Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE Amex Equities Rule 123C(8)(a)(1) To Extend the Operation of the Extreme Order Imbalances Pilot, 53539-53541 [E9-25110]
Download as PDF
<![CDATA[
Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices
protection of investors or the public
interest; (B) does not impose any
significant burden on competition, and
(C) does not have the effect of limiting
the access to or availability of the
system. The Exchange believes that the
instant proposal is consistent with these
provisions in that the enhancements to
Exchange systems allow Floor broker
hand-held devices to receive and
process orders containing non-regular
way instruction and do not change the
operation of the rule in any other way.
At any time within 60 days of the
filing of such 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:
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–NYSEAmex–2009–68 and
should be submitted on or before
November 9, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–25112 Filed 10–16–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60808; File No. SR–
NYSEAmex–2009–70]
sroberts on DSKD5P82C1PROD with NOTICES
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–NYSEAmex–2009–68 on
the subject line.
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Amending NYSE Amex
Equities Rule 123C(8)(a)(1) To Extend
the Operation of the Extreme Order
Imbalances Pilot
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–NYSEAmex–2009–68. 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
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on October
5, 2009, NYSE Amex LLC (the
‘‘Exchange’’ or ‘‘NYSE Amex’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
VerDate Nov<24>2008
16:51 Oct 16, 2009
Jkt 220001
October 9, 2009.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Amex Equities Rule 123C(8)(a)(1)
to extend the operation of the pilot to
temporarily suspend certain NYSE
requirements relating to the closing of
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
53539
securities on the Exchange until the
earlier of Securities and Exchange
Commission approval to make such
pilot permanent or December 31, 2009.
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
NYSE Amex Equities Rule
123C(8)(a)(1) allows the Exchange to
temporarily suspend certain rule
requirements at the close when extreme
order imbalances may cause significant
dislocation to the closing price. The rule
has operated on a pilot basis since April
2009 (‘‘Extreme Order Imbalances Pilot’’
or Pilot).4 Through this filing, NYSE
Amex proposes to extend the Pilot until
the earlier of Securities and Exchange
Commission approval to make such
Pilot permanent or December 31, 2009.5
Background
Pursuant to NYSE Amex Equities Rule
123C(8)(a)(1), the Exchange may
suspend NYSE Amex Equities Rules 52
(Hours of Operation) to resolve an
extreme order imbalance that may result
in a closing price dislocation at the
close as a result of an order entered into
Exchange systems, or represented to a
DMM orally at or near the close.6 The
provisions of NYSE Amex Equities Rule
123C(8)(a)(1) operate as the Extreme
Order Imbalance Pilot.
As a condition of the approval to
operate the Pilot, the Exchange
committed to provide the Commission
with information regarding: (i) How
4 See Securities and Exchange Act Release No.
597755 [sic] (April 13, 2009) 74 FR 18009 (April 20,
2009) (SR–NYSEALTR–2009–15).
5 The Exchange notes that parallel changes are
proposed to be made to the rules of New York Stock
Exchange LLC. See SR–NYSE–2009–104.
6 See NYSE Amex Equities Rule 123C(8)(a)(1).
E:\FR\FM\19OCN1.SGM
19OCN1
53540
Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices
sroberts on DSKD5P82C1PROD with NOTICES
often a Rule 52 temporary suspension
pursuant to the Pilot was invoked
during the six months following its
approval; and (ii) the Exchange’s
determination as to how to proceed with
technical modifications to reconfigure
Exchange systems to accept orders
electronically after 4 p.m.
The Extreme Order Imbalance Pilot is
scheduled to end operation on October
13, 2009. The Exchange is currently
preparing a rule filing seeking
permission to make the provisions of
the Pilot permanent with certain
modifications but does not expect that
filing to be completed and approved by
the Commission before October 13,
2009.
Proposal To Extend the Operation of the
Extreme Order Imbalance Pilot
The Exchange established the Extreme
Order Imbalance Pilot to create a
mechanism for ensuring a fair and
orderly close when interest is received
at or near the close that could negatively
affect the closing transaction. The
Exchange believes that this tool has
proved very useful to resolve an extreme
order imbalance that may result in a
closing price dislocation at the close as
a result of an order entered into
Exchange systems, or represented to a
DMM orally at or near the close.
As the Exchange has previously
stated, invocation of the provisions
NYSE Amex Equities Rule 123C(8) to
attract offsetting interest is intended to
be used for extreme, and likely rare
circumstances where there exists such a
large imbalance at the close that a DMM
is unable to close the security without
significantly dislocating the price of the
security. This is evidenced by the fact
that during the course of the Pilot, the
Exchange invoked the provisions of
NYSE Amex Equities Rule 123C(8),
including the provisions of the Extreme
Order Imbalance Pilot pursuant to NYSE
Amex Equities Rule 123C(8)(a)(1), in
only two securities on June 26, 2009, the
date of the annual rebalancing of Russell
Indexes.
In addition, during the operation of
the Pilot, the Exchange determined that
it would not be as onerous, as
previously believed, to modify
Exchange systems to accept orders
electronically after 4 p.m. The Exchange
anticipates that such system
modifications could be completed by
December 31, 2009.
Given the above, the Exchange
believes that provisions governing the
Extreme Order Imbalance Pilot should
be made permanent. Through this filing
the Exchange seeks to extend the
current operation of the Pilot in order to
allow the Exchange to formally submit
VerDate Nov<24>2008
16:51 Oct 16, 2009
Jkt 220001
a filing to the Commission to convert
the provisions governing the Pilot to
permanent rules and complete the
technological modifications required to
accept orders electronically after 4 p.m.
The Exchange therefore request and [sic]
extension from the current expiration
date of October 13, 2009, until the
earlier of Securities and Exchange
Commission approval to make such
Pilot permanent or December 31, 2009.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(5) 7 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. The Exchange believes
that the instant filing is consistent with
these principles. Specifically an
extension will allow the Exchange to: (i)
Prepare and submit a filing to make the
provisions governing the Extreme Order
Imbalance Pilot permanent; (ii) have
such filing complete public notice and
comment period; and (iii) complete the
19b–4 approval process. The rule
operates to protect investors and the
public interest by ensuring that the
closing price at the Exchange is not
significantly dislocated from the last
sale price by virtue of an extreme order
imbalance at or near the close.
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) 8 of the Act and Rule
19b–4(f)(6) 9 thereunder. Because the
foregoing proposed rule change: (1)
Does not significantly affect the
protection of investors or the public
7 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(6).
8 15
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms, does not become
operative for 30 days after the date of
filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act and Rule
19b–4(f)(6) thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing.10 However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange requested that the
Commission waive the 30-day operative
delay, as specified in Rule 19b–
4(f)(6)(iii),11 which would make the rule
change operative immediately. The
Exchange believes that continuation of
the Pilot does not burden competition
and would operate to protect investors
and the public interest by ensuring that
the closing price at the Exchange is not
significantly dislocated from the last
sale price by virtue of an extreme order
imbalance at or near the close.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it would allow the Pilot to
continue without interruption while the
Exchange works towards submitting a
separate proposal to make the Pilot
permanent. Accordingly, the
Commission designates the proposed
rule change as operative upon filing
with the Commission.12
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.13
10 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the self-regulatory
organization to give the Commission notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
NYSE Amex has satisfied this requirement.
11 17 CFR 240.19b–4(f)(6)(iii).
12 For purposes only of waiving the operative
delay for 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. 78s(b)(3)(C).
E:\FR\FM\19OCN1.SGM
19OCN1
Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–25110 Filed 10–16–09; 8:45 am]
BILLING CODE 8011–01–P
Electronic Comments
DEPARTMENT OF STATE
• 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–NYSEAmex–2009–70 on
the subject line.
[Public Notice 6787]
Paper Comments
30-Day Notice of Proposed Information
Collection: Form DS–3097, Exchange
Visitor Program Annual Report, OMB
Control Number 1405–0151
ACTION: Notice of request for public
comment and submission to OMB of
proposed collection of information.
SUMMARY: The Department of State has
submitted the following information
collection request to the Office of
Management and Budget (OMB) for
approval in accordance with the
Paperwork Reduction Act of 1995.
• Title of Information Collection:
All submissions should refer to File
Number SR–NYSEAmex–2009–70. This Exchange Visitor Program Annual
Report.
file number should be included on the
• OMB Control Number: 1405–0151.
subject line if e-mail is used. To help the
• Type of Request: Revision of a
Commission process and review your
Currently Approved Collection.
comments more efficiently, please use
• Originating Office: Educational and
only one method. The Commission will
Cultural Affairs, Office of Designation,
post all comments on the Commission’s
ECA/EC/D/PS.
Internet Web site (https://www.sec.gov/
• Form Number: Form DS–3097.
rules/sro.shtml). Copies of the
• Respondents: designated J–1
submission, all subsequent
program sponsors.
amendments, all written statements
• Estimated Number of Respondents:
with respect to the proposed rule
1460.
change that are filed with the
• Estimated Number of Responses:
Commission, and all written
1460 annually.
• Average Hours per Response: 2
communications relating to the
hours.
proposed rule change between the
• Total Estimated Burden: 2920
Commission and any person, other than
hours.
those that may be withheld from the
• Frequency: Annually.
public in accordance with the
• Obligation to Respond: Required to
provisions of 5 U.S.C. 552, will be
Retain a Benefit.
available for inspection and copying in
DATES: Submit comments to the Office
the Commission’s Public Reference
of Management and Budget (OMB) for
Room, 100 F Street, NE., Washington,
up to 30 days from October 19, 2009.
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. ADDRESSES: Direct comments to the
Department of State Desk Officer in the
Copies of such filing also will be
Office of Information and Regulatory
available for inspection and copying at
Affairs at the Office of Management and
the principal office of the Exchange. All
Budget (OMB). You may submit
comments received will be posted
comments by the following methods:
without change; the Commission does
• E-mail:
not edit personal identifying
oira_submission@omb.eop.gov. You
information from submissions. You
must include the DS form number,
should submit only information that
information collection title, and OMB
you wish to make available publicly. All control number in the subject line of
submissions should refer to File
your message.
Number SR–NYSEAmex–2009–70 and
• Fax: 202–395–5806. Attention: Desk
should be submitted on or before
Officer for Department of State.
November 9, 2009.
sroberts on DSKD5P82C1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
14 17
VerDate Nov<24>2008
16:51 Oct 16, 2009
Jkt 220001
PO 00000
CFR 200.30–3(a)(12).
Frm 00080
Fmt 4703
Sfmt 4703
53541
FOR FURTHER INFORMATION CONTACT: You
may obtain copies of the proposed
information collection and supporting
documents from Stanley S. Colvin,
Deputy Assistant Secretary for Private
Sector Exchanges, Department of State,
2200 C Street, NW., 5th Floor,
Washington, DC 20522–0505, who may
be reached on (202) 632–6090, fax at
202–632–2701 or e-mail at
JExchanges@state.gov.
SUPPLEMENTARY INFORMATION: We are
soliciting public comments to permit
the Department to:
• Evaluate whether the proposed
information collection is necessary to
properly perform our functions.
• Evaluate the accuracy of our
estimate of the burden of the proposed
collection, including the validity of the
methodology and assumptions used.
• Enhance the quality, utility, and
clarity of the information to be
collected.
• Minimize the reporting burden on
those who are to respond.
Abstract of Proposed Collection
Annual reports from designated
program sponsors assist the Department
in oversight and administration of the
J–1 visa program. The reports provide
statistical data on the number of
exchange participants an organization
sponsored per category. Program
sponsors include government agencies,
academic institutions, not-for-profit and
for-profit organizations.
Methodology
Annual reports are run through the
Student and Exchange Visitor
Information System (SEVIS) and then
printed and sent to the Department. The
Department allows sponsors to submit
annual reports by mail or fax at this
time. There are measures being taken to
allow sponsors to submit the reports
electronically through SEVIS in the
future.
Dated: October 6, 2009.
Stanley S. Colvin,
Deputy Assistant Secretary for Private Sector
Exchanges, Bureau of Educational and
Cultural Affairs, U.S. Department of State.
[FR Doc. E9–24945 Filed 10–16–09; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice 6788]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘The
Lost World of Old Europe: The Danube
Valley 5000–3500BC’’
SUMMARY: Notice is hereby given of the
following determinations: Pursuant to
E:\FR\FM\19OCN1.SGM
19OCN1
]]>Agencies
[Federal Register Volume 74, Number 200 (Monday, October 19, 2009)]
[Notices]
[Pages 53539-53541]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-25110]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60808; File No. SR-NYSEAmex-2009-70]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE
Amex Equities Rule 123C(8)(a)(1) To Extend the Operation of the Extreme
Order Imbalances Pilot
October 9, 2009.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on October 5, 2009, NYSE Amex LLC (the ``Exchange'' or
``NYSE Amex'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Amex Equities Rule
123C(8)(a)(1) to extend the operation of the pilot to temporarily
suspend certain NYSE requirements relating to the closing of securities
on the Exchange until the earlier of Securities and Exchange Commission
approval to make such pilot permanent or December 31, 2009. 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
NYSE Amex Equities Rule 123C(8)(a)(1) allows the Exchange to
temporarily suspend certain rule requirements at the close when extreme
order imbalances may cause significant dislocation to the closing
price. The rule has operated on a pilot basis since April 2009
(``Extreme Order Imbalances Pilot'' or Pilot).\4\ Through this filing,
NYSE Amex proposes to extend the Pilot until the earlier of Securities
and Exchange Commission approval to make such Pilot permanent or
December 31, 2009.\5\
---------------------------------------------------------------------------
\4\ See Securities and Exchange Act Release No. 597755 [sic]
(April 13, 2009) 74 FR 18009 (April 20, 2009) (SR-NYSEALTR-2009-15).
\5\ The Exchange notes that parallel changes are proposed to be
made to the rules of New York Stock Exchange LLC. See SR-NYSE-2009-
104.
---------------------------------------------------------------------------
Background
Pursuant to NYSE Amex Equities Rule 123C(8)(a)(1), the Exchange may
suspend NYSE Amex Equities Rules 52 (Hours of Operation) to resolve an
extreme order imbalance that may result in a closing price dislocation
at the close as a result of an order entered into Exchange systems, or
represented to a DMM orally at or near the close.\6\ The provisions of
NYSE Amex Equities Rule 123C(8)(a)(1) operate as the Extreme Order
Imbalance Pilot.
---------------------------------------------------------------------------
\6\ See NYSE Amex Equities Rule 123C(8)(a)(1).
---------------------------------------------------------------------------
As a condition of the approval to operate the Pilot, the Exchange
committed to provide the Commission with information regarding: (i) How
[[Page 53540]]
often a Rule 52 temporary suspension pursuant to the Pilot was invoked
during the six months following its approval; and (ii) the Exchange's
determination as to how to proceed with technical modifications to
reconfigure Exchange systems to accept orders electronically after 4
p.m.
The Extreme Order Imbalance Pilot is scheduled to end operation on
October 13, 2009. The Exchange is currently preparing a rule filing
seeking permission to make the provisions of the Pilot permanent with
certain modifications but does not expect that filing to be completed
and approved by the Commission before October 13, 2009.
Proposal To Extend the Operation of the Extreme Order Imbalance Pilot
The Exchange established the Extreme Order Imbalance Pilot to
create a mechanism for ensuring a fair and orderly close when interest
is received at or near the close that could negatively affect the
closing transaction. The Exchange believes that this tool has proved
very useful to resolve an extreme order imbalance that may result in a
closing price dislocation at the close as a result of an order entered
into Exchange systems, or represented to a DMM orally at or near the
close.
As the Exchange has previously stated, invocation of the provisions
NYSE Amex Equities Rule 123C(8) to attract offsetting interest is
intended to be used for extreme, and likely rare circumstances where
there exists such a large imbalance at the close that a DMM is unable
to close the security without significantly dislocating the price of
the security. This is evidenced by the fact that during the course of
the Pilot, the Exchange invoked the provisions of NYSE Amex Equities
Rule 123C(8), including the provisions of the Extreme Order Imbalance
Pilot pursuant to NYSE Amex Equities Rule 123C(8)(a)(1), in only two
securities on June 26, 2009, the date of the annual rebalancing of
Russell Indexes.
In addition, during the operation of the Pilot, the Exchange
determined that it would not be as onerous, as previously believed, to
modify Exchange systems to accept orders electronically after 4 p.m.
The Exchange anticipates that such system modifications could be
completed by December 31, 2009.
Given the above, the Exchange believes that provisions governing
the Extreme Order Imbalance Pilot should be made permanent. Through
this filing the Exchange seeks to extend the current operation of the
Pilot in order to allow the Exchange to formally submit a filing to the
Commission to convert the provisions governing the Pilot to permanent
rules and complete the technological modifications required to accept
orders electronically after 4 p.m. The Exchange therefore request and
[sic] extension from the current expiration date of October 13, 2009,
until the earlier of Securities and Exchange Commission approval to
make such Pilot permanent or December 31, 2009.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \7\ 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. The Exchange believes that the
instant filing is consistent with these principles. Specifically an
extension will allow the Exchange to: (i) Prepare and submit a filing
to make the provisions governing the Extreme Order Imbalance Pilot
permanent; (ii) have such filing complete public notice and comment
period; and (iii) complete the 19b-4 approval process. The rule
operates to protect investors and the public interest by ensuring that
the closing price at the Exchange is not significantly dislocated from
the last sale price by virtue of an extreme order imbalance at or near
the close.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) \8\ of the Act and Rule 19b-4(f)(6) \9\ thereunder.
Because the foregoing proposed rule change: (1) Does not significantly
affect the protection of investors or the public interest; (2) does not
impose any significant burden on competition; and (3) by its terms,
does not become operative for 30 days after the date of filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
and Rule 19b-4(f)(6) thereunder.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing.\10\ However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange requested that the Commission waive
the 30-day operative delay, as specified in Rule 19b-4(f)(6)(iii),\11\
which would make the rule change operative immediately. The Exchange
believes that continuation of the Pilot does not burden competition and
would operate to protect investors and the public interest by ensuring
that the closing price at the Exchange is not significantly dislocated
from the last sale price by virtue of an extreme order imbalance at or
near the close.
---------------------------------------------------------------------------
\10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the
Commission notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. NYSE Amex has satisfied this requirement.
\11\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it would allow the Pilot to continue without interruption while
the Exchange works towards submitting a separate proposal to make the
Pilot permanent. Accordingly, the Commission designates the proposed
rule change as operative upon filing with the Commission.\12\
---------------------------------------------------------------------------
\12\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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.\13\
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
[[Page 53541]]
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-NYSEAmex-2009-70 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-NYSEAmex-2009-70. 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 available publicly. All
submissions should refer to File Number SR-NYSEAmex-2009-70 and should
be submitted on or before November 9, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25110 Filed 10-16-09; 8:45 am]
BILLING CODE 8011-01-P
