Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC Amending NYSE Rule 14 To Be Consistent With the New System Capability To Receive Orders for Execution on the Exchange Containing Settlement Instructions of “Cash,” “Next Day” and “Seller's Option” Directly to a Floor Broker's Hand-Held Device, 53534-53535 [E9-25113]
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53534
Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices
SECURITIES AND EXCHANGE
COMMISSION
of the most significant parts of such
statements.
[Release No. 34–60812; File No. SR–NYSE–
2009–102]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
Stock Exchange LLC Amending NYSE
Rule 14 To Be Consistent With the New
System Capability To Receive Orders
for Execution on the Exchange
Containing Settlement Instructions of
‘‘Cash,’’ ‘‘Next Day’’ and ‘‘Seller’s
Option’’ Directly to a Floor Broker’s
Hand-Held Device
October 9, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on October
1, 2009, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
sroberts on DSKD5P82C1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Rule 14 (‘‘Non-Regular Way
Settlement Instructions for Orders’’) to
be consistent with the new system
capability to receive orders for
execution on the Exchange containing
settlement instructions of ‘‘cash,’’ ‘‘next
day’’ and ‘‘seller’s option’’ directly to a
Floor broker’s hand-held device. 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,
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
VerDate Nov<24>2008
16:51 Oct 16, 2009
Jkt 220001
1. Purpose
The Exchange proposes to amend
NYSE Rule 14 (‘‘Non-Regular Way
Settlement Instructions for Orders’’) to
be consistent with its new system
capability to receive orders containing
settlement instructions of ‘‘cash,’’ ‘‘next
day’’ and ‘‘seller’s option’’ (collectively
referred to herein as ‘‘non-regular way
settlement’’ 4) directly to a Floor
broker’s hand-held device.5
Currently, Designated Market Maker
units do not have order handling
responsibility for orders containing nonregular way settlement instructions.
Moreover, Exchange systems that route
orders to the Display Book do not accept
orders containing non-regular way
instructions. Routing orders directly to
a Floor broker booth location via the
Broker Booth Support System (‘‘BBSS’’)
for representation on the Floor is the
only acceptable way for orders with
non-regular way settlement instructions
to be transmitted to the Exchange.
Pursuant to NYSE Rule 14 customers
that seek to execute orders containing
non-regular way settlement instructions
must directly transmit those orders via
BBSS directly to a Floor broker for
representation in the trading crowd
because at the time the Exchange
established this capability, BBSS was
the only Exchange system capable of
accepting such orders. As a result
customers are currently prohibited from
transmitting orders containing nonregular settlement instructions directly
to a Floor broker’s hand-held device.
The Exchange has currently enhanced
its systems to enable hand-held devices
to receive and process orders containing
non-regular way settlement
instructions.6 As such, through this
4 Orders
indicating cash settlement instructions
require delivery of the securities on the same day
as the trade date. Next day settlement instructions
require delivery of the securities on the first
business day following the trade date. Orders that
have settlement instructions of seller’s option afford
the seller the right to deliver the security or bond
at any time within a specified period, ranging from
not less than two business days to not more than
sixty days for securities and not less than two
business days and no more than sixty days for U.S.
government securities.
Odd-lot orders containing non-regular way
settlement instructions are not permitted.
5 The Exchange notes that parallel changes are
proposed to be made to the rules of the NYSE Amex
LLC. See SR–NYSE Amex–2009–68.
6 Orders sent directly to the hand-held device,
including those containing non-regular way
settlement instructions, are systemically
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
filing the Exchange seeks to provide its
customers that seek to execute orders
containing non-regular way settlement
instructions with an additional systemic
option for transmitting such orders to a
Floor broker for representation on the
Floor. The Exchange therefore proposes
to amend NYSE Rule 14(a)(ii) to remove
the words ‘‘booth system’’ and permit
customers to transmit orders containing
non-regular way settlement instructions
to a Floor broker via either BBSS or a
Floor broker’s hand-held device.
The Exchange believes that the instant
proposal better facilitates the needs of
its customers to submit orders
containing instructions for non-regular
way settlement and maintains effective
representation of such customer orders
in the Exchange’s current market.
The Exchange will commence
installation of the new technology in
Floor broker hand-held devices on or
about October 5, 2009, with expected
completion no later than October 30,
2009.
2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Act’’) [sic]
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 instant filing
accomplishes these goals by providing
its customers with an additional method
to enter orders containing non-regular
way settlement instructions, without
changing the ability of such orders to be
represented at the point of sale in the
Exchange’s auction 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.
transmitted to the ‘‘Front End Systemic Capture’’
(‘‘FESC’’) consistent with the requirements of NYSE
Rule 123, which requires floor brokers to enter the
details of an order, including any modification or
cancellation, into a system which electronically
timestamps the time of entry prior to representing
or executing that order on the Floor.
7 15 U.S.C. 78f(b)(5).
E:\FR\FM\19OCN1.SGM
19OCN1
Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices
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 proposed rule change is filed
pursuant to paragraph (A) of Section
19(b)(3) 8 and Rule 19b–4(f)(5).9 This
proposed rule change effects a change in
an existing order entry or trading system
of a self-regulatory organization that: (A)
Does not significantly affect the
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:
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–2009–102 on the
subject line.
sroberts on DSKD5P82C1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
8 15
9 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(5).
VerDate Nov<24>2008
16:51 Oct 16, 2009
All submissions should refer to File
Number SR–NYSE–2009–102. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make publicly available. All
submissions should refer to File
Number SR–NYSE–2009–102 and
should be submitted on or before
November 9, 2009.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on, October
6, 2009, NASDAQ OMX BX, Inc. (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. 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 the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
from interested persons.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–25113 Filed 10–16–09; 8:45 am]
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 these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60814; File No. SR–BX–
2009–063]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Strike Price Intervals of $0.50 for
Options on Stocks Trading at or Below
$3.00 on the Boston Options Exchange
Facility
October 13, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
10 17
Jkt 220001
53535
PO 00000
CFR 200.30–3(a)(12).
Frm 00074
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Supplementary Material to Chapter IV,
Section 6 (Series of Options Contracts
Open for Trading) of the Rules of the
Boston Options Exchange Group, LLC
(‘‘BOX’’) in order to establish strike
price intervals of $0.50, beginning at $1,
for certain option classes whose
underlying security closed at or below
$3 in its primary market on the previous
trading day. The text of the proposed
rule change is available from the
principal office of the Exchange, at the
Commission’s Public Reference Room
and also on the Exchange’s Internet Web
site at https://
nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to expand the ability of
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
E:\FR\FM\19OCN1.SGM
19OCN1
Agencies
[Federal Register Volume 74, Number 200 (Monday, October 19, 2009)]
[Notices]
[Pages 53534-53535]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-25113]
[[Page 53534]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60812; File No. SR-NYSE-2009-102]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC
Amending NYSE Rule 14 To Be Consistent With the New System Capability
To Receive Orders for Execution on the Exchange Containing Settlement
Instructions of ``Cash,'' ``Next Day'' and ``Seller's Option'' Directly
to a Floor Broker's Hand-Held Device
October 9, 2009.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on October 1, 2009, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by 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 Rule 14 (``Non-Regular Way
Settlement Instructions for Orders'') to be consistent with the new
system capability to receive orders for execution on the Exchange
containing settlement instructions of ``cash,'' ``next day'' and
``seller's option'' directly to a Floor broker's hand-held device. 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 amend NYSE Rule 14 (``Non-Regular Way
Settlement Instructions for Orders'') to be consistent with its new
system capability to receive orders containing settlement instructions
of ``cash,'' ``next day'' and ``seller's option'' (collectively
referred to herein as ``non-regular way settlement'' \4\) directly to a
Floor broker's hand-held device.\5\
---------------------------------------------------------------------------
\4\ Orders indicating cash settlement instructions require
delivery of the securities on the same day as the trade date. Next
day settlement instructions require delivery of the securities on
the first business day following the trade date. Orders that have
settlement instructions of seller's option afford the seller the
right to deliver the security or bond at any time within a specified
period, ranging from not less than two business days to not more
than sixty days for securities and not less than two business days
and no more than sixty days for U.S. government securities.
Odd-lot orders containing non-regular way settlement
instructions are not permitted.
\5\ The Exchange notes that parallel changes are proposed to be
made to the rules of the NYSE Amex LLC. See SR-NYSE Amex-2009-68.
---------------------------------------------------------------------------
Currently, Designated Market Maker units do not have order handling
responsibility for orders containing non-regular way settlement
instructions. Moreover, Exchange systems that route orders to the
Display Book do not accept orders containing non-regular way
instructions. Routing orders directly to a Floor broker booth location
via the Broker Booth Support System (``BBSS'') for representation on
the Floor is the only acceptable way for orders with non-regular way
settlement instructions to be transmitted to the Exchange.
Pursuant to NYSE Rule 14 customers that seek to execute orders
containing non-regular way settlement instructions must directly
transmit those orders via BBSS directly to a Floor broker for
representation in the trading crowd because at the time the Exchange
established this capability, BBSS was the only Exchange system capable
of accepting such orders. As a result customers are currently
prohibited from transmitting orders containing non-regular settlement
instructions directly to a Floor broker's hand-held device.
The Exchange has currently enhanced its systems to enable hand-held
devices to receive and process orders containing non-regular way
settlement instructions.\6\ As such, through this filing the Exchange
seeks to provide its customers that seek to execute orders containing
non-regular way settlement instructions with an additional systemic
option for transmitting such orders to a Floor broker for
representation on the Floor. The Exchange therefore proposes to amend
NYSE Rule 14(a)(ii) to remove the words ``booth system'' and permit
customers to transmit orders containing non-regular way settlement
instructions to a Floor broker via either BBSS or a Floor broker's
hand-held device.
---------------------------------------------------------------------------
\6\ Orders sent directly to the hand-held device, including
those containing non-regular way settlement instructions, are
systemically transmitted to the ``Front End Systemic Capture''
(``FESC'') consistent with the requirements of NYSE Rule 123, which
requires floor brokers to enter the details of an order, including
any modification or cancellation, into a system which electronically
timestamps the time of entry prior to representing or executing that
order on the Floor.
---------------------------------------------------------------------------
The Exchange believes that the instant proposal better facilitates
the needs of its customers to submit orders containing instructions for
non-regular way settlement and maintains effective representation of
such customer orders in the Exchange's current market.
The Exchange will commence installation of the new technology in
Floor broker hand-held devices on or about October 5, 2009, with
expected completion no later than October 30, 2009.
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Act'')
[sic] 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 instant filing accomplishes these goals by providing its customers
with an additional method to enter orders containing non-regular way
settlement instructions, without changing the ability of such orders to
be represented at the point of sale in the Exchange's auction market.
---------------------------------------------------------------------------
\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.
[[Page 53535]]
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 proposed rule change is filed pursuant to paragraph (A) of
Section 19(b)(3) \8\ and Rule 19b-4(f)(5).\9\ This proposed rule change
effects a change in an existing order entry or trading system of a
self-regulatory organization that: (A) Does not significantly affect
the 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(5).
---------------------------------------------------------------------------
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:
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-2009-102 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2009-102. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make publicly available. All
submissions should refer to File Number SR-NYSE-2009-102 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\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25113 Filed 10-16-09; 8:45 am]
BILLING CODE 8011-01-P