Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Relating to NYSE Arca Equities Rule 7.10 Governing Clearly Erroneous Executions, 20767-20771 [E9-10288]
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Federal Register / Vol. 74, No. 85 / Tuesday, May 5, 2009 / Notices
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–NYSEAmex–2009–14 on the
subject line.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–10171 Filed 5–4–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59838; File No. SR–
NYSEArca–2009–36]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Relating to NYSE Arca
Equities Rule 7.10 Governing Clearly
Erroneous Executions
April 28, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on April 27,
2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
to Elizabeth M. Murphy, Secretary,
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission,
Securities and Exchange Commission
Station Place, 100 F Street, NE.,
(‘‘Commission’’) the proposed rule
Washington, DC 20549–1090.
change as described in Items I, II, and
All submissions should refer to File
III below, which Items have been
Number SR–NYSEAmex–2009–14. This prepared by the Exchange. The
file number should be included on the
Commission is publishing this notice to
subject line if e-mail is used. To help the solicit comments on the proposed rule
Commission process and review your
change from interested persons.
comments more efficiently, please use
only one method. The Commission will I. Self-Regulatory Organization’s
post all comments on the Commission’s Statement of the Terms of Substance of
the Proposed Rule Change
Internet Web site (https://www.sec.gov/
The Exchange proposes to amend
rules/sro.shtml). Copies of the
NYSE Arca Equities Rule 7.10 governing
submission, all subsequent
clearly erroneous executions. The text of
amendments, all written statements
the proposed rule change is attached as
with respect to the proposed rule
Exhibit 5 to the 19b-4 form. A copy of
change that are filed with the
this filing is available on the Exchange’s
Commission, and all written
Web site at www.nyse.com, at the
communications relating to the
Exchange’s principal office and at the
proposed rule change between the
Commission’s Public Reference Room.
Commission and any person, other than
II. Self-Regulatory Organization’s
those that may be withheld from the
Statement of the Purpose of, and
public in accordance with the
Statutory Basis for, the Proposed Rule
provisions of 5 U.S.C. 552, will be
Change
available for inspection and copying in
the Commission’s Public Reference
In its filing with the Commission, the
Room, on official business days between self-regulatory organization included
the hours of 10 a.m. and 3 p.m. Copies
statements concerning the purpose of,
of such filing also will be available for
and basis for, the proposed rule change
inspection and copying at the principal
and discussed any comments it received
on the proposed rule change. The text
office of the Exchange. All comments
received will be posted without change; of those statements may be examined at
the places specified in Item IV below.
the Commission does not edit personal
The Exchange has prepared summaries,
identifying information from
set forth in sections A, B, and C below,
submissions. You should submit only
of the most significant parts of such
information that you wish to make
statements.
available publicly. All submissions
should refer to File Number SR–
17 17 CFR 200.30–3(a)(12).
NYSEAmex–2009–14 and should be
1 15 U.S.C. 78s(b)(1).
submitted on or before May 26, 2009.
2 17 CFR 240.19b–4.
Paper Comments
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20767
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NYSE Arca Rule 7.10 in order to
improve the Exchange’s rule regarding
clearly erroneous executions. The
proposed changes are part of a marketwide effort designed to provide
transparency and finality with respect to
clearly erroneous executions. This effort
seeks to achieve consistent results for
participants across U.S. equities
exchanges while maintaining a fair and
orderly market, protecting investors and
protecting the public interest. The
proposed changes are more fully
discussed below.
Definition
The Exchange will maintain the
meaning of the definition of a clearly
erroneous execution, but proposes to
add clarifying language with respect to
cancelled trades. The proposed change
identifies that a transaction made in
clearly erroneous error and agreed to be
canceled by both parties or determined
by the Corporation to be clearly
erroneous will be removed ‘‘from the
Consolidated Tape.’’ 3 A trade will only
be removed from the Consolidated Tape
when the determination is deemed final
and any applicable appeals have been
exhausted.
ETP Holder Initiated Review Requests
The Exchange proposes to amend
NYSE Arca Rule 7.10(b) to update the
procedures for requesting a review of a
clearly erroneous transaction. First, the
proposed rule would require that
requests for review be made only by
electronic mail (‘‘email’’) or other
electronic means specified from time to
time by the Exchange. Under the current
policy the Exchange also allows
requests to be made via telephone and
facsimile. Requiring requests for review
to be made via email creates a standard
format that can easily be logged and
tracked. The Exchange will publish the
email address or other electronic means
to be used for all clearly erroneous
filings in a circular distributed to Equity
Trading Permit (‘‘ETP’’) Holders.4
The Exchange further proposes that
requests for review must be received by
3 For purposes of this Rule, ‘‘removed from the
Consolidate Tape’’ means that a subsequent
message will be sent to the Consolidated Tape
indicating that a previously executed trade has been
cancelled.
4 NYSE Arca Rule 1.1(n) defines an ETP Holder
as a ‘‘sole proprietorship, partnership, corporation,
limited liability company or other organization in
good standing that has been issued an ETP.’’
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the Exchange within 30 minutes of the
execution time for orders initially
routed to and executed on the Exchange.
The Exchange proposes that ETP
Holders submit certain essential
identifying information with the request
including the time of the transaction(s),
security symbol(s), number of shares,
price(s), side (bought or sold), and
factual basis for believing that the trade
is clearly erroneous. The current rule
requires requests for review to be
received within 15 minutes of the
execution and does not specify what
information is required. The Exchange
believes that 30 minutes is an
appropriate time frame that offers the
requesting party sufficient time to gather
and submit all required information.
The proposed rule also requires the
Exchange to notify the counterparty to
a trade upon receipt of a timely filed
request for review that satisfies the
numerical guidelines set forth within
the Rule. This proposed language
eliminates the requirement that
counterparties be notified of every
request for a ruling and instead requires
notice only when a request is filed in a
timely manner and satisfies the
Numerical Guidelines. This change
alleviates the burden on the Exchange of
notifying the counterparty when a
request for review does not merit a
ruling.
The Exchange proposes to amend
NYSE Arca Rule 7.10 to allow an Officer
of the Corporation or such other
employee designee (‘‘Officer’’) of NYSE
Arca to request additional information
from each party to a transaction under
review. Parties to the review will have
30 minutes from the time of the request
to provide additional supporting
information.
Routed Executions
The Exchange proposes to give other
market centers an additional 30 minutes
from the receipt of their participant’s
timely filing to request a ruling, but no
longer than 60 minutes from the time of
the execution under review. This
provision accounts for those executions
initially directed to an away market
center and subsequently routed by that
away market center to the Exchange.
For example, assume an order is
initially routed by a participant to
Market Center A and subsequently
routed to NYSE Arca where the order is
executed at a price outside of the
Numerical Guidelines. This provision
generally requires Market Center A to
file with the Exchange within 30
minutes from the time it receives its
participant’s timely filed request for
review. This provision caps the filing
deadline for an away market center at 60
minutes from the time of the execution
under review.
state what constitutes a clearly
erroneous execution.
Numerical Guidelines
Currently, the Exchange’s Clearly
Erroneous Execution rule does not
identify specific numeric guidelines for
determining what constitutes a clearly
erroneous transaction. The current rule
simply provides that ‘‘an Officer of the
Corporation shall review the transaction
and determine whether it is clearly
erroneous, with a view toward
maintaining a fair and orderly market
and the protection of investors and the
public interest.’’ 5 In practice, the
Exchange currently incorporates the
informal guidelines set forth in the
Clearly Erroneous Execution policy
published on its website.6 The Exchange
proposes adding certain numerical
thresholds to the Rule that explicitly
The proposed numerical guidelines
state that a transaction executed during
the Core Trading Session 7 or the
Opening 8 and Late Trading Session 9
may be found to be clearly erroneous
only if the price of the transaction to
buy is greater, or less in the case of a
sale, than the reference price by an
amount that equals or exceeds the
numerical guidelines for a particular
transaction category. The Reference
Price shall be equal to the Consolidated
Last Sale immediately prior to the
execution under review, unless unusual
circumstances are present. The
proposed guidelines for sales between
$0.00 and $25.00 are 10% for the Core
Trading Session and 20% for the
Opening and Late Trading Sessions. The
proposed guidelines for sales between
$25.01 and $50.00 are 5% for the Core
Trading Session and 10% for Opening
and Late Trading Sessions. The
proposed guidelines for sales greater
than $50.00 are 3% for the Core Trading
Session and 6% for Opening and Late
Trading Sessions. A filing involving five
or more securities by the same ETP
Holder will be aggregated into a single
filing called a ‘‘Multi-Stock Event.’’ In
the case of a Multi-Stock Event, the
proposed guidelines are 10% for the
Core Trading Session and 10% for the
Opening and Late Trading Sessions. In
the case of Leveraged ETF/ETN
securities, the above guidelines are to be
multiplied by the leverage multiplier of
the security. Executions that do not
meet or exceed the Numerical
Guidelines will not be eligible for
review under this section. The following
chart summarizes the proposed
Numerical Guidelines.
Reference Price: Consolidated Last Sale
Core Trading Session Numerical Guidelines
(Subject transaction’s % difference from the
Consolidated Last Sale):
Opening and Late Trading Session Numerical
Guidelines (Subject transaction’s % difference from the Consolidated Last Sale):
Between $0.00 and $25.00 ................................
Between $25.01 and $50.00 ..............................
Greater than $50.00 ...........................................
Multi-Stock Event—Filings involving five or
more securities by the same ETP Holder will
be aggregated into a single filing.
Leveraged ETF/ETN securities ..........................
10% ..................................................................
5% ....................................................................
3% ....................................................................
10% ..................................................................
20%
10%
6%
10%
5 NYSE
Arca Rule 7.10(b).
6 https://www.nyse.com/pdfs/Arca_
Erroneous_Execution.pdf.
7 The Core Trading Session begins for each
security at ‘‘6:30:00 am (Pacific Time) or at the
conclusion of the Market Order Auction, whichever
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Threshold Factors
Core Trading Session Numerical Guidelines Core Trading Session Numerical Guidelines
multiplied by the leverage multiplier (i.e. 2×).
multiplied by the leverage multiplier (i.e. 2×)
comes later, and conclude at 1:00:00 pm (Pacific
Time).’’ NYSE Arca Rule 7.34(a)(2).
8 The Opening Session begins at ‘‘1:00:00 am
(Pacific Time) and conclude[s] at the
commencement of the Core Trading Session.’’
NYSE Arca Rule 7.34(a)(1).
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9 The Late Trading Session begins ‘‘following the
conclusion of the Core Trading Session and
conclude[s] at 5:00:00 pm (Pacific Time).’’ NYSE
Arca Rule 7.34(a)(3).
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Establishing Numerical Guidelines
within the Rule brings regulatory
transparency and consistency in the
application of the rules of the Exchange.
These Numerical Guidelines represent
the general consensus approach and
were developed based on the collective
experiences of a market-wide group.
The Exchange believes that the
Thresholds established are fair and
appropriate and apply evenly to all
participants.
Customer A could request a ruling for
trades #6 through #10, priced at $11.00
and above, but trades #1 through #5
would not be eligible for review.
Under the proposed rule the Exchange
may also use a higher numerical
guideline if, after market participants
have been alerted to erroneous activity,
the price of the security returns toward
its prior trading range but continues to
trade beyond the price it would have
normally been broken.
Unusual Circumstances
NYSE Arca further proposes that in
Unusual Circumstances the Exchange
may, in its discretion and with a view
toward maintaining a fair and orderly
market, use a Reference Price other than
the consolidated last sale. Unusual
Circumstances may include periods of
extreme market volatility, sustained
illiquidity, or widespread system issues.
Other Reference Prices that the
Exchange may use would include the
consolidated inside price, the
consolidated opening price, the
consolidated prior close, or the
consolidated last sale prior to a series of
executions.
The following example explains the
use of a Reference Price equal to the
consolidated last sale prior to a series of
executions.
ABC has a consolidated last sale of
$10.00. During the Core Trading Session
Customer A enters a market order to buy
10,000 shares, although it had intended
a market order for 1,000 shares. The size
of the order is such that the order
sweeps the NYSE Arca Book, which
reflects 1,000 shares of liquidity offered
at each of following prices. Executions
occur, moving through the depth of
Book, as follows:
Trade #1—1000 shares @ $10.00 (9000
remaining)
Trade #2—1000 shares @ $10.20 (8000
remaining)
Trade #3—1000 shares @ $10.40 (7000
remaining)
Trade #4—1000 shares @ $10.60 (6000
remaining)
Trade #5—1000 shares @ $10.80 (5000
remaining)
Trade #6—1000 shares @ $11.00 (4000
remaining)
Trade #7—1000 shares @ $11.20 (3000
remaining)
Trade #8—1000 shares @ $11.40 (2000
remaining)
Trade #9—1000 shares @ $11.60 (1000
remaining)
Trade #10—1000 shares @ $11.80
(complete)
Thus, to be eligible for review, a
transaction must be at a price that is at
least 10% higher than the consolidated
last sale prior to the series of executions.
Joint Market Rulings
In the interest of achieving
consistency across markets, the
Exchange proposes that, in events that
involve other markets, the Exchange
would have the ability to use a different
Reference Price and/or Numerical
Guideline. In these instances the
Reference Price would be determined
based on a consensus among the
Exchanges where the transactions
occurred. Furthermore, when a ruling is
made across markets, the Exchange may
determine that the ruling is not eligible
for appeal because immediate finality is
necessary to maintain a fair and orderly
market and to protect investors and the
public interest.
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Additional Factors
The proposed amendments to NYSE
Arca Rule 7.10 also enumerate some
additional factors that an Officer may
consider when determining whether an
execution is clearly erroneous. These
factors include, but are not limited to,
system malfunctions or disruptions,
volume and volatility for the security,
derivative securities products that
correspond to greater than 100% in the
direction of a tracking index, news
released for the security, whether
trading in the security was recently
halted/resumed, whether the security is
an IPO, whether the security was subject
to a stock-split, reorganization, or other
corporate action, overall market
conditions, Opening and Late Session
executions, validity of the consolidated
tapes trades and quotes, consideration
of primary market indications, and
executions inconsistent with the trading
pattern in the stock. Each additional
factor shall be considered with a view
toward maintaining a fair and orderly
market, the protection of investors and
the public interest.
Numerical Guidelines Applicable to
Volatile Market Opens
The Exchange proposes to give the
Exchange the ability to expand the
Numerical Guidelines applicable to
transactions occurring between 9:30
a.m. and 10 a.m. based on the
disseminated value of the S & P 500
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20769
Futures at 9:15 a.m. When the S & P
Futures are up or down 3% at 9:15 a.m.,
the Numerical Guidelines are doubled.
When the S & P Futures are up or down
5% at 9:15 a.m., the Numerical
Guidelines are tripled. The Exchange
believes that the S&P 500 futures
contract is an appropriate and reliable
barometer of market activity prior to the
market opening due to its broad based
market coverage and deep liquidity.
Using the S&P 500 Futures disseminated
value at 9:15 a.m. as the barometer of
market activity, the Exchange is
providing a transparent means of
offering adjusted guidelines in times of
volatile market activity.
Outlier Transactions
The proposed amendments to NYSE
Arca Rule 7.10 provide that an Officer
may consider requests for review
received after thirty minutes, but not
longer than sixty minutes after the
execution in question in the case of an
Outlier Transaction. An Outlier
Transaction is a transaction where, (1)
the execution price of the security is
greater than three times the current
Numerical Guidelines, or (2) the
execution price of the security breaches
the 52-week high or low, in which case
the Exchange may consider Additional
Factors to determine if the transaction
qualifies for review or if the Corporation
shall decline to act.
Review Procedures
Initial Determination
The Exchange proposes removing
language that currently allows an
Officer to modify one or more of the
terms of a transaction under review.
Under the proposed rule, the Officer of
the Exchange will only have the
authority to break the trades or rule to
let the trades stand. This change
attempts to remove the subjectivity from
the rule that is necessitated by an
adjustment.
The Exchange also proposes adding
language stating that a determination
shall be made generally within 30
minutes of receipt of the complaint, but
in no case later than the start of Core
Trading on the following trading day.
Rulings made outside of 30 minutes by
an Officer will not fail for lack of
timeliness. The guideline simply
provides participants an appropriate
expectation that a ruling will generally
be made within 30 minutes, and in no
case later than the start of Core Trading
on the following trading day.
Appeals
The Exchange proposes to amend the
appeals procedure for trades that are
deemed to be clearly erroneous. First,
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the Exchange will no longer accept
appeal requests via facsimile. Similar to
the proposed language for an initial
request for a ruling, all appeal requests
must be made via email.
The current rule provides that the
Exchange shall review and render a
decision upon an appeal within a
timeframe provided by the Exchange.
The proposed rule offers more definite
guidelines to ensure the expedient
resolution of appeals. It requires the
Exchange to review appeals as soon as
practicable, but generally on the same
day as the executions under review.
Appeals received between 3 ET and the
close of trading in the Late Trading
Session should be made as soon as
practicable, but in no case later than the
trading day following the date of the
execution under review. Appeals will
not fail for lack of timeliness. This
revised provision provides participants
a reasonable expectation of when a
ruling on appeal will generally be made.
Further, the proposed rule declares
that any determination made by an
Officer or by the CEE Panel shall be
rendered without prejudice as to the
right of the parties to the transaction to
submit their dispute to arbitration. This
provision simply clarifies the fact that
nothing in the proposed rule limits or
impedes the rights of the parties to
arbitrate their dispute.
System Disruption and Malfunctions
Currently, within the System
Disruptions and Malfunctions section of
the rule, after an Officer determines that
a trade was clearly erroneous he may
declare the transaction null and void or
modify the trade to attempt to achieve
and equitable rectification of the error.
The proposed Rule eliminates the
Exchange’s ability to modify a clearly
erroneous execution. The Exchange
must either uphold or nullify the
execution based upon the findings of
the Officer reviewing the execution.
The proposed Rule provides that, in
the event of a disruption or a
malfunction, an Officer of the
Corporation or other senior level
employee designee will rely on the
proposed numerical guidelines in
determining whether an execution is
clearly erroneous. However, the Officer
or senior level employee may also use
a lower Numerical Guideline if
necessary to maintain a fair and orderly
market, protect investors, and protect
the public interest. The proposed rule
also adds that actions taken under these
circumstances must be taken within 30
minutes of detection of the erroneous
transaction in the ordinary case, and by
no later than the start of the Core
Trading Session on the day following
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the date of the execution under review
when extraordinary circumstances exist.
Officers Acting on Their Own Motion
The Exchange proposes to add a
section to the Rule that will grant
Officers the ability to act on their own
motion to review potentially erroneous
executions. Under the current rule,
Officers have the ability to act upon
their own motion only in the event of
a system disruption or malfunction. The
proposed rule would allow an Officer of
the Corporation or other senior level
employee designee to review executions
and rely on the Numerical Guidelines,
under any circumstance. In
extraordinary circumstances an Officer
or senior level employee may apply a
lower Numerical Guideline if it is
determined that such action is necessary
to maintain a fair and orderly market or
protect investors and the public interest.
In some instances the Exchange may
detect a single execution that breaches
the Numerical Guidelines but is not the
subject of a ruling request. This
provision gives the Exchange the ability
to review such executions. Additionally,
in practice, clearly erroneous executions
commonly involve multiple parties and
multiple executions. In such instances,
all affected parties may not request a
ruling. The Exchange proposes this
provision to permit an Officer to rule on
a group of transactions related to the
same occurrence or event as a whole,
without a formal request for a ruling
from every affected party.
Trade Nullification for UTP Securities
that are Subject of Initial Public
Offerings
The proposed rule also modifies
NYSE Arca’s policy on trade
nullification and for UTP securities that
are subject to initial public offerings.
Under the proposed rule, Officers must
either declare an opening transaction
null and void or decline to take action,
but can no longer be adjusted.
Furthermore, the proposed rule requires
that, in extraordinary circumstances, the
reviewing Officer may take action by no
later than the start of Core Trading on
the day following the date of the
execution under review.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b)10 of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’), in general, and
furthers the objectives of Section
6(b)(5)11 in particular in that it is
designed to prevent fraudulent and
10 15
11 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. The proposed rule change
provides transparency and finality for
participants and creates consistent
results across U.S. equities exchanges
with respect to clearly erroneous
executions. This proposed change
further promotes the maintenance of a
fair and orderly market, the protection
of investors and the protection of the
public interest.
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
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 the proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
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Federal Register / Vol. 74, No. 85 / Tuesday, May 5, 2009 / Notices
Number SR–NYSEArca–2009–36 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2009–36. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of the filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2009–36 and should be
submitted on or before May 26, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–10288 Filed 5–4–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59825; File No. SR–
NYSEAmex–2009–15]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
NYSE Amex LLC Amending Rule
935NY—Order Exposure Requirements
April 27, 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 21,
2009, NYSE Amex LLC (‘‘NYSE Amex’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the 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 its
rules governing order exposure
requirements on the NYSE Amex
System. This proposal will revise Rule
935NY. The text 4 of the proposed rule
change is attached as Exhibit 5 to the
19b-4 form. A copy of this filing is
available on the Exchange’s Web site at
https://www.nyse.com, at the Exchange’s
principal office and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
4 The Exchange requested that the Commission
correct a typographical error in this sentence.
Telephone conversation between Glenn Gsell,
Managing Director, NYSE Amex, and Kristie
Diemer, Special Counsel, Commission, on April 27,
2009.
2 15
12 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
23:12 May 04, 2009
Jkt 217001
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Frm 00101
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20771
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to reduce the exposure period
contained in Rule 935NY—Order
Exposure Requirements, from three
seconds to one second.
Rule 935NY provides that with
respect to orders routed to the NYSE
Amex System, Users may not execute as
principal orders they represent as agent
unless (i) agency orders are first exposed
on the Exchange for at least three (3)
seconds or (ii) the User has been
bidding or offering on the Exchange for
at least three (3) seconds prior to
receiving an agency order that is
executable against such bid or offer.
Specifically, order entry firms may
not execute as principal, orders they
represent as agent unless; [sic] (i) the
agency order has first exposed on the
NYSE Amex System for at least three
seconds; [sic] (ii) the order entry firm
has been bidding or offering for at least
three seconds prior to receiving the
agency order that is executable against
such bid or offer. During this threesecond exposure period, other market
participants may enter orders to trade
against the exposed order. Under this
proposal, the exposure periods
contained in Rule 935NY would be
reduced to one second.
The Exchange notes that the existing
three-second order exposure period
contained in Rule 935NY, is not
necessarily long enough to allow human
interaction with the exposed orders.
Rather, market participants on NYSE
Amex are sufficiently automated that
they can react to these orders
electronically. In this context, NYSE
Amex believes it would be in all market
participants’ best interest to minimize
the exposure period to a time frame that
continues to allow adequate time for
market participants to electronically
respond, while at the same time
reducing any market risk associated
with the longer exposure period. In this
respect, the Exchange states that its
experience with the three-second
exposure time period indicates that one
second would provide an adequate
response time.5 Accordingly, the
Exchange does not believe it is
necessary or beneficial to the orders
being exposed to continue to subject
5 There are numerous market participants on
NYSE Amex that have the capability and already
opt to respond within the first one second of the
present three-second exposure period, currently in
force for the NYSE Amex System.
E:\FR\FM\05MYN1.SGM
05MYN1
Agencies
[Federal Register Volume 74, Number 85 (Tuesday, May 5, 2009)]
[Notices]
[Pages 20767-20771]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-10288]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59838; File No. SR-NYSEArca-2009-36]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to NYSE Arca Equities Rule 7.10
Governing Clearly Erroneous Executions
April 28, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 27, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Arca Equities Rule 7.10
governing clearly erroneous executions. The text of the proposed rule
change is attached as Exhibit 5 to the 19b-4 form. A copy of this
filing is available on the Exchange's Web site at www.nyse.com, at the
Exchange's principal office and at the Commission's Public Reference
Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend NYSE Arca Rule 7.10 in order to
improve the Exchange's rule regarding clearly erroneous executions. The
proposed changes are part of a market-wide effort designed to provide
transparency and finality with respect to clearly erroneous executions.
This effort seeks to achieve consistent results for participants across
U.S. equities exchanges while maintaining a fair and orderly market,
protecting investors and protecting the public interest. The proposed
changes are more fully discussed below.
Definition
The Exchange will maintain the meaning of the definition of a
clearly erroneous execution, but proposes to add clarifying language
with respect to cancelled trades. The proposed change identifies that a
transaction made in clearly erroneous error and agreed to be canceled
by both parties or determined by the Corporation to be clearly
erroneous will be removed ``from the Consolidated Tape.'' \3\ A trade
will only be removed from the Consolidated Tape when the determination
is deemed final and any applicable appeals have been exhausted.
---------------------------------------------------------------------------
\3\ For purposes of this Rule, ``removed from the Consolidate
Tape'' means that a subsequent message will be sent to the
Consolidated Tape indicating that a previously executed trade has
been cancelled.
---------------------------------------------------------------------------
ETP Holder Initiated Review Requests
The Exchange proposes to amend NYSE Arca Rule 7.10(b) to update the
procedures for requesting a review of a clearly erroneous transaction.
First, the proposed rule would require that requests for review be made
only by electronic mail (``email'') or other electronic means specified
from time to time by the Exchange. Under the current policy the
Exchange also allows requests to be made via telephone and facsimile.
Requiring requests for review to be made via email creates a standard
format that can easily be logged and tracked. The Exchange will publish
the email address or other electronic means to be used for all clearly
erroneous filings in a circular distributed to Equity Trading Permit
(``ETP'') Holders.\4\
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\4\ NYSE Arca Rule 1.1(n) defines an ETP Holder as a ``sole
proprietorship, partnership, corporation, limited liability company
or other organization in good standing that has been issued an
ETP.''
---------------------------------------------------------------------------
The Exchange further proposes that requests for review must be
received by
[[Page 20768]]
the Exchange within 30 minutes of the execution time for orders
initially routed to and executed on the Exchange. The Exchange proposes
that ETP Holders submit certain essential identifying information with
the request including the time of the transaction(s), security
symbol(s), number of shares, price(s), side (bought or sold), and
factual basis for believing that the trade is clearly erroneous. The
current rule requires requests for review to be received within 15
minutes of the execution and does not specify what information is
required. The Exchange believes that 30 minutes is an appropriate time
frame that offers the requesting party sufficient time to gather and
submit all required information.
The proposed rule also requires the Exchange to notify the
counterparty to a trade upon receipt of a timely filed request for
review that satisfies the numerical guidelines set forth within the
Rule. This proposed language eliminates the requirement that
counterparties be notified of every request for a ruling and instead
requires notice only when a request is filed in a timely manner and
satisfies the Numerical Guidelines. This change alleviates the burden
on the Exchange of notifying the counterparty when a request for review
does not merit a ruling.
The Exchange proposes to amend NYSE Arca Rule 7.10 to allow an
Officer of the Corporation or such other employee designee
(``Officer'') of NYSE Arca to request additional information from each
party to a transaction under review. Parties to the review will have 30
minutes from the time of the request to provide additional supporting
information.
Routed Executions
The Exchange proposes to give other market centers an additional 30
minutes from the receipt of their participant's timely filing to
request a ruling, but no longer than 60 minutes from the time of the
execution under review. This provision accounts for those executions
initially directed to an away market center and subsequently routed by
that away market center to the Exchange.
For example, assume an order is initially routed by a participant
to Market Center A and subsequently routed to NYSE Arca where the order
is executed at a price outside of the Numerical Guidelines. This
provision generally requires Market Center A to file with the Exchange
within 30 minutes from the time it receives its participant's timely
filed request for review. This provision caps the filing deadline for
an away market center at 60 minutes from the time of the execution
under review.
Threshold Factors
Currently, the Exchange's Clearly Erroneous Execution rule does not
identify specific numeric guidelines for determining what constitutes a
clearly erroneous transaction. The current rule simply provides that
``an Officer of the Corporation shall review the transaction and
determine whether it is clearly erroneous, with a view toward
maintaining a fair and orderly market and the protection of investors
and the public interest.'' \5\ In practice, the Exchange currently
incorporates the informal guidelines set forth in the Clearly Erroneous
Execution policy published on its website.\6\ The Exchange proposes
adding certain numerical thresholds to the Rule that explicitly state
what constitutes a clearly erroneous execution.
---------------------------------------------------------------------------
\5\ NYSE Arca Rule 7.10(b).
\6\ https://www.nyse.com/pdfs/Arca_Erroneous_Execution.pdf.
---------------------------------------------------------------------------
Numerical Guidelines
The proposed numerical guidelines state that a transaction executed
during the Core Trading Session \7\ or the Opening \8\ and Late Trading
Session \9\ may be found to be clearly erroneous only if the price of
the transaction to buy is greater, or less in the case of a sale, than
the reference price by an amount that equals or exceeds the numerical
guidelines for a particular transaction category. The Reference Price
shall be equal to the Consolidated Last Sale immediately prior to the
execution under review, unless unusual circumstances are present. The
proposed guidelines for sales between $0.00 and $25.00 are 10% for the
Core Trading Session and 20% for the Opening and Late Trading Sessions.
The proposed guidelines for sales between $25.01 and $50.00 are 5% for
the Core Trading Session and 10% for Opening and Late Trading Sessions.
The proposed guidelines for sales greater than $50.00 are 3% for the
Core Trading Session and 6% for Opening and Late Trading Sessions. A
filing involving five or more securities by the same ETP Holder will be
aggregated into a single filing called a ``Multi-Stock Event.'' In the
case of a Multi-Stock Event, the proposed guidelines are 10% for the
Core Trading Session and 10% for the Opening and Late Trading Sessions.
In the case of Leveraged ETF/ETN securities, the above guidelines are
to be multiplied by the leverage multiplier of the security. Executions
that do not meet or exceed the Numerical Guidelines will not be
eligible for review under this section. The following chart summarizes
the proposed Numerical Guidelines.
---------------------------------------------------------------------------
\7\ The Core Trading Session begins for each security at
``6:30:00 am (Pacific Time) or at the conclusion of the Market Order
Auction, whichever comes later, and conclude at 1:00:00 pm (Pacific
Time).'' NYSE Arca Rule 7.34(a)(2).
\8\ The Opening Session begins at ``1:00:00 am (Pacific Time)
and conclude[s] at the commencement of the Core Trading Session.''
NYSE Arca Rule 7.34(a)(1).
\9\ The Late Trading Session begins ``following the conclusion
of the Core Trading Session and conclude[s] at 5:00:00 pm (Pacific
Time).'' NYSE Arca Rule 7.34(a)(3).
------------------------------------------------------------------------
------------------------------------------------------------------------
Reference Price: Core Trading Session Opening and Late
Consolidated Last Sale Numerical Trading Session
Guidelines (Subject Numerical
transaction's % Guidelines (Subject
difference from the transaction's %
Consolidated Last difference from the
Sale): Consolidated Last
Sale):
------------------------------------------------------------------------
Between $0.00 and $25.00.... 10%................. 20%
Between $25.01 and $50.00... 5%.................. 10%
Greater than $50.00......... 3%.................. 6%
Multi-Stock Event--Filings 10%................. 10%
involving five or more
securities by the same ETP
Holder will be aggregated
into a single filing.
Leveraged ETF/ETN securities Core Trading Session Core Trading Session
Numerical Numerical
Guidelines Guidelines
multiplied by the multiplied by the
leverage multiplier leverage multiplier
(i.e. 2x). (i.e. 2x)
------------------------------------------------------------------------
[[Page 20769]]
Establishing Numerical Guidelines within the Rule brings regulatory
transparency and consistency in the application of the rules of the
Exchange. These Numerical Guidelines represent the general consensus
approach and were developed based on the collective experiences of a
market-wide group. The Exchange believes that the Thresholds
established are fair and appropriate and apply evenly to all
participants.
Unusual Circumstances
NYSE Arca further proposes that in Unusual Circumstances the
Exchange may, in its discretion and with a view toward maintaining a
fair and orderly market, use a Reference Price other than the
consolidated last sale. Unusual Circumstances may include periods of
extreme market volatility, sustained illiquidity, or widespread system
issues. Other Reference Prices that the Exchange may use would include
the consolidated inside price, the consolidated opening price, the
consolidated prior close, or the consolidated last sale prior to a
series of executions.
The following example explains the use of a Reference Price equal
to the consolidated last sale prior to a series of executions.
ABC has a consolidated last sale of $10.00. During the Core Trading
Session Customer A enters a market order to buy 10,000 shares, although
it had intended a market order for 1,000 shares. The size of the order
is such that the order sweeps the NYSE Arca Book, which reflects 1,000
shares of liquidity offered at each of following prices. Executions
occur, moving through the depth of Book, as follows:
Trade 1--1000 shares @ $10.00 (9000 remaining)
Trade 2--1000 shares @ $10.20 (8000 remaining)
Trade 3--1000 shares @ $10.40 (7000 remaining)
Trade 4--1000 shares @ $10.60 (6000 remaining)
Trade 5--1000 shares @ $10.80 (5000 remaining)
Trade 6--1000 shares @ $11.00 (4000 remaining)
Trade 7--1000 shares @ $11.20 (3000 remaining)
Trade 8--1000 shares @ $11.40 (2000 remaining)
Trade 9--1000 shares @ $11.60 (1000 remaining)
Trade 10--1000 shares @ $11.80 (complete)
Thus, to be eligible for review, a transaction must be at a price
that is at least 10% higher than the consolidated last sale prior to
the series of executions. Customer A could request a ruling for trades
6 through 10, priced at $11.00 and above, but trades
1 through 5 would not be eligible for review.
Under the proposed rule the Exchange may also use a higher
numerical guideline if, after market participants have been alerted to
erroneous activity, the price of the security returns toward its prior
trading range but continues to trade beyond the price it would have
normally been broken.
Joint Market Rulings
In the interest of achieving consistency across markets, the
Exchange proposes that, in events that involve other markets, the
Exchange would have the ability to use a different Reference Price and/
or Numerical Guideline. In these instances the Reference Price would be
determined based on a consensus among the Exchanges where the
transactions occurred. Furthermore, when a ruling is made across
markets, the Exchange may determine that the ruling is not eligible for
appeal because immediate finality is necessary to maintain a fair and
orderly market and to protect investors and the public interest.
Additional Factors
The proposed amendments to NYSE Arca Rule 7.10 also enumerate some
additional factors that an Officer may consider when determining
whether an execution is clearly erroneous. These factors include, but
are not limited to, system malfunctions or disruptions, volume and
volatility for the security, derivative securities products that
correspond to greater than 100% in the direction of a tracking index,
news released for the security, whether trading in the security was
recently halted/resumed, whether the security is an IPO, whether the
security was subject to a stock-split, reorganization, or other
corporate action, overall market conditions, Opening and Late Session
executions, validity of the consolidated tapes trades and quotes,
consideration of primary market indications, and executions
inconsistent with the trading pattern in the stock. Each additional
factor shall be considered with a view toward maintaining a fair and
orderly market, the protection of investors and the public interest.
Numerical Guidelines Applicable to Volatile Market Opens
The Exchange proposes to give the Exchange the ability to expand
the Numerical Guidelines applicable to transactions occurring between
9:30 a.m. and 10 a.m. based on the disseminated value of the S & P 500
Futures at 9:15 a.m. When the S & P Futures are up or down 3% at 9:15
a.m., the Numerical Guidelines are doubled. When the S & P Futures are
up or down 5% at 9:15 a.m., the Numerical Guidelines are tripled. The
Exchange believes that the S&P 500 futures contract is an appropriate
and reliable barometer of market activity prior to the market opening
due to its broad based market coverage and deep liquidity. Using the
S&P 500 Futures disseminated value at 9:15 a.m. as the barometer of
market activity, the Exchange is providing a transparent means of
offering adjusted guidelines in times of volatile market activity.
Outlier Transactions
The proposed amendments to NYSE Arca Rule 7.10 provide that an
Officer may consider requests for review received after thirty minutes,
but not longer than sixty minutes after the execution in question in
the case of an Outlier Transaction. An Outlier Transaction is a
transaction where, (1) the execution price of the security is greater
than three times the current Numerical Guidelines, or (2) the execution
price of the security breaches the 52-week high or low, in which case
the Exchange may consider Additional Factors to determine if the
transaction qualifies for review or if the Corporation shall decline to
act.
Review Procedures
Initial Determination
The Exchange proposes removing language that currently allows an
Officer to modify one or more of the terms of a transaction under
review. Under the proposed rule, the Officer of the Exchange will only
have the authority to break the trades or rule to let the trades stand.
This change attempts to remove the subjectivity from the rule that is
necessitated by an adjustment.
The Exchange also proposes adding language stating that a
determination shall be made generally within 30 minutes of receipt of
the complaint, but in no case later than the start of Core Trading on
the following trading day. Rulings made outside of 30 minutes by an
Officer will not fail for lack of timeliness. The guideline simply
provides participants an appropriate expectation that a ruling will
generally be made within 30 minutes, and in no case later than the
start of Core Trading on the following trading day.
Appeals
The Exchange proposes to amend the appeals procedure for trades
that are deemed to be clearly erroneous. First,
[[Page 20770]]
the Exchange will no longer accept appeal requests via facsimile.
Similar to the proposed language for an initial request for a ruling,
all appeal requests must be made via email.
The current rule provides that the Exchange shall review and render
a decision upon an appeal within a timeframe provided by the Exchange.
The proposed rule offers more definite guidelines to ensure the
expedient resolution of appeals. It requires the Exchange to review
appeals as soon as practicable, but generally on the same day as the
executions under review. Appeals received between 3 ET and the close of
trading in the Late Trading Session should be made as soon as
practicable, but in no case later than the trading day following the
date of the execution under review. Appeals will not fail for lack of
timeliness. This revised provision provides participants a reasonable
expectation of when a ruling on appeal will generally be made.
Further, the proposed rule declares that any determination made by
an Officer or by the CEE Panel shall be rendered without prejudice as
to the right of the parties to the transaction to submit their dispute
to arbitration. This provision simply clarifies the fact that nothing
in the proposed rule limits or impedes the rights of the parties to
arbitrate their dispute.
System Disruption and Malfunctions
Currently, within the System Disruptions and Malfunctions section
of the rule, after an Officer determines that a trade was clearly
erroneous he may declare the transaction null and void or modify the
trade to attempt to achieve and equitable rectification of the error.
The proposed Rule eliminates the Exchange's ability to modify a clearly
erroneous execution. The Exchange must either uphold or nullify the
execution based upon the findings of the Officer reviewing the
execution.
The proposed Rule provides that, in the event of a disruption or a
malfunction, an Officer of the Corporation or other senior level
employee designee will rely on the proposed numerical guidelines in
determining whether an execution is clearly erroneous. However, the
Officer or senior level employee may also use a lower Numerical
Guideline if necessary to maintain a fair and orderly market, protect
investors, and protect the public interest. The proposed rule also adds
that actions taken under these circumstances must be taken within 30
minutes of detection of the erroneous transaction in the ordinary case,
and by no later than the start of the Core Trading Session on the day
following the date of the execution under review when extraordinary
circumstances exist.
Officers Acting on Their Own Motion
The Exchange proposes to add a section to the Rule that will grant
Officers the ability to act on their own motion to review potentially
erroneous executions. Under the current rule, Officers have the ability
to act upon their own motion only in the event of a system disruption
or malfunction. The proposed rule would allow an Officer of the
Corporation or other senior level employee designee to review
executions and rely on the Numerical Guidelines, under any
circumstance. In extraordinary circumstances an Officer or senior level
employee may apply a lower Numerical Guideline if it is determined that
such action is necessary to maintain a fair and orderly market or
protect investors and the public interest. In some instances the
Exchange may detect a single execution that breaches the Numerical
Guidelines but is not the subject of a ruling request. This provision
gives the Exchange the ability to review such executions. Additionally,
in practice, clearly erroneous executions commonly involve multiple
parties and multiple executions. In such instances, all affected
parties may not request a ruling. The Exchange proposes this provision
to permit an Officer to rule on a group of transactions related to the
same occurrence or event as a whole, without a formal request for a
ruling from every affected party.
Trade Nullification for UTP Securities that are Subject of Initial
Public Offerings
The proposed rule also modifies NYSE Arca's policy on trade
nullification and for UTP securities that are subject to initial public
offerings. Under the proposed rule, Officers must either declare an
opening transaction null and void or decline to take action, but can no
longer be adjusted. Furthermore, the proposed rule requires that, in
extraordinary circumstances, the reviewing Officer may take action by
no later than the start of Core Trading on the day following the date
of the execution under review.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)\10\ of the
Securities Exchange Act of 1934 (the ``Exchange Act''), in general, and
furthers the objectives of Section 6(b)(5)\11\ in particular in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
The proposed rule change provides transparency and finality for
participants and creates consistent results across U.S. equities
exchanges with respect to clearly erroneous executions. This proposed
change further promotes the maintenance of a fair and orderly market,
the protection of investors and the protection of the public interest.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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 the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File
[[Page 20771]]
Number SR-NYSEArca-2009-36 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2009-36. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of the
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSEArca-2009-36 and should be submitted on or before
May 26, 2009.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-10288 Filed 5-4-09; 8:45 am]
BILLING CODE 8010-01-P