Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Rule 6.76A Order Execution-OX, 21033-21034 [E9-10449]

Download as PDF Federal Register / Vol. 74, No. 86 / Wednesday, May 6, 2009 / Notices acquisition.4 Similarly, the proposal to transfer a 5% interest in BSECC to EMCF does not require modification to BSECC’s By-Laws, other than to include EMCF as an authorized shareholder and to make other minor changes discussed above, and should not alter the effectiveness of the By-Laws to assure fair representation of BSECC’s shareholders and participants. Furthermore, we note that the proposed rule change does not alter the provisions of NASDAQ OMX’s Certificate and NASDAQ OMX’s By-Laws that are designed to maintain the independence of each of its SRO subsidiaries’ selfregulatory functions, enable each SRO subsidiary to operate in a manner that complies with the federal securities laws, and facilitate the ability of each SRO subsidiary and the Commission to fulfill their regulatory and oversight obligations under the Act. For these reasons, we find that the proposed rule change is designed to allow BSECC to continue to meet the requirement under Section 17A(b)(3)(C) that it assure the fair representation of its shareholders and participants in the selection of its directors and administration of its affairs.5 In addition, the amendments to the BSECC’s Articles and By-Laws to change the name of BSECC, consolidate prior amendments, and correct certain errors are non-substantive amendments which should not affect BSECC’s obligations under Section 17A. IV. Conclusion mstockstill on PROD1PC66 with NOTICES 4 Securities Exchange Act Release No. 58324 (August 7, 2008), 73 FR 46936 (August 12, 2008) (SR–BSE–2008–02; SR–BSE–2008–23; SR–BSE– 2008–25; SR–BSECC–2008–01). 5 This order grants approval to the current transfer of ownership from BSECC to EMCF only. It does not as requested by BSECC in its filing approve potential unwinds of the transfer of ownership that may occur in the future. 6 In approving the proposed rule change, the Commission considered the proposal’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). 7 17 CFR 200.30–3(a)(12). 18:36 May 05, 2009 Jkt 217001 BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59846; File No. SR– NYSEArca–2009–34] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Rule 6.76A Order Execution–OX April 29, 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 Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III 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 Rule 6.76A to allow marketable orders to be exposed to market participants for a brief period of time before routing to an away market center for execution at the National Best Bid/Offer (‘‘NBBO’’). The text of the proposed rule change is attached as Exhibit 5 to the 19b–4 form. A copy of this filing is available on the Exchange’s Web site at https:// www.nyse.com, at the Exchange’s principal office and at the Commission’s Public Reference Room. On the basis of the foregoing, the Commission finds that the proposed rule change is consistent with the requirements of the Act and in particular Section 17A of the Act and the rules and regulations thereunder.6 It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (File No. SR– BSECC–2009–02) be and hereby is approved. VerDate Nov<24>2008 For the Commission by the Division of Trading and Markets, pursuant to delegated authority.7 Elizabeth M. Murphy, Secretary. [FR Doc. E9–10464 Filed 5–5–09; 8:45 am] 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 1 15 U.S.C.78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 PO 00000 Frm 00135 Fmt 4703 Sfmt 4703 21033 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposed rule change is to provide marketable orders an opportunity for execution on NYSE Arca before being routed to an away market center at the NBBO. Currently, if an order that is marketable against the NBBO is received, it is matched against any possible contra side interest in the Display Order process and in the Working Order Process, including any available Tracking Orders. If the order is still unexecuted, or if only partially unexecuted, the order is then routed away to the market or markets at the NBBO. The proposed rule change will provide for the NYSE Arca System to expose the order, at the NBBO price, to any OTP Holders who wish to subscribe to such notices, for a brief period of time (the ‘‘exposure period’’) not to exceed one second. During the exposure period, orders and quotes that are equal to the NBBO and on the opposite side of the market will be matched against the exposed order and immediately executed as they are received. Orders and quotes that are better than the NBBO and on the opposite side of the market will also be matched against the exposed order, and immediately executed as they are received at the exposed price. At the end of the exposure period, the System will again attempt to match the balance of the order, if any, against any available Tracking Orders. If the order is still unexecuted, or if only partially unexecuted, it will be routed to the market(s) at the NBBO for execution. Marketable orders that are on the same side of the market as the exposed order will join the exposure period through a size update to the exposure message, but will not extend the exposure period. Any update to the NBBO during the exposure period that unlocks the exposed order will cause the exposure period to terminate, and any unexecuted portion of the order will either be (i) Matched against contra interest in the Display Process and the Working Order Process, and, if still not completely executed, (ii) immediately routed to the new NBBO market(s); or, (iii) if no E:\FR\FM\06MYN1.SGM 06MYN1 21034 Federal Register / Vol. 74, No. 86 / Wednesday, May 6, 2009 / Notices longer marketable the order will be placed in the Consolidated Book. Conversely, an update to the NBBO that crosses the exposed price will also bring the exposure period to an immediate end, and the order will be routed away. Example 1: NYSE Arca market—3.00–3.30 CBOE market (NBBO)—3.00–3.20 NYSE Arca receives an order to Buy paying 3.30. The order is exposed for one second prior to routing to CBOE. 200 milliseconds after the start of the exposure, CBOE offer moves to 3.30. The exposure period terminates, and the order is executed against the NYSE Arca 3.30 offer. Example 2: NYSE Arca market—3.00–3.30 CBOE market (NBBO)—3.00–3.20 NYSE Arca receives an order to Buy paying 3.30. The order is exposed for one second prior to routing to CBOE. 200 milliseconds after the start of the exposure period, ISE posts an offer at 3.10. Again, the exposure period terminates, and the order is immediately routed to the ISE to trade against the 3.10 offer. NYSE Arca Users who do not wish to have an order exposed prior to routing may use the NOW order type to trade with markets at the NBBO. Users who wish to avoid both exposure and routing may use other order types available on NYSE Arca, including but not limited to, IOC orders and PNP orders. 2. Statutory Basis mstockstill on PROD1PC66 with NOTICES The Exchange believes the proposed rule change is consistent with and furthers the objectives of Section 6(b)(5) of the Act, in that it is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest, as it will provide greater opportunities for investors to receive executions on the NYSE Arca System, rather than being routed away, so as to enhance the efficiency of order handling, and also provides Users the opportunity to match prices at other markets. 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. VerDate Nov<24>2008 18:36 May 05, 2009 Jkt 217001 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 4 and Rule 19b–4(f)(6) thereunder.5 Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 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, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 6 and Rule 19b–4(f)(6)(iii) thereunder.7 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSEArca–2009–34 on the subject line. U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 6 15 U.S.C. 78s(b)(3)(A). 7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s 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 the pre-filing requirement. 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–2009–34. 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 Section, 100 F Street, NE., Washington, DC 20549–1090, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing will also be available for inspection and copying at NYSE Arca’s principal office and on its Internet Web site at https:// www.nyse.com. 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–2009–34 and should be submitted on or before May 27, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Elizabeth M. Murphy, Secretary. [FR Doc. E9–10449 Filed 5–5–09; 8:45 am] BILLING CODE 8010–01–P 4 15 5 17 PO 00000 Frm 00136 Fmt 4703 Sfmt 4703 8 17 CFR 200.30–3(a)(12). E:\FR\FM\06MYN1.SGM 06MYN1

Agencies

[Federal Register Volume 74, Number 86 (Wednesday, May 6, 2009)]
[Notices]
[Pages 21033-21034]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-10449]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59846; File No. SR-NYSEArca-2009-34]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Rule 
6.76A Order Execution-OX

April 29, 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 Arca, Inc. (``NYSE Arca'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III 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 Rule 6.76A to allow marketable 
orders to be exposed to market participants for a brief period of time 
before routing to an away market center for execution at the National 
Best Bid/Offer (``NBBO''). The text of the proposed rule change is 
attached as Exhibit 5 to the 19b-4 form. A copy of this filing is 
available on the Exchange's Web site at https://www.nyse.com, at the 
Exchange's principal office and at the Commission's Public Reference 
Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to provide marketable 
orders an opportunity for execution on NYSE Arca before being routed to 
an away market center at the NBBO.
    Currently, if an order that is marketable against the NBBO is 
received, it is matched against any possible contra side interest in 
the Display Order process and in the Working Order Process, including 
any available Tracking Orders. If the order is still unexecuted, or if 
only partially unexecuted, the order is then routed away to the market 
or markets at the NBBO.
    The proposed rule change will provide for the NYSE Arca System to 
expose the order, at the NBBO price, to any OTP Holders who wish to 
subscribe to such notices, for a brief period of time (the ``exposure 
period'') not to exceed one second.
    During the exposure period, orders and quotes that are equal to the 
NBBO and on the opposite side of the market will be matched against the 
exposed order and immediately executed as they are received. Orders and 
quotes that are better than the NBBO and on the opposite side of the 
market will also be matched against the exposed order, and immediately 
executed as they are received at the exposed price. At the end of the 
exposure period, the System will again attempt to match the balance of 
the order, if any, against any available Tracking Orders. If the order 
is still unexecuted, or if only partially unexecuted, it will be routed 
to the market(s) at the NBBO for execution.
    Marketable orders that are on the same side of the market as the 
exposed order will join the exposure period through a size update to 
the exposure message, but will not extend the exposure period.
    Any update to the NBBO during the exposure period that unlocks the 
exposed order will cause the exposure period to terminate, and any 
unexecuted portion of the order will either be (i) Matched against 
contra interest in the Display Process and the Working Order Process, 
and, if still not completely executed, (ii) immediately routed to the 
new NBBO market(s); or, (iii) if no

[[Page 21034]]

longer marketable the order will be placed in the Consolidated Book.
    Conversely, an update to the NBBO that crosses the exposed price 
will also bring the exposure period to an immediate end, and the order 
will be routed away.
    Example 1:

NYSE Arca market--3.00-3.30
CBOE market (NBBO)--3.00-3.20

    NYSE Arca receives an order to Buy paying 3.30. The order is 
exposed for one second prior to routing to CBOE.
    200 milliseconds after the start of the exposure, CBOE offer moves 
to 3.30. The exposure period terminates, and the order is executed 
against the NYSE Arca 3.30 offer.
    Example 2:

NYSE Arca market--3.00-3.30
CBOE market (NBBO)--3.00-3.20

    NYSE Arca receives an order to Buy paying 3.30. The order is 
exposed for one second prior to routing to CBOE.
    200 milliseconds after the start of the exposure period, ISE posts 
an offer at 3.10. Again, the exposure period terminates, and the order 
is immediately routed to the ISE to trade against the 3.10 offer.
    NYSE Arca Users who do not wish to have an order exposed prior to 
routing may use the NOW order type to trade with markets at the NBBO. 
Users who wish to avoid both exposure and routing may use other order 
types available on NYSE Arca, including but not limited to, IOC orders 
and PNP orders.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
and furthers the objectives of Section 6(b)(5) of the Act, in that it 
is designed to promote just and equitable principles of trade, remove 
impediments to and perfect the mechanisms of a free and open market and 
a national market system and, in general, to protect investors and the 
public interest, as it will provide greater opportunities for investors 
to receive executions on the NYSE Arca System, rather than being routed 
away, so as to enhance the efficiency of order handling, and also 
provides Users the opportunity to match prices at other markets.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \4\ and Rule 19b-4(f)(6) thereunder.\5\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
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, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-
4(f)(6)(iii) thereunder.\7\
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    \4\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \5\ 17 CFR 240.19b-4(f)(6).
    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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 the pre-filing requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2009-34 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-2009-34. 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 Section, 100 F Street, 
NE., Washington, DC 20549-1090, on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of the filing will also be available 
for inspection and copying at NYSE Arca's principal office and on its 
Internet Web site at https://www.nyse.com. 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-2009-34 and should be submitted 
on or before May 27, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-10449 Filed 5-5-09; 8:45 am]
BILLING CODE 8010-01-P
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