Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Revising Its Telephone Policies, 67282-67284 [E9-30085]
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67282
Federal Register / Vol. 74, No. 242 / Friday, December 18, 2009 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61156; File No. SR–
NYSEArca–2009–109]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. Revising Its Telephone
Policies
December 11, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on December
3, 2009, NYSE Arca, Inc. (‘‘NYSE Arca’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
it effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to revise its
policies governing the use of telephones
on the Trading Floor. The text of the
proposed rule change is attached as
Exhibit 5 to the 19b-4 form. The text of
the proposed rule change is available on
the Exchange’s Web site at https://
www.nyse.com, on the Commission’s
Web site at https://www.sec.gov, at the
Exchange’s principal office, and at the
Commission’s Public Reference Room.
sroberts on DSKD5P82C1PROD with NOTICES
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.
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
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17:33 Dec 17, 2009
Jkt 220001
1. Purpose
The purpose of this filing is to revise
NYSE Arca Rule 6.2(h) governing the
use of telephones on the Trading Floor.
The proposed revisions of Rule 6.2(h)
are modeled on NYSE Amex Options
Rule 902NY(i).5
The Exchange proposes to simplify
and expedite its telephone registration
process by allowing OTP Holder
representatives to register their
telephones by submitting an e-mail to
the NYSE Arca Options Operations
Department. This policy is consistent
with NYSE Amex Options Rule
902NY(h)(i)(1).
In addition, the Exchange notes that
separate from the registration and use of
telephones, the Exchange shall retain
the authority to review and approve,
prior to their use, any alternative
communication device (including but
not limited to devices offering
capabilities such as e-mail, instant
messaging, texting, or Internetsupported communications). Therefore,
according to proposed Rule 6.2(h)(1): No
OTP Holder, OTP Firm, or employee
thereof may employ any alternative
communication device (other than
telephones as described herein) on the
Trading Floor without prior approval of
the Exchange.
The Exchange also proposes to
combine the various designations in
Rule 6.2(h)(4)–(7) into a single section
applying to all OTP Holders and
Employees of OTP Firms. In doing so,
the Exchange seeks to clarify and
simplify its policy without substantively
altering the scope of the rule.6 This
change will also result in the
renumbering of the subsections under
Rule 6.2(h). This change is consistent
with NYSE Amex Options Rule
902NY(i).
The Exchange also proposes to modify
Rule 6.2(h)(5)(C) in order to adopt the
recently approved structure of NYSE
5 See Securities Exchange Act Release No. 59939
(May 19, 2009), 74 FR 25779 (May 29, 2009) (Notice
of Filing and Immediate Effectiveness of Proposed
Rule Change, SR–NYSEAmex–2009–17, and
Amendment No. 1 Thereto Revising Rules
Governing the Use of Telephones on the Options
Trading Floor).
6 The Exchange is not proposing to require OTP
Holders and OTP Firms to register by category of
user. Such a requirement is inapplicable since (i)
the proposed rule applies to OTP Holders, OTP
Firms, and all employees thereof, regardless of
category and (ii) such a requirement was a historical
response to capacity limitations (which no longer
apply) thereby allowing the Exchange to restrict use
by certain categories of users if capacity issues
arose.
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Frm 00120
Fmt 4703
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Amex Rule 902NY(i)(4)(C) pertaining to
broker representations of telephonic
orders to the trading crowd. Currently,
Section (h)(5)(C) sets forth that a Floor
Broker in a trading crowd who receives
a telephonic order may represent the
order in the trading crowd only if an
order ticket was first time-stamped in
the OTP Holder or OTP Firm’s booth.
The order ticket must also be taken to
the Floor Broker in the trading crowd
immediately after it is prepared. The
new policy avoids this unnecessary
process by allowing Floor Brokers to
represent a telephonic order to the
trading crowd so long as the order is
immediately recorded into the EOC or
the Electronic Tablet. However, in cases
where the exception set forth in Rule
6.67(d)(1) applies, the EOC/Electronic
Tablet Contingency Reporting
Procedures will be in effect in
accordance with Rule 6.67(d)(2).7 In
implementing this new policy, the
Exchange seeks to keep pace with the
technologies utilized on its options
floor.
The Exchange proposes to remove all
obsolete references to LMM phones and
General Access Phones. These phones
were provided by the Exchange and
located at various locations on the
options floor. The Exchange no longer
supports these phones, and as such,
they are no longer in operation.
In addition, the Exchange proposes to
update Rule 6.2(h)(9), Telephone
Records, in order to increase the record
retention period to three years. The
Exchange proposes to require that OTP
Holders and OTP Firms retain said
records in an accessible place for the
first two years. This requirement is
consistent with the retention period of
Securities and Exchange Commission
Rule 17a–4.8 The Rule will also be
renumbered as 6.2(h)(5).
Consistent with NYSE Amex Rule
902NY(i)(6), the Exchange further
proposes to add Rule 6.22(h)(6) [sic],9
Revocation of Registration, which
establishes the Exchange’s authority to
deny, limit or revoke an OTP Holder’s
permission to use of any registered
telephone on the Trading Floor.
Although an OTP Holder need only
register with the Exchange, prior to use,
any telephone to be used on the Trading
Floor, the Exchange retains the right to
7 Rule 6.67(d)(1) states in pertinent part, ‘‘The
EOC or Electronic Tablet entry requirement
provision of subsection (c) will not apply to any
EOC or Electronic Tablet system disruption or
malfunction as confirmed by a Trading Official.’’
Rule 6.67(d)(2) provides a procedure for reporting
during periods of system disruption of malfunction.
8 This proposed rule is modeled on NYSE Amex
Rule 902(i)(5).
9 The Exchange intended to refer to Rule 6.2(h)(6).
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Federal Register / Vol. 74, No. 242 / Friday, December 18, 2009 / Notices
deny, limit, or revoke an OTP Holder’s
permission. Specifically, according to
the proposed rule, the Exchange may
deny, limit or revoke registration of any
telephone whenever it determines that
use of such device is inconsistent with
the public interest, the protection of
investors, or just and equitable
principles of trade, or such device has
been or is being used to facilitate any
violation of the Securities Exchange Act
of 1934, as amended, or rules
thereunder, or the Exchange rules.
The Exchange also proposes to update
subsections (h)(13) and (k)(i)(13) of Rule
10.12, Minor Rule Plan, in order to
replace obsolete references to prior
Exchange policy and to add text
designed to specifically address
violations of Exchange Rule 6.2(h) as
revised herein.
Finally, the Exchange proposes to
delete Rule 11.15 as it is duplicative of
proposed Rule 6.2(h)(1) which states:
No OTP Holder, OTP Firm, or
employee thereof may employ any
alternative communication device (other
than telephones as described herein) on
the Trading Floor without prior
approval of the Exchange.
The Exchange also proposes to
remove the reference to Rule 11.15 in
Rule 6.1(e).
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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.
13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b4(f)(6)(iii) requires the self-regulatory organization
to submit to the Commission written 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. The
Exchange has satisfied this requirement.
14 See Securities Exchange Act Release No. 59939
(May 19, 2009), 74 FR 25779 (May 29, 2009) (Notice
of Filing and Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1 Thereto
Revising Rules Governing the Use of Telephones on
the Options Trading Floor).
15 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
sroberts on DSKD5P82C1PROD with NOTICES
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, if consistent with the
protection of investors and the public
interest, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 12 and Rule 19b–4(f)(6)
thereunder.13
The Exchange has requested the
Commission to waive the 30-day
operative delay to the extent that the
proposal will allow NYSE Arca to: (i)
Modernize its rules regarding
telephones, consistent with other
market centers; and (ii) eliminate any
unnecessary discrepancies among
affiliated markets governing the use of
telephones by their respective market
participants, without delay. The
Commission notes that the proposal is
closely based on NYSE Amex Rule
902NY(i).14 The Commission hereby
grants the Exchange’s request and
2. Statutory Basis
believes that such waiver is consistent
The Exchange believes that the
with the protection of investors and the
proposed rule change is consistent with public interest.15 Accordingly, the
Section 6(b) 10 of the Act, in general, and Commission designates the proposed
furthers the objectives of Section
rule change operative upon filing with
6(b)(5),11 in particular, in that it is
the Commission.
designed to facilitate transactions in
At any time within 60 days of the
securities, to promote just and equitable
filing of the proposed rule change, the
principles of trade, to enhance
Commission may summarily abrogate
competition, and to protect investors
such rule change if it appears to the
and the public interest, in that it
Commission that such action is
proposes to modernize and clarify rules
necessary or appropriate in the public
for the use of telephones and other
interest, for the protection of investors,
communication devices on the Trading
or otherwise in furtherance of the
Floor.
purposes of the Act.
B. Self-Regulatory Organization’s
12 15 U.S.C. 78s(b)(3)(A).
Statement on Burden on Competition
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.
10 15
11 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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17:33 Dec 17, 2009
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67283
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–NYSEArca–2009–109 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–NYSEArca–2009–109. 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 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–
NYSEArca-2009–109 and should be
submitted on or before January 8, 2010.
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67284
Federal Register / Vol. 74, No. 242 / Friday, December 18, 2009 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–30085 Filed 12–17–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61160; File No. SR–FINRA–
2009–088]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Waiver and
Credit of Certain FINRA/Nasdaq Trade
Reporting Facility and OTC Reporting
Facility Fees
December 14, 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 December
7, 2009, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II
and III below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
‘‘establishing or changing a due, fee or
other charge’’ under Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon receipt of this
filing by the Commission. 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
FINRA is proposing to waive and
issue a credit for fees that were charged
to FINRA members under FINRA Rules
7620A and 7710 for the submission of
‘‘as/of’’ trade reports to the FINRA/
Nasdaq Trade Reporting Facility
(‘‘FINRA/Nasdaq TRF’’) and the OTC
Reporting Facility (‘‘ORF’’),
respectively, for eight days in the
months of August and September 2009.
The proposed rule change does not
require amendments to any FINRA
rules.
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
17:33 Dec 17, 2009
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Pursuant to FINRA Rules 7620A and
7710, members are charged fees for
trade reporting to the FINRA/Nasdaq
TRF and ORF, respectively, and the fee
for the submission of late trade reports,
including ‘‘as/of’’ reports, is higher than
the fee for the submission of timely
trade reports. ‘‘As/of’’ reports are reports
of trades that were executed on a date
prior to the date they were reported.
During the months of August and
September 2009, various Automated
Confirmation Transaction Service
(‘‘ACT’’) technology issues impacted
trade reporting to the FINRA/Nasdaq
TRF and the ORF for a period of eight
days: August 3, August 4, August 5,
August 17, August 21, September 16,
September 25 and September 28. Due to
the ACT technology issues, members
were unable to report trades on trade
date and thus incurred higher than
normal reporting charges due to the
higher number of ‘‘as/of’’ reports that
they were compelled to submit.
Because the higher charges were the
result of an ACT technology issue and
not the fault of the member, FINRA is
proposing to waive the fees for ‘‘as/of’’
trade reports submitted on each day
following the day on which the ACT
technology issues occurred.
Specifically, FINRA will waive the ‘‘as/
of’’ report fees for the following days in
2009: August 4, August 5, August 6,
August 18, August 24, September 17,
September 28 and September 29.
Members will be issued a credit for the
‘‘as/of’’ trade report fees charged on
these dates on a future invoice.5 FINRA
5 FINRA notes that a similar proposal to waive
and issue a credit for certain cancel fees was the
subject of a recent filing by NASDAQ OMX PHLX,
Inc. See Securities Exchange Act Release No. 60853
(October 21, 2009), 74 FR 55594 (October 28, 2009)
(Notice of Filing and Immediate Effectiveness of
File No. SR–PHLX–2009–89).
16 17
VerDate Nov<24>2008
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
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has filed the proposed rule change for
immediate effectiveness. The operative
date will be the date of filing.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with Section
15A(b)(5) of the Act,6 which requires,
among other things, that FINRA rules
provide for the equitable allocation of
reasonable dues, fees and other charges
among members and issuers and other
persons using any facility or system that
FINRA operates or controls. FINRA
believes that the proposed waiver and
credit of the ‘‘as/of’’ reporting fees is fair
and equitable in that it will apply
uniformly to all FINRA members that
submitted ‘‘as/of’’ trade reports to the
FINRA/Nasdaq TRF and ORF on the
designated dates.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA 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 either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 7 and paragraph
(f)(2) of Rule 19b–4 thereunder.8 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:
6 15
U.S.C. 78o–3(b)(5).
U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b–4(f)(2).
7 15
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]]>Agencies
[Federal Register Volume 74, Number 242 (Friday, December 18, 2009)]
[Notices]
[Pages 67282-67284]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-30085]
[[Page 67282]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61156; File No. SR-NYSEArca-2009-109]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Revising Its
Telephone Policies
December 11, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on December 3, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposed rule change pursuant to Section 19(b)(3)(A) of the
Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders it effective
upon filing with the Commission. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 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 revise its policies governing the use of
telephones on the Trading Floor. The text of the proposed rule change
is attached as Exhibit 5 to the 19b-4 form. The text of the proposed
rule change is available on the Exchange's Web site at https://www.nyse.com, on the Commission's Web site at https://www.sec.gov, at
the Exchange's principal office, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to revise NYSE Arca Rule 6.2(h)
governing the use of telephones on the Trading Floor. The proposed
revisions of Rule 6.2(h) are modeled on NYSE Amex Options Rule
902NY(i).\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 59939 (May 19,
2009), 74 FR 25779 (May 29, 2009) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change, SR-NYSEAmex-2009-17, and
Amendment No. 1 Thereto Revising Rules Governing the Use of
Telephones on the Options Trading Floor).
---------------------------------------------------------------------------
The Exchange proposes to simplify and expedite its telephone
registration process by allowing OTP Holder representatives to register
their telephones by submitting an e-mail to the NYSE Arca Options
Operations Department. This policy is consistent with NYSE Amex Options
Rule 902NY(h)(i)(1).
In addition, the Exchange notes that separate from the registration
and use of telephones, the Exchange shall retain the authority to
review and approve, prior to their use, any alternative communication
device (including but not limited to devices offering capabilities such
as e-mail, instant messaging, texting, or Internet-supported
communications). Therefore, according to proposed Rule 6.2(h)(1): No
OTP Holder, OTP Firm, or employee thereof may employ any alternative
communication device (other than telephones as described herein) on the
Trading Floor without prior approval of the Exchange.
The Exchange also proposes to combine the various designations in
Rule 6.2(h)(4)-(7) into a single section applying to all OTP Holders
and Employees of OTP Firms. In doing so, the Exchange seeks to clarify
and simplify its policy without substantively altering the scope of the
rule.\6\ This change will also result in the renumbering of the
subsections under Rule 6.2(h). This change is consistent with NYSE Amex
Options Rule 902NY(i).
---------------------------------------------------------------------------
\6\ The Exchange is not proposing to require OTP Holders and OTP
Firms to register by category of user. Such a requirement is
inapplicable since (i) the proposed rule applies to OTP Holders, OTP
Firms, and all employees thereof, regardless of category and (ii)
such a requirement was a historical response to capacity limitations
(which no longer apply) thereby allowing the Exchange to restrict
use by certain categories of users if capacity issues arose.
---------------------------------------------------------------------------
The Exchange also proposes to modify Rule 6.2(h)(5)(C) in order to
adopt the recently approved structure of NYSE Amex Rule 902NY(i)(4)(C)
pertaining to broker representations of telephonic orders to the
trading crowd. Currently, Section (h)(5)(C) sets forth that a Floor
Broker in a trading crowd who receives a telephonic order may represent
the order in the trading crowd only if an order ticket was first time-
stamped in the OTP Holder or OTP Firm's booth. The order ticket must
also be taken to the Floor Broker in the trading crowd immediately
after it is prepared. The new policy avoids this unnecessary process by
allowing Floor Brokers to represent a telephonic order to the trading
crowd so long as the order is immediately recorded into the EOC or the
Electronic Tablet. However, in cases where the exception set forth in
Rule 6.67(d)(1) applies, the EOC/Electronic Tablet Contingency
Reporting Procedures will be in effect in accordance with Rule
6.67(d)(2).\7\ In implementing this new policy, the Exchange seeks to
keep pace with the technologies utilized on its options floor.
---------------------------------------------------------------------------
\7\ Rule 6.67(d)(1) states in pertinent part, ``The EOC or
Electronic Tablet entry requirement provision of subsection (c) will
not apply to any EOC or Electronic Tablet system disruption or
malfunction as confirmed by a Trading Official.'' Rule 6.67(d)(2)
provides a procedure for reporting during periods of system
disruption of malfunction.
---------------------------------------------------------------------------
The Exchange proposes to remove all obsolete references to LMM
phones and General Access Phones. These phones were provided by the
Exchange and located at various locations on the options floor. The
Exchange no longer supports these phones, and as such, they are no
longer in operation.
In addition, the Exchange proposes to update Rule 6.2(h)(9),
Telephone Records, in order to increase the record retention period to
three years. The Exchange proposes to require that OTP Holders and OTP
Firms retain said records in an accessible place for the first two
years. This requirement is consistent with the retention period of
Securities and Exchange Commission Rule 17a-4.\8\ The Rule will also be
renumbered as 6.2(h)(5).
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\8\ This proposed rule is modeled on NYSE Amex Rule 902(i)(5).
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Consistent with NYSE Amex Rule 902NY(i)(6), the Exchange further
proposes to add Rule 6.22(h)(6) [sic],\9\ Revocation of Registration,
which establishes the Exchange's authority to deny, limit or revoke an
OTP Holder's permission to use of any registered telephone on the
Trading Floor. Although an OTP Holder need only register with the
Exchange, prior to use, any telephone to be used on the Trading Floor,
the Exchange retains the right to
[[Page 67283]]
deny, limit, or revoke an OTP Holder's permission. Specifically,
according to the proposed rule, the Exchange may deny, limit or revoke
registration of any telephone whenever it determines that use of such
device is inconsistent with the public interest, the protection of
investors, or just and equitable principles of trade, or such device
has been or is being used to facilitate any violation of the Securities
Exchange Act of 1934, as amended, or rules thereunder, or the Exchange
rules.
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\9\ The Exchange intended to refer to Rule 6.2(h)(6).
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The Exchange also proposes to update subsections (h)(13) and
(k)(i)(13) of Rule 10.12, Minor Rule Plan, in order to replace obsolete
references to prior Exchange policy and to add text designed to
specifically address violations of Exchange Rule 6.2(h) as revised
herein.
Finally, the Exchange proposes to delete Rule 11.15 as it is
duplicative of proposed Rule 6.2(h)(1) which states:
No OTP Holder, OTP Firm, or employee thereof may employ any
alternative communication device (other than telephones as described
herein) on the Trading Floor without prior approval of the Exchange.
The Exchange also proposes to remove the reference to Rule 11.15 in
Rule 6.1(e).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \10\ of the Act, in general, and furthers the
objectives of Section 6(b)(5),\11\ in particular, in that it is
designed to facilitate transactions in securities, to promote just and
equitable principles of trade, to enhance competition, and to protect
investors and the public interest, in that it proposes to modernize and
clarify rules for the use of telephones and other communication devices
on the Trading Floor.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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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, if
consistent with the protection of investors and the public interest, it
has become effective pursuant to Section 19(b)(3)(A) of the Act \12\
and Rule 19b-4(f)(6) thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the self-regulatory organization to submit to the
Commission written 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. The Exchange has satisfied this requirement.
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The Exchange has requested the Commission to waive the 30-day
operative delay to the extent that the proposal will allow NYSE Arca
to: (i) Modernize its rules regarding telephones, consistent with other
market centers; and (ii) eliminate any unnecessary discrepancies among
affiliated markets governing the use of telephones by their respective
market participants, without delay. The Commission notes that the
proposal is closely based on NYSE Amex Rule 902NY(i).\14\ The
Commission hereby grants the Exchange's request and believes that such
waiver is consistent with the protection of investors and the public
interest.\15\ Accordingly, the Commission designates the proposed rule
change operative upon filing with the Commission.
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\14\ See Securities Exchange Act Release No. 59939 (May 19,
2009), 74 FR 25779 (May 29, 2009) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto
Revising Rules Governing the Use of Telephones on the Options
Trading Floor).
\15\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2009-109 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-NYSEArca-2009-109. 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 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-NYSEArca-2009-109 and should be submitted on or before
January 8, 2010.
[[Page 67284]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-30085 Filed 12-17-09; 8:45 am]
BILLING CODE 8011-01-P
