Self-Regulatory Organizations; New York Stock Exchange LLC; Order Granting Accelerated Approval to a Proposed Rule Change Amending Rule 70.25 To Permit All Available Contra-Side Liquidity To Trigger the Execution of a d-Quote, 34068 [E9-16544]

Download as PDF 34068 Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Elizabeth M. Murphy, Secretary. [FR Doc. E9–16545 Filed 7–13–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60251; File No. SR–NYSE– 2009–55] Self-Regulatory Organizations; New York Stock Exchange LLC; Order Granting Accelerated Approval to a Proposed Rule Change Amending Rule 70.25 To Permit All Available ContraSide Liquidity To Trigger the Execution of a d-Quote July 7, 2009. On June 2, 2009, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’)1 and Rule 19b–4 thereunder,2 a proposed rule change to amend Rule 70.25 to permit all available contra-side liquidity to trigger the execution of a d-Quote. The proposed rule change was published for comment in the Federal Register on June 11, 2009.3 The Commission received no comments regarding the proposal. This order approves the proposed rule change on an accelerated basis. The Exchange proposes to amend Rule 70.25 to expand the categories of liquidity that would be considered when determining whether the contraside volume is within the discretionary size range of the d-Quote.4 Currently, only displayed interest is considered by Exchange systems in determining whether the d-Quote is triggered. Under the proposed rule change, all available contra-side interest at a possible execution price of the d-Quote, including undisplayed liquidity, would be considered. In its filing, the Exchange stated that this rule change would provide Floor brokers with a similar functionality that was previously available to Floor 13 17 mstockstill on DSKH9S0YB1PROD with NOTICES CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 60045 (June 4, 2009), 74 FR 27854 (‘‘Notice’’). 4 A d-Quote is an e-Quote for which a Floor Broker enters discretionary instructions as to size and/or price. See NYSE Rule 70.25(a)(i). An e-Quote is a broker agency interest file that a Floor broker places within the Display Book system. See NYSE Rule 70(a)(i). brokers with a CAP–DI order under former Rule 123A.30(a).5 Under that former rule, an elected CAP–DI order would automatically execute against any contra-side volume available at the electing price, and was eligible to participate in a sweep.6 The Exchange also noted that, at the time the CAP order was eliminated, the Exchange did not have the technology to replicate a similar functionality with d-Quotes.7 Since that time, the Exchange has introduced two new order types, the Minimum Display Reserve Order, and the Non-Displayed Reserve Order.8 With the proposed rule change, these two order types would be considered when determining whether there is sufficient contra-side volume to trigger a d-Quote. The Commission has carefully reviewed the proposed rule change and finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange 9 including, in particular, Section 6(b)(5) of the Act,10 which requires that an exchange have rules designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, protect investors and the public interest. Because it would provide a d-Quote with access to both displayed and undisplayed liquidity, the proposed rule change benefits Floor brokers by allowing their d-Quotes to be triggered more often. This proposal should also benefit customers by providing them with more opportunities to have their non-displayed reserve orders receive executions. The Commission also finds good cause to approve the proposed rule change prior to the thirtieth day after publication in the Federal Register. The Commission notes that no comments were received during the 21day comment period. The Commission believes that the Exchange has provided reasonable support for its representation that the proposed rule change provides Floor brokers with a functionality similar to that previously available with CAP–DI orders. In addition, the potential benefits of this proposal to 5 See 1 15 VerDate Nov<24>2008 17:50 Jul 13, 2009 Jkt 217001 Notice at 27855. customers, such as the increased opportunities for the execution of customer non-displayed reserve orders, would be available sooner by approving this proposed rule change on an accelerated basis. Therefore, the Commission finds good cause, consistent with Section 19(b)(2) of the Act,11 to approve the proposed rule change on an accelerated basis. It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR–NYSE–2009– 55) be, and it hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Elizabeth M. Murphy, Secretary. [FR Doc. E9–16544 Filed 7–13–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60236; File No. SR–BATS– 2009–019] Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Its New Sponsored Access Risk Management Tool Service July 2, 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 26, 2009, BATS Exchange, Inc. (‘‘BATS’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 6 Id. 7 Id. 8 Id. See also NYSE Rule 13 (Definitions of Orders). 9 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 10 15 U.S.C. 78f(b)(5). PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 11 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C.78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 12 17 E:\FR\FM\14JYN1.SGM 14JYN1

Agencies

[Federal Register Volume 74, Number 133 (Tuesday, July 14, 2009)]
[Notices]
[Page 34068]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16544]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60251; File No. SR-NYSE-2009-55]


Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Granting Accelerated Approval to a Proposed Rule Change Amending Rule 
70.25 To Permit All Available Contra-Side Liquidity To Trigger the 
Execution of a d-Quote

July 7, 2009.
    On June 2, 2009, New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend Rule 70.25 to permit all available 
contra-side liquidity to trigger the execution of a d-Quote. The 
proposed rule change was published for comment in the Federal Register 
on June 11, 2009.\3\ The Commission received no comments regarding the 
proposal. This order approves the proposed rule change on an 
accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60045 (June 4, 
2009), 74 FR 27854 (``Notice'').
---------------------------------------------------------------------------

    The Exchange proposes to amend Rule 70.25 to expand the categories 
of liquidity that would be considered when determining whether the 
contra-side volume is within the discretionary size range of the d-
Quote.\4\ Currently, only displayed interest is considered by Exchange 
systems in determining whether the d-Quote is triggered. Under the 
proposed rule change, all available contra-side interest at a possible 
execution price of the d-Quote, including undisplayed liquidity, would 
be considered.
---------------------------------------------------------------------------

    \4\ A d-Quote is an e-Quote for which a Floor Broker enters 
discretionary instructions as to size and/or price. See NYSE Rule 
70.25(a)(i). An e-Quote is a broker agency interest file that a 
Floor broker places within the Display Book system. See NYSE Rule 
70(a)(i).
---------------------------------------------------------------------------

    In its filing, the Exchange stated that this rule change would 
provide Floor brokers with a similar functionality that was previously 
available to Floor brokers with a CAP-DI order under former Rule 
123A.30(a).\5\ Under that former rule, an elected CAP-DI order would 
automatically execute against any contra-side volume available at the 
electing price, and was eligible to participate in a sweep.\6\ The 
Exchange also noted that, at the time the CAP order was eliminated, the 
Exchange did not have the technology to replicate a similar 
functionality with d-Quotes.\7\ Since that time, the Exchange has 
introduced two new order types, the Minimum Display Reserve Order, and 
the Non-Displayed Reserve Order.\8\ With the proposed rule change, 
these two order types would be considered when determining whether 
there is sufficient contra-side volume to trigger a d-Quote.
---------------------------------------------------------------------------

    \5\ See Notice at 27855.
    \6\ Id.
    \7\ Id.
    \8\ Id. See also NYSE Rule 13 (Definitions of Orders).
---------------------------------------------------------------------------

    The Commission has carefully reviewed the proposed rule change and 
finds that the proposed rule change is consistent with the requirements 
of the Act and the rules and regulations thereunder applicable to a 
national securities exchange \9\ including, in particular, Section 
6(b)(5) of the Act,\10\ which requires that an exchange have rules 
designed to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, protect investors and the 
public interest.
---------------------------------------------------------------------------

    \9\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Because it would provide a d-Quote with access to both displayed 
and undisplayed liquidity, the proposed rule change benefits Floor 
brokers by allowing their d-Quotes to be triggered more often. This 
proposal should also benefit customers by providing them with more 
opportunities to have their non-displayed reserve orders receive 
executions.
    The Commission also finds good cause to approve the proposed rule 
change prior to the thirtieth day after publication in the  Federal 
Register. The Commission notes that no comments were received during 
the 21-day comment period. The Commission believes that the Exchange 
has provided reasonable support for its representation that the 
proposed rule change provides Floor brokers with a functionality 
similar to that previously available with CAP-DI orders. In addition, 
the potential benefits of this proposal to customers, such as the 
increased opportunities for the execution of customer non-displayed 
reserve orders, would be available sooner by approving this proposed 
rule change on an accelerated basis. Therefore, the Commission finds 
good cause, consistent with Section 19(b)(2) of the Act,\11\ to approve 
the proposed rule change on an accelerated basis.
---------------------------------------------------------------------------

    \11\ U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-NYSE-2009-55) be, and it hereby is, 
approved on an accelerated basis.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

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

Elizabeth M. Murphy,
Secretary.
 [FR Doc. E9-16544 Filed 7-13-09; 8:45 am]
BILLING CODE 8010-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.