Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules Related to Doing a Public Business in Options, 26451-26453 [E9-12715]
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Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices
recommendations, and private sales; (3)
excessive trading by members, excessive
trading in discretionary accounts,
successive transactions by members,
manipulative operations, reopening
contracts, and loans for accounts of nonmembers; (4) disciplinary proceedings
concerning conduct that is inconsistent
with just and equitable principles of
trade; (5) reporting of certain
information concerning short sales and
proprietary transactions; (6) reporting
and certification of member or member
organization’s supervision and
compliance efforts; (7) formation and
approval or merger organizations; (8)
reporting of short positions; (9)
notification requirements for listed
securities; and (10) disclosure and
monitoring of non-managed fee based
accounts. In place of the deleted rules
and interpretations, NYSE Amex
proposes to adopt rules that conform the
NYSE Amex Equities Rules with
changes made to the corresponding
NYSE Rules on which they are based.22
The Commission believes that the
proposed rule change, as amended, is
appropriate and would provide greater
harmonization among NYSE Rules,
NYSE Amex Equities Rules and FINRA
Rules, thereby resulting in less
burdensome and more efficient
regulatory compliance for their common
members and member organizations.
With respect to the Exchange’s proposal
to delete NYSE Amex Equities Rule 350
and to adopt NYSE Amex Equities Rule
3220, (relating to influencing or
rewarding employees of others), the
Commission notes that NYSE Amex has
stated that, immediately upon
Commission approval of new NYSE
Amex Equities Rule 3220, it will issue
an Information Memorandum to its
members and member organizations
including NYSE Amex-only members
and those members registered with
FINRA, clarifying that FINRA’s
interpretive guidance related to FINRA
Rule 3220 is considered part of NYSE
Amex Equities Rule 3220, and that such
members and member organizations are
required to regulate their conduct
according to Rule 3220 and the
interpretive guidance related to FINRA
Rule 3220.23 Accordingly, the
Commission believes that the proposed
rule change, as amended, is consistent
with the requirements of the Act.
The Commission also finds good
cause for approving the proposed rule
change as modified by Amendment No.
22 See
NYSE Order, supra note 4.
23 Telephone conversation between Clare F.
Saperstein, Managing Director, NYSE Regulation,
Inc., and Nancy J. Burke-Sanow, Assistant Director,
Division of Trading and Markets, Commission, May
21, 2009.
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2 prior to the thirtieth day after the date
of publication of notice in the Federal
Register. Amendment No. 2 simply
clarifies certain points relating to
proposed changes to NYSE Amex
Equities Rules. Because Amendment
No. 2 does not significantly alter the
proposed rule change, which was
subject to a full notice and comment
period, the Commission finds that it is
in the public interest to approve the
proposed rule change, as modified by
Amendment No. 2, without delay to
expedite implementation. Accordingly,
the Commission finds that there is good
cause, consistent with and in
furtherance of the objectives of Sections
6 24 and 19(b)(2) 25 of the Exchange Act,
to approve Amendment No. 2 on an
accelerated basis.
Exchange.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
V. Conclusion
In its filing with the Commission, the
Exchange 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 these
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.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,26 that the
proposed rule change (SR–NYSEALTR–
2009–26) be, and it hereby is, approved
on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–12714 Filed 6–1–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59978; File No. SR–
NYSEArca–2009–41]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Exchange
Rules Related to Doing a Public
Business in Options
May 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 May 7,
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 and II
below, which Items have been
substantially prepared by the
24 15
U.S.C. 78f.
U.S.C. 78s(b)(2).
26 15 U.S.C. 78s(b)(2).
27 17 CFR 200.30–3(a)(12).
1 15 U.S.C.78s(b)(1).
2 15 U.S.C. 78a et seq.
3 17 CFR 240.19b–4.
25 15
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Exchange Rule 9.18—Doing a Public
Business in Options. The text of the
proposed rule change 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
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 amend Exchange Rule
9.18(f) to provide that the market on
which an options transaction is
executed need not be disclosed on a
written confirmation furnished to a
customer of an Options Trading Permit
Holder (‘‘OTP Holder’’) or Options
Trading Permit Firm (‘‘OTP Firm’’).5
4 The Exchange and Commission staff agreed to
several clarifying changes in text of Items I, II, and
III during a telephone conversation between
Andrew Stevens, Chief Counsel U.S. Equities and
Derivatives, Exchange, and Darren Vieira, Attorney
Advisor, Division of Trading and Markets,
Commission on May 21, 2008.
5 The proposed filing is being done pursuant to
an industry-wide initiative under the auspices of
the Options Self-Regulatory Council (‘‘OSRC’’),
which is a committee comprised of representatives
from each of the options exchanges functioning
pursuant to the OSRC Plan (the ‘‘Plan’’). See
Securities Exchange Act Release No. 20158
(September 8, 1983), 48 FR 41256 (September 14,
1983). The Plan is not a National Market System
(‘‘NMS’’) plan under Section 11A of the Act, but
rather is a plan to allocate regulatory
responsibilities under Rule 17d–2 under the Act. 17
CFR 240.17d–2. As a result of the introduction of
multiply listed options and the introduction of the
Plan for the Purpose of Creating and Operating an
Intermarket Options Market Linkage (‘‘Options
Linkage Plan’’), the contracts in a customer options
order could be executed on more than one options
Continued
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Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices
Pursuant to proposed Rule 9.18(f), the
OTP Holders and OTP Firms would
continue to be required to furnish a
written confirmation that contains a
description of each transaction in the
option contracts which shows: The type
of option; the underlying security (e.g.,
stock or exchange traded fund); the
expiration month; the exercise price; the
number of option contracts; the
premium and commissions; the
transaction and settlement dates;
whether the transaction was a purchase
or a sale (writing) transaction; and
whether the transaction was effected on
a principal or agency basis.
The Exchange believes that with the
expansion of multi-listing of options
and the introduction of new options
exchanges, it has become operationally
inefficient to require the disclosure of
the market center on which an order
was executed on the confirmation. As
an example, a customer may have a
single option order containing
numerous option contracts executed on
multiple exchanges. As such, it would
be inefficient for the executing firm to
be required to identify the exchange
symbol for each contract executed on
that customer’s order. This proposal
would clarify that written confirmations
furnished to a customer will not need to
specify the exchange or exchanges on
which such option contracts were
executed.
This proposal is similar to rule change
proposals that have been filed by the
American Stock Exchange LLC, the
Financial Industry Regulatory
Authority, Inc., the Chicago Board
Options Exchange, the NASDAQ OMX
PHLX, Inc., the Boston Stock Exchange,
Inc., and the International Securities
Exchange, LLC and approved by the
Commission.6
exchange, and the significance of the options
exchange, or exchanges, that execute a particular
options transaction has diminished significantly.
See Securities Exchange Act Release No. 43086
(July 28, 2000), 65 FR 48023 (August 4, 2000).
Furthermore, the OSRC believes that in light of best
execution and disclosure requirements, the
usefulness of including on an options confirmation
the name of the options exchange, or exchanges, on
which the options transaction was effected does not
outweigh the operational difficulties of capturing
the information given the multiple trading of
options and the application of the Options Linkage
Plan industry wide.
6 See Securities Exchange Act Release No. 58814
(October 20, 2008), 73 FR 63527 (October 24, 2008)
(approval order); Securities Exchange Act Release
No. 58932 (November 12, 2008), 73 FR 69696
(November 19, 2008) (approval order); Securities
Exchange Act Release No. 58980 (November 19,
2008), 73 FR 72091 (November 26, 2008) (approval
order); Securities Exchange Act Release No. 59166
(December 29, 2008), 74 FR 328 (January 5, 2009)
(approval order); Securities Exchange Act Release
No. 59434 (February 23, 2009), 74 FR 9012
(February 27, 2009) (approval order); and Securities
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2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of Section 6(b) of the
Act 7 in general, and furthers the
objectives of Section 6(b)(5) of the Act 8
in particular, because it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and to
protect investors and the public interest,
and that it is designed to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, and processing information
with respect to, and facilitating
transactions in, securities, 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.
Additionally, this proposed rule
change would promote consistency
between NYSE Arca and other selfregulatory organization rules and clarify
the Exchange’s options confirmation
procedure rules to better reflect the
realities of the modern options market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
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
Written comments were neither
solicited nor received.
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 9 and Rule
19b–4(f)(6) thereunder.10 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
Exchange Act Release No. 59806 (April 21, 2009),
74 FR 19254 (April 28, 2009) (approval order).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
9 15 U.S.C. 78s(b)(3)(A)(iii).
10 17 CFR 240.19b–4(f)(6).
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effective pursuant to Section 19(b)(3)(A)
of the Act 11 and Rule 19b–4(f)(6)(iii)
thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),14 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. Because the proposed rule change
is based on rule changes previously
approved by the Commission and the
proposed rule change does not present
any novel issues, the Commission
believes that waiving the 30-day
operative delay period to permit the
proposed rule change to be
implemented immediately is consistent
with the protection of investors and the
public interest. The proposed rule will
promote consistency between the rules
of the NYSE Arca and other selfregulatory organizations. Thus, the
Commission, consistent with the
protection of investors and the public
interest, has determined to waive the
30-day operative delay so that the
proposal may become operative
immediately upon filing.15
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:
11 15
U.S.C. 78s(b)(3)(A).
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.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 For purposes only of waiving the operative date
of the proposal, the Commission has considered the
proposed Rule’s impact on efficiency, competition
and capital formation. 15 U.S.C. 78c(f).
12 17
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Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices
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–NYSEArca–2009–41 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.
All submissions should refer to File
Number SR–NYSEArca–2009–41. 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, 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 such filing also will 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–2009–41 and should be
submitted on or before June 23, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–12715 Filed 6–1–09; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59974; File No. SR–NSX–
2009–03]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend
the Fee and Rebate Schedule Issued
Pursuant to Exchange Rule 16.1(c) in
Order to Include Securities Priced at
Less Than One Dollar in the
Calculation of Volume Thresholds
Used To Determine Rebates Payable
for Displayed Order Liquidity Adding
Tape A and C Securities Executed at
One Dollar or Above
May 26, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 15,
2009, National Stock Exchange, Inc.
(‘‘NSX’’ or ‘‘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 comment 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 is proposing to amend
the Fee and Rebate Schedule (the ‘‘Fee
Schedule’’) issued pursuant to Exchange
Rule 16.1(c) in order to include
securities priced at less than one dollar
in the calculation of volume thresholds
used to determine rebates payable for
displayed order liquidity adding Tape A
and C securities executed at one dollar
or above.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nsx.com, at the principal
office of the Exchange, 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
Exchange 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 these
statements may be examined at the
places specified in Item IV below. The
BILLING CODE 8010–01–P
1 15
16 17
CFR 200.30–3(a)(12).
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2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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26453
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
Purpose
With this rule change, the Exchange is
proposing to modify the Fee Schedule’s
calculation of ‘‘Liquidity Adding
Average Daily Volume’’ (‘‘Liquidity
Adding ADV’’) used to determine
rebates payable for displayed orders of
Tape A and C securities in the
Automatic Execution Mode of order
interaction (‘‘AutoEx’’) 3 (the ‘‘AutoEx
Displayed Order Liquidity Adding Tape
A/C Rebate’’) so as to include securities
priced under one dollar for purposes of
determining whether a volume tier has
been achieved.
The AutoEx Displayed Order
Liquidity Adding Tape A/C Rebate is
currently $0.0026, $0.0027 or $0.0028
per share where an ETP Holder achieves
Liquidity Adding ADV 4 of less than 25
million, less than 40 million and 40
million or more, respectively. Currently,
securities priced under one dollar are
excluded from the calculation of
‘‘Liquidity Adding ADV’’. The Proposed
Rule Change would modify the
definition of ‘‘Liquidity Adding ADV’’
with respect only to the tiers used in
calculation of the AutoEx Displayed
Order Liquidity Adding Tape A/C
Rebate so as to include securities under
one dollar in the calculation of whether
the above referenced tiers are achieved.
The Proposed Rule Change would not
modify other calculations of average
daily volume in the Fee Schedule.
Rationale
The Exchange has determined that
these changes are necessary to increase
the volume of Displayed Orders of subdollar Tape A and C securities in
3 The Exchange’s two modes of order interaction
are described in NSX Rule 11.13(b).
4 As set forth in the Explanatory Endnotes to the
Fee Schedule, prior to implementation of the
instant rule change, ‘‘Liquidity Adding ADV’’
means, with respect to an ETP Holder, ‘‘the number
of shares such ETP Holder has executed as a
liquidity provider on average per trading day
(excluding partial trading days and securities under
one dollar) across all tapes on NSX for the calendar
month (or partial month, as applicable) in which
the executions occurred’’. The proposed rule
change would modify the foregoing definition by
adding the following statement: ‘‘Notwithstanding
the foregoing, for purposes of determining whether
the volume tier thresholds are achieved in AutoEx
with respect to rebates applicable to displayed
orders that add liquidity for Tape A and C
securities, securities priced under one dollar will be
included’’.
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]]>Agencies
[Federal Register Volume 74, Number 104 (Tuesday, June 2, 2009)]
[Notices]
[Pages 26451-26453]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-12715]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59978; File No. SR-NYSEArca-2009-41]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange
Rules Related to Doing a Public Business in Options
May 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 May 7, 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 and II
below, which Items have been substantially prepared by the Exchange.\4\
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 et seq.
\3\ 17 CFR 240.19b-4.
\4\ The Exchange and Commission staff agreed to several
clarifying changes in text of Items I, II, and III during a
telephone conversation between Andrew Stevens, Chief Counsel U.S.
Equities and Derivatives, Exchange, and Darren Vieira, Attorney
Advisor, Division of Trading and Markets, Commission on May 21,
2008.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Exchange Rule 9.18--Doing a Public
Business in Options. The text of the proposed rule change 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 Exchange 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 these 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.
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 amend Exchange Rule
9.18(f) to provide that the market on which an options transaction is
executed need not be disclosed on a written confirmation furnished to a
customer of an Options Trading Permit Holder (``OTP Holder'') or
Options Trading Permit Firm (``OTP Firm'').\5\
[[Page 26452]]
Pursuant to proposed Rule 9.18(f), the OTP Holders and OTP Firms would
continue to be required to furnish a written confirmation that contains
a description of each transaction in the option contracts which shows:
The type of option; the underlying security (e.g., stock or exchange
traded fund); the expiration month; the exercise price; the number of
option contracts; the premium and commissions; the transaction and
settlement dates; whether the transaction was a purchase or a sale
(writing) transaction; and whether the transaction was effected on a
principal or agency basis.
---------------------------------------------------------------------------
\5\ The proposed filing is being done pursuant to an industry-
wide initiative under the auspices of the Options Self-Regulatory
Council (``OSRC''), which is a committee comprised of
representatives from each of the options exchanges functioning
pursuant to the OSRC Plan (the ``Plan''). See Securities Exchange
Act Release No. 20158 (September 8, 1983), 48 FR 41256 (September
14, 1983). The Plan is not a National Market System (``NMS'') plan
under Section 11A of the Act, but rather is a plan to allocate
regulatory responsibilities under Rule 17d-2 under the Act. 17 CFR
240.17d-2. As a result of the introduction of multiply listed
options and the introduction of the Plan for the Purpose of Creating
and Operating an Intermarket Options Market Linkage (``Options
Linkage Plan''), the contracts in a customer options order could be
executed on more than one options exchange, and the significance of
the options exchange, or exchanges, that execute a particular
options transaction has diminished significantly. See Securities
Exchange Act Release No. 43086 (July 28, 2000), 65 FR 48023 (August
4, 2000). Furthermore, the OSRC believes that in light of best
execution and disclosure requirements, the usefulness of including
on an options confirmation the name of the options exchange, or
exchanges, on which the options transaction was effected does not
outweigh the operational difficulties of capturing the information
given the multiple trading of options and the application of the
Options Linkage Plan industry wide.
---------------------------------------------------------------------------
The Exchange believes that with the expansion of multi-listing of
options and the introduction of new options exchanges, it has become
operationally inefficient to require the disclosure of the market
center on which an order was executed on the confirmation. As an
example, a customer may have a single option order containing numerous
option contracts executed on multiple exchanges. As such, it would be
inefficient for the executing firm to be required to identify the
exchange symbol for each contract executed on that customer's order.
This proposal would clarify that written confirmations furnished to a
customer will not need to specify the exchange or exchanges on which
such option contracts were executed.
This proposal is similar to rule change proposals that have been
filed by the American Stock Exchange LLC, the Financial Industry
Regulatory Authority, Inc., the Chicago Board Options Exchange, the
NASDAQ OMX PHLX, Inc., the Boston Stock Exchange, Inc., and the
International Securities Exchange, LLC and approved by the
Commission.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 58814 (October 20,
2008), 73 FR 63527 (October 24, 2008) (approval order); Securities
Exchange Act Release No. 58932 (November 12, 2008), 73 FR 69696
(November 19, 2008) (approval order); Securities Exchange Act
Release No. 58980 (November 19, 2008), 73 FR 72091 (November 26,
2008) (approval order); Securities Exchange Act Release No. 59166
(December 29, 2008), 74 FR 328 (January 5, 2009) (approval order);
Securities Exchange Act Release No. 59434 (February 23, 2009), 74 FR
9012 (February 27, 2009) (approval order); and Securities Exchange
Act Release No. 59806 (April 21, 2009), 74 FR 19254 (April 28, 2009)
(approval order).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of Section 6(b) of the Act \7\ in general, and
furthers the objectives of Section 6(b)(5) of the Act \8\ in
particular, because it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, and to protect investors and the public interest,
and that it is designed to foster cooperation and coordination with
persons engaged in regulating, clearing, settling, and processing
information with respect to, and facilitating transactions in,
securities, 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.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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Additionally, this proposed rule change would promote consistency
between NYSE Arca and other self-regulatory organization rules and
clarify the Exchange's options confirmation procedure rules to better
reflect the realities of the modern options market.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not 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
Written comments were neither solicited nor received.
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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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 \11\ and Rule 19b-
4(f)(6)(iii) thereunder.\12\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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.
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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. Because the proposed rule
change is based on rule changes previously approved by the Commission
and the proposed rule change does not present any novel issues, the
Commission believes that waiving the 30-day operative delay period to
permit the proposed rule change to be implemented immediately is
consistent with the protection of investors and the public interest.
The proposed rule will promote consistency between the rules of the
NYSE Arca and other self-regulatory organizations. Thus, the
Commission, consistent with the protection of investors and the public
interest, has determined to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing.\15\
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ For purposes only of waiving the operative date of the
proposal, the Commission has considered the proposed Rule's impact
on efficiency, competition and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
[[Page 26453]]
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 No. SR-NYSEArca-2009-41 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.
All submissions should refer to File Number SR-NYSEArca-2009-41. 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, 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 such filing also will 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-2009-41 and should
be submitted on or before June 23, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-12715 Filed 6-1-09; 8:45 am]
BILLING CODE 8010-01-P
