Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NSX Rule 11 Governing Round Lots, Odd Lots and Mixed Lots., 69158-69159 [E9-30911]

Download as PDF 69158 Federal Register / Vol. 74, No. 249 / Wednesday, December 30, 2009 / Notices certifications issued under E.O. 13490 of January 21, 2009, Ethics Commitments by Executive Branch Personnel. Category of Records ‘‘o’’ records maintained in accordance with E.O. 13490, section 4(e), January 21, 2009. These records include the ethics pledge and all pledge waiver certifications with respect thereto. U.S. Office of Personnel Management. John Berry, Director. [FR Doc. E9–31026 Filed 12–29–09; 8:45 am] BILLING CODE 6325–39–P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting Notice Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold a Closed Meeting on Tuesday, December 29, 2009 at 10 a.m. Commissioners, Counsel to the Commissioners, the Deputy Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matter also may be present. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(5), (7), 9(B) and (10) and 17 CFR 200.402(a)(5), (7), 9(ii) and (10), permit consideration of the scheduled matter at the Closed Meeting. Commissioner Paredes, as duty officer, voted to consider the item listed for the Closed Meeting in a closed session, and determined that no earlier notice thereof was possible. The subject matter of the Closed Meeting scheduled for Tuesday, December 29, 2009 will be: mstockstill on DSKH9S0YB1PROD with NOTICES [A] matter related to an enforcement proceeding. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. December 28, 2009. Florence E. Harmon, Deputy Secretary. [FR Doc. E9–31076 Filed 12–28–09; 4:15 pm] 19:01 Dec 29, 2009 [Release No. 34–61221; File No. SR–NSX– 2009–08] Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NSX Rule 11 Governing Round Lots, Odd Lots and Mixed Lots. December 22, 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 17, 2009, National Stock Exchange, Inc. (‘‘NSX’’ or ‘‘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 Exchange. The Commission is publishing this notice to solicit comment on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is proposing to amend NSX Rules 11.2 and 11.11 governing round, odd and mixed lots. The text of the proposed rule change is available on the Exchange’s Web site at https://www.nsx.com, on the Commission’s Web site at https:// www.sec.gov, at the principal office of the Exchange, 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 Exchange 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 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 NSX Rules 11.2 and 11.11(c)(4) in order 1 15 2 17 BILLING CODE 8011–01–P VerDate Nov<24>2008 SECURITIES AND EXCHANGE COMMISSION Jkt 220001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00098 Fmt 4703 Sfmt 4703 to clarify the Exchange’s rules regarding round lots, odd lots and fixed lots. The proposed changes are part of an effort to provide clarity with respect to such definitions in the context of an overriding interest in maintaining a fair and orderly market, protecting investors and protecting the public interest. The proposed changes are more fully discussed below. The definitions of ‘‘round lot’’, ‘‘odd lot’’ and ‘‘mixed lot’’ in Rule 11.2 are proposed to be modified in order to clarify their meanings and to conform with common usage and treatment within the financial industry.3 The definition of ‘‘round lot’’ is being modified to mean a normal unit of trading, which is most frequently (but not always) 100 shares. Similarly, the definitions of ‘‘odd lot’’ and ‘‘mixed lot’’ are rephrased for purposes of clarity and transparency. In addition, in proposed Rule 11.11(c)(4), the definition of ‘‘Mixed Lot Order’’ is modified in order to clarify the Exchange’s treatment of the odd lot portion of Mixed Lot Orders. The newly added language in proposed Rule 11.11(c)(4) confirms that Mixed Lot Orders may be entered, and clarifies that the Exchange will treat the odd lot component of a Mixed Lot Order for purposes of order interaction as an Odd Lot Order. This language is intended to clarify for purposes of certainty and transparency how the Exchange treats the odd lot portions of Mixed Lot Orders. Consistent with the new language, the revised rule retains the existing statement that the odd lot components of Mixed Lot Orders are only eligible to be protected quotations if aggregated to form a round lot.4 Providing this clarity with respect to the treatment of the odd lot component of a mixed lot order is consistent with the rules of other markets which specifically provide for the treatment of the odd lot components of mixed lot orders.5 Further, such treatment is consistent with Reg NMS, including Rules 610 and 611, which permit market centers to establish rules for the 3 See FINRA Rule 6320A (‘‘ ‘Normal unit of trading’ means 100 shares of a security unless, with respect to a particular security, FINRA determines that a normal unit of trading shall constitute other than 100 shares’’). 4 The round lot component of a Mixed Lot Order is treated as a round lot order. 5 See NYSE Rule 124 on Odd Lot Orders and Supplementary Material .40 thereto; see also ISE Rule 2105(c)(3) (providing that the odd lot component of a mixed lot order will be treated the same as an odd lot order, i.e., rejected unless it meets certain requirements). E:\FR\FM\30DEN1.SGM 30DEN1 Federal Register / Vol. 74, No. 249 / Wednesday, December 30, 2009 / Notices handling of odd-lot orders and the oddlot portions of mixed-lot orders.6 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b) of the Act,7 in general, and furthers the objectives of Section 6(b)(5) 8 in particular in that it is designed, among other things, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Exchange believes that the proposed rule change advances these objectives by providing transparency and certainty with respect to the definitions of terms frequently used in the Exchange’s rules and by clarifying the Exchange’s treatment of the odd lot component of Mixed Lot Orders. 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 Exchange Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. mstockstill on DSKH9S0YB1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change will take effect 30 days from the date of filing (or such shorter time as the Commission may designate) pursuant to Section 19(b)(3)(A)(ii) of the Act 9 and subparagraph (f)(6) of Rule 19b–4 10 thereunder, because the proposal: (1) Does not significantly affect the protection of investors or the public interest; (2) does not impose any significant burden on competition; and (3) does not become operative for 30 days from the date of filing, or such shorter time as the Commission may 6 See Responses to Frequently Asked Questions Concerning Rule 611 and Rule 610 of Regulation NMS, Question 7.03: Odd-Lot Orders and Odd-Lot Portions of Mixed-Lot Orders (‘‘trading centers are permitted to establish their own rules for handling odd-lot orders and the odd-lot portions of mixedlot orders’’). 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(4) [sic]. 9 15 U.S.C. 78s(b)(3)(A)(ii). 10 17 CFR 240.19b–4. VerDate Nov<24>2008 19:01 Dec 29, 2009 Jkt 220001 designate if consistent with the protection of investors and the public interest; provided that the selfregulatory organization has given the Commission written notice of its intent to file the proposed rule change at least five business days prior to the filing date of the proposed rule change.11 Pursuant to Rule 19b–4(f)(6)(iii) under the Act,12 the Commission may designate a shorter time period if such action is consistent with the protection of investors and the public interest. The Exchange requests that the effective date for the instant rule change be thirty days after the date of filing of this rule change, or such earlier date as the Commission determines. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.13 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–NSX–2009–08 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–NSX–2009–08. 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 11 As required under Rule 19b–4(f)(6)(iii), NSX provided the Commission with written notice of its intent to file the proposed rule change at least five business days prior to the filing date. 12 17 CFR 19b–4(f)(6)(iii). 13 15 U.S.C. 78s(b)(3)(C). PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 69159 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–NSX–2009–08 and should be submitted on or before January 20, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–30911 Filed 12–29–09; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61224; File No. SR– NASDAQ–2009–110] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend IM– 2110–7 To Reflect Changes to Corresponding FINRA Rule December 22, 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 14, 2009, The NASDAQ Stock Market LLC (the ‘‘Exchange’’ or ‘‘NASDAQ’’) 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 Exchange. The Exchange has designated the proposed rule change as constituting a non-controversial rule change under 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\30DEN1.SGM 30DEN1

Agencies

[Federal Register Volume 74, Number 249 (Wednesday, December 30, 2009)]
[Notices]
[Pages 69158-69159]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-30911]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61221; File No. SR-NSX-2009-08]


 Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend NSX Rule 11 Governing Round Lots, Odd Lots and Mixed Lots.

December 22, 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 17, 2009, National Stock Exchange, Inc. (``NSX'' or 
``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 Exchange. The 
Commission is publishing this notice to solicit comment on the proposed 
rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange is proposing to amend NSX Rules 11.2 and 11.11 
governing round, odd and mixed lots.
    The text of the proposed rule change is available on the Exchange's 
Web site at https://www.nsx.com, on the Commission's Web site at https://www.sec.gov, at the principal office of the Exchange, 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 Exchange 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 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 NSX Rules 11.2 and 11.11(c)(4) in 
order to clarify the Exchange's rules regarding round lots, odd lots 
and fixed lots. The proposed changes are part of an effort to provide 
clarity with respect to such definitions in the context of an 
overriding interest in maintaining a fair and orderly market, 
protecting investors and protecting the public interest. The proposed 
changes are more fully discussed below.
    The definitions of ``round lot'', ``odd lot'' and ``mixed lot'' in 
Rule 11.2 are proposed to be modified in order to clarify their 
meanings and to conform with common usage and treatment within the 
financial industry.\3\ The definition of ``round lot'' is being 
modified to mean a normal unit of trading, which is most frequently 
(but not always) 100 shares. Similarly, the definitions of ``odd lot'' 
and ``mixed lot'' are rephrased for purposes of clarity and 
transparency.
---------------------------------------------------------------------------

    \3\ See FINRA Rule 6320A (`` `Normal unit of trading' means 100 
shares of a security unless, with respect to a particular security, 
FINRA determines that a normal unit of trading shall constitute 
other than 100 shares'').
---------------------------------------------------------------------------

    In addition, in proposed Rule 11.11(c)(4), the definition of 
``Mixed Lot Order'' is modified in order to clarify the Exchange's 
treatment of the odd lot portion of Mixed Lot Orders. The newly added 
language in proposed Rule 11.11(c)(4) confirms that Mixed Lot Orders 
may be entered, and clarifies that the Exchange will treat the odd lot 
component of a Mixed Lot Order for purposes of order interaction as an 
Odd Lot Order. This language is intended to clarify for purposes of 
certainty and transparency how the Exchange treats the odd lot portions 
of Mixed Lot Orders. Consistent with the new language, the revised rule 
retains the existing statement that the odd lot components of Mixed Lot 
Orders are only eligible to be protected quotations if aggregated to 
form a round lot.\4\ Providing this clarity with respect to the 
treatment of the odd lot component of a mixed lot order is consistent 
with the rules of other markets which specifically provide for the 
treatment of the odd lot components of mixed lot orders.\5\ Further, 
such treatment is consistent with Reg NMS, including Rules 610 and 611, 
which permit market centers to establish rules for the

[[Page 69159]]

handling of odd-lot orders and the odd-lot portions of mixed-lot 
orders.\6\
---------------------------------------------------------------------------

    \4\ The round lot component of a Mixed Lot Order is treated as a 
round lot order.
    \5\ See NYSE Rule 124 on Odd Lot Orders and Supplementary 
Material .40 thereto; see also ISE Rule 2105(c)(3) (providing that 
the odd lot component of a mixed lot order will be treated the same 
as an odd lot order, i.e., rejected unless it meets certain 
requirements).
    \6\ See Responses to Frequently Asked Questions Concerning Rule 
611 and Rule 610 of Regulation NMS, Question 7.03: Odd-Lot Orders 
and Odd-Lot Portions of Mixed-Lot Orders (``trading centers are 
permitted to establish their own rules for handling odd-lot orders 
and the odd-lot portions of mixed-lot orders'').
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) of the Act,\7\ in general, and 
furthers the objectives of Section 6(b)(5) \8\ in particular in that it 
is designed, among other things, to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and, in 
general, to protect investors and the public interest. The Exchange 
believes that the proposed rule change advances these objectives by 
providing transparency and certainty with respect to the definitions of 
terms frequently used in the Exchange's rules and by clarifying the 
Exchange's treatment of the odd lot component of Mixed Lot Orders.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) [sic].
---------------------------------------------------------------------------

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 Exchange Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change will take effect 30 days from the date of 
filing (or such shorter time as the Commission may designate) pursuant 
to Section 19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(6) of 
Rule 19b-4 \10\ thereunder, because the proposal: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) does not become operative for 30 days from the date of filing, 
or such shorter time as the Commission may designate if consistent with 
the protection of investors and the public interest; provided that the 
self-regulatory organization has given the Commission written notice of 
its intent to file the proposed rule change at least five business days 
prior to the filing date of the proposed rule change.\11\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4.
    \11\ As required under Rule 19b-4(f)(6)(iii), NSX provided the 
Commission with written notice of its intent to file the proposed 
rule change at least five business days prior to the filing date.
---------------------------------------------------------------------------

    Pursuant to Rule 19b-4(f)(6)(iii) under the Act,\12\ the Commission 
may designate a shorter time period if such action is consistent with 
the protection of investors and the public interest. The Exchange 
requests that the effective date for the instant rule change be thirty 
days after the date of filing of this rule change, or such earlier date 
as the Commission determines.
---------------------------------------------------------------------------

    \12\ 17 CFR 19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.\13\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

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-NSX-2009-08 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-NSX-2009-08. 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-NSX-2009-08 and should be 
submitted on or before January 20, 2010.
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-30911 Filed 12-29-09; 8:45 am]
BILLING CODE 8011-01-P
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