Self-Regulatory Organizations; NYSE Amex LLC; Order Approving Proposed Rule Change Amending Rule 476A (Imposition of Fines for Minor Violation(s) of Rules), 51350-51351 [E9-23991]
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Federal Register / Vol. 74, No. 192 / Tuesday, October 6, 2009 / Notices
have been received. OCC will notify the
Commission of any written comments
received by OCC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
ninety days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve the proposed
rule change or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Section, 100 F Street, NE., Washington,
D.C. 20549–1090, on official business
days between the hours of 10 a.m. and
3 p.m. Copies of such filings will also
be available for inspection and copying
at the principal office of the OCC and on
OCC’s Web site at https://
www.optionsclearing.com/publications/
rules/proposed_changes/
sr_occ_09_15.pdf. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–OCC–
2009–15 and should be submitted on or
before October 27, 2009.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23992 Filed 10–5–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
jlentini on DSKJ8SOYB1PROD with NOTICES
Electronic Comments
• Use the Commissions Internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–OCC–2009–15 on the
subject line.
[Release No. 34–60741; File No. SR–
NYSEAmex–2009–45]
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–OCC–2009–15. 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
On July 29, 2009, NYSE Amex LLC
(‘‘NYSE Amex’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change amending its Minor Rule Plan
(‘‘MRP’’) to incorporate additional
violations into the MRP and to increase
the fine levels for certain MRP
violations. The proposed rule change
was published for comment in the
Federal Register on August 26, 2009.3
The Commission received no comments
regarding the proposal. This order
approves the proposed rule change.
The Exchange proposes to amend its
MRP to incorporate violations for
opening transactions in restricted
classes, failure to report position and
account information, and failure to
complete mandatory annual training.
VerDate Nov<24>2008
16:15 Oct 05, 2009
Jkt 220001
Self-Regulatory Organizations; NYSE
Amex LLC; Order Approving Proposed
Rule Change Amending Rule 476A
(Imposition of Fines for Minor
Violation(s) of Rules)
September 29, 2009.
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 60520
(August 18, 2009), 74 FR 43176 (‘‘Notice’’).
1 15
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Frm 00098
Fmt 4703
Sfmt 4703
The Exchange proposes to implement a
fine schedule for Amex Options Trading
Permit (‘‘ATP’’) Holders that effect
opening transactions in restricted series
of options, inconsistent with the terms
of any such restriction, in violation of
Rule 916 or 916C. This fine will consist
of $1,000 for the first violation during a
rolling 24-month period, $2,500 for a
second violation within the same
period, and $5,000 for a third violation
during the same period. The Exchange
also proposes to incorporate violations
for failing to accurately report position
and account information to the
Exchange on a Large Option Position
Report (‘‘LOPR’’) pursuant to Rules
906(a) and 906C(a). This fine will
consist of $1,000 for the first violation
in a rolling 24-month period, $2,500 for
a second violation within the same
period, and $5,000 for a third violation
within the same period. The Exchange
believes that, in most cases, violations
of trading in restricted classes and
violations of LOPR reporting may be
handled efficiently through the MRP.
However, any egregious activity or
activity that is believed to be
manipulative will continue to be subject
to formal disciplinary proceedings.4 The
Exchange also proposes to implement a
fine schedule for individuals who fail to
complete a mandatory regulatory
training program in violation of Rule 50,
Commentary .03–.04. This fine will
consist of $1,000 for the first violation
in a rolling 24-month period, $2,500 for
a second violation within the same
period, and $5,000 for a third violation
within the same period.
The Exchange also proposes to
increase fines for violations of NYSE
Amex Rules 933NY(a),5 935NY,6 and
963NY 7 to $1,000 for the first violation
in a rolling 24-month period, $2,500 for
4 See
Notice, supra note 3, 74 FR at 43177.
Amex Rule 933NY(a) requires that a Floor
Broker handling an order use due diligence to
execute the order at the best price or prices
available to him, in accordance with the Rules of
the Exchange.
6 NYSE Amex Rule 935NY states that users may
not execute as principal orders they represent as
agent unless (i) agency orders are first exposed on
the Exchange for at least one second or (ii) the User
has been bidding or offering on the Exchange for
at least one second prior to receiving an agency
order that is executable against such bid or offer.
7 NYSE Amex Rule 963NY states that the highest
bid/lowest offer shall have priority over all other
orders. In the event there are two or more bids/
offers for the same option contract representing the
best price and one such bid/offer is displayed in the
Consolidated Book, such bid shall have priority
over any other bid at the post. In addition, if two
or more bids/offers represent the best price and a
bid/offer displayed in the Consolidated Book is not
involved, priority shall be afforded to such bids in
the sequence in which they are made. Rule 963NY
also contains certain provisions related to splitprice priority and priority of complex orders.
5 NYSE
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Federal Register / Vol. 74, No. 192 / Tuesday, October 6, 2009 / Notices
jlentini on DSKJ8SOYB1PROD with NOTICES
a second violation within the same
period, and $5,000 for a third violation
within the same period. The MRP
currently provides for fines of $1,000 for
the first violation of Rule 933NY(a) in a
rolling 24-month period, $2,500 for a
second violation within the same
period, and $3,500 for a third violation
within the same period. The MRP
currently provides for fines of $500 for
the first violation of Rule 935NY in a
rolling 24-month period, $1,000 for a
second violation within the same
period, and $2,500 for a third violation
within the same period. The MRP
currently provides for a fine of $500 for
the first violation of Rule 963NY in a
rolling 24-month period, $1,000 for a
second violation within the same
period, and $2,000 for a third violation
within the same period. The Exchange
believes that, given the nature of these
violations, the current fine levels are
inadequate, and that increased fines for
these violations are needed to deter
future violations.8
The Commission finds that the
proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.9 In
particular, the Commission believes that
the proposal is consistent with Section
6(b)(5) of the Act,10 which requires that
the rules of an exchange be designed to,
among other things, protect investors
and the public interest. The
Commission also believes that the
proposal is consistent with Sections
6(b)(1) and 6(b)(6) of the Act,11 which
require that the rules of an exchange
enforce compliance with, and provide
appropriate discipline for, violations of
Commission and exchange rules.
Furthermore, the Commission believes
that the proposed changes to the MRP
should strengthen the Exchange’s ability
to carry out its oversight and
enforcement responsibilities as a selfregulatory organization in cases where
full disciplinary proceedings are
unsuitable in view of the minor nature
of the particular violation. Therefore,
the Commission finds that the proposal
is consistent with the public interest,
the protection of investors, or otherwise
in furtherance of the purposes of the
Act, as required by Rule 19d–1(c)(2)
under the Act,12 which governs minor
rule violation plans.
8 See
Notice, supra note 3, 74 FR at 43178.
approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
10 15 U.S.C. 78f(b)(5).
11 15 U.S.C. 78f(b)(1) and 78f(b)(6).
12 17 CFR 240.19d–1(c)(2).
In approving this proposed rule
change, the Commission in no way
minimizes the importance of
compliance with NYSE Amex rules and
all other rules subject to the imposition
of fines under the MRP. The
Commission believes that the violation
of any self-regulatory organization’s
rules, as well as Commission rules, is a
serious matter. However, the MRP
provides a reasonable means of
addressing rule violations that do not
rise to the level of requiring formal
disciplinary proceedings, while
providing greater flexibility in handling
certain violations. The Commission
expects that NYSE Amex will continue
to conduct surveillance with due
diligence and make a determination
based on its findings, on a case-by-case
basis, whether a fine of more or less
than the recommended amount is
appropriate for a violation under the
MRP or whether a violation requires
formal disciplinary action under NYSE
Amex Rule 476.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 13 and Rule
19d–1(c)(2) under the Act,14 that the
proposed rule change (SR–NYSEAmex–
2009–45) be, and it hereby is, approved
and declared effective.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23991 Filed 10–5–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60744; File No. SR–
NYSEAmex–2009–62]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Amending Rule 900.3NY
September 29, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 14, 2009, NYSE Amex LLC
(‘‘NYSE Amex’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
9 In
VerDate Nov<24>2008
16:15 Oct 05, 2009
Jkt 220001
13 15
U.S.C. 78s(b)(2).
CFR 240.19d–1(c)(2).
15 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
3(a)(44).
1 15 U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
14 17
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
51351
been prepared by the Exchange. The
Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders it effective upon filing
with the Commission. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 900.3NY to (i) offer PNP Blind
orders to its Participants and (ii) make
technical corrections to the numbering
of Rule 900.3NY. The text of the
proposed rule change is attached as
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.
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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NYSE Amex has an existing order
type known as PNP (Post No
Preference) 5 which is a limit order that
is only to be executed on the Exchange,
and may be ranked in the Consolidated
Book if not marketable, but is never to
be routed. A PNP order that is
marketable against the NBBO when
entered is cancelled back to the entering
ATP Holder.
Certain ATP Holders have asked for a
similar order type that will also not
route if marketable against the NBBO,
but, unlike a PNP order, will not be
cancelled if similarly marketable.
A PNP Blind order is a limit order
that is to be executed on the Exchange,
but never routed to another market. The
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 See NYSE Amex Rule 900.3NY(p).
4 17
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]]>Agencies
[Federal Register Volume 74, Number 192 (Tuesday, October 6, 2009)]
[Notices]
[Pages 51350-51351]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-23991]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60741; File No. SR-NYSEAmex-2009-45]
Self-Regulatory Organizations; NYSE Amex LLC; Order Approving
Proposed Rule Change Amending Rule 476A (Imposition of Fines for Minor
Violation(s) of Rules)
September 29, 2009.
On July 29, 2009, NYSE Amex LLC (``NYSE Amex'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change
amending its Minor Rule Plan (``MRP'') to incorporate additional
violations into the MRP and to increase the fine levels for certain MRP
violations. The proposed rule change was published for comment in the
Federal Register on August 26, 2009.\3\ The Commission received no
comments regarding the proposal. This order approves the proposed rule
change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 60520 (August 18,
2009), 74 FR 43176 (``Notice'').
---------------------------------------------------------------------------
The Exchange proposes to amend its MRP to incorporate violations
for opening transactions in restricted classes, failure to report
position and account information, and failure to complete mandatory
annual training. The Exchange proposes to implement a fine schedule for
Amex Options Trading Permit (``ATP'') Holders that effect opening
transactions in restricted series of options, inconsistent with the
terms of any such restriction, in violation of Rule 916 or 916C. This
fine will consist of $1,000 for the first violation during a rolling
24-month period, $2,500 for a second violation within the same period,
and $5,000 for a third violation during the same period. The Exchange
also proposes to incorporate violations for failing to accurately
report position and account information to the Exchange on a Large
Option Position Report (``LOPR'') pursuant to Rules 906(a) and 906C(a).
This fine will consist of $1,000 for the first violation in a rolling
24-month period, $2,500 for a second violation within the same period,
and $5,000 for a third violation within the same period. The Exchange
believes that, in most cases, violations of trading in restricted
classes and violations of LOPR reporting may be handled efficiently
through the MRP. However, any egregious activity or activity that is
believed to be manipulative will continue to be subject to formal
disciplinary proceedings.\4\ The Exchange also proposes to implement a
fine schedule for individuals who fail to complete a mandatory
regulatory training program in violation of Rule 50, Commentary
.03-.04. This fine will consist of $1,000 for the first violation in a
rolling 24-month period, $2,500 for a second violation within the same
period, and $5,000 for a third violation within the same period.
---------------------------------------------------------------------------
\4\ See Notice, supra note 3, 74 FR at 43177.
---------------------------------------------------------------------------
The Exchange also proposes to increase fines for violations of NYSE
Amex Rules 933NY(a),\5\ 935NY,\6\ and 963NY \7\ to $1,000 for the first
violation in a rolling 24-month period, $2,500 for
[[Page 51351]]
a second violation within the same period, and $5,000 for a third
violation within the same period. The MRP currently provides for fines
of $1,000 for the first violation of Rule 933NY(a) in a rolling 24-
month period, $2,500 for a second violation within the same period, and
$3,500 for a third violation within the same period. The MRP currently
provides for fines of $500 for the first violation of Rule 935NY in a
rolling 24-month period, $1,000 for a second violation within the same
period, and $2,500 for a third violation within the same period. The
MRP currently provides for a fine of $500 for the first violation of
Rule 963NY in a rolling 24-month period, $1,000 for a second violation
within the same period, and $2,000 for a third violation within the
same period. The Exchange believes that, given the nature of these
violations, the current fine levels are inadequate, and that increased
fines for these violations are needed to deter future violations.\8\
---------------------------------------------------------------------------
\5\ NYSE Amex Rule 933NY(a) requires that a Floor Broker
handling an order use due diligence to execute the order at the best
price or prices available to him, in accordance with the Rules of
the Exchange.
\6\ NYSE Amex Rule 935NY states that users may not execute as
principal orders they represent as agent unless (i) agency orders
are first exposed on the Exchange for at least one second or (ii)
the User has been bidding or offering on the Exchange for at least
one second prior to receiving an agency order that is executable
against such bid or offer.
\7\ NYSE Amex Rule 963NY states that the highest bid/lowest
offer shall have priority over all other orders. In the event there
are two or more bids/offers for the same option contract
representing the best price and one such bid/offer is displayed in
the Consolidated Book, such bid shall have priority over any other
bid at the post. In addition, if two or more bids/offers represent
the best price and a bid/offer displayed in the Consolidated Book is
not involved, priority shall be afforded to such bids in the
sequence in which they are made. Rule 963NY also contains certain
provisions related to split-price priority and priority of complex
orders.
\8\ See Notice, supra note 3, 74 FR at 43178.
---------------------------------------------------------------------------
The Commission finds that the proposal is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to a national securities exchange.\9\ In particular, the
Commission believes that the proposal is consistent with Section
6(b)(5) of the Act,\10\ which requires that the rules of an exchange be
designed to, among other things, protect investors and the public
interest. The Commission also believes that the proposal is consistent
with Sections 6(b)(1) and 6(b)(6) of the Act,\11\ which require that
the rules of an exchange enforce compliance with, and provide
appropriate discipline for, violations of Commission and exchange
rules. Furthermore, the Commission believes that the proposed changes
to the MRP should strengthen the Exchange's ability to carry out its
oversight and enforcement responsibilities as a self-regulatory
organization in cases where full disciplinary proceedings are
unsuitable in view of the minor nature of the particular violation.
Therefore, the Commission finds that the proposal is consistent with
the public interest, the protection of investors, or otherwise in
furtherance of the purposes of the Act, as required by Rule 19d-1(c)(2)
under the Act,\12\ which governs minor rule violation plans.
---------------------------------------------------------------------------
\9\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78f(b)(5).
\11\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
\12\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------
In approving this proposed rule change, the Commission in no way
minimizes the importance of compliance with NYSE Amex rules and all
other rules subject to the imposition of fines under the MRP. The
Commission believes that the violation of any self-regulatory
organization's rules, as well as Commission rules, is a serious matter.
However, the MRP provides a reasonable means of addressing rule
violations that do not rise to the level of requiring formal
disciplinary proceedings, while providing greater flexibility in
handling certain violations. The Commission expects that NYSE Amex will
continue to conduct surveillance with due diligence and make a
determination based on its findings, on a case-by-case basis, whether a
fine of more or less than the recommended amount is appropriate for a
violation under the MRP or whether a violation requires formal
disciplinary action under NYSE Amex Rule 476.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\13\ and Rule 19d-1(c)(2) under the Act,\14\ that the proposed rule
change (SR-NYSEAmex-2009-45) be, and it hereby is, approved and
declared effective.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2).
\14\ 17 CFR 240.19d-1(c)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(44).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-23991 Filed 10-5-09; 8:45 am]
BILLING CODE 8011-01-P
