Self-Regulatory Organizations; NYSE Amex 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, 34067-34068 [E9-16545]

Download as PDF Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices Arca, which are designed to address conflicts of interest concerns identified by the Commission in connection with inbound routing of orders to an exchange when the routing brokerdealer is an affiliate of the exchange, will continue to apply and were previously approved by the Commission.14 The Commission also notes that no comments were received in connection with SR–NYSE–2008– 76.15 Accordingly, the Commission finds good cause, consistent with Section 19(b)(2) of the Act,16 to approve the proposed rule change on an accelerated basis for a pilot period expiring September 29, 2009. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR–NYSE–2009– 58) is hereby approved on an accelerated basis for a pilot period to expire on September 29, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Elizabeth M. Murphy, Secretary. [FR Doc. E9–16548 Filed 7–13–09; 8:45 am] BILLING CODE 8010–01–P 17 CFR 200.30–3(a)(12). SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60252; File No. SR– NYSEAmes–2009–24] Self-Regulatory Organizations; NYSE Amex 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 mstockstill on DSKH9S0YB1PROD with NOTICES July 7, 2009. On June 4, 2009, NYSE Amex LLC (‘‘NYSE Amex’’ 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 NYSE Amex Equities 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 15, 14 See Securities Exchange Act Release No. 58680, supra note 4. 15 See id. 16 15 U.S.C. 78s(b)(2). 17 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Nov<24>2008 17:50 Jul 13, 2009 Jkt 217001 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. This rule change will conform Rule 70.25 to the corresponding rule of the New York Stock Exchange LLC (‘‘NYSE’’) that governs the execution of NYSE Floor broker interest.5 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 convert-and-parity (‘‘CAP’’) orders, and that was also previously available to NYSE Floor brokers with CAP–DI orders under former NYSE Rule 123A.30(a).6 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.7At the time the CAP order was eliminated, the NYSE did not have the technology to replicate a similar functionality with d-Quotes.8 Since that time, both the Exchange and the NYSE have introduced two new order types, the Minimum Display Reserve Order, and the Non-Displayed Reserve Order.9 With the proposed rule change, these two order types would be considered when determining whether 3 See Securities Exchange Act Release No. 60055 (June 5, 2009), 74 FR 28299 (‘‘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 Amex Equities 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 Amex Equities Rule 70(a)(i). 5 See Securities Exchange Act Release No. 60045 (June 4, 2009), 74 FR 27854 (June 11, 2009) (SR– NYSE–2009–55). 6 See Notice at 28300. The Exchange noted that the CAP functionality that was historically available to Floor brokers was similar to the NYSE CAP functionality. See id. at n.10. The Exchange states that it eliminated this functionality in connection with the implementation of Regulation NMS. Id. 7 See Notice at 28300. 8 Id. at 28301. 9 Id. See also NYSE Amex Equities Rule 13 (Definitions of Orders); NYSE Rule 13 (same). PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 34067 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 10 including, in particular, Section 6(b)(5) of the Act,11 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 21-day comment period. The purpose of this proposed rule change is to conform Rule 70.25 to the NYSE rule that governs the execution of floor broker interest. In that respect, 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 orders, and to the functionality that was previously available to NYSE Floor brokers 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,12 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–NYSEAmes– 2009–24) be, and it hereby is, approved on an accelerated basis. 10 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). 11 15 U.S.C. 78f(b)(5). 12 15 U.S.C. 78s(b)(2). E:\FR\FM\14JYN1.SGM 14JYN1 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]
[Pages 34067-34068]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16545]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60252; File No. SR-NYSEAmes-2009-24]


Self-Regulatory Organizations; NYSE Amex 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 4, 2009, NYSE Amex LLC (``NYSE Amex'' 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 NYSE Amex Equities 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 15, 
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. 60055 (June 5, 
2009), 74 FR 28299 (``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. This rule change will conform Rule 70.25 to the 
corresponding rule of the New York Stock Exchange LLC (``NYSE'') that 
governs the execution of NYSE Floor broker interest.\5\
---------------------------------------------------------------------------

    \4\ A d-Quote is an e-Quote for which a Floor Broker enters 
discretionary instructions as to size and/or price. See NYSE Amex 
Equities 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 Amex Equities Rule 70(a)(i).
    \5\ See Securities Exchange Act Release No. 60045 (June 4, 
2009), 74 FR 27854 (June 11, 2009) (SR-NYSE-2009-55).
---------------------------------------------------------------------------

    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 convert-and-parity (``CAP'') orders, 
and that was also previously available to NYSE Floor brokers with CAP-
DI orders under former NYSE Rule 123A.30(a).\6\ 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.\7\At the time the CAP order was eliminated, the 
NYSE did not have the technology to replicate a similar functionality 
with d-Quotes.\8\ Since that time, both the Exchange and the NYSE have 
introduced two new order types, the Minimum Display Reserve Order, and 
the Non-Displayed Reserve Order.\9\ 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.
---------------------------------------------------------------------------

    \6\ See Notice at 28300. The Exchange noted that the CAP 
functionality that was historically available to Floor brokers was 
similar to the NYSE CAP functionality. See id. at n.10. The Exchange 
states that it eliminated this functionality in connection with the 
implementation of Regulation NMS. Id.
    \7\ See Notice at 28300.
    \8\ Id. at 28301.
    \9\ Id. See also NYSE Amex Equities Rule 13 (Definitions of 
Orders); NYSE Rule 13 (same).
---------------------------------------------------------------------------

    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 \10\ including, in particular, Section 
6(b)(5) of the Act,\11\ 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.
---------------------------------------------------------------------------

    \10\ 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).
    \11\ 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 purpose of this proposed rule change is 
to conform Rule 70.25 to the NYSE rule that governs the execution of 
floor broker interest. In that respect, 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 orders, and 
to the functionality that was previously available to NYSE Floor 
brokers 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,\12\ to approve the proposed rule change on an 
accelerated basis.
---------------------------------------------------------------------------

    \12\ 15 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-NYSEAmes-2009-24) be, and it hereby 
is, approved on an accelerated basis.


[[Page 34068]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
 [FR Doc. E9-16545 Filed 7-13-09; 8:45 am]
BILLING CODE 8010-01-P
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