Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to WAIT Modifiers, PNP Plus Orders, and Attributable Orders, 30349-30351 [E9-14961]
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Federal Register / Vol. 74, No. 121 / Thursday, June 25, 2009 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–14959 Filed 6–24–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60140; File No. SR–
NYSEAmex-2009–27]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to WAIT
Modifiers, PNP Plus Orders, and
Attributable Orders
June 18, 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 June 8,
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 Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
sroberts on PROD1PC70 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 900.3NY to (i) offer the ‘‘WAIT’’
order modifier for use with orders
entered into the NYSE Amex System;
(ii) allow the use of attributable orders
(iii) offer PNP Plus orders. The WAIT
modifier is designed to enhance
compliance with the order exposure
requirement of NYSE Amex Rule
935NY. Attributable orders allow users
to voluntarily display their firm IDs on
the orders. PNP Plus orders allow Users
greater control over the circumstances of
order execution. 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.
8 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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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
WAIT Orders
On May 21, 2009, the Securities and
Exchange Commission approved NYSE
Amex’s proposal to reduce the order
exposure requirement of Rule 935NY
from three seconds to one second.3 Rule
935NY prohibits Users from executing
as principal orders they represent as
agent unless (i) agency orders are first
exposed on the Exchange for at least one
(1) second or (ii) the User has been
bidding or offering on the Exchange for
at least one (1) second prior to receiving
an agency order that is executable
against such bid or offer. This Rule
insures that a User does not gain at the
expense of customers by depriving them
of the opportunity to interact with
orders in the NYSE Amex System.
Users that enter agency orders into the
NYSE Amex System have noted the
proposal by the NASDAQ Options
Market (‘‘NOM’’) for a WAIT order
modifier,4 and have asked the Exchange
to develop an automated mechanism
that permits them to enter orders into
the NYSE Amex System as soon as the
orders are received but that also
prevents them from interacting with
their own agency orders in violation of
the order exposure requirement. NYSE
Amex believes this is an efficient use of
resources because it will allow NYSE
Amex to program its System once rather
than have multiple Users re-program
their systems.
3 See Exchange Act Release No. 59956 (May 21,
2009), 74 FR 25782 (May 29, 2009) (SR–
NYSEAmex-2009–15) (Order Granting Accelerated
Approval of Proposed Rule Change, as Modified by
Amendment No. 1, Amending Rule 935NY—Order
Exposure Requirements to Reduce the Exposure
Periods from Three Seconds to One Second).
4 See Exchange Act Release No. 59557 (March 11,
2009), 74 FR 11389 (March 17, 2009) (SR–
NASDAQ–2009–017).
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30349
In order to accomplish that request,
NYSE Amex has developed the ‘‘WAIT’’
modifier which can be appended to an
order prior to entry into the NYSE Amex
System. The WAIT modifier will
instruct the System to wait precisely
one second from the time of order entry
before processing the order in
accordance with the other instructions
attached to that order. Upon expiration
of the one-second WAIT period, the
System will time stamp, route, display,
or execute the order in accordance with
the entering party’s other order entry
instructions. Thus, the WAIT modifier
does not affect the existing display,
routing, or execution priorities of the
NYSE Amex System or any other
obligations of Users as set forth in the
NYSE Amex rules.
Orders designated with the WAIT
modifier are independent of all other
orders, including an agency order that is
being exposed pursuant to Rule 935NY.
WAIT orders are not associated or in
any way linked to another order entered
into the System, as is the case with
certain facilitation orders at other
options exchanges. The System will
process the WAIT order even if a
customer order entered into the System
simultaneously with the WAIT order
has been executed or cancelled during
the WAIT second, unless the WAIT
order itself is modified or cancelled
pursuant to System rules. As a result,
there is no guarantee that an order
designated as WAIT will execute against
another specific order. Use of the WAIT
modifier is completely voluntary.
Attributable Orders
The Exchange proposes to modify
Rule 900.3NY (Orders Defined) to allow
for the submission of attributable orders.
These orders allow users to voluntarily
display their firm IDs on the orders.5
The NASDAQ Options Market, LLC
(‘‘NOM’’) currently allows its
participants to submit attributable
orders (See NOM Chapter VI, Section
(1)(d)(1)).6 As proposed, the Exchange
may limit the processes for which
attributable orders will be available.
This proposal is responsive to requests
by Exchange Users who believe that
enhanced executions may be obtained if
Firm ID is allowed on orders (on a
voluntary basis).
5 A Firm ID is a 5 character identification code
(letters and/or numbers) Each ATP Holder is
assigned its own unique Firm ID.
6 The Chicago Board Options Exchange (‘‘CBOE’’)
also allows attributable orders. See Exchange Act
Release No, 58394 (August 20, 2008), 73 FR 50379
(August 26, 2008) (SR–CBOE–2008–85) (Notice of
Filing and Immediate Effectiveness of a Proposed
Rule Change Adopting A New Order Type).
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30350
Federal Register / Vol. 74, No. 121 / Thursday, June 25, 2009 / Notices
sroberts on PROD1PC70 with NOTICES
PNP Plus
As part of its continuing efforts to
enhance participation on the Exchange,
and provide additional tools to control
the circumstances in which orders are
executed, NYSE Amex proposes to
adopt an order type known as ‘‘PNP
Plus.’’ PNP Plus Orders are currently
offered on the NYSE Arca Equities
market.7
A PNP Order is an order entered into
the NYSE Amex System for execution
on the Exchange, but not for routing to
away markets. Because of the condition
to not route PNP orders, they are
cancelled if they would otherwise lock
or cross the NBBO.
Customers have requested that the
exchange develop a PNP Order type that
would, if marketable against the NBBO
but not executable on the Exchange, be
represented in the Exchange’s
disseminated market by re-pricing the
order. Specifically, if posting a PNP Plus
order or a portion thereof would
otherwise result in locking or crossing
the NBBO, the PNP order would
automatically be re-priced to be one
Minimum Price Valuation (‘‘MPV’’)
greater than the NBBO bid (for sell
orders) or one MPV less than the NBBO
offer (for buy orders), thus avoiding
locking or crossing the NBBO. The repriced bid or offer is included in the
Exchange’s disseminated quote.
If the NBBO changes, and the order is
marketable against the new NBBO, but
still not executable on the Exchange, the
PNP Plus order would again be repriced to be one MPV away from the
NBBO. When re-priced, the PNP Plus
order is re-ranked at the new price. The
order would continue to be re-priced
and re-ranked with each change in the
NBBO, until such time that the NBBO
moves such that the original price of the
PNP Plus Order would no longer lock or
cross the NBBO. The PNP Plus Order
would then automatically be re-priced
back to its original limit price and reranked in the Consolidated Book. The
PNP Plus Order will not be re-priced if
the order becomes locked or crossed by
another market.
The Exchange believes that the
implementation of the aforementioned
rule change modifying NYSE Amex
order entry options will enhance
compliance with NYSE Amex rules,
preserve order execution opportunities
on the NYSE Amex market, provide
greater control over the circumstances of
executions, and provide an opportunity
for enhanced executions.
7 See
NYSE Arca Equities Rule 7.31(w)(1).
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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, by
providing investors with additional
order types that allow greater flexibility
in maintaining compliance with the
rules, or providing an opportunity for
enhanced executions, or managing the
circumstances in which their orders are
executed.
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 8 and Rule
19b–4(f)(6) thereunder.9 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 10 and Rule 19b–4(f)(6)
thereunder.11
The Exchange has asked the
Commission to waive the 30-day
8 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 15 U.S.C. 78s(b)(3)(A).
11 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.
9 17
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operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because the proposed rule change is
based on existing rules of other
exchanges 12 and does not appear to
present any novel or significant issues.
The Commission hereby grants the
Exchange’s request.13
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–NYSEAmex–2009–27 on
the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEAmex–2009–27. 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
12 See, e.g., Securities Exchange Act Release No.
59737 (April 9, 2009) 74 FR 18018 (April 20, 2009)
(SR–NYSEArca–2009–27) (adopting ‘‘WAIT’’ order
modifier, attributable orders, and PNP Plus order
type).
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
E:\FR\FM\25JNN1.SGM
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Federal Register / Vol. 74, No. 121 / Thursday, June 25, 2009 / Notices
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the filing will also be available
for inspection and copying at the
principal office of the self-regulatory
organization. All comments received
will be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEAmex–2009–27 and should be
submitted on or before July 16, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–14961 Filed 6–24–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to the Listing
and Trading of ProShares UltraShort
MSCI Mexico Investable Market Fund
sroberts on PROD1PC70 with NOTICES
June 17, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on June 12,
2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘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.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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The Exchange proposes to list and
trade the Shares of the following fund
under NYSE Arca Equities Rule 5.2(j)(3),
the Exchange’s listing standards for
Investment Company Units (‘‘ICUs’’): 4
ProShares UltraShort MSCI Mexico
Investable Market Fund (the ‘‘Fund’’).
The Fund is an ‘‘index fund’’ that seeks
to provide daily investment results that,
before fees and expenses, correspond to
twice the inverse (¥200%) of the daily
performance of the MSCI Mexico
Investable Market Index (‘‘Index’’). The
Fund does not seek to achieve its stated
objective over a period of time greater
than one day.
According to the Trust’s Registration
Statement,5 the Index measures the
performance of the Mexican equity
market. The Index is a capitalization-
weighted index that aims to capture
99% of the publicly available total
market capitalization. Component
companies are adjusted for available
float and must meet objective criteria for
inclusion in the Index, taking into
consideration unavailable strategic
shareholdings and limitations to foreign
ownership. As of March 31, 2009, the
Index was concentrated in the
telecommunications services industry
group, which comprised 43% of the
market capitalization of the Index, and
included companies with
capitalizations between $13 million and
$26 billion. The average capitalization
of the companies comprising the Index
was approximately $1.7 billion.
The Exchange is submitting this
proposed rule change because the Index
for the Fund does not meet all of the
‘‘generic’’ listing requirements of
Commentary .01(a)(B) to NYSE Arca
Equities Rule 5.2(j)(3) applicable to
listing of ICUs based on international or
global indexes. The Index meets all such
requirements except for those set forth
in Commentary .01(a)(B)(3).6 The
Exchange represents that (1) except for
the requirement under Commentary
.01(a)(B)(3) to NYSE Arca Equities Rule
5.2(j)(3) that the most heavily weighted
component stock shall not exceed 25%
of the weight of the Index and that the
five most heavily weighted component
stocks shall not exceed 60% of the
weight of the Index, the Shares of the
Fund currently satisfy all of the generic
listing standards under NYSE Arca
Equities Rule 5.2(j)(3); (2) the continued
listing standards under NYSE Arca
Equities Rules 5.2(j)(3) and 5.5(g)(2)
applicable to ICUs shall apply to the
Shares; and (3) the Trust is required to
comply with Rule 10A–3 7 under the
Securities Exchange Act of 1934 (the
‘‘Act’’) for the initial and continued
listing of the Shares. In addition, the
Exchange represents that the Shares will
comply with all other requirements
applicable to ICUs including, but not
limited to, requirements relating to the
dissemination of key information such
as the Index value and Intraday
Indicative Value, rules governing the
trading of equity securities, trading
4 An Investment Company Unit is a security that
represents an interest in a registered investment
company that holds securities comprising, or
otherwise based on or representing an interest in,
an index or portfolio of securities (or holds
securities in another registered investment
company that holds securities comprising, or
otherwise based on or representing an interest in,
an index or portfolio of securities). See NYSE Arca
Equities Rule 5.2(j)(3)(A).
5 See the Trust’s Registration Statement on Form
N–1A, dated June 2, 2009 (File Nos. 333–89822 and
811–21114) (‘‘Registration Statement’’).
6 Specifically, the Index fails to meet the
requirement that the most heavily weighted
component stock shall not exceed 25% of the
weight of the Index. As of May 27, 2009, the most
heavily weighted component stock (America Movil)
represented 32.65% of the Index weight. In
addition, the Index fails to meet the requirement
that the five most heavily weighted component
stocks shall not exceed 60% of the weight of the
Index. As of May 27, 2009, the five most heavily
weighted component stocks represented 60.64% of
the Index weight.
7 17 CFR 240.10A–3.
The Exchange proposes to list and
trade shares (‘‘Shares’’) of the following
fund of the ProShares Trust (‘‘Trust’’):
ProShares UltraShort MSCI Mexico
Investable Market Fund. 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 Public
Reference Room of the Commission.
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
[Release No. 34–60128; File No. SR–
NYSEArca–2009–53]
14 17
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
30351
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]]>Agencies
[Federal Register Volume 74, Number 121 (Thursday, June 25, 2009)]
[Notices]
[Pages 30349-30351]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-14961]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60140; File No. SR-NYSEAmex-2009-27]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to WAIT
Modifiers, PNP Plus Orders, and Attributable Orders
June 18, 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 June 8, 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 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 Rule 900.3NY to (i) offer the
``WAIT'' order modifier for use with orders entered into the NYSE Amex
System; (ii) allow the use of attributable orders (iii) offer PNP Plus
orders. The WAIT modifier is designed to enhance compliance with the
order exposure requirement of NYSE Amex Rule 935NY. Attributable orders
allow users to voluntarily display their firm IDs on the orders. PNP
Plus orders allow Users greater control over the circumstances of order
execution. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
WAIT Orders
On May 21, 2009, the Securities and Exchange Commission approved
NYSE Amex's proposal to reduce the order exposure requirement of Rule
935NY from three seconds to one second.\3\ Rule 935NY prohibits Users
from executing as principal orders they represent as agent unless (i)
agency orders are first exposed on the Exchange for at least one (1)
second or (ii) the User has been bidding or offering on the Exchange
for at least one (1) second prior to receiving an agency order that is
executable against such bid or offer. This Rule insures that a User
does not gain at the expense of customers by depriving them of the
opportunity to interact with orders in the NYSE Amex System.
---------------------------------------------------------------------------
\3\ See Exchange Act Release No. 59956 (May 21, 2009), 74 FR
25782 (May 29, 2009) (SR-NYSEAmex-2009-15) (Order Granting
Accelerated Approval of Proposed Rule Change, as Modified by
Amendment No. 1, Amending Rule 935NY--Order Exposure Requirements to
Reduce the Exposure Periods from Three Seconds to One Second).
---------------------------------------------------------------------------
Users that enter agency orders into the NYSE Amex System have noted
the proposal by the NASDAQ Options Market (``NOM'') for a WAIT order
modifier,\4\ and have asked the Exchange to develop an automated
mechanism that permits them to enter orders into the NYSE Amex System
as soon as the orders are received but that also prevents them from
interacting with their own agency orders in violation of the order
exposure requirement. NYSE Amex believes this is an efficient use of
resources because it will allow NYSE Amex to program its System once
rather than have multiple Users re-program their systems.
---------------------------------------------------------------------------
\4\ See Exchange Act Release No. 59557 (March 11, 2009), 74 FR
11389 (March 17, 2009) (SR-NASDAQ-2009-017).
---------------------------------------------------------------------------
In order to accomplish that request, NYSE Amex has developed the
``WAIT'' modifier which can be appended to an order prior to entry into
the NYSE Amex System. The WAIT modifier will instruct the System to
wait precisely one second from the time of order entry before
processing the order in accordance with the other instructions attached
to that order. Upon expiration of the one-second WAIT period, the
System will time stamp, route, display, or execute the order in
accordance with the entering party's other order entry instructions.
Thus, the WAIT modifier does not affect the existing display, routing,
or execution priorities of the NYSE Amex System or any other
obligations of Users as set forth in the NYSE Amex rules.
Orders designated with the WAIT modifier are independent of all
other orders, including an agency order that is being exposed pursuant
to Rule 935NY. WAIT orders are not associated or in any way linked to
another order entered into the System, as is the case with certain
facilitation orders at other options exchanges. The System will process
the WAIT order even if a customer order entered into the System
simultaneously with the WAIT order has been executed or cancelled
during the WAIT second, unless the WAIT order itself is modified or
cancelled pursuant to System rules. As a result, there is no guarantee
that an order designated as WAIT will execute against another specific
order. Use of the WAIT modifier is completely voluntary.
Attributable Orders
The Exchange proposes to modify Rule 900.3NY (Orders Defined) to
allow for the submission of attributable orders. These orders allow
users to voluntarily display their firm IDs on the orders.\5\ The
NASDAQ Options Market, LLC (``NOM'') currently allows its participants
to submit attributable orders (See NOM Chapter VI, Section
(1)(d)(1)).\6\ As proposed, the Exchange may limit the processes for
which attributable orders will be available. This proposal is
responsive to requests by Exchange Users who believe that enhanced
executions may be obtained if Firm ID is allowed on orders (on a
voluntary basis).
---------------------------------------------------------------------------
\5\ A Firm ID is a 5 character identification code (letters and/
or numbers) Each ATP Holder is assigned its own unique Firm ID.
\6\ The Chicago Board Options Exchange (``CBOE'') also allows
attributable orders. See Exchange Act Release No, 58394 (August 20,
2008), 73 FR 50379 (August 26, 2008) (SR-CBOE-2008-85) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change
Adopting A New Order Type).
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[[Page 30350]]
PNP Plus
As part of its continuing efforts to enhance participation on the
Exchange, and provide additional tools to control the circumstances in
which orders are executed, NYSE Amex proposes to adopt an order type
known as ``PNP Plus.'' PNP Plus Orders are currently offered on the
NYSE Arca Equities market.\7\
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\7\ See NYSE Arca Equities Rule 7.31(w)(1).
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A PNP Order is an order entered into the NYSE Amex System for
execution on the Exchange, but not for routing to away markets. Because
of the condition to not route PNP orders, they are cancelled if they
would otherwise lock or cross the NBBO.
Customers have requested that the exchange develop a PNP Order type
that would, if marketable against the NBBO but not executable on the
Exchange, be represented in the Exchange's disseminated market by re-
pricing the order. Specifically, if posting a PNP Plus order or a
portion thereof would otherwise result in locking or crossing the NBBO,
the PNP order would automatically be re-priced to be one Minimum Price
Valuation (``MPV'') greater than the NBBO bid (for sell orders) or one
MPV less than the NBBO offer (for buy orders), thus avoiding locking or
crossing the NBBO. The re-priced bid or offer is included in the
Exchange's disseminated quote.
If the NBBO changes, and the order is marketable against the new
NBBO, but still not executable on the Exchange, the PNP Plus order
would again be re-priced to be one MPV away from the NBBO. When re-
priced, the PNP Plus order is re-ranked at the new price. The order
would continue to be re-priced and re-ranked with each change in the
NBBO, until such time that the NBBO moves such that the original price
of the PNP Plus Order would no longer lock or cross the NBBO. The PNP
Plus Order would then automatically be re-priced back to its original
limit price and re-ranked in the Consolidated Book. The PNP Plus Order
will not be re-priced if the order becomes locked or crossed by another
market.
The Exchange believes that the implementation of the aforementioned
rule change modifying NYSE Amex order entry options will enhance
compliance with NYSE Amex rules, preserve order execution opportunities
on the NYSE Amex market, provide greater control over the circumstances
of executions, and provide an opportunity for enhanced executions.
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, by providing investors with additional order types
that allow greater flexibility in maintaining compliance with the
rules, or providing an opportunity for enhanced executions, or managing
the circumstances in which their orders are executed.
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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
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 \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest
because the proposed rule change is based on existing rules of other
exchanges \12\ and does not appear to present any novel or significant
issues. The Commission hereby grants the Exchange's request.\13\
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\12\ See, e.g., Securities Exchange Act Release No. 59737 (April
9, 2009) 74 FR 18018 (April 20, 2009) (SR-NYSEArca-2009-27)
(adopting ``WAIT'' order modifier, attributable orders, and PNP Plus
order type).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov Please include
File Number SR-NYSEAmex-2009-27 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEAmex-2009-27. 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
[[Page 30351]]
Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying in the
Commission's Public Reference Room, 100 F Street, NE., Washington, DC
20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of the filing will also be available for inspection and
copying at the principal office of the self-regulatory organization.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-NYSEAmex-2009-
27 and should be submitted on or before July 16, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-14961 Filed 6-24-09; 8:45 am]
BILLING CODE 8010-01-P
