSE
Arca Equities, Inc. (‘‘NYSE Arca
Equities’’), filed with the Securities and
Exchange Commission (‘‘Commission’’)
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to modify the
representation made in SR–NYSEArca–
2008–92 3 regarding the leverage factor
applicable to the MacroShares Major
Metro Housing Up Trust (‘‘Up Trust’’)
and the MacroShares Major Metro
Housing Down Trust (‘‘Down Trust’’)
(collectively, the ‘‘Trusts’’) and,
specifically, to indicate that the leverage
factor to be applied will be 3 rather than
2.4 The proposed rule change was
published in the Federal Register on
March 16, 2009 for a 15-day comment
period.5 The Commission received no
comments on the proposal. This order
grants approval to the proposed rule
change on an accelerated basis.
I. Description of the Proposal
The Commission previously
approved, pursuant to Section 19(b)(2)
of the Act, the Exchange’s proposal to
list and trade the Up MacroShares and
the Down MacroShares as Paired Trust
Shares under NYSE Arca Equities Rule
8.400.6
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 58704
(October 1, 2008), 73 FR 59026 (October 8, 2008)
(order approving listing and trading on the
Exchange of the Trusts (‘‘Approval Order’’)); See
also Securities Exchange Act Release No. 58469
(September 5, 2008), 73 FR 53306 (September 15,
2008) (SR–NYSEArca–2008–92) (notice of proposed
rule change to list and trade the Trusts on the
Exchange) (‘‘Initial Notice’’). The Shares are being
offered by the Trusts under the Securities Act of
1933, 15 U.S.C. 77a. On February 17, 2009, the
depositor filed with the Commission preliminary
Registration Statements on Form S–1 (Amendment
No. 3) for the Up MacroShares (File No. 333–
151522) and for the Down MacroShares (File No.
333–151523) (‘‘Registration Statements’’).
4 Shares of the Up Trust and the Down Trust are
referred to collectively as ‘‘Shares.’’
5 See Securities Exchange Act Release No. 59542
(March 9, 2009), 74 FR 11167 (‘‘Notice’’).
6 See Approval Order, supra note 3.
2 17
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15803
As described in the Approval Order
and the Initial Notice, the Up Trust and
the Down Trust intend to issue Up
MacroShares and Down MacroShares,
respectively, on a continuous basis. The
Up MacroShares and the Down
MacroShares represent undivided
beneficial interests in the Up Trust and
the Down Trust, respectively.
The Trusts will make quarterly
distributions and a final distribution
that is based on the value of the S&P/
Case-Shiller Composite-10 Home Price
Index (‘‘Index’’), as well as on prevailing
interest rates on U.S. Treasury
obligations. The last published value of
the S&P/Case-Shiller Composite-10
Home Price Index is referred to as the
‘‘Reference Value of the Index’’ or
‘‘Reference Value’’, as discussed in the
Initial Notice.7
If the Reference Value rises above its
specified starting level, the Up Trust’s
Underlying Value (as described in the
Initial Notice) will increase to include
all of its assets plus a portion of the
assets of the paired Down Trust. This
portion of assets due from the Down
Trust will be multiplied by a specified
‘‘leverage factor.’’ Conversely, if the
level of the Reference Value of the Index
falls below its starting level on and after
the closing date, the Up Trust’s
Underlying Value will decrease, because
a portion of its assets will be included
in the Underlying Value of its paired
Down Trust, such portion being
multiplied by the leverage factor.
The Initial Notice stated that the
leverage factor would be 2, as initially
described in the Registration
Statements. The Trusts now intend to
utilize a leverage factor of 3.8 The effect
of this will be to triple any increase or
decrease in the Underlying Value of the
Up Trust or the Down Trust, depending
upon whether there is an increase or
decrease in the Reference Value of the
Index.
Additional information relating to the
Trusts and Shares is available in the
Registration Statements, the Notice, the
Initial Notice and the Approval Order.9
II. Discussion and Commission’s
Findings
The Commission has carefully
reviewed the proposed rule change and
finds that it is consistent with the
7 The Reference Value of the Index is the
Reference Price for purposes of NYSE Arca Equities
Rule 8.400.
8 With the exception of the proposed change to
the leverage factor, and a change in the distribution
date from a date in 2018 to a date in 2014, the
Exchange states that all representations made by the
Exchange in the Initial Notice continue to apply.
See Notice, supra note 5, 74 FR at 11168, n. 8.
9 See supra notes 3 and 5.
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]]>Agencies
[Federal Register Volume 74, Number 65 (Tuesday, April 7, 2009)]
[Notices]
[Pages 15802-15803]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7831]
[[Page 15802]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59660; File No. SR-NYSEAmex-2009-03]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Deleting Rule
936C, Cancellation and Adjustment of Index Option Transactions
March 31, 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 20, 2009, NYSE Amex LLC (``NYSE Amex'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposed rule change pursuant to Section 19(b)(3)(A) of the
Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ 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\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to delete Rule 936C governing the
Cancellation and Adjustment of Index Options Contracts. The text of the
proposed rule change is attached as Exhibit 5 to the 19b-4 form. 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 Exchange recently received approval of SR-NYSEALTR-2008-14 ,\5\
which proposed new Rule Section 900NY for the trading of options
contracts, and also filed as immediately effective SR-NYSEALTR-2009-17
,\6\ which deleted certain rules that were no longer relevant or were
superseded by Rules in Section 900NY.
---------------------------------------------------------------------------
\5\ See Exchange Act Release No. 34-59472 (February 27, 2009),
74 FR 9843.
\6\ See Exchange Act Release No. 34-59454 (February 25, 2009),
74 FR 9461.
---------------------------------------------------------------------------
SR-NYSEALTR-2009-17 inadvertently omitted deleting Rule 936C,
Cancellation and Adjustment of Index Options Contracts, which has been
replaced by Rule 975NY, Obvious Errors and Catastrophic Errors. Rule
975NY governs Obvious Errors and Catastrophic Errors in all options
products, including options on indexes, exchange-traded funds, and
trust issued receipts.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers
the objectives of Section 6(b)(5) \8\ in particular in that it is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, and to remove impediments to and perfect the mechanisms of
a free and open market and a national market system.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 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 \9\ and
Rule 19b-4(f)(6) thereunder.\10\
---------------------------------------------------------------------------
\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 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.
---------------------------------------------------------------------------
The Exchange has requested that the Commission waive the 30-day
operative delay to the extent that such action is necessary to clarify
the applicable rule in cases of Obvious Errors and Catastrophic Errors
involving options on indexes, exchange-traded funds, and trust issued
receipts. The Commission hereby grants the Exchange's request.\11\ The
Commission believes that such action is consistent with the protection
of investors and the public interest because the Exchange is merely
deleting an obsolete rule.
---------------------------------------------------------------------------
\11\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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
[[Page 15803]]
Number SR-NYSEAmex-2009-03 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-2009-03. 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; 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-2009-03 and should be submitted on or before
April 28, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7831 Filed 4-6-09; 8:45 am]
BILLING CODE 8010-01-P
