Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC Extending Until September 22, 2009, the Operation of Interim NYSE Rule 128 Which Permits the Exchange to Cancel or Adjust Clearly Erroneous Executions if They Arise Out of the Use or Operation of Any Quotation, Execution or Communication System Owned or Operated by the Exchange, Including Those Executions That Occur in the Event of a System Disruption or System Malfunction, 48330-48332 [E9-22734]

Download as PDF 48330 Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices during a partial execution until all other interest on the Display Book at that price point is executed in full. The Exchange further proposes technical changes to NYSE Amex Equities Rule 1000.11 III. Discussion and Commission’s Findings After careful review, the Commission 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.12 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,13 which requires, among other things, that a national securities exchange have rules that are 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, to protect investors and the public interest. The Exchange stated in its filing it believes that this proposal would increase an order’s execution volume by allowing Exchange systems to access CCS interest for partial executions. The proposed modification increases the opportunities for automatically executing a greater number of shares of the incoming order on the Exchange prior to quoting the remainder. Thus, under the proposal, partially executed incoming orders would have an opportunity to have a greater number of shares receive an execution prior to being quoted. The Commission notes that the price point at which the CCS interest participates in partial executions would be, by operation of the proposed rule, the same or better than any limit price the customer has set for the incoming order. For the foregoing reasons, the Commission finds the proposed rule change is consistent with the Act. IV. Conclusion sroberts on DSKD5P82C1PROD with NOTICES It is therefore ordered, pursuant to Section 19(b)(2) of the Act,14 that the proposed rule change (SR–NYSEAmex– 2009–46) be, and it hereby is, approved. 11 For a description of these technical changes, see Notice, supra note 3, at 40277. 12 In approving this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 13 15 U.S.C. 78f(b)(5). 14 15 U.S.C. 78s(b)(2). VerDate Nov<24>2008 21:23 Sep 21, 2009 Jkt 217001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–22731 Filed 9–21–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60678; File No. SR–NYSE– 2009–95] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC Extending Until September 22, 2009, the Operation of Interim NYSE Rule 128 Which Permits the Exchange to Cancel or Adjust Clearly Erroneous Executions if They Arise Out of the Use or Operation of Any Quotation, Execution or Communication System Owned or Operated by the Exchange, Including Those Executions That Occur in the Event of a System Disruption or System Malfunction September 16, 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 September 15, 2009, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. NYSE has designated the proposed rule change as constituting a rule change under Rule 19b–4(f)(6) under the Act,3 which renders the proposal effective upon filing with the Commission. 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 extend until September 22, 2009, the operation of interim NYSE Rule 128 (‘‘Clearly Erroneous Executions for NYSE Equities’’) which permits the Exchange to cancel or adjust clearly erroneous executions if they arise out of the use or operation of any quotation, execution or communication system owned or 15 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 operated by the Exchange, including those executions that occur in the event of a system disruption or system malfunction. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and https://www.nyse.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to extend until September 22, 2009, the operation of interim NYSE Rule 128 (‘‘Clearly Erroneous Executions for NYSE Equities’’) which permits the Exchange to cancel or adjust clearly erroneous executions if they arise out of the use or operation of any quotation, execution or communication system owned or operated by the Exchange, including those executions that occur in the event of a system disruption or system malfunction. Prior to the implementation of NYSE Rule 128 on January 28, 2008,4 the NYSE did not have a rule providing the Exchange with the authority to cancel or adjust clearly erroneous trades of securities executed on or through the systems and facilities of the NYSE. In order for the NYSE to be consistent with other national securities exchanges which have some version of a clearly erroneous execution rule, the Exchange is drafting an amended clearly erroneous rule which will accommodate such other exchanges but will be appropriate for the NYSE market model. The NYSE notes that the Commission approved an amended clearly erroneous execution rule for Nasdaq in May 2008.5 On July 28, 2008, the Exchange filed 4 See Securities Exchange Act Release No. 57323 (February 13, 2008), 73 FR 9371 (February 20, 2008) (SR–NYSE–2008–09). 5 See Securities Exchange Act Release No. 57826 (May 15, 2008), 73 FR 29802 (May 22, 2008) (SR– NASDAQ–2007–001). E:\FR\FM\22SEN1.SGM 22SEN1 Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices with the SEC a request to extend the operation of interim Rule 128 until October 1, 2008 6 in order to review the provisions of Nasdaq’s clearly erroneous rule and to consider integrating similar standards into its own amendment to Rule 128. On October 1, 2008,7 the Exchange filed with the SEC a further request to extend the operation of interim Rule 128 until January 9, 2009 in order to consider integrating similar standards into the amendment to Rule 128. On January 9, 2009,8 the Exchange filed with the SEC a request to extend the operation of interim Rule 128 until March 9, 2009, indicating that the Exchange was still in the process of reviewing the Nasdaq rule with a view towards incorporating certain provisions into the amendment of interim Rule 128. On February 10, 2009, NYSE Arca submitted a proposal to the SEC to amend its clearly erroneous rule. The NYSE Arca proposed rule differed in certain respects from the Nasdaq clearly erroneous rule. On March 9, 2009, the Exchange filed with the SEC a request to extend the operation of interim Rule 128 until June 9, 2009 9 to finalize review of NYSE Arca’s proposed amended CEE rule, which included market wide CEE initiatives, to determine if it was appropriate to incorporate such provisions into the Rule 128 amendment. Thereafter, on April 24, 2009, NYSE Arca filed a revised rule change with the Commission to amend its clearly erroneous rule (NYSE Arca Rule 7.10).10 The Exchange was in the process of finalizing its review of NYSE Arca’s revised CEE rule change, which also included market wide CEE initiatives, to determine if it was appropriate to incorporate all such provisions into NYSE’s interim Rule 128 amendment. On June 9, 2009, the Exchange filed with the SEC a request to extend the operation of interim Rule 128 until July 15, 2009 11 to finalize review of NYSE Arca’s proposed amended CEE rule. On sroberts on DSKD5P82C1PROD with NOTICES 6 See Securities Exchange Act Release No. 58328 (August 8, 2008), 73 FR 47247 (August 13, 2008) (SR–NYSE–2008–63). 7 See Securities Exchange Act Release No. 58732 (October 3, 2008), 73 FR 61183 (October 15, 2008) (SR–NYSE–2008–99). 8 See Securities Exchange Act Release No. 59255 (January 15, 2009) 74 FR 4496 (January 26, 2009) (SR–NYSE–2009–02). 9 See Securities Exchange Act Release No. 59581 (March 9, 2009) 74 FR 12431 (March 24, 2009) (SR– NYSE–2009–26). 10 See Securities Exchange Act Release No. 59838 (April 28, 2009) 74 FR 20767 (May 5, 2009) (SR– NYSEArca–2009–36) (See NYSE Arca Rule 7.10). 11 See Securities Exchange Act Release No. 60131 (June 17, 2009) 74 FR 30196 (June 24, 2009) (SR– NYSE–2009–57). VerDate Nov<24>2008 21:23 Sep 21, 2009 Jkt 217001 July 15, 2009 12 the Exchange filed with the SEC a request to extend the operation of interim Rule 128 until August 1, 2009 to finalize review of NYSE Arca’s proposed amended CEE rule. On July 31, 2009 the Exchange filed with the SEC a request to extend the operation of interim Rule 128 until August 10, 2009 13 to finalize review of NYSE Arca’s proposed amended CEE rule. On August 11, 2009 the Exchange filed with the SEC a request to extend the operation of interim Rule 128 until August 21, 2009 14 to finalize review of NYSE Arca’s proposed amended CEE rule. On August 21, 2009 the Exchange filed with the SEC a request to extend the operation of interim Rule 128 until August 31, 2009 15 to finalize review of NYSE Arca’s proposed amended CEE rule. On August 31, 2009 the Exchange filed with the SEC a request to extend the operation of interim Rule 128 until September 8, 2009 16 to finalize review of NYSE Arca’s proposed amended CEE rule. On September 8, 2009 the Exchange filed with the SEC a request to extend the operation of interim Rule 128 until September 15, 2009 17 to finalize review of NYSE Arca’s proposed amended CEE rule. The Exchange anticipates finalizing proposed rule text of its clearly erroneous execution rule shortly, and is, therefore, requesting to extend the operation of interim Rule 128 until September 22, 2009. Prior to September 22, 2009, the Exchange intends to formally file a 19b–4 rule change amending interim Rule 128. 2. Statutory Basis The basis under the Securities Exchange Act of 1934 (the ‘‘Act’’) 18 for this proposed rule change is the requirement under Section 6(b)(5) 19 that an Exchange have rules that are 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 12 See Securities Exchange Act Release No. 60312 (July 15, 2009) 74 FR 36298 (July 22, 2009) (SR– NYSE–2009–70). 13 See Securities Exchange Act Release No. 60419 (August 7, 2009) 74 FR 39987 (August 10, 2009) (SR–NYSE–2009–79). 14 See Securities Exchange Act Release No. 60478 (August 11, 2009) 74 FR 41769 (August 18, 2009) (SR–NYSE–2009–81). 15 See Securities Exchange Act Release No. 60563 (August 21, 2009) 74 FR 44423 (August 28, 2009) (SR–NYSE–2009–87). 16 See Securities Exchange Act Release No. 60597 (August 31, 2009) 74 FR 46281 (September 8, 2009) (SR–NYSE–2009–92). 17 See Securities Exchange Act Release No. 60649 (September 10, 2009) (SR–NYSE–2009–93). 18 15 U.S.C. 78f(a) [sic]. 19 15 U.S.C. 78f(b)(5). PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 48331 general, to protect investors and the public interest. As articulated more fully in the ‘‘Purpose’’ Section above, the proposed rule would place the NYSE on equal footing with other national securities exchanges. This will promote the integrity of the market and protect the public interest, since it would permit all exchanges to cancel or adjust clearly erroneous trades when such trades occur, rather than canceling them on all other markets, but leaving them standing on only one market. 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 Because the foregoing 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 for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 20 and Rule 19b– 4(f)(6) thereunder.21 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 22 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6) 23 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. NYSE requests that the Commission waive the 30-day operative delay because the Exchange believes that the absence of such a rule in an automated and fast-paced trading environment poses a danger to the 20 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 has determined to waive the five-day pre-filing period in this case. 22 17 CFR 240.19b–4(f)(6). 23 17 CFR 240.19b–4(f)(6). 21 17 E:\FR\FM\22SEN1.SGM 22SEN1 48332 Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices integrity of the markets and the public interest. NYSE notes that immediate effectiveness of the proposed rule change will immediately and timely enable NYSE to cancel or adjust clearly erroneous trades that may present a risk to the integrity of the equities markets and all related markets. The Commission believes that waiving the 30-day operative delay 24 is consistent with the protection of investors and the public interest because such waiver will permit the Exchange to continue operation of interim NYSE Rule 128 on an uninterrupted basis, and therefore designates the proposal operative upon filing. 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. 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–2009–95 and should be submitted on or before October 13, 2009. IV. Solicitation of Comments For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.25 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–22734 Filed 9–21–09; 8:45 am] 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–NYSE–2009–95 on the subject line. sroberts on DSKD5P82C1PROD with NOTICES Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSE–2009–95. 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 24 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). VerDate Nov<24>2008 21:23 Sep 21, 2009 Jkt 217001 BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60674; File No. SR– NASDAQ–2009–082] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Fees for Members Using the NASDAQ Market Center September 15, 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 August 28, 2009, The NASDAQ Stock Market LLC (‘‘NASDAQ’’) 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 NASDAQ. Pursuant to Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) thereunder,4 NASDAQ has designated this proposal as establishing or changing a due, fee, or 25 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). [sic] 1 15 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 other charge, which renders the proposed rule change effective upon filing. 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 NASDAQ proposes to modify pricing for NASDAQ members using the NASDAQ Market Center. NASDAQ will implement this rule change on September 1, 2009. The text of the proposed rule change is available at https://nasdaqomx.cchwallstreet.com/, at NASDAQ’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, NASDAQ 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. NASDAQ 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 NASDAQ is proposing two changes to the fees associated with the use of the NASDAQ Market Center for the trading of all equities. First, currently, NASDAQ offers a rebate of $0.00295 for members that add an average daily volume of 125 million shares of liquidity to the NASDAQ Market Center. Effective September 1, 2009, NASDAQ will lower the volume threshold for liquidity provision from 125 million to 95 million shares per day while maintaining all other elements of this pricing tier. Second, currently a member firm that provides average daily volume of liquidity exceeding 125 million shares per day in the NASDAQ equities market will not be charged for executing Midpoint Pegged orders (as defined in Nasdaq Rule 4751(f)(4)) in the Nasdaq Market Center in securities listed on NASDAQ, NYSE, or on other exchanges. NASDAQ proposes to lower the volume threshold for liquidity provision from 125 million to 95 million shares per day E:\FR\FM\22SEN1.SGM 22SEN1

Agencies

[Federal Register Volume 74, Number 182 (Tuesday, September 22, 2009)]
[Notices]
[Pages 48330-48332]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-22734]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60678; File No. SR-NYSE-2009-95]


 Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC 
Extending Until September 22, 2009, the Operation of Interim NYSE Rule 
128 Which Permits the Exchange to Cancel or Adjust Clearly Erroneous 
Executions if They Arise Out of the Use or Operation of Any Quotation, 
Execution or Communication System Owned or Operated by the Exchange, 
Including Those Executions That Occur in the Event of a System 
Disruption or System Malfunction

September 16, 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 September 15, 2009, New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been prepared by the Exchange. 
NYSE has designated the proposed rule change as constituting a rule 
change under Rule 19b-4(f)(6) under the Act,\3\ which renders the 
proposal effective upon filing with the Commission. 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.
    \3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend until September 22, 2009, the 
operation of interim NYSE Rule 128 (``Clearly Erroneous Executions for 
NYSE Equities'') which permits the Exchange to cancel or adjust clearly 
erroneous executions if they arise out of the use or operation of any 
quotation, execution or communication system owned or operated by the 
Exchange, including those executions that occur in the event of a 
system disruption or system malfunction. The text of the proposed rule 
change is available at the Exchange, the Commission's Public Reference 
Room, and https://www.nyse.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to extend until September 22, 2009, the 
operation of interim NYSE Rule 128 (``Clearly Erroneous Executions for 
NYSE Equities'') which permits the Exchange to cancel or adjust clearly 
erroneous executions if they arise out of the use or operation of any 
quotation, execution or communication system owned or operated by the 
Exchange, including those executions that occur in the event of a 
system disruption or system malfunction.
    Prior to the implementation of NYSE Rule 128 on January 28, 
2008,\4\ the NYSE did not have a rule providing the Exchange with the 
authority to cancel or adjust clearly erroneous trades of securities 
executed on or through the systems and facilities of the NYSE.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 57323 (February 13, 
2008), 73 FR 9371 (February 20, 2008) (SR-NYSE-2008-09).
---------------------------------------------------------------------------

    In order for the NYSE to be consistent with other national 
securities exchanges which have some version of a clearly erroneous 
execution rule, the Exchange is drafting an amended clearly erroneous 
rule which will accommodate such other exchanges but will be 
appropriate for the NYSE market model.
    The NYSE notes that the Commission approved an amended clearly 
erroneous execution rule for Nasdaq in May 2008.\5\ On July 28, 2008, 
the Exchange filed

[[Page 48331]]

with the SEC a request to extend the operation of interim Rule 128 
until October 1, 2008 \6\ in order to review the provisions of Nasdaq's 
clearly erroneous rule and to consider integrating similar standards 
into its own amendment to Rule 128. On October 1, 2008,\7\ the Exchange 
filed with the SEC a further request to extend the operation of interim 
Rule 128 until January 9, 2009 in order to consider integrating similar 
standards into the amendment to Rule 128. On January 9, 2009,\8\ the 
Exchange filed with the SEC a request to extend the operation of 
interim Rule 128 until March 9, 2009, indicating that the Exchange was 
still in the process of reviewing the Nasdaq rule with a view towards 
incorporating certain provisions into the amendment of interim Rule 
128.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 57826 (May 15, 
2008), 73 FR 29802 (May 22, 2008) (SR-NASDAQ-2007-001).
    \6\ See Securities Exchange Act Release No. 58328 (August 8, 
2008), 73 FR 47247 (August 13, 2008) (SR-NYSE-2008-63).
    \7\ See Securities Exchange Act Release No. 58732 (October 3, 
2008), 73 FR 61183 (October 15, 2008) (SR-NYSE-2008-99).
    \8\ See Securities Exchange Act Release No. 59255 (January 15, 
2009) 74 FR 4496 (January 26, 2009) (SR-NYSE-2009-02).
---------------------------------------------------------------------------

    On February 10, 2009, NYSE Arca submitted a proposal to the SEC to 
amend its clearly erroneous rule. The NYSE Arca proposed rule differed 
in certain respects from the Nasdaq clearly erroneous rule. On March 9, 
2009, the Exchange filed with the SEC a request to extend the operation 
of interim Rule 128 until June 9, 2009 \9\ to finalize review of NYSE 
Arca's proposed amended CEE rule, which included market wide CEE 
initiatives, to determine if it was appropriate to incorporate such 
provisions into the Rule 128 amendment.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 59581 (March 9, 
2009) 74 FR 12431 (March 24, 2009) (SR-NYSE-2009-26).
---------------------------------------------------------------------------

    Thereafter, on April 24, 2009, NYSE Arca filed a revised rule 
change with the Commission to amend its clearly erroneous rule (NYSE 
Arca Rule 7.10).\10\ The Exchange was in the process of finalizing its 
review of NYSE Arca's revised CEE rule change, which also included 
market wide CEE initiatives, to determine if it was appropriate to 
incorporate all such provisions into NYSE's interim Rule 128 amendment. 
On June 9, 2009, the Exchange filed with the SEC a request to extend 
the operation of interim Rule 128 until July 15, 2009 \11\ to finalize 
review of NYSE Arca's proposed amended CEE rule. On July 15, 2009 \12\ 
the Exchange filed with the SEC a request to extend the operation of 
interim Rule 128 until August 1, 2009 to finalize review of NYSE Arca's 
proposed amended CEE rule. On July 31, 2009 the Exchange filed with the 
SEC a request to extend the operation of interim Rule 128 until August 
10, 2009 \13\ to finalize review of NYSE Arca's proposed amended CEE 
rule. On August 11, 2009 the Exchange filed with the SEC a request to 
extend the operation of interim Rule 128 until August 21, 2009 \14\ to 
finalize review of NYSE Arca's proposed amended CEE rule. On August 21, 
2009 the Exchange filed with the SEC a request to extend the operation 
of interim Rule 128 until August 31, 2009 \15\ to finalize review of 
NYSE Arca's proposed amended CEE rule. On August 31, 2009 the Exchange 
filed with the SEC a request to extend the operation of interim Rule 
128 until September 8, 2009 \16\ to finalize review of NYSE Arca's 
proposed amended CEE rule. On September 8, 2009 the Exchange filed with 
the SEC a request to extend the operation of interim Rule 128 until 
September 15, 2009 \17\ to finalize review of NYSE Arca's proposed 
amended CEE rule.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 59838 (April 28, 
2009) 74 FR 20767 (May 5, 2009) (SR-NYSEArca-2009-36) (See NYSE Arca 
Rule 7.10).
    \11\ See Securities Exchange Act Release No. 60131 (June 17, 
2009) 74 FR 30196 (June 24, 2009) (SR-NYSE-2009-57).
    \12\ See Securities Exchange Act Release No. 60312 (July 15, 
2009) 74 FR 36298 (July 22, 2009) (SR-NYSE-2009-70).
    \13\ See Securities Exchange Act Release No. 60419 (August 7, 
2009) 74 FR 39987 (August 10, 2009) (SR-NYSE-2009-79).
    \14\ See Securities Exchange Act Release No. 60478 (August 11, 
2009) 74 FR 41769 (August 18, 2009) (SR-NYSE-2009-81).
    \15\ See Securities Exchange Act Release No. 60563 (August 21, 
2009) 74 FR 44423 (August 28, 2009) (SR-NYSE-2009-87).
    \16\ See Securities Exchange Act Release No. 60597 (August 31, 
2009) 74 FR 46281 (September 8, 2009) (SR-NYSE-2009-92).
    \17\ See Securities Exchange Act Release No. 60649 (September 
10, 2009) (SR-NYSE-2009-93).
---------------------------------------------------------------------------

    The Exchange anticipates finalizing proposed rule text of its 
clearly erroneous execution rule shortly, and is, therefore, requesting 
to extend the operation of interim Rule 128 until September 22, 2009. 
Prior to September 22, 2009, the Exchange intends to formally file a 
19b-4 rule change amending interim Rule 128.
2. Statutory Basis
    The basis under the Securities Exchange Act of 1934 (the ``Act'') 
\18\ for this proposed rule change is the requirement under Section 
6(b)(5) \19\ that an Exchange have rules that are 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, to protect investors and the public interest.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(a) [sic].
    \19\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    As articulated more fully in the ``Purpose'' Section above, the 
proposed rule would place the NYSE on equal footing with other national 
securities exchanges. This will promote the integrity of the market and 
protect the public interest, since it would permit all exchanges to 
cancel or adjust clearly erroneous trades when such trades occur, 
rather than canceling them on all other markets, but leaving them 
standing on only one market.

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

    Because the foregoing 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 for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \20\ and Rule 19b-
4(f)(6) thereunder.\21\
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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 has determined to waive the five-day pre-filing 
period in this case.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \22\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6) \23\ permits the Commission to 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. NYSE requests that the 
Commission waive the 30-day operative delay because the Exchange 
believes that the absence of such a rule in an automated and fast-paced 
trading environment poses a danger to the

[[Page 48332]]

integrity of the markets and the public interest. NYSE notes that 
immediate effectiveness of the proposed rule change will immediately 
and timely enable NYSE to cancel or adjust clearly erroneous trades 
that may present a risk to the integrity of the equities markets and 
all related markets. The Commission believes that waiving the 30-day 
operative delay \24\ is consistent with the protection of investors and 
the public interest because such waiver will permit the Exchange to 
continue operation of interim NYSE Rule 128 on an uninterrupted basis, 
and therefore designates the proposal operative upon filing.
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    \22\ 17 CFR 240.19b-4(f)(6).
    \23\ 17 CFR 240.19b-4(f)(6).
    \24\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2009-95 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2009-95. 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-2009-95 and should be 
submitted on or before October 13, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
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    \25\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-22734 Filed 9-21-09; 8:45 am]
BILLING CODE 8010-01-P
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