Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC Extending Until October 4, 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, 49907-49909 [E9-23491]
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Federal Register / Vol. 74, No. 187 / Tuesday, September 29, 2009 / Notices
sending an e-mail to:
Shagufta_Ahmed@omb.eop.gov; and (ii)
Charles Boucher, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way,
Alexandria, VA 22312 or send an e-mail
to PRA_Mailbox@sec.gov. Comments
must be submitted within 30 days of
this notice.
Dated: September 23, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23494 Filed 9–28–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60712; File No. SR–NYSE–
2009–97]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
Stock Exchange LLC Extending Until
October 4, 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 23, 2009.
jlentini on DSKJ8SOYB1PROD with NOTICES
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 22, 2009, New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’ or ‘‘SEC’’) 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 October 4, 2009, the operation of
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
16:18 Sep 28, 2009
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 October 4, 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.
4 See Securities Exchange Act Release No. 57323
(February 13, 2008), 73 FR 9371 (February 20, 2008)
(SR–NYSE–2008–09).
2 17
VerDate Nov<24>2008
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.
Jkt 217001
PO 00000
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Fmt 4703
Sfmt 4703
49907
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
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
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).
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).
E:\FR\FM\29SEN1.SGM
29SEN1
49908
Federal Register / Vol. 74, No. 187 / Tuesday, September 29, 2009 / Notices
jlentini on DSKJ8SOYB1PROD with NOTICES
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. On
September 15, 2009 the Exchange filed
with the SEC a request to extend the
operation of interim Rule 128 until
September 22, 2009 18 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
October 4, 2009. Prior to October 4,
2009, the Exchange intends to formally
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) 74 FR 47846 (September 17,
2009) (SR–NYSE–2009–93).
18 See Securities Exchange Act Release No. 60678
(September 16, 2009) 74 FR 48330 (September 22,
2009) (SR–NYSE–2009–95).
VerDate Nov<24>2008
16:18 Sep 28, 2009
Jkt 217001
file a 19b–4 rule change amending
interim Rule 128.
1. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Act’’) 19 for
this proposed rule change is the
requirement under Section 6(b)(5) 20
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.
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 21 and Rule 19b–
4(f)(6) thereunder.22
19 15
U.S.C. 78f(a) [sic].
20 15 U.S.C. 78f(b)(5).
21 15 U.S.C. 78s(b)(3)(A).
22 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.
PO 00000
Frm 00061
Fmt 4703
Sfmt 4703
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 23 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6) 24
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
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 25 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.
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–NYSE–2009–97 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
23 17
CFR 240.19b–4(f)(6).
CFR 240.19b–4(f)(6).
25 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).
24 17
E:\FR\FM\29SEN1.SGM
29SEN1
Federal Register / Vol. 74, No. 187 / Tuesday, September 29, 2009 / Notices
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2009–97. 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 filings 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–2009–97 and should
be submitted on or before October 20,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23491 Filed 9–28–09; 8:45 am]
BILLING CODE 8010–01–P
DEPARTMENT OF STATE
[Public Notice 6773]
jlentini on DSKJ8SOYB1PROD with NOTICES
Waiver of Restriction on Assistance to
the Central Government of Uzbekistan
Related to Budget Transparency
Pursuant to section 7088(c)(2) of the
Department of State, Foreign
Operations, and Related Programs
Appropriations Act, 2009 (Division H,
Pub. L. 111–8) (‘‘the Act’’), and
Department of State Delegation of
Authority Number 245–1, I hereby
determine that it is important to the
national interest of the United States to
26 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
16:18 Sep 28, 2009
Jkt 217001
waive the requirements of section
7088(c)(1) of the Act with respect to the
Government of Uzbekistan, and I hereby
waive such restriction.
This determination shall be reported
to the Congress and published in the
Federal Register.
Dated: September 17, 2009.
Jacob J. Lew,
Deputy Secretary of State for Management
and Resources, Department of State.
[FR Doc. E9–23493 Filed 9–28–09; 8:45 am]
BILLING CODE 4710–46–P
DEPARTMENT OF THE TREASURY
Bureau of the Public Debt
Proposed Collection: Comment
Request
ACTION: Notice and request for
comments.
SUMMARY: The Department of the
Treasury, as part of its continuing effort
to reduce paperwork and respondent
burden, invites the general public and
other Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995,
Public Law 104–13 (44 U.S.C.
3506(c)(2)(A). Currently the Bureau of
the Public Debt within the Department
of the Treasury is soliciting comments
concerning the Release.
DATES: Written comments should be
received on or before November 16,
2009, to be assured of consideration.
ADDRESSES: Direct all written comments
to Bureau of the Public Debt, Judi
Owens, 200 Third Street, A4–A,
Parkersburg, WV 26106–1328, or e-mail
to Judi.Owens@bpd.treas.gov.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the form and instructions
should be directed to Judi Owens,
Bureau of the Public Debt, 200 Third
Street, A4–A, Parkersburg, WV 26106–
1328, (304) 480–8150.
SUPPLEMENTARY INFORMATION:
Title: Release.
OMB Number: 1535–0114.
Form Number: PD F 2001.
Abstract: The information is
requested to ratify payment of savings
bonds/notes and release the United
States of America from any liability.
Current Actions: None.
Type of Review: Extension.
Affected Public: Individuals or
households.
Estimated Number of Respondents:
200.
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
49909
Estimated Time per Respondent: 6
minutes.
Estimated Total Annual Burden
Hours: 20.
Request for Comments: Comments
submitted in response to this notice will
be summarized and/or included in the
request for OMB approval. All
comments will become a matter of
public record. Comments are invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance
quality, utility, and clarity of the
information to be collected; (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and (e) estimates of capital
or start-up costs and costs of operation,
maintenance, and purchase of services
to provide information.
Dated: September 15, 2009.
Judi Owens,
Manager, Information Management.
[FR Doc. E9–23424 Filed 9–28–09; 8:45 am]
BILLING CODE 4810–39–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment
Request for Form 1138
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
SUMMARY: The Department of the
Treasury, as part of its continuing effort
to reduce paperwork and respondent
burden, invites the general public and
other Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995,
Public Law 104–13(44 U.S.C.
3506(c)(2)(A)). Currently, the IRS is
soliciting comments concerning Form
1138, Extension of Time for Payment of
Taxes by a Corporation Expecting a New
Operating Loss Carryback.
DATES: Written comments should be
received on or before November 30,
2009 to be assured of consideration.
ADDRESSES: Direct all written comments
to R. Joseph Durbala, Internal Revenue
Service, room 6129, 1111 Constitution
Avenue, NW., Washington, DC 20224.
E:\FR\FM\29SEN1.SGM
29SEN1
]]>Agencies
[Federal Register Volume 74, Number 187 (Tuesday, September 29, 2009)]
[Notices]
[Pages 49907-49909]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-23491]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60712; File No. SR-NYSE-2009-97]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC
Extending Until October 4, 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 23, 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 22, 2009, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') 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 October 4, 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 October 4, 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 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).
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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
[[Page 49908]]
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. On September 15, 2009 the Exchange filed with the SEC
a request to extend the operation of interim Rule 128 until September
22, 2009 \18\ to finalize review of NYSE Arca's proposed amended CEE
rule.
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\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) 74 FR 47846 (September 17, 2009) (SR-NYSE-2009-93).
\18\ See Securities Exchange Act Release No. 60678 (September
16, 2009) 74 FR 48330 (September 22, 2009) (SR-NYSE-2009-95).
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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 October 4, 2009.
Prior to October 4, 2009, the Exchange intends to formally file a 19b-4
rule change amending interim Rule 128.
1. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Act'')
\19\ for this proposed rule change is the requirement under Section
6(b)(5) \20\ 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.
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\19\ 15 U.S.C. 78f(a) [sic].
\20\ 15 U.S.C. 78f(b)(5).
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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 \21\ and Rule 19b-
4(f)(6) thereunder.\22\
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\21\ 15 U.S.C. 78s(b)(3)(A).
\22\ 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 \23\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6) \24\ 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 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 \25\ 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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\23\ 17 CFR 240.19b-4(f)(6).
\24\ 17 CFR 240.19b-4(f)(6).
\25\ 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-2009-97 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission,
[[Page 49909]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2009-97. 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 filings 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-2009-97 and should be
submitted on or before October 20, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
Florence E. Harmon,
Deputy Secretary.
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\26\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-23491 Filed 9-28-09; 8:45 am]
BILLING CODE 8010-01-P
