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 VerDate Nov<24>2008 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. PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 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 E:\FR\FM\29APN1.SGM 29APN1 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). VerDate Nov<24>2008 19:17 Apr 28, 2009 Jkt 217001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 (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]. E:\FR\FM\29APN1.SGM 29APN1 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. VerDate Nov<24>2008 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. PO 00000 Frm 00132 Fmt 4703 Sfmt 4703 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 E:\FR\FM\29APN1.SGM 29APN1 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 VerDate Nov<24>2008 17:48 Apr 28, 2009 Jkt 217001 PO 00000 Frm 00133 Fmt 4703 Sfmt 4703 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend 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\
---------------------------------------------------------------------------

    \4\ See SR-NYSE-2009-41 (to be filed April 17, 2009).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 59743 (April 9, 
2009) (SR-NYSEAmex-2009-11).
---------------------------------------------------------------------------

    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].

------------------------------------------------------------------------
                                               Price change (equal or
      Previous exchange closing price               greater than)
------------------------------------------------------------------------
Under $10.................................  1 point.
$10-$99.99................................  the lesser of 10% or 3
                                             points.
$100 and Over.............................  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,

[[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:
---------------------------------------------------------------------------

    \7\ Currently NYSE Amex securities operating on the 14.0 
Technology Release employ the proposed method to determine the 
reference price.
---------------------------------------------------------------------------

     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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-9818 Filed 4-28-09; 8:45 am]
BILLING CODE 8010-01-P
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