Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of Proposed Rule Change To Propose New Rules To Govern Electronic Complex Order Trading, 35223-35225 [E9-17136]
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Federal Register / Vol. 74, No. 137 / Monday, July 20, 2009 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–DTC–2009–11 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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60297; File No. SR–NYSE
Amex–2009–42]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing of
Proposed Rule Change To Propose
New Rules To Govern Electronic
Complex Order Trading
July 13, 2009.
erowe on DSK5CLS3C1PROD with NOTICES
All submissions should refer to File
Number SR–DTC–2009–11. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Section, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filings also will be
available for inspection and copying at
the principal office of DTC and on
DTC’s Web site at https://dtcc.com/
downloads/legal/rule_filings/2009/dtc/
2009-11.pdf. 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–DTC–
2009–11 and should be submitted on or
before August 10, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 9,
2009, NYSE Amex LLC (‘‘NYSE Amex’’
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 comments on the proposed rule
change from interested persons.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–17138 Filed 7–17–09; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–P
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes new rules to
govern Electronic Complex Order
trading.
The text of the proposed rule change
is available on the Exchange’s Internet
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, of
the most significant aspects of such
statements.
1. Purpose
NYSE Amex proposes new rules that
describe Electronic Complex Order
Trading. Electronic Complex Orders are
Complex Orders and Stock/option
1 15
11 17
CFR 200.30–3(a)(12).
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2 17
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PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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35223
Orders that are entered electronically
into the NYSE Amex System.
Proposed Rule 980NY describes the
entry of Electronic Complex Orders in
the Consolidated Book and the
operation of a Complex Matching
Engine. The Complex Matching Engine
is the mechanism in which Electronic
Complex Orders are executed against
each other or against individual quotes
and orders in the Consolidated Book.
Electronic Complex Orders in the
Consolidated Book will be available to
all market participants via an electronic
interface. NYSE Amex proposes that
Electronic Complex Orders be ranked in
the Consolidated Book in price/time
priority based on the strategy and the
total or net debit or credit, provided that
Electronic Complex Orders on behalf of
Customers shall be ranked ahead of
same price Electronic Complex Orders
for non-Customers.
Electronic Complex Orders eligible for
execution in the Complex Matching
Engine are defined to be consistent with
the Linkage Plan Trade Through
exemption; 3 they therefore may report
execution prices for the individual legs
of a Complex Trade that are outside of
the National Best Bid or Offer. However,
the Complex Matching Engine will
never execute any of the legs of a
Complex Trade at a price outside of the
NYSE Amex best bid/offer for that leg.
NYSE Amex also proposes that
Electronic Complex Orders attempt to
execute against other Electronic
Complex Orders in the Consolidated
Book, before attempting to execute
against the individual leg markets in the
Consolidated Book, provided that for
purposes of priority, where the total or
net debit or credit derived from
Customer orders in the individual leg
market is better than or equal to the
price of the Electronic Complex Order,
the Customer orders in the individual
leg markets will maintain priority.
NYSE Amex notes that the various
options exchange rule sets recognize
that investors wishing to complete a
complex strategy should not be
encumbered by orders for a single leg.
For instance, the markets for two call
series is as follows:
XYZ July 30: 2.20–2.40 10 × 10
XYZ July 35: 1.10–1.25 10 × 10
An Electronic Complex Order is
entered to Buy 10 July 30/Sell 10 July
35 for a Net Debit of 1.30. The Complex
Matching Engine checks the
Consolidated Book, and seeing there are
3 They are also defined to be consistent with the
proposed exemption described in the Proposed
Options Order Protection and Locked/Crossed
Market Plan (File No. 4–546, Exchange Act Release
No. 34–59647).
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35224
Federal Register / Vol. 74, No. 137 / Monday, July 20, 2009 / Notices
no Electronic Complex Orders willing to
sell the strategy, executes against the leg
markets, at prices of 2.40 for the July 30
calls, and 1.10 for the July 35 calls.
With the same leg markets available,
another Electronic Complex Order is
sent to NYSE Amex to Buy 10 July 30/
Sell 10 July 35 for a Net Debit of 1.00.
Since the screen market is .95–1.30, the
order would not execute, but route to
the Consolidated Book, and post with a
Debit of 1.00. This would be
disseminated to all NYSE Amex market
participants.
An order to Sell July 30/Buy July 35
for a credit of 1.00 arrives. It is routed
directly to the Complex Matching
Engine, where it is matched against the
posted order with a debit of 1.00, and
priced at the first available prices found
in the Complex Matching Engine. For
example, under this scenario, it is
possible to execute at 2.20 and 1.20.
The Exchange proposes, however, that
if Customer orders in the individual leg
markets are pricing the strategy at the
same price as the posted Electronic
Complex Order, an Electronic Complex
Order sent to be executed against the
posted order will instead execute
against the individual Customer orders
in the leg markets. For instance,
suppose that before the second order
described above arrives, the individual
leg markets in the options change as
follows, with Customer orders at the
best prices in the Consolidated Book:
XYZ July 30: 2.20–2.40 10 × 10
XYZ July 35: 1.10–1.20 10 × 10
The Customer orders in the individual
leg markets are now pricing the strategy
at the same price as the posted
Electronic Complex Order. Even though
the Electronic Complex Order net debit
has been disseminated and advertised,
the Customer orders in the individual
leg markets will maintain priority over
the posted Electronic Complex Order.
The Complex Matching Engine will
execute the incoming Electronic
Complex Order with a credit of 1.00
against the 1.00 debit price of the
Customer orders in the leg markets, and
then any residual will be matched
against the Electronic Complex Order in
the Consolidated Book at the same 1.00
debit.
Electronic Complex Orders that are
not executable are entered into the
Consolidated Book. The Complex
Matching Engine will monitor the
markets in the individual legs of
Electronic Complex Orders in the
Consolidated Book. If the market prices
in the legs move so that the Electronic
Complex Order is now executable in full
(or in a permissible ratio), the Electronic
Complex Order will be executed against
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15:18 Jul 17, 2009
Jkt 217001
the individual orders and quotes in the
leg markets.
The Exchange proposes that
Specialists not be afforded any
guaranteed allocation either in the
execution of a complex strategy nor if
present at the NYSE Amex BBO when
an Electronic Complex Order executes
against the individual leg markets.
There is no obligation for Specialists (or
any Market Maker) to quote prices for
complex strategies; therefore there is no
need for a guaranteed allocation. A
market participant that establishes a
price for a strategy should be rewarded
for setting that price by being granted
time priority, provided that Electronic
Complex Orders on behalf of Customers
are ranked ahead of same price Complex
Orders for non-Customers. Similarly,
the Specialist’s quotes in the individual
leg markets are available to all orders,
but are not advertising a particular
strategy. They should not be granted a
guaranteed allocation in any of the leg
markets resulting from the execution of
a Complex Order. Complex Orders will
thus execute against Customer Orders in
the individual legs of the Consolidated
Book, and then against non-Customer
trading interest in the leg markets on a
size pro-rata basis.
For purposes of the firm quote rule,
Electronic Complex Orders in the
Consolidated Book shall be considered
‘‘firm’’ at the posted debit or credit.4
The Exchange also proposes clarifying
Commentaries to the proposed Rule.
Commentary .01 clarifies that Complex
bids and offers may be expressed and
executed in one cent increments,
regardless of the minimum price
variation of the component series.
Commentary .02 clarifies that at least
one leg of a Complex Order transaction
must trade at a price that is at least one
minimum price variation better than all
Customer bids and offers in the
Consolidated Book for the that series.
Proposed Commentary .03 outlines
special provisions for Stock/option
orders. Among these are that a Complex
Order with a stock component is
considered a Stock/option order.
Additionally, a Stock/option order may
not trade on the price of a Customer
order in the Consolidated Book in the
option leg unless it trades with the
Customer order.
Commentary .03 also outlines that the
stock component must be executed in
accordance with the rules of the
executing venue, and that Stock/option
orders may be executed in one cent
increments regardless of the minimum
price increment in the option leg.
PO 00000
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,5
in general, and furthers the objectives of
Section 6(b)(5) 6 in particular in that it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism for a free and
open market and a national market
system. NYSE Amex believes the
proposed rule, related to Electronic
Complex Orders, are appropriate in that
Complex Orders are widely recognized
by market participants as invaluable,
both as an investment, and a risk
management strategy. The proposed rule
will provide the opportunity for a more
efficient mechanism for carrying out
these strategies.
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change; or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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.
5 15
4 See
Exchange Act Rule 602.
Frm 00070
Fmt 4703
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6 15
E:\FR\FM\20JYN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
20JYN1
35225
Federal Register / Vol. 74, No. 137 / Monday, July 20, 2009 / Notices
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–NYSE Amex–2009–42 on
the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE Amex–2009–42. 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, 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
the principal office of the Exchange. 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 publicly available. All
submissions should refer to File
Number SR–NYSE Amex–2009–42 and
should be submitted on or before
August 10, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–17136 Filed 7–17–09; 8:45 am]
BILLING CODE 8010–01–P
SOCIAL SECURITY ADMINISTRATION
Agency Information Collection
Activities: Comment Request
The Social Security Administration
(SSA) publishes a list of information
collection packages requiring clearance
by the Office of Management and
Budget (OMB) in compliance with
Public Law (Pub. L.) 104–13, the
Paperwork Reduction Act of 1995,
effective October 1, 1995. This notice
includes revisions to OMB-approved
information collections.
SSA is soliciting comments on the
accuracy of the agency’s burden
estimate; the need for the information;
its practical utility; ways to enhance its
quality, utility, and clarity; and ways to
minimize the burden on respondents,
including the use of automated
collection techniques or other forms of
information technology. Mail, e-mail, or
fax your comments and
recommendations on the information
collection(s) to the OMB Desk Officer
and the SSA Reports Clearance Officer
to the addresses or fax numbers shown
below: (OMB) Office of Management
and Budget, Attn: Desk Officer for SSA,
Fax: 202–395–6974, E-mail address:
OIRA_Submission@omb.eop.gov. (SSA)
Social Security Administration,
DCBFM, Attn: Reports Clearance
Officer, 1332 Annex Building, 6401
Security Blvd., Baltimore, MD 21235,
Fax: 410–965–6400, E-mail address:
OPLM.RCO@ssa.gov.
SSA has submitted the information
collection we list below to OMB for
clearance. Your comments on the
information collection would be most
useful if OMB and SSA receive them
within 30 days from the date of this
publication. To be sure we consider
your comments, we must receive them
no later than August 19, 2009. You can
obtain a copy of the OMB clearance
package by calling the SSA Reports
Clearance Officer at 410–965–3758 or by
writing to the above e-mail address.
Integrated Registration Services (IRES)
System—20 CFR 401.45—0960–0626
The IRES System verifies the identity
of individuals, businesses,
organizations, entities, and government
agencies to use SSA’s eService Internet
and telephone applications for
requesting and exchanging business
data with SSA. The requestor provides
information, prescribed by SSA, to
establish his or her identity. Once SSA
verifies identity, IRES will issue the
requestor a user identification number
(User ID) and a password to conduct
business with SSA. Respondents are
employers and third party submitters of
wage data, business entities providing
taxpayer identification information, and
data exchange partners conducting
business in support of SSA programs.
Type of Request: Revision of an OMBapproved information collection.
Number of
respondents
Respondent types
Average
burden per
response
(minutes)
Estimated
annual burden
(hours)
200,000
1,300,000
88,000
120,794
5
5
11
11
16,667
108,333
16,133
22,146
Total ......................................................................................................................................
erowe on DSK5CLS3C1PROD with NOTICES
Appointed Representatives Registering via Internet ...................................................................
All Other Business Services Online (BSO) Respondents Registering via Internet ....................
Appointed Representatives Registering via CSA ........................................................................
All Other BSO Respondents Registering via CSA ......................................................................
1,708,794
........................
163,279
Dated: July 15, 2009.
John Biles,
Reports Clearance Officer, Center for Reports
Clearance, Social Security Administration.
[FR Doc. E9–17224 Filed 7–17–09; 8:45 am]
BILLING CODE 4191–02–P
7 17
SOCIAL SECURITY ADMINISTRATION
information about one of its information
collections:
Agency Announcement
The Social Security Administration
(SSA) is announcing the following
CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 74, Number 137 (Monday, July 20, 2009)]
[Notices]
[Pages 35223-35225]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-17136]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60297; File No. SR-NYSE Amex-2009-42]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of
Proposed Rule Change To Propose New Rules To Govern Electronic Complex
Order Trading
July 13, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 9, 2009, NYSE Amex LLC (``NYSE Amex'' 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 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 new rules to govern Electronic Complex Order
trading.
The text of the proposed rule change is available on the Exchange's
Internet 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, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NYSE Amex proposes new rules that describe Electronic Complex Order
Trading. Electronic Complex Orders are Complex Orders and Stock/option
Orders that are entered electronically into the NYSE Amex System.
Proposed Rule 980NY describes the entry of Electronic Complex
Orders in the Consolidated Book and the operation of a Complex Matching
Engine. The Complex Matching Engine is the mechanism in which
Electronic Complex Orders are executed against each other or against
individual quotes and orders in the Consolidated Book. Electronic
Complex Orders in the Consolidated Book will be available to all market
participants via an electronic interface. NYSE Amex proposes that
Electronic Complex Orders be ranked in the Consolidated Book in price/
time priority based on the strategy and the total or net debit or
credit, provided that Electronic Complex Orders on behalf of Customers
shall be ranked ahead of same price Electronic Complex Orders for non-
Customers.
Electronic Complex Orders eligible for execution in the Complex
Matching Engine are defined to be consistent with the Linkage Plan
Trade Through exemption; \3\ they therefore may report execution prices
for the individual legs of a Complex Trade that are outside of the
National Best Bid or Offer. However, the Complex Matching Engine will
never execute any of the legs of a Complex Trade at a price outside of
the NYSE Amex best bid/offer for that leg.
---------------------------------------------------------------------------
\3\ They are also defined to be consistent with the proposed
exemption described in the Proposed Options Order Protection and
Locked/Crossed Market Plan (File No. 4-546, Exchange Act Release No.
34-59647).
---------------------------------------------------------------------------
NYSE Amex also proposes that Electronic Complex Orders attempt to
execute against other Electronic Complex Orders in the Consolidated
Book, before attempting to execute against the individual leg markets
in the Consolidated Book, provided that for purposes of priority, where
the total or net debit or credit derived from Customer orders in the
individual leg market is better than or equal to the price of the
Electronic Complex Order, the Customer orders in the individual leg
markets will maintain priority.
NYSE Amex notes that the various options exchange rule sets
recognize that investors wishing to complete a complex strategy should
not be encumbered by orders for a single leg.
For instance, the markets for two call series is as follows:
XYZ July 30: 2.20-2.40 10 x 10
XYZ July 35: 1.10-1.25 10 x 10
An Electronic Complex Order is entered to Buy 10 July 30/Sell 10
July 35 for a Net Debit of 1.30. The Complex Matching Engine checks the
Consolidated Book, and seeing there are
[[Page 35224]]
no Electronic Complex Orders willing to sell the strategy, executes
against the leg markets, at prices of 2.40 for the July 30 calls, and
1.10 for the July 35 calls.
With the same leg markets available, another Electronic Complex
Order is sent to NYSE Amex to Buy 10 July 30/Sell 10 July 35 for a Net
Debit of 1.00. Since the screen market is .95-1.30, the order would not
execute, but route to the Consolidated Book, and post with a Debit of
1.00. This would be disseminated to all NYSE Amex market participants.
An order to Sell July 30/Buy July 35 for a credit of 1.00 arrives.
It is routed directly to the Complex Matching Engine, where it is
matched against the posted order with a debit of 1.00, and priced at
the first available prices found in the Complex Matching Engine. For
example, under this scenario, it is possible to execute at 2.20 and
1.20.
The Exchange proposes, however, that if Customer orders in the
individual leg markets are pricing the strategy at the same price as
the posted Electronic Complex Order, an Electronic Complex Order sent
to be executed against the posted order will instead execute against
the individual Customer orders in the leg markets. For instance,
suppose that before the second order described above arrives, the
individual leg markets in the options change as follows, with Customer
orders at the best prices in the Consolidated Book:
XYZ July 30: 2.20-2.40 10 x 10
XYZ July 35: 1.10-1.20 10 x 10
The Customer orders in the individual leg markets are now pricing
the strategy at the same price as the posted Electronic Complex Order.
Even though the Electronic Complex Order net debit has been
disseminated and advertised, the Customer orders in the individual leg
markets will maintain priority over the posted Electronic Complex
Order. The Complex Matching Engine will execute the incoming Electronic
Complex Order with a credit of 1.00 against the 1.00 debit price of the
Customer orders in the leg markets, and then any residual will be
matched against the Electronic Complex Order in the Consolidated Book
at the same 1.00 debit.
Electronic Complex Orders that are not executable are entered into
the Consolidated Book. The Complex Matching Engine will monitor the
markets in the individual legs of Electronic Complex Orders in the
Consolidated Book. If the market prices in the legs move so that the
Electronic Complex Order is now executable in full (or in a permissible
ratio), the Electronic Complex Order will be executed against the
individual orders and quotes in the leg markets.
The Exchange proposes that Specialists not be afforded any
guaranteed allocation either in the execution of a complex strategy nor
if present at the NYSE Amex BBO when an Electronic Complex Order
executes against the individual leg markets. There is no obligation for
Specialists (or any Market Maker) to quote prices for complex
strategies; therefore there is no need for a guaranteed allocation. A
market participant that establishes a price for a strategy should be
rewarded for setting that price by being granted time priority,
provided that Electronic Complex Orders on behalf of Customers are
ranked ahead of same price Complex Orders for non-Customers. Similarly,
the Specialist's quotes in the individual leg markets are available to
all orders, but are not advertising a particular strategy. They should
not be granted a guaranteed allocation in any of the leg markets
resulting from the execution of a Complex Order. Complex Orders will
thus execute against Customer Orders in the individual legs of the
Consolidated Book, and then against non-Customer trading interest in
the leg markets on a size pro-rata basis.
For purposes of the firm quote rule, Electronic Complex Orders in
the Consolidated Book shall be considered ``firm'' at the posted debit
or credit.\4\
---------------------------------------------------------------------------
\4\ See Exchange Act Rule 602.
---------------------------------------------------------------------------
The Exchange also proposes clarifying Commentaries to the proposed
Rule. Commentary .01 clarifies that Complex bids and offers may be
expressed and executed in one cent increments, regardless of the
minimum price variation of the component series. Commentary .02
clarifies that at least one leg of a Complex Order transaction must
trade at a price that is at least one minimum price variation better
than all Customer bids and offers in the Consolidated Book for the that
series.
Proposed Commentary .03 outlines special provisions for Stock/
option orders. Among these are that a Complex Order with a stock
component is considered a Stock/option order. Additionally, a Stock/
option order may not trade on the price of a Customer order in the
Consolidated Book in the option leg unless it trades with the Customer
order.
Commentary .03 also outlines that the stock component must be
executed in accordance with the rules of the executing venue, and that
Stock/option orders may be executed in one cent increments regardless
of the minimum price increment in the option leg.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\5\ in general, and furthers the objectives of Section 6(b)(5) \6\
in particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism for a free and open
market and a national market system. NYSE Amex believes the proposed
rule, related to Electronic Complex Orders, are appropriate in that
Complex Orders are widely recognized by market participants as
invaluable, both as an investment, and a risk management strategy. The
proposed rule will provide the opportunity for a more efficient
mechanism for carrying out these strategies.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding, or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve such proposed rule change; or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
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.
[[Page 35225]]
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-NYSE Amex-2009-42 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE Amex-2009-42. 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, 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 the principal office of the Exchange. 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 publicly available. All
submissions should refer to File Number SR-NYSE Amex-2009-42 and should
be submitted on or before August 10, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
Florence E. Harmon,
Deputy Secretary.
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\7\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-17136 Filed 7-17-09; 8:45 am]
BILLING CODE 8010-01-P
