Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Amex Equities Rules 15 and 123C Regarding the Operation of Its NYSE Amex Order Imbalance Information Service To Modify the Reference Price at Which the Exchange Reports the Order Imbalance Information and Clarify What Information Is Included and Excluded From the Order Imbalance Information Reports, 19614-19617 [E9-9818]
Download as PDF
19614
Federal Register / Vol. 74, No. 81 / Wednesday, April 29, 2009 / Notices
discriminatory basis without imposing
restrictions on subscribers from, or
imposing additional charges on
subscribers for, re-disseminating such
documents or otherwise offering valueadded services and products based on
such documents on terms determined
by each subscriber. In particular, the
MSRB believes that the proposed rule
change will make most voluntary
continuing disclosure documents
available for the first time to a broader
group of private information services
and, therefore, would promote, rather
than hinder, further competition,
growth and innovation in this area. The
MSRB believes that the benefits realized
by the investing public from the broader
and easier availability of disclosure
information about municipal securities
that would be provided through the
EMMA continuing disclosure service
would justify any potentially negative
impact on existing enterprises from the
operation of EMMA.
pwalker on PROD1PC71 with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received on the proposed
rule change. However, in a notice
published by the MSRB on January 31,
2008, the MSRB described and sought
comment on its plan for implementing
a continuing disclosure service that
would be integrated into other services
to be offered through EMMA (the ‘‘2008
Notice’’).11 In particular, the MSRB
stated its plan to institute the
continuing disclosure service to accept
submissions of continuing disclosure
documents pursuant to continuing
disclosure undertakings consistent with
Rule 15c2–12. In addition to making
continuing disclosures available at no
cost through the EMMA portal, the
MSRB would make such disclosures
available through a paid real-time data
stream subscription for re-dissemination
or other use by subscribers. One
commentator asked whether periodic
filings other than submissions of annual
financial information, such as quarterly
or monthly financial results, would be
accepted.12 Another commentator stated
11 See MSRB Notice 2008–05 (January 31, 2008).
The comments received on this notice are discussed
in SR–MSRB–2008–05 (July 29, 2008). See also
Securities Exchange Act Release No. 58256 (July 30,
2008) 73 FR 46161 (August 7, 2008) (File No. SR–
MSRB–2008–05) (proposing the establishment of
the continuing disclosure service of EMMA).
Comments relating to voluntary filings of
continuing disclosure documents not contemplated
under Exchange Act Rule 15c2–12 are discussed
herein.
12 See letter from Robert Donovan and Stephen M.
Fillebrown, National Association of Health and
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17:48 Apr 28, 2009
Jkt 217001
that it strongly believed that EMMA
should be capable of housing all
disclosure documents, extending
beyond those specifically required by
Rule 15c2–12, and could only support a
system that allows access to other
pertinent information.13 The MSRB
supports the dissemination of additional
continuing disclosures beyond the
baseline established by Rule 15c2–12
and is providing for such submission
and dissemination in this filing.
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 such proposed
rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 MSRB. 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–MSRB–2009–04 and should
be submitted on or before May 20, 2009.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–9819 Filed 4–28–09; 8:45 am]
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–MSRB–2009–04 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
BILLING CODE 8010–01–P
[Release No. 34–59816; File No. SR–
NYSEAmex–2009–13]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending NYSE Amex
Equities Rules 15 and 123C Regarding
the Operation of Its NYSE Amex Order
Imbalance Information Service To
Modify the Reference Price at Which
the Exchange Reports the Order
Imbalance Information and Clarify
What Information Is Included and
Excluded From the Order Imbalance
Information Reports
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–MSRB–2009–04. This file
number should be included on the
subject line if e-mail is used. To help the April 23, 2009.
Commission process and review your
Pursuant to Section 19(b)(1) 1 of the
comments more efficiently, please use
Securities Exchange Act of 1934 (the
only one method. The Commission will ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on April 17,
Education Facilities Finance Authorities, to Ernesto
A. Lanza, Senior Associate General Counsel, MSRB,
dated March 3, 2008.
13 See letter from Rob Yolland, Chairman,
National Federation of Municipal Analysts, to Mr.
Lanza, dated March 10, 2008.
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14 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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19615
Federal Register / Vol. 74, No. 81 / Wednesday, April 29, 2009 / Notices
2009, NYSE Amex LLC (the ‘‘Exchange’’
or ‘‘NYSE Amex’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Amex Equities Rules 15 and 123C
regarding the operation of its NYSE
Amex Order Imbalance Information
service to: (1) Modify the reference price
at which the Exchange reports the Order
Imbalance Information; and (2) clarify
what information is included and
excluded from the Order Imbalance
Information reports. 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.
pwalker on PROD1PC71 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
a. Background
By Notice dated April 9, 2009, NYSE
Amex implemented the NYSE Amex
Order Imbalance Information Data
Product.5 NYSE Amex maintains an
Order Imbalance Information datafeed
of real-time order imbalances that
accumulate prior to the opening of
trading on the Exchange and prior to the
close of trading on the Exchange. These
orders are subject to execution at the
market’s opening or closing price, as the
case may be, and represent issues that
are likely to be of particular trading
interest at the opening or closing.
The Exchange distributes information
about these imbalances in real-time at
specified intervals prior to the opening
and closing auctions. The Exchange
currently makes order imbalance
information available at the following
intervals.
For opening Order Imbalance
Information:
• Every five minutes between 8:30
a.m. EST and 9 a.m. EST.
• Every one minute between 9 a.m.
EST and 9:20 a.m. EST.
• Every 15 seconds between 9:20 a.m.
EST and the opening (or 9:35 a.m. EST
if the opening is delayed).
For closing Order Imbalance
Information:
• Every fifteen seconds between 3:40
p.m. EST and 3:50 p.m. EST.
• Every five seconds between 3:50
p.m. EST and 4 p.m. EST.
Reference Price
The NYSE Amex Order Imbalance
Information service currently uses the
last sale price as the reference price for
the Order Imbalance Information. In the
case of opening order imbalances, this
means the last sale price at the end of
the prior trading day. For closing order
imbalances, the reference price is equal
to the last sale price.
1. Purpose
NYSE Amex LLC (‘‘NYSE Amex’’ or
the ‘‘Exchange’’) is proposing to amend
NYSE Amex Equities Rules 15 and 123C
regarding the operation of its Order
Imbalance Information service to: (1)
Modify the reference price at which the
Exchange reports the Order Imbalance
Information; and (2) clarify what
information is included and excluded
from the Order Imbalance Information
reports.
The Exchange notes that parallel
changes are proposed to be made to the
rules of the New York Stock Exchange
LLC.4
Orders Included in NYSE Amex Order
Imbalance Reports
The NYSE Amex Order Imbalance
Information service provides the
following information:
(A) In the case of the pre-opening
datafeed, all interest eligible to trade in
the opening transactions excluding oddlot orders and the odd-lot portion of
partial round-lot orders. Floor broker
interest includes all interest except nondisplayed reserve interest marked ‘‘Do
Not Display’’ (‘‘DND’’). Customer
interest includes all interest except for
non-displayed reserve interest. DMM
interest is not included in the preopening datafeed.
4 See SR–NYSE–2009–41 (to be filed April 17,
2009).
5 See Securities Exchange Act Release No. 59743
(April 9, 2009) (SR–NYSEAmex–2009–11).
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(B) In the case of pre-closing datafeed,
all market-on-close orders and limit-onclose orders eligible to participate in the
closing transaction. It excludes odd-lot
orders, the odd-lot portion of partial
round-lot orders, DMM interest and
Crowd interest.
b. Proposed Amendments
Reference Price
In order to provide the most accurate
imbalance information, the Exchange
proposes to modify what constitutes the
reference price for the dissemination of
the NYSE Amex Order Imbalance
Information feed. Prior to the opening
transaction, if a pre-opening indication
is published pursuant to the provisions
of NYSE Amex Equities Rule 15 (‘‘PreOpening Indications’’) paragraphs (a)
and (b), or in the event of a mandatory
publication 6 pursuant to NYSE Amex
Equities Rule 123D (‘‘Openings and
Halts in Trading’’), the reference price
will no longer be the closing price of the
prior trading day.
Previous exchange
closing price
Under $10 .................
$10–$99.99 ...............
$100 and Over ..........
Price change (equal
or greater than)
1 point.
the lesser of 10% or
3 points.
5 points.
The Exchange proposes to have the
reference price equal the last sale
(previous closing price) or the price
indication published under the Rule 15
or 123D. Therefore, when the Exchange
publishes a pre-opening indication in a
security pursuant to the provisions of
paragraphs (a) and (b) of NYSE Amex
Equities Rule 15 or NYSE Amex
Equities Rule 123D, the reference price
will be determined as follows:
• If the Bid Price from the indication
(the lower price) is higher than the last
sale, the Reference Price will be the Bid.
• If the Offer Price from the
indication (the higher price) is lower
than the last sale, the Reference Price
will be the Offer.
• If the Last Sale is within the
indication range, the Book shall use the
Last Sale as the Reference Price
• If multiple indications have been
published, the last indication that the
Exchange makes available shall be used
as the Reference Price.
Examples:
(1) XYZ security closed at a price of
$15.00 on April 1, 2009. On April 2,
6 Exchange policy requires the dissemination of
an indication in connection with any delayed
opening—involving any stock which has not
opened (or been quoted) by 10 a.m. In addition, the
dissemination of an indication is mandatory for an
opening which will result in a significant price
change from the previous close [See table above].
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pwalker on PROD1PC71 with NOTICES
19616
Federal Register / Vol. 74, No. 81 / Wednesday, April 29, 2009 / Notices
2009, the Exchange publishes a preopening indication for XYZ with a bid
price of $16.00 and an offer price of
$16.50. The reference price for the
NYSE Order Imbalance datafeed in XYZ
security on April 2, 2009 will be $16.00.
(2) XYZ security closed at a price of
$15.00 on April 1, 2009. On April 2,
2009, the Exchange publishes a preopening indication for XYZ with a bid
price of $14.00 and an offer price of
$14.50. The reference price for XYZ data
feed on April 2, 2009 will be $14.50.
(3) XYZ security closed at a price of
$15.00 on April 1, 2009. On April 2,
2009, the Exchange publishes preopening indication for XYZ with a bid
price of $14.99 and an offer price of
$15.02. The reference price for XYZ data
feed on April 2, 2009 will be $15.00.
In the case of pre-closing imbalances,
the NYSE Amex Order Imbalance
Information service also uses the last
sale price as the reference price for preclosing Order Imbalance Information
that it disseminated pursuant to NYSE
Amex Equities Rule 123C (‘‘Market on
the Close Policy and Expiration
Procedures’’).
The Exchange proposes to modify
what it uses as the reference price when
the last sale price does not fall within
the best bid and the best offer on the
Exchange at the time that the Exchange
calculates a closing imbalance for a
security,7 as follows:
• If the last sale price is lower than
the Bid price, then the Bid Price will
serve as the Reference Price.
• If the last sale price is higher than
the Offer Price, then the Offer Price will
serve as the Reference Price.
• If the last sale price falls within the
Exchange’s best bid and offer for the
security, the last sale price will serve as
the Reference Price.
Examples:
(1) The sale in XYZ security prior to
the dissemination of the order
imbalance feed was at a price of $15.00.
The quote prior to the dissemination of
the datafeed is 100 shares bid at a price
of $15.02 and 500 shares offered at a
$15.20. The reference price for the
NYSE Order Imbalance datafeed in XYZ
security will be $15.02.
(2) The sale in XYZ security prior to
the dissemination of the order
imbalance feed was at a price of $15.00.
The quote prior to the dissemination of
the datafeed is 100 shares bid at a price
of $14.91 and 500 shares offered at a
$14.99. The reference price for the
NYSE Order Imbalance datafeed in XYZ
security will be $14.99.
7 Currently NYSE Amex securities operating on
the 14.0 Technology Release employ the proposed
method to determine the reference price.
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17:48 Apr 28, 2009
Jkt 217001
(3) The sale in XYZ security prior to
the dissemination of the order
imbalance feed was at a price of $15.00.
The quote prior to the dissemination of
the datafeed is 100 shares bid at a price
of $14.98 and 500 shares offered at a
$15.02. The reference price for the
NYSE Order Imbalance datafeed in XYZ
security will be $15.00.
The Exchange believes that the
amendments to the reference price for
the publication of the NYSE Amex
Order Imbalance Information service
will enhance the value of the product by
providing the user with a more accurate
depiction of the market interest
available in the security.
Orders Included in NYSE Amex PreOpening Order Imbalance Information
Reports
The Exchange proposes to add all
DMM s-quote interest eligible for
execution in the opening transaction, at
no additional charge, to the order
information currently included in the
pre-opening NYSE Amex Order
Imbalance Information Reports. DMM squote interest is currently eligible for
execution in the opening transaction but
is not included in the Order Imbalance
Information Report. The Exchange
believes that the addition of DMM squote interest to the Order Imbalance
Information Report will enhance the
value of this product by including
additional information about the
electronic interest eligible to trade at the
opening.
2. Statutory Basis
The bases under the Securities
Exchange Act of 1934 (the ‘‘1934 Act’’)
for this proposed rule change are the
requirements under Section 6(b)(5) that
the rules of an 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. The
Exchange believes that the proposal
benefits investors by modifying NYSE
Amex Order Imbalance Information to
provide investors with a more accurate
depiction of the market and additional
information on the open for a security.
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.
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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 8 and Rule 19b–
4(f)(6) thereunder.9
The Exchange has requested that the
Commission waive the 30-day operative
delay so that the proposal may become
operative immediately upon filing in
order to immediately provide market
participants with the most accurate
supplemental market information prior
to the execution of the opening and
closing transactions on the Exchange.
The Commission believes such waiver is
consistent with the protection of
investors and the public interest.10
Accordingly, the Commission
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,
8 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.
10 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).
9 17
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Federal Register / Vol. 74, No. 81 / Wednesday, April 29, 2009 / Notices
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
pwalker on PROD1PC71 with NOTICES
• 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–2009–13 on
the subject line.
SOCIAL SECURITY ADMINISTRATION
Privacy Act of 1974, as Amended;
Proposed Alteration to Existing
System of Records, New Routine Use,
and General Housekeeping Changes
AGENCY:
Social Security Administration
(SSA).
ACTION: Proposed altered system of
records, new routine use, and general
housekeeping changes.
SUMMARY: We are issuing public notice
of our intent to alter, add a new routine
use, and make minor housekeeping
Paper Comments
changes to an existing system of records
• Send paper comments in triplicate
in accordance with the Privacy Act (5
to Elizabeth M. Murphy, Secretary,
U.S.C. 552a(e)(4)) and (e)(11). The
Securities and Exchange Commission,
affected system of records is the
100 F Street, NE., Washington, DC
Administrative Law Judge (ALJ) Working
20549–1090.
File on Claimant Cases (60–0005),
hereinafter referred to as the ALJ
All submissions should refer to File
Number SR–NYSEAmex–2009–13. This Working File. The proposed alterations
will result in the following changes:
file number should be included on the
• Expansion of the purpose of the
subject line if e-mail is used. To help the
system of records to include the
Commission process and review your
electronic internal working file of the
comments more efficiently, please use
administrative law judges in the hearing
only one method. The Commission will
offices. This working file is accessed
post all comments on the Commission’s
primarily by hearing office personnel
Internet Web site (https://www.sec.gov/
viewing documents stored in the Private
rules/sro.shtml). Copies of the
Section of eView, an electronic
submission, all subsequent
interface.
amendments, all written statements
• Inclusion of our data protection
with respect to the proposed rule
routine use that provides for the release
change that are filed with the
of information in the event of an
Commission, and all written
unauthorized release of personally
communications relating to the
identifiable information. We published
proposed rule change between the
this routine use in the Federal Register
Commission and any person, other than on December 10, 2007 (72 FR 69723);
those that may be withheld from the
and
public in accordance with the
• Updates of various cited Federal
provisions of 5 U.S.C. 552, will be
Government regulations and minor
available for inspection and copying in
editing, including correcting
the Commission’s Public Reference
miscellaneous and stylistic format
Room on official business days between errors.
the hours of 10 a.m. and 3 p.m. Copies
The proposed alteration, new routine
of such filing also will be available for
use, and housekeeping changes are
inspection and copying at the principal
discussed in the SUPPLEMENTARY
office of the Exchange. All comments
INFORMATION section below. We invite
received will be posted without change; public comments on this proposal.
the Commission does not edit personal
DATES: We filed a report of the proposed
identifying information from
altered system of records and added
submissions. You should submit only
routine use with the Chairman of the
information that you wish to make
Senate Committee on Homeland
available publicly. All submissions
Security and Governmental Affairs, the
should refer to File Number SR–
Chairman of the House Committee on
NYSEAmex–2009–13 and should be
Government Reform, and the Director,
submitted on or before May 20, 2009.
Office of Information and Regulatory
For the Commission, by the Division of
Affairs, Office of Management and
Trading and Markets, pursuant to delegated
Budget (OMB) on April 23, 2009. The
authority.11
proposed altered system of records will
Elizabeth M. Murphy,
become effective on June 1, 2009, unless
Secretary.
we receive comments before that date
that would result in a contrary
[FR Doc. E9–9818 Filed 4–28–09; 8:45 am]
determination.
BILLING CODE 8010–01–P
ADDRESSES: Interested individuals may
11 17 CFR 200.30–3(a)(12).
comment on this publication by writing
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19617
to the Deputy Executive Director, Office
of Privacy and Disclosure, Office of the
General Counsel, Social Security
Administration, 3–A–6 Operations
Building, 6401 Security Boulevard,
Baltimore, Maryland 21235–6401. All
comments received will be available for
public inspection at the above address.
FOR FURTHER INFORMATION CONTACT: Mr.
Neil Etter, Social Insurance Specialist,
Disclosure Policy Development and
Services Division I, Office of Privacy
and Disclosure, Office of the General
Counsel, Social Security
Administration, Room 3–A–6
Operations Building, 6401 Security
Boulevard, Baltimore, Maryland 21235–
6401, telephone: (410) 965–8028, e-mail:
neil.etter@ssa.gov.
SUPPLEMENTARY INFORMATION:
I. Background and Purpose of the
Proposed Alteration and New Routine
Use for the ALJ Working File
A. General Background Relating to the
Proposed Alteration
Under Titles II and XVI of the Social
Security Act, an individual who has
received a Federal reviewing official
decision, a prototype process
determination, or a reconsideration
determination on a claim for benefits
has a right to a hearing before an ALJ.
In the past, hearing offices kept their
records in paper form. New technology
will allow us to store information
electronically and, therefore, we need to
update this system of records to reflect
the change. As a result, records in this
system may be in paper and electronic
media formats.
B. Discussion of Proposed Alteration to
the ALJ Working File
During the course of adjudicating a
claim at the hearing level, ALJs and
members of their staffs often create
notes and instructions regarding the
evidence, testimony, legal theories,
merits of the case, and opinions and
advice about a case. While there may be
both electronic and paper records
gathered and maintained in the ALJ
Working File, this system covers any
documents maintained electronically,
such as any documents viewed in the
Private Section of eView. eView is the
interface that allows authorized users to
view documents stored electronically.
This Private Section is accessible only
to authorized SSA staff. Additionally,
this proposed alteration provides that
any movement of the paper-based
records in the ALJ Working File to the
new electronic environment does not
affect:
E:\FR\FM\29APN1.SGM
29APN1
Agencies
[Federal Register Volume 74, Number 81 (Wednesday, April 29, 2009)]
[Notices]
[Pages 19614-19617]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-9818]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59816; File No. SR-NYSEAmex-2009-13]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Amex
Equities Rules 15 and 123C Regarding the Operation of Its NYSE Amex
Order Imbalance Information Service To Modify the Reference Price at
Which the Exchange Reports the Order Imbalance Information and Clarify
What Information Is Included and Excluded From the Order Imbalance
Information Reports
April 23, 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 April 17,
[[Page 19615]]
2009, NYSE Amex LLC (the ``Exchange'' or ``NYSE Amex'') filed with the
Securities and Exchange Commission (the ``Commission'') the proposed
rule change as described in Items I and II below, which Items have been
prepared by the self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Amex Equities Rules 15 and 123C
regarding the operation of its NYSE Amex Order Imbalance Information
service to: (1) Modify the reference price at which the Exchange
reports the Order Imbalance Information; and (2) clarify what
information is included and excluded from the Order Imbalance
Information reports. 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
NYSE Amex LLC (``NYSE Amex'' or the ``Exchange'') is proposing to
amend NYSE Amex Equities Rules 15 and 123C regarding the operation of
its Order Imbalance Information service to: (1) Modify the reference
price at which the Exchange reports the Order Imbalance Information;
and (2) clarify what information is included and excluded from the
Order Imbalance Information reports.
The Exchange notes that parallel changes are proposed to be made to
the rules of the New York Stock Exchange LLC.\4\
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\4\ See SR-NYSE-2009-41 (to be filed April 17, 2009).
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a. Background
By Notice dated April 9, 2009, NYSE Amex implemented the NYSE Amex
Order Imbalance Information Data Product.\5\ NYSE Amex maintains an
Order Imbalance Information datafeed of real-time order imbalances that
accumulate prior to the opening of trading on the Exchange and prior to
the close of trading on the Exchange. These orders are subject to
execution at the market's opening or closing price, as the case may be,
and represent issues that are likely to be of particular trading
interest at the opening or closing.
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\5\ See Securities Exchange Act Release No. 59743 (April 9,
2009) (SR-NYSEAmex-2009-11).
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The Exchange distributes information about these imbalances in
real-time at specified intervals prior to the opening and closing
auctions. The Exchange currently makes order imbalance information
available at the following intervals.
For opening Order Imbalance Information:
Every five minutes between 8:30 a.m. EST and 9 a.m. EST.
Every one minute between 9 a.m. EST and 9:20 a.m. EST.
Every 15 seconds between 9:20 a.m. EST and the opening (or
9:35 a.m. EST if the opening is delayed).
For closing Order Imbalance Information:
Every fifteen seconds between 3:40 p.m. EST and 3:50 p.m.
EST.
Every five seconds between 3:50 p.m. EST and 4 p.m. EST.
Reference Price
The NYSE Amex Order Imbalance Information service currently uses
the last sale price as the reference price for the Order Imbalance
Information. In the case of opening order imbalances, this means the
last sale price at the end of the prior trading day. For closing order
imbalances, the reference price is equal to the last sale price.
Orders Included in NYSE Amex Order Imbalance Reports
The NYSE Amex Order Imbalance Information service provides the
following information:
(A) In the case of the pre-opening datafeed, all interest eligible
to trade in the opening transactions excluding odd-lot orders and the
odd-lot portion of partial round-lot orders. Floor broker interest
includes all interest except non-displayed reserve interest marked ``Do
Not Display'' (``DND''). Customer interest includes all interest except
for non-displayed reserve interest. DMM interest is not included in the
pre-opening datafeed.
(B) In the case of pre-closing datafeed, all market-on-close orders
and limit-on-close orders eligible to participate in the closing
transaction. It excludes odd-lot orders, the odd-lot portion of partial
round-lot orders, DMM interest and Crowd interest.
b. Proposed Amendments
Reference Price
In order to provide the most accurate imbalance information, the
Exchange proposes to modify what constitutes the reference price for
the dissemination of the NYSE Amex Order Imbalance Information feed.
Prior to the opening transaction, if a pre-opening indication is
published pursuant to the provisions of NYSE Amex Equities Rule 15
(``Pre-Opening Indications'') paragraphs (a) and (b), or in the event
of a mandatory publication \6\ pursuant to NYSE Amex Equities Rule 123D
(``Openings and Halts in Trading''), the reference price will no longer
be the closing price of the prior trading day.
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\6\ Exchange policy requires the dissemination of an indication
in connection with any delayed opening--involving any stock which
has not opened (or been quoted) by 10 a.m. In addition, the
dissemination of an indication is mandatory for an opening which
will result in a significant price change from the previous close
[See table above].
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Price change (equal or
Previous exchange closing price greater than)
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Under $10................................. 1 point.
$10-$99.99................................ the lesser of 10% or 3
points.
$100 and Over............................. 5 points.
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The Exchange proposes to have the reference price equal the last
sale (previous closing price) or the price indication published under
the Rule 15 or 123D. Therefore, when the Exchange publishes a pre-
opening indication in a security pursuant to the provisions of
paragraphs (a) and (b) of NYSE Amex Equities Rule 15 or NYSE Amex
Equities Rule 123D, the reference price will be determined as follows:
If the Bid Price from the indication (the lower price) is
higher than the last sale, the Reference Price will be the Bid.
If the Offer Price from the indication (the higher price)
is lower than the last sale, the Reference Price will be the Offer.
If the Last Sale is within the indication range, the Book
shall use the Last Sale as the Reference Price
If multiple indications have been published, the last
indication that the Exchange makes available shall be used as the
Reference Price.
Examples:
(1) XYZ security closed at a price of $15.00 on April 1, 2009. On
April 2,
[[Page 19616]]
2009, the Exchange publishes a pre-opening indication for XYZ with a
bid price of $16.00 and an offer price of $16.50. The reference price
for the NYSE Order Imbalance datafeed in XYZ security on April 2, 2009
will be $16.00.
(2) XYZ security closed at a price of $15.00 on April 1, 2009. On
April 2, 2009, the Exchange publishes a pre-opening indication for XYZ
with a bid price of $14.00 and an offer price of $14.50. The reference
price for XYZ data feed on April 2, 2009 will be $14.50.
(3) XYZ security closed at a price of $15.00 on April 1, 2009. On
April 2, 2009, the Exchange publishes pre-opening indication for XYZ
with a bid price of $14.99 and an offer price of $15.02. The reference
price for XYZ data feed on April 2, 2009 will be $15.00.
In the case of pre-closing imbalances, the NYSE Amex Order
Imbalance Information service also uses the last sale price as the
reference price for pre-closing Order Imbalance Information that it
disseminated pursuant to NYSE Amex Equities Rule 123C (``Market on the
Close Policy and Expiration Procedures'').
The Exchange proposes to modify what it uses as the reference price
when the last sale price does not fall within the best bid and the best
offer on the Exchange at the time that the Exchange calculates a
closing imbalance for a security,\7\ as follows:
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\7\ Currently NYSE Amex securities operating on the 14.0
Technology Release employ the proposed method to determine the
reference price.
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If the last sale price is lower than the Bid price, then
the Bid Price will serve as the Reference Price.
If the last sale price is higher than the Offer Price,
then the Offer Price will serve as the Reference Price.
If the last sale price falls within the Exchange's best
bid and offer for the security, the last sale price will serve as the
Reference Price.
Examples:
(1) The sale in XYZ security prior to the dissemination of the
order imbalance feed was at a price of $15.00. The quote prior to the
dissemination of the datafeed is 100 shares bid at a price of $15.02
and 500 shares offered at a $15.20. The reference price for the NYSE
Order Imbalance datafeed in XYZ security will be $15.02.
(2) The sale in XYZ security prior to the dissemination of the
order imbalance feed was at a price of $15.00. The quote prior to the
dissemination of the datafeed is 100 shares bid at a price of $14.91
and 500 shares offered at a $14.99. The reference price for the NYSE
Order Imbalance datafeed in XYZ security will be $14.99.
(3) The sale in XYZ security prior to the dissemination of the
order imbalance feed was at a price of $15.00. The quote prior to the
dissemination of the datafeed is 100 shares bid at a price of $14.98
and 500 shares offered at a $15.02. The reference price for the NYSE
Order Imbalance datafeed in XYZ security will be $15.00.
The Exchange believes that the amendments to the reference price
for the publication of the NYSE Amex Order Imbalance Information
service will enhance the value of the product by providing the user
with a more accurate depiction of the market interest available in the
security.
Orders Included in NYSE Amex Pre-Opening Order Imbalance Information
Reports
The Exchange proposes to add all DMM s-quote interest eligible for
execution in the opening transaction, at no additional charge, to the
order information currently included in the pre-opening NYSE Amex Order
Imbalance Information Reports. DMM s-quote interest is currently
eligible for execution in the opening transaction but is not included
in the Order Imbalance Information Report. The Exchange believes that
the addition of DMM s-quote interest to the Order Imbalance Information
Report will enhance the value of this product by including additional
information about the electronic interest eligible to trade at the
opening.
2. Statutory Basis
The bases under the Securities Exchange Act of 1934 (the ``1934
Act'') for this proposed rule change are the requirements under Section
6(b)(5) that the rules of an 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. The
Exchange believes that the proposal benefits investors by modifying
NYSE Amex Order Imbalance Information to provide investors with a more
accurate depiction of the market and additional information on the open
for a security.
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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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 so that the proposal may become operative immediately
upon filing in order to immediately provide market participants with
the most accurate supplemental market information prior to the
execution of the opening and closing transactions on the Exchange. The
Commission believes such waiver is consistent with the protection of
investors and the public interest.\10\ Accordingly, the Commission
designates the proposed rule change operative upon filing with the
Commission.
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\10\ 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,
[[Page 19617]]
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-2009-13 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-2009-13. 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-2009-13 and should be submitted on or before
May 20, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-9818 Filed 4-28-09; 8:45 am]
BILLING CODE 8010-01-P