Joint Industry Plan; Notice of Summary Effectiveness on a Temporary Basis of Joint Amendment No. 1 to the Options Order Protection and Locked/Crossed Market Plan, and Notice of Filing of Such Amendment, 42709-42710 [E9-20191]

Download as PDF Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices Amendment No. 1 on a temporary basis not to exceed 120 days and solicits comment on Joint Amendment No. 1 from interested persons.5 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60507; File No. 4–546] Joint Industry Plan; Notice of Summary Effectiveness on a Temporary Basis of Joint Amendment No. 1 to the Options Order Protection and Locked/Crossed Market Plan, and Notice of Filing of Such Amendment August 14, 2009. I. Introduction Pursuant to Section 11A of the Securities Exchange Act of 1934 (the ‘‘Act’’) 1 and Rule 608 of Regulation NMS thereunder (‘‘Rule 608’’),2 notice is hereby given that on August 7, 2009, August 7, 2009, August 7, 2009, August 7, 2009, August 11, 2009, August 11, 2009, and August 11, 2009, NYSE Arca, Inc. (‘‘NYSE Arca’’), NYSE Amex, LLC (‘‘NYSE Amex’’), International Securities Exchange, LLC (‘‘ISE’’), NASDAQ OMX BX, Inc. (‘‘BOX’’), Chicago Board Options Exchange, Incorporated (‘‘CBOE’’), NASDAQ OMX PHLX, Inc. (‘‘Phlx’’), and The NASDAQ Stock Market LLC (‘‘Nasdaq’’) (collectively, ‘‘Participants’’),3 respectively, filed with the Securities and Exchange Commission (‘‘Commission’’) an amendment to the Options Order Protection and Locked/ Crossed Market Plan (‘‘Plan’’) 4 (‘‘Joint Amendment No. 1’’). In Joint Amendment No. 1, the Participants propose to modify Section 5(b) of the Plan to eliminate the requirement that policies and procedures be submitted to the Commission for approval. This order summarily puts into effect Joint 1 U.S.C. 78k–1. CFR 242.608. 3 See letter from Peter G. Armstrong, NYSE Arca, to Elizabeth Murphy, Secretary, Commission, dated August 6, 2009; letter from Michael Babel, NYSE Amex, to Elizabeth Murphy, Secretary, Commission, dated August 6, 2009; letter from Michael J. Simon, ISE, to Elizabeth Murphy, Secretary, Commission, dated August 6, 2009; letter from Maura A. Looney, Associate Vice President, BX, to Elizabeth Murphy, Secretary, Commission, dated August 6, 2009; letter from Edward J. Joyce, CBOE, to Elizabeth Murphy, Secretary, Commission, dated August 10, 2009; letter from Richard S. Rudolph, Assistant General Counsel, Phlx, to Elizabeth Murphy, Secretary, Commission, dated August 10, 2009; and letter from Jeffrey S. Davis, Vice President and Deputy General Counsel, Nasdaq, to Elizabeth Murphy, Secretary, Commission, dated August 10, 2009. On August 12, 2009, Nasdaq and Phlx submitted letters correcting technical errors in their letters to Elizabeth Murphy, Secretary, Commission, dated August 10, 2009. 4 On July 30, 2009, the Commission approved a national market system plan relating to Options Order Protection and Locked/Crossed Markets proposed by CBOE, ISE, Nasdaq, BOX, Phlx, NYSE Amex, and NYSE Arca. See Securities Exchange Act Release No. 60405 (July 30, 2009), 74 FR 39362 (August 6, 2009). erowe on DSK5CLS3C1PROD with NOTICES 2 17 VerDate Nov<24>2008 15:04 Aug 21, 2009 Jkt 217001 II. Description of the Proposed Amendment The purpose of Joint Amendment No. 1 is to clarify that, while each Participant is required under the Plan to establish, maintain and enforce written policies and procedures that are reasonably designed to prevent TradeThroughs, there would not be a requirement that these policies and procedures be submitted to the Commission for approval. The Plan requires, and each Participant has represented, that its policies and procedures will be reasonably designed to prevent Trade-Throughs in the Exchange’s market in Eligible Options Classes, unless they fall within an exception set forth in Section 5(b) of the Plan. If relying on such exception, the policies and procedures will be reasonably designed to assure compliance with the terms of the exception. The Participants request that the Commission provide summary effectiveness pursuant to Rule 608(b)(4) of the Act for the purpose of effecting Joint Amendment No. 1 on a temporary basis for 120 days. III. Discussion After careful consideration, the Commission finds that the proposed amendment to the Plan is consistent with the requirements of the Act and the rules and regulations thereunder.6 Specifically, the Commission finds that the proposed amendment to the Plan is consistent with Section 11A of the Act 7 and Rule 608 of Regulation NMS thereunder 8 in that it is appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly markets. The Commission notes that, as a general matter, it does not approve specific policies and procedures that exchanges use to ensure compliance with their rules or NMS Plan provisions. Rather, the 5 A proposed amendment may be put into effect summarily upon publication of notice of such amendment, on a temporary basis not to exceed 120 days, if the Commission finds that such action is necessary or appropriate in the public interest, for the protection of investors or the maintenance of fair and orderly markets, to remove impediments to, and perfect mechanisms of, a national market system or otherwise in furtherance of the purposes of the Act. See 17 CFR 242.608(b)(4). 6 In summarily putting into effect this Joint Amendment No. 1, the Commission has considered its impact on efficiency, competition, and capital formation. 7 15 U.S.C. 78k–1. 8 17 CFR 242.608. PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 42709 Commission uses its authority to review and examine exchanges to ensure that exchanges are meeting their regulatory obligations. In addition, the Commission finds that it is appropriate to summarily put into effect Joint Amendment No. 1 upon publication of this notice on a temporary basis for 120 days. The Commission believes that such action is appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly markets because it would allow the amendment to become effective prior to the anticipated implementation date of the Plan. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the Joint Amendment No. 1 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 4–546 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 4–546. 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 Joint Amendment that are filed with the Commission, and all written communications relating to the proposed Joint Amendment 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 Com mission’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 proposed Joint Amendment also will be available for inspection and copying at the respective E:\FR\FM\24AUN1.SGM 24AUN1 42710 Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices principal office of CBOE, ISE, Nasdaq, BOX, Phlx, NYSE Amex, and NYSE Arca. 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 4–546 and should be submitted on or before September 14, 2009. IV. Conclusion It is therefore ordered, pursuant to Section 11A of the Act 9 and Rule 608 of Regulation NMS,10 that the proposed Joint Amendment No. 1 is summarily put into effect until December 22, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–20191 Filed 8–21–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending NYSE Arca Options Rule 6.76A August 18, 2009. erowe on DSK5CLS3C1PROD with NOTICES Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on August 13, 2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by the selfregulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to eliminate Rule 6.76A(c) reflecting unimplemented routing functionality. The text of the proposed rule change is attached as U.S.C. 78k–1. CFR 242.608. 11 17 CFR 200.30–3(a)(29). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 15:04 Aug 21, 2009 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 the Statutory Basis for, the Proposed Rule Change The Exchange hereby proposes to eliminate references to exposure before routing functionality from NYSE Arca Options Rule 6.76A(c).4 The Exchange has not implemented this functionality and has no plans to implement it. The Exchange does not believe that this functionality is appropriate for the marketplace. As such, the Exchange proposes to delete references to this functionality from its rules. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) 5 of the Act, in general, and furthers the objectives of Section 6(b)(5),6 in particular, in that it is designed to facilitate transactions in securities, to promote just and equitable principles of trade, to enhance competition, and to protect investors and the public interest. 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. 4 See Securities Exchange Act Release No. 34– 59846 (April 29, 2009), 74 FR 21033 (May 6, 2009) (notice of filing and immediate effectiveness of SR– NYSEArca–2009–34). 5 15 U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(5). 10 17 VerDate Nov<24>2008 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose [Release No. 34–60522; File No. SR– NYSEArca–2009–76] 9 15 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. Jkt 217001 PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 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 7 and Rule 19b–4(f)(6) thereunder.8 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 9 and Rule 19b–4(f)(6)(iii) thereunder.10 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–NYSEArca–2009–76 on the subject line. 7 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 9 15 U.S.C. 78s(b)(3)(A). 10 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 Commission deems this requirement to be met. 8 17 E:\FR\FM\24AUN1.SGM 24AUN1

Agencies

[Federal Register Volume 74, Number 162 (Monday, August 24, 2009)]
[Notices]
[Pages 42709-42710]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-20191]



[[Page 42709]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60507; File No. 4-546]


Joint Industry Plan; Notice of Summary Effectiveness on a 
Temporary Basis of Joint Amendment No. 1 to the Options Order 
Protection and Locked/Crossed Market Plan, and Notice of Filing of Such 
Amendment

August 14, 2009.

I. Introduction

    Pursuant to Section 11A of the Securities Exchange Act of 1934 (the 
``Act'') \1\ and Rule 608 of Regulation NMS thereunder (``Rule 
608''),\2\ notice is hereby given that on August 7, 2009, August 7, 
2009, August 7, 2009, August 7, 2009, August 11, 2009, August 11, 2009, 
and August 11, 2009, NYSE Arca, Inc. (``NYSE Arca''), NYSE Amex, LLC 
(``NYSE Amex''), International Securities Exchange, LLC (``ISE''), 
NASDAQ OMX BX, Inc. (``BOX''), Chicago Board Options Exchange, 
Incorporated (``CBOE''), NASDAQ OMX PHLX, Inc. (``Phlx''), and The 
NASDAQ Stock Market LLC (``Nasdaq'') (collectively, 
``Participants''),\3\ respectively, filed with the Securities and 
Exchange Commission (``Commission'') an amendment to the Options Order 
Protection and Locked/Crossed Market Plan (``Plan'') \4\ (``Joint 
Amendment No. 1''). In Joint Amendment No. 1, the Participants propose 
to modify Section 5(b) of the Plan to eliminate the requirement that 
policies and procedures be submitted to the Commission for approval. 
This order summarily puts into effect Joint Amendment No. 1 on a 
temporary basis not to exceed 120 days and solicits comment on Joint 
Amendment No. 1 from interested persons.\5\
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    \1\ U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ See letter from Peter G. Armstrong, NYSE Arca, to Elizabeth 
Murphy, Secretary, Commission, dated August 6, 2009; letter from 
Michael Babel, NYSE Amex, to Elizabeth Murphy, Secretary, 
Commission, dated August 6, 2009; letter from Michael J. Simon, ISE, 
to Elizabeth Murphy, Secretary, Commission, dated August 6, 2009; 
letter from Maura A. Looney, Associate Vice President, BX, to 
Elizabeth Murphy, Secretary, Commission, dated August 6, 2009; 
letter from Edward J. Joyce, CBOE, to Elizabeth Murphy, Secretary, 
Commission, dated August 10, 2009; letter from Richard S. Rudolph, 
Assistant General Counsel, Phlx, to Elizabeth Murphy, Secretary, 
Commission, dated August 10, 2009; and letter from Jeffrey S. Davis, 
Vice President and Deputy General Counsel, Nasdaq, to Elizabeth 
Murphy, Secretary, Commission, dated August 10, 2009. On August 12, 
2009, Nasdaq and Phlx submitted letters correcting technical errors 
in their letters to Elizabeth Murphy, Secretary, Commission, dated 
August 10, 2009.
    \4\ On July 30, 2009, the Commission approved a national market 
system plan relating to Options Order Protection and Locked/Crossed 
Markets proposed by CBOE, ISE, Nasdaq, BOX, Phlx, NYSE Amex, and 
NYSE Arca. See Securities Exchange Act Release No. 60405 (July 30, 
2009), 74 FR 39362 (August 6, 2009).
    \5\ A proposed amendment may be put into effect summarily upon 
publication of notice of such amendment, on a temporary basis not to 
exceed 120 days, if the Commission finds that such action is 
necessary or appropriate in the public interest, for the protection 
of investors or the maintenance of fair and orderly markets, to 
remove impediments to, and perfect mechanisms of, a national market 
system or otherwise in furtherance of the purposes of the Act. See 
17 CFR 242.608(b)(4).
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II. Description of the Proposed Amendment

    The purpose of Joint Amendment No. 1 is to clarify that, while each 
Participant is required under the Plan to establish, maintain and 
enforce written policies and procedures that are reasonably designed to 
prevent Trade-Throughs, there would not be a requirement that these 
policies and procedures be submitted to the Commission for approval. 
The Plan requires, and each Participant has represented, that its 
policies and procedures will be reasonably designed to prevent Trade-
Throughs in the Exchange's market in Eligible Options Classes, unless 
they fall within an exception set forth in Section 5(b) of the Plan. If 
relying on such exception, the policies and procedures will be 
reasonably designed to assure compliance with the terms of the 
exception.
    The Participants request that the Commission provide summary 
effectiveness pursuant to Rule 608(b)(4) of the Act for the purpose of 
effecting Joint Amendment No. 1 on a temporary basis for 120 days.

III. Discussion

    After careful consideration, the Commission finds that the proposed 
amendment to the Plan is consistent with the requirements of the Act 
and the rules and regulations thereunder.\6\ Specifically, the 
Commission finds that the proposed amendment to the Plan is consistent 
with Section 11A of the Act \7\ and Rule 608 of Regulation NMS 
thereunder \8\ in that it is appropriate in the public interest, for 
the protection of investors and the maintenance of fair and orderly 
markets. The Commission notes that, as a general matter, it does not 
approve specific policies and procedures that exchanges use to ensure 
compliance with their rules or NMS Plan provisions. Rather, the 
Commission uses its authority to review and examine exchanges to ensure 
that exchanges are meeting their regulatory obligations.
---------------------------------------------------------------------------

    \6\ In summarily putting into effect this Joint Amendment No. 1, 
the Commission has considered its impact on efficiency, competition, 
and capital formation.
    \7\ 15 U.S.C. 78k-1.
    \8\ 17 CFR 242.608.
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    In addition, the Commission finds that it is appropriate to 
summarily put into effect Joint Amendment No. 1 upon publication of 
this notice on a temporary basis for 120 days. The Commission believes 
that such action is appropriate in the public interest, for the 
protection of investors and the maintenance of fair and orderly markets 
because it would allow the amendment to become effective prior to the 
anticipated implementation date of the Plan.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the Joint 
Amendment No. 1 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 4-546 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 4-546. 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 Joint Amendment that are filed 
with the Commission, and all written communications relating to the 
proposed Joint Amendment 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 Com mission'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 proposed Joint Amendment also will be 
available for inspection and copying at the respective

[[Page 42710]]

principal office of CBOE, ISE, Nasdaq, BOX, Phlx, NYSE Amex, and NYSE 
Arca. 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 4-546 
and should be submitted on or before September 14, 2009.

IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act \9\ and 
Rule 608 of Regulation NMS,\10\ that the proposed Joint Amendment No. 1 
is summarily put into effect until December 22, 2009.
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    \9\ 15 U.S.C. 78k-1.
    \10\ 17 CFR 242.608.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(29).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-20191 Filed 8-21-09; 8:45 am]
BILLING CODE 8010-01-P
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