Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending Exchange Rule 62 to Support Quoting and Trading in a Minimum Price Variation Below $.01 for Securities Traded on the Exchange for Orders or Interest Priced Below $1.00 Per Share, 57722-57724 [E9-26882]

Download as PDF 57722 Federal Register / Vol. 74, No. 215 / Monday, November 9, 2009 / Notices securities exchange and, in particular, the requirements of Section 6(b) of the Act.5 Specifically, the Exchange believes that the proposed rule change is consistent with the Section 6(b)(5) Act 6 requirements that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts and, in general, to protect investors and the public interest by identifying the option classes to be added to the Pilot Program in a manner consistent with CBOE’s prior rule filing SR–CBOE– 2009–76 to extend and expand the Pilot Program. B. Self-Regulatory Organization’s Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition 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 proposed rule change is filed for immediate effectiveness pursuant to Section 19(b)(3)(A) 7 of the Securities Exchange Act of 1934 and Rule 19b– 4(f)(1) 8 thereunder as it constitutes a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule. 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. mstockstill on DSKH9S0YB1PROD with 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: 5 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 7 15 U.S.C. 78s(b)(3)(A). 8 17 CFR 240.19b–4(f)(1). 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–CBOE–2009–079 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–CBOE–2009–079. 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 CBOE. 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–CBOE–2009–079 and should be submitted on or before November 30, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–26883 Filed 11–6–09; 8:45 am] 16:52 Nov 06, 2009 Release No. 34–60916; File No. SR– NYSEAmex–2009–78] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending Exchange Rule 62 to Support Quoting and Trading in a Minimum Price Variation Below $.01 for Securities Traded on the Exchange for Orders or Interest Priced Below $1.00 Per Share November 3, 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 October 27, 2009, NYSE Amex LLC (‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 Exchange. NYSE Amex 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 amend Exchange Rule 62 (Variations) to support quoting and trading in a minimum price variation below $.01 for securities traded on the Exchange for orders or interest priced below a [sic] $1.00 per share. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and 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, BILLING CODE 8011–01–P 6 15 VerDate Nov<24>2008 SECURITIES AND EXCHANGE COMMISSION 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 2 17 9 17 Jkt 220001 PO 00000 CFR 200.30–3(a)(12). Frm 00098 Fmt 4703 Sfmt 4703 E:\FR\FM\09NON1.SGM 09NON1 Federal Register / Vol. 74, No. 215 / Monday, November 9, 2009 / Notices 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 is proposing to amend NYSE Amex Equities Rule 62 (Variations) to support quoting and trading in a minimum price variation below $.01 for securities traded on the Exchange for orders or interest (‘‘orders/ interest’’) priced below a [sic] $1.00 per share. The proposed amendment to NYSE Amex Equities Rule 62 will enable the Exchange to quote and execute orders/interest in sub-penny increments of $0.0001 for those securities that are priced below $1.00 per share. The Exchange notes that parallel changes are proposed to be made to the rules of New York Stock Exchange LLC.4 either up or down to the nearest whole cent increment.7 Thus, the price of an incoming bid is rounded down to the next round penny and the price of an incoming offer is rounded up to the next round penny. This rounding is completed before the order is quoted, traded, or routed to another market center, and the rounded price is used for all routing and execution decisions. In fact, the rounded price assigned to the order or quotation is used for all order handling purposes including when the order is sent to Exchange trading systems and the Consolidated Quotation System. Proposed Amendment to NYSE Amex Equities Rule 62 Through this filing, the Exchange seeks to eliminate the above described order handling procedures for orders/ interest submitted to the Exchange that contain a sub-penny component. Instead, the Exchange proposes to quote, trade or route to another market center orders/interest that contain a sub-penny Background component without first rounding the orders/interest. The Exchange therefore NYSE Amex Equities Rules establish proposes to delete Supplementary minimum price variations for quoting Material .20 from NYSE Rule 62 because and entry of orders in equity securities Exchange technology can [sic] is capable depending on the price of the orders/ of quoting and executing orders/interest interest. Currently, the minimum price in sub-penny increments of $0.0001 for variations range from ten cents (.10) for those securities that are priced below orders/interest priced $100,000 or $1.00 per share. The Exchange further greater, to one cent for orders/interest proposes to delete the duplicate priced between $1.00 and $99,999 and one one-thousandth of a cent (.0001) for captioning of ‘‘NYSE Amex Equities’’ in Rule 62. orders/interest priced less than $1.00.5 The Exchange will commence Significantly for this rule filing, implementation of the systemic changes although Exchange systems accept to allow Exchange systems to quote, orders/interest priced below $1.00 in trade or route to another market center sub-penny increments, the Exchange orders/interest that contain a sub-penny does not quote or execute orders/ component on or about November 27, interest in these increments.6 Instead, 2009. The Exchange intends to the second paragraph of the Supplementary Material of NYSE Amex progressively implement these systemic changes on a security by security basis Equities Rule 62 sets forth the as it gains experience with the new procedures for orders/interest that technology until it is operative in all contains a sub-penny component. securities traded on the Floor. During Minimum price the implementation, the Exchange will Price of order or interest variation identify on its website which securities have been transitioned to the new Less Than $1.00 ................... $.0001 system. mstockstill on DSKH9S0YB1PROD with NOTICES $1.00 to 99,999.99 ............... $100,000 or greater .............. $.01 $.10 Specifically, when an order/interest is received on NYSE Amex that contains a sub-penny component, the Exchange rounds the incoming order/interest 4 See SR–NYSE–2009–107. 5 See NYSE Amex Equities Rule 62 Supplementary Material first paragraph which provides in pertinent part: 6 See Securities Exchange Act Release No. 59025 (November 26, 2008), 73 FR 73769 (December 3, 2008) (SR–NYSE–2008–123) [sic]. VerDate Nov<24>2008 16:52 Nov 06, 2009 Jkt 220001 2. Statutory Basis The basis under the Securities Exchange Act of 1934 (the ‘‘Act’’) 8 for this proposed rule change is the requirement under Section 6(b)(5) 9 that an Exchange have rules that are designed to promote just and equitable principles of trade, to foster cooperation 7 See NYSE [sic] Rule 62 Supplementary Material second paragraph. 8 15 U.S.C. 78a. 9 15 U.S.C. 78f(b)(5). PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 57723 and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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 proposed rule change also is designed to support the principles of Section 11A(a)(1) 10 in that it seeks to assure economically efficient execution of securities transactions, make it practicable for brokers to execute investors’ orders in the best market and provide an opportunity for investors’ orders to be executed without the participation of a dealer. The Exchange believes that the instant proposal is in keeping with these principles in that it seeks to amend NYSE Amex Equities Rule 62 to provide for executions of interest entered on the Exchange in increments below $.01, consistent with the provisions of Rule 612 of Regulation NMS 11 which permits markets to accept, rank and display orders priced less than $1.00 per share in a minimum pricing increment of $0.0001. 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 12 and Rule 19b– 4(f)(6) thereunder.13 10 15 U.S.C. 78k–1(a)(1). CFR 242.612. 12 15 U.S.C. 78s(b)(3)(A). 13 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 11 17 E:\FR\FM\09NON1.SGM Continued 09NON1 57724 Federal Register / Vol. 74, No. 215 / Monday, November 9, 2009 / Notices A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 14 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6) 15 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange requests that the Commission waive the 30-day operative delay so that it may immediately provide another competitive venue for market participants to submit orders priced less than $1.00 per share in a minimum pricing increment of $0.0001 for execution. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it will provide another competitive venue for execution of orders priced in sub-penny increments of $0.0001 for securities priced below $1.00 per share.16 For these reasons, the Commission designates that the proposed rule change become 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–NYSEAmex–2009–78 on the subject line. 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSEAmex–2009–78. 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–NYSEAmex–2009–78 and should be submitted on or before November 30, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–26882 Filed 11–6–09; 8:45 am] BILLING CODE 8011–01–P mstockstill on DSKH9S0YB1PROD with NOTICES VerDate Nov<24>2008 16:52 Nov 06, 2009 Jkt 220001 [Release No. 34–60915; File No. SR–NYSE– 2009–107] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC Amending Exchange Rule 62 To Support Quoting and Trading in a Minimum Price Variation Below $.01 for Securities Traded on the Exchange for Orders or Interest Priced Below $1.00 Per Share November 3, 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 October 27, 2009, the New York Stock Exchange LLC (‘‘Exchange’’ or ‘‘NYSE’’) 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 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 amend Exchange Rule 62 (Variations) to support quoting and trading in a minimum price variation below $.01 for securities traded on the Exchange for orders or interest priced below a [sic] $1.00 per share. 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, Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 14 17 CFR 240.19b–4(f)(6). 15 17 CFR 240.19b–4(f)(6). 16 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposal’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). SECURITIES AND EXCHANGE COMMISSION 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 2 17 17 17 PO 00000 CFR 200.30–3(a)(12). Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\09NON1.SGM 09NON1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 74, Number 215 (Monday, November 9, 2009)]
[Notices]
[Pages 57722-57724]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-26882]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

Release No. 34-60916; File No. SR-NYSEAmex-2009-78]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending
Exchange Rule 62 to Support Quoting and Trading in a Minimum Price
Variation Below $.01 for Securities Traded on the Exchange for Orders
or Interest Priced Below $1.00 Per Share

November 3, 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 October 27, 2009, NYSE Amex LLC (``Exchange'' or ``NYSE Amex'')
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 Exchange. NYSE Amex 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 amend Exchange Rule 62 (Variations) to
support quoting and trading in a minimum price variation below $.01 for
securities traded on the Exchange for orders or interest priced below a
[sic] $1.00 per share. The text of the proposed rule change is
available at the Exchange, the Commission's Public Reference Room, and
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,

[[Page 57723]]

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 is proposing to amend NYSE Amex Equities Rule 62
(Variations) to support quoting and trading in a minimum price
variation below $.01 for securities traded on the Exchange for orders
or interest (``orders/interest'') priced below a [sic] $1.00 per share.
The proposed amendment to NYSE Amex Equities Rule 62 will enable the
Exchange to quote and execute orders/interest in sub-penny increments
of $0.0001 for those securities that are priced below $1.00 per share.
The Exchange notes that parallel changes are proposed to be made to
the rules of New York Stock Exchange LLC.\4\
---------------------------------------------------------------------------

\4\ See SR-NYSE-2009-107.
---------------------------------------------------------------------------

Background
NYSE Amex Equities Rules establish minimum price variations for
quoting and entry of orders in equity securities depending on the price
of the orders/interest. Currently, the minimum price variations range
from ten cents (.10) for orders/interest priced $100,000 or greater, to
one cent for orders/interest priced between $1.00 and $99,999 and one
one-thousandth of a cent (.0001) for orders/interest priced less than
$1.00.\5\ Significantly for this rule filing, although Exchange systems
accept orders/interest priced below $1.00 in sub-penny increments, the
Exchange does not quote or execute orders/interest in these
increments.\6\ Instead, the second paragraph of the Supplementary
Material of NYSE Amex Equities Rule 62 sets forth the procedures for
orders/interest that contains a sub-penny component.
---------------------------------------------------------------------------

\5\ See NYSE Amex Equities Rule 62 Supplementary Material first
paragraph which provides in pertinent part:
\6\ See Securities Exchange Act Release No. 59025 (November 26,
2008), 73 FR 73769 (December 3, 2008) (SR-NYSE-2008-123) [sic].

------------------------------------------------------------------------
Minimum price
Price of order or interest variation
------------------------------------------------------------------------
Less Than $1.00......................................... $.0001
$1.00 to 99,999.99...................................... $.01
$100,000 or greater..................................... $.10
------------------------------------------------------------------------

Specifically, when an order/interest is received on NYSE Amex that
contains a sub-penny component, the Exchange rounds the incoming order/
interest either up or down to the nearest whole cent increment.\7\
Thus, the price of an incoming bid is rounded down to the next round
penny and the price of an incoming offer is rounded up to the next
round penny. This rounding is completed before the order is quoted,
traded, or routed to another market center, and the rounded price is
used for all routing and execution decisions. In fact, the rounded
price assigned to the order or quotation is used for all order handling
purposes including when the order is sent to Exchange trading systems
and the Consolidated Quotation System.
---------------------------------------------------------------------------

\7\ See NYSE [sic] Rule 62 Supplementary Material second
paragraph.
---------------------------------------------------------------------------

Proposed Amendment to NYSE Amex Equities Rule 62
Through this filing, the Exchange seeks to eliminate the above
described order handling procedures for orders/interest submitted to
the Exchange that contain a sub-penny component. Instead, the Exchange
proposes to quote, trade or route to another market center orders/
interest that contain a sub-penny component without first rounding the
orders/interest. The Exchange therefore proposes to delete
Supplementary Material .20 from NYSE Rule 62 because Exchange
technology can [sic] is capable of quoting and executing orders/
interest in sub-penny increments of $0.0001 for those securities that
are priced below $1.00 per share. The Exchange further proposes to
delete the duplicate captioning of ``NYSE Amex Equities'' in Rule 62.
The Exchange will commence implementation of the systemic changes
to allow Exchange systems to quote, trade or route to another market
center orders/interest that contain a sub-penny component on or about
November 27, 2009. The Exchange intends to progressively implement
these systemic changes on a security by security basis as it gains
experience with the new technology until it is operative in all
securities traded on the Floor. During the implementation, the Exchange
will identify on its website which securities have been transitioned to
the new system.
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Act'')
\8\ for this proposed rule change is the requirement under Section
6(b)(5) \9\ that an Exchange have rules that are designed to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, 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 proposed rule change
also is designed to support the principles of Section 11A(a)(1) \10\ in
that it seeks to assure economically efficient execution of securities
transactions, make it practicable for brokers to execute investors'
orders in the best market and provide an opportunity for investors'
orders to be executed without the participation of a dealer. The
Exchange believes that the instant proposal is in keeping with these
principles in that it seeks to amend NYSE Amex Equities Rule 62 to
provide for executions of interest entered on the Exchange in
increments below $.01, consistent with the provisions of Rule 612 of
Regulation NMS \11\ which permits markets to accept, rank and display
orders priced less than $1.00 per share in a minimum pricing increment
of $0.0001.
---------------------------------------------------------------------------

\8\ 15 U.S.C. 78a.
\9\ 15 U.S.C. 78f(b)(5).
\10\ 15 U.S.C. 78k-1(a)(1).
\11\ 17 CFR 242.612.
---------------------------------------------------------------------------

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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
---------------------------------------------------------------------------

\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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 Exchange has satisfied this requirement.

---------------------------------------------------------------------------

[[Page 57724]]

A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \14\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6) \15\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that the Commission waive the 30-day operative delay so that it may
immediately provide another competitive venue for market participants
to submit orders priced less than $1.00 per share in a minimum pricing
increment of $0.0001 for execution. The Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest because it will provide another
competitive venue for execution of orders priced in sub-penny
increments of $0.0001 for securities priced below $1.00 per share.\16\
For these reasons, the Commission designates that the proposed rule
change become operative upon filing.
---------------------------------------------------------------------------

\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposal's impact on efficiency,
competition, and capital formation. 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.

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-2009-78 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-2009-78. 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-NYSEAmex-2009-78 and should
be submitted on or before November 30, 2009.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-26882 Filed 11-6-09; 8:45 am]
BILLING CODE 8011-01-P

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