Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Deleting Rule 445-NYSE Amex Equities and Adopting New Rule 3310-NYSE Amex Equities To Correspond With Rule Changes Filed by the Financial Industry Regulatory Authority, Inc., 1099-1101 [2010-79]
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Federal Register / Vol. 75, No. 5 / Friday, January 8, 2010 / Notices
designates the proposed rule change to
be operative upon filing with the
Commission.15
At any time within 60 days of the
filing of such proposed rule change the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEAmex–2009–91 on
the subject line.
pwalker on DSK8KYBLC1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEAmex–2009–91. 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
15 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Nov<24>2008
16:14 Jan 07, 2010
Jkt 220001
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEAmex–2009–91 and should be
submitted on or before January 29, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–77 Filed 1–7–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61272; File No. SR–
NYSEAmex–2009–99]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Deleting Rule 445—NYSE
Amex Equities and Adopting New Rule
3310—NYSE Amex Equities To
Correspond With Rule Changes Filed
by the Financial Industry Regulatory
Authority, Inc.
December 31, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on December
31, 2009, NYSE Amex LLC (the
‘‘Exchange’’ or ‘‘NYSE Amex’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially prepared by the
Exchange. 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 delete Rule
445—NYSE Amex Equities and adopt
new Rule 3310—NYSE Amex Equities
to correspond with rule changes filed by
the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) and approved
by the Commission.4 The text of the
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 See Securities Exchange Act Release No. 60645
(September 10, 2009), 74 FR 47630 (September 16,
2009) (order approving SR–FINRA–2009–039).
1 15
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
1099
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
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 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 the proposed rule
changes is to delete Rule 445—NYSE
Amex Equities (Anti-Money Laundering
Compliance Program) and adopt new
Rule 3310—NYSE Amex Equities (AntiMoney Laundering Compliance
Program) to correspond with rule
changes filed by FINRA and approved
by the Commission.
Background
On July 30, 2007, FINRA’s
predecessor, the National Association of
Securities Dealers, Inc. (‘‘NASD’’), and
NYSE Regulation, Inc. (‘‘NYSER’’)
consolidated their member firm
regulation operations into a combined
organization, FINRA. Pursuant to Rule
17d–2 under the Act, the New York
Stock Exchange LLC (‘‘NYSE’’), NYSER
and FINRA entered into an agreement
(the ‘‘Agreement’’) to reduce regulatory
duplication for their members by
allocating to FINRA certain regulatory
responsibilities for certain NYSE rules
and rule interpretations (‘‘FINRA
Incorporated NYSE Rules’’). The
Exchange became a party to the
Agreement effective December 15,
2008.5
5 See Securities Exchange Act Release Nos. 56148
(July 26, 2007), 72 FR 42146 (August 1, 2007) (order
approving the Agreement); 56147 (July 26, 2007), 72
FR 42166 (August 1, 2007) (SR–NASD–2007–054)
(order approving the incorporation of certain NYSE
Rules as ‘‘Common Rules’’); and 60409 (July 30,
2009), 74 FR 39353 (August 6, 2009) (order
approving the amended and restated Agreement,
adding NYSE Amex LLC as a party). Paragraph 2(b)
of the Agreement sets forth procedures regarding
proposed changes by FINRA, NYSE or NYSE Amex
to the substance of any of the Common Rules.
E:\FR\FM\08JAN1.SGM
08JAN1
1100
Federal Register / Vol. 75, No. 5 / Friday, January 8, 2010 / Notices
As part of its effort to reduce
regulatory duplication and relieve firms
that are members of FINRA, NYSE and
NYSE Amex of conflicting or
unnecessary regulatory burdens, FINRA
is now engaged in the process of
reviewing and amending the NASD and
FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA
rulebook.6
pwalker on DSK8KYBLC1PROD with NOTICES
Proposed Conforming Amendments to
NYSE Rules
FINRA adopted, subject to certain
amendments, NASD Rule 3011 (AntiMoney Laundering Compliance
Program) and related Interpretive
Material NASD IM–3011–1 and 3011–2
as consolidated FINRA Rule 3310 (AntiMoney Laundering Compliance
Program), and deleted FINRA
Incorporated NYSE Rule 445 (AntiMoney Laundering Compliance
Program) as duplicative of the new
Rule.7
Because it is substantially similar to
the provisions of FINRA Rule 3310,
FINRA deleted FINRA Incorporated
NYSE Rule 445. In particular, FINRA
Incorporated NYSE Rule 445(1)–(5) are
substantially the same as consolidated
FINRA Rule 3310(a)–(e). In addition,
Supplementary Material .10 and .20 to
FINRA Incorporated NYSE Rule 445 are
substantially the same as
Supplementary Material .01 to
consolidated FINRA Rule 3310. Finally,
read together, part (4) and
Supplementary Material .30 to FINRA
Incorporated NYSE Rule 445 are
substantially the same as
Supplementary Material .02 to
consolidated FINRA Rule 3310 with
respect to the notification of AML
compliance person designations.8
To harmonize the NYSE Amex
Equities Rules with the approved
consolidated FINRA Rules, the
Exchange correspondingly proposes to
delete Rule 445—NYSE Amex Equities
and replace it with proposed Rule
3310—NYSE Amex Equities, which is
substantially similar to the new FINRA
Rule.9 As proposed, Rule 3310—NYSE
Amex Equities adopts the same
6 FINRA’s rulebook currently has three sets of
rules: (1) NASD Rules, (2) FINRA Incorporated
NYSE Rules, and (3) consolidated FINRA Rules.
The FINRA Incorporated NYSE Rules apply only to
those members of FINRA that are also members of
the NYSE, while the consolidated FINRA Rules
apply to all FINRA members. For more information
about the FINRA rulebook consolidation process,
see FINRA Information Notice, March 12, 2008.
7 See Securities Exchange Act Release No. 60645
(September 10, 2009), 74 FR 47630 (September 16,
2009).
8 Id.
9 NYSE has submitted a companion rule filing
amending its rules in accordance with FINRA’s rule
changes. See SR–NYSE–2009–134.
VerDate Nov<24>2008
16:14 Jan 07, 2010
Jkt 220001
language as FINRA Rule 3310, except
for substituting for or adding to, as
needed, the term ‘‘member organization’’
for the term ‘‘member,’’ and making
corresponding technical changes that
reflect the difference between NYSE
Amex’s and FINRA’s membership
structures. In addition, in
Supplementary Material .02 to proposed
Rule 3310, the Exchange added a crossreference to Rule 416A—NYSE Amex
Equities to ensure that those Exchange
members and member organizations that
are not FINRA members are required to
update the contact information for antimoney laundering compliance
personnel in accordance with NYSE
Amex Equities Rules.
Finally, in order to ensure that both
proposed Rule 3310—NYSE Amex
Equities and FINRA Rule 3310 are fully
harmonized, the Exchange also proposes
to add Supplementary Material .03 to
Rule 3310—NYSE Amex Equities to
provide that, for the purposes of the
rule, the term ‘‘associated person of the
member or member organization’’ shall
have the same meaning as the terms
‘‘person associated with a member’’ or
‘‘associated person of a member’’ as
defined in Article I (rr) of the FINRA ByLaws.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,10 in general, and
further the objectives of Section 6(b)(5)
of the Act,11 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, 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 supports the
objectives of the Act by providing
greater harmonization between NYSE
Amex Equities Rules and FINRA Rules
of similar purpose, resulting in less
burdensome and more efficient
regulatory compliance for joint
members. To the extent the Exchange’s
proposal differs from FINRA’ version of
the Rules, such changes are technical in
nature and do not change the substance
of the proposed NYSE Amex Equities
Rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
10 15
11 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00075
Fmt 4703
Sfmt 4703
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 12 and Rule
19b–4(f)(6) thereunder.13 Because the
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
prior to 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, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),15 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The
Commission notes that the proposed
rule change is substantially identical to
a rule change proposed by FINRA and
approved by the Commission after an
opportunity for public comment, and
does not raise any new substantive
issues.16 For these reasons, the
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest because it will promote
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii). 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.
16 See supra note 7.
13 17
E:\FR\FM\08JAN1.SGM
08JAN1
Federal Register / Vol. 75, No. 5 / Friday, January 8, 2010 / Notices
greater harmonization between NYSE
Amex Equities Rules and FINRA Rules
of similar purpose, resulting in less
burdensome and more efficient
regulatory compliance for joint members
and greater harmonization between
NYSE Amex Equities Rules and FINRA
Rules. Therefore, the Commission
designates the proposed rule change
effective and operative upon filing.17
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:
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 the filing will also be available
for inspection and copying at the
NYSE’s principal office and on its
Internet Web site at https://
www.nyse.com. All comments received
will be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEAmex–2009–99 and should be
submitted on or before January 29, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–79 Filed 1–7–10; 8:45 am]
BILLING CODE 8011–01–P
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–2009–99 on
the subject line.
pwalker on DSK8KYBLC1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEAmex–2009–99. 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
17 For
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Nov<24>2008
16:14 Jan 07, 2010
Jkt 220001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61261; File No. SR–BX–
2009–086]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to the
Minimum Trading Increments on the
Boston Options Exchange Facility
December 30, 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
24, 2009, NASDAQ OMX BX, Inc. (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. The Exchange filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act,3 and Rule
19b–4(f)(6) thereunder,4 which renders
the proposal effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule from
interested persons.
18 17
CFR 200.30–3(a)(12).
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).
1101
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Chapter V, Section 6 (Minimum Trading
Increments) of the Rules of the Boston
Options Exchange Group, LLC (‘‘BOX’’).
The text of the proposed rule change is
available from the principal office of the
Exchange, on the Exchange’s Internet
Web site at https://
nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/, at the
Commission’s Public Reference Room,
and also on the Commission’s Web site
at https://www.sec.gov.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On October 19, 2009 the Exchange
submitted a proposed rule change to
amend Chapter V, Section 33 (Penny
Pilot Program) of the BOX Rules to (i)
extend the Penny Pilot Program in
options classes (‘‘Penny Pilot Program’’
or ‘‘Pilot’’) previously approved by the
Securities and Exchange Commission
(‘‘Commission’’) through December 31,
2010; (ii) expand the number of classes
included in the Pilot; and (iii) replace
on a semi-annual basis any Pilot
Program classes that have been
delisted.5
The Exchange now proposes to
designate two Penny Pilot Program
classes as eligible to quote and trade all
options contracts in one cent
increments, regardless of premium
value. Specifically, the Exchange
proposes to so designate SPY (SPDR
S&P 500 ETF) and IWM (iShares Russell
2000 Index Fund). In selecting these
classes the Exchange considered, among
other things, that these symbols are (a)
1 15
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
5 See Securities Exchange Act Release No. 60886
(October 27, 2009), 74 FR 56897 (November 3, 2009)
(SR–BX–2009–067).
E:\FR\FM\08JAN1.SGM
08JAN1
]]>Agencies
[Federal Register Volume 75, Number 5 (Friday, January 8, 2010)]
[Notices]
[Pages 1099-1101]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-79]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61272; File No. SR-NYSEAmex-2009-99]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Deleting Rule
445--NYSE Amex Equities and Adopting New Rule 3310--NYSE Amex Equities
To Correspond With Rule Changes Filed by the Financial Industry
Regulatory Authority, Inc.
December 31, 2009.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on December 31, 2009, NYSE Amex LLC (the ``Exchange'' or
``NYSE Amex'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been substantially prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to delete Rule 445--NYSE Amex Equities and
adopt new Rule 3310--NYSE Amex Equities to correspond with rule changes
filed by the Financial Industry Regulatory Authority, Inc. (``FINRA'')
and approved by the Commission.\4\ The text of the proposed rule change
is available at the Exchange, the Commission's Public Reference Room,
and https://www.nyse.com.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 60645 (September 10,
2009), 74 FR 47630 (September 16, 2009) (order approving SR-FINRA-
2009-039).
---------------------------------------------------------------------------
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 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 the proposed rule changes is to delete Rule 445--
NYSE Amex Equities (Anti-Money Laundering Compliance Program) and adopt
new Rule 3310--NYSE Amex Equities (Anti-Money Laundering Compliance
Program) to correspond with rule changes filed by FINRA and approved by
the Commission.
Background
On July 30, 2007, FINRA's predecessor, the National Association of
Securities Dealers, Inc. (``NASD''), and NYSE Regulation, Inc.
(``NYSER'') consolidated their member firm regulation operations into a
combined organization, FINRA. Pursuant to Rule 17d-2 under the Act, the
New York Stock Exchange LLC (``NYSE''), NYSER and FINRA entered into an
agreement (the ``Agreement'') to reduce regulatory duplication for
their members by allocating to FINRA certain regulatory
responsibilities for certain NYSE rules and rule interpretations
(``FINRA Incorporated NYSE Rules''). The Exchange became a party to the
Agreement effective December 15, 2008.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 56148 (July 26,
2007), 72 FR 42146 (August 1, 2007) (order approving the Agreement);
56147 (July 26, 2007), 72 FR 42166 (August 1, 2007) (SR-NASD-2007-
054) (order approving the incorporation of certain NYSE Rules as
``Common Rules''); and 60409 (July 30, 2009), 74 FR 39353 (August 6,
2009) (order approving the amended and restated Agreement, adding
NYSE Amex LLC as a party). Paragraph 2(b) of the Agreement sets
forth procedures regarding proposed changes by FINRA, NYSE or NYSE
Amex to the substance of any of the Common Rules.
---------------------------------------------------------------------------
[[Page 1100]]
As part of its effort to reduce regulatory duplication and relieve
firms that are members of FINRA, NYSE and NYSE Amex of conflicting or
unnecessary regulatory burdens, FINRA is now engaged in the process of
reviewing and amending the NASD and FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA rulebook.\6\
---------------------------------------------------------------------------
\6\ FINRA's rulebook currently has three sets of rules: (1) NASD
Rules, (2) FINRA Incorporated NYSE Rules, and (3) consolidated FINRA
Rules. The FINRA Incorporated NYSE Rules apply only to those members
of FINRA that are also members of the NYSE, while the consolidated
FINRA Rules apply to all FINRA members. For more information about
the FINRA rulebook consolidation process, see FINRA Information
Notice, March 12, 2008.
---------------------------------------------------------------------------
Proposed Conforming Amendments to NYSE Rules
FINRA adopted, subject to certain amendments, NASD Rule 3011 (Anti-
Money Laundering Compliance Program) and related Interpretive Material
NASD IM-3011-1 and 3011-2 as consolidated FINRA Rule 3310 (Anti-Money
Laundering Compliance Program), and deleted FINRA Incorporated NYSE
Rule 445 (Anti-Money Laundering Compliance Program) as duplicative of
the new Rule.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 60645 (September 10,
2009), 74 FR 47630 (September 16, 2009).
---------------------------------------------------------------------------
Because it is substantially similar to the provisions of FINRA Rule
3310, FINRA deleted FINRA Incorporated NYSE Rule 445. In particular,
FINRA Incorporated NYSE Rule 445(1)-(5) are substantially the same as
consolidated FINRA Rule 3310(a)-(e). In addition, Supplementary
Material .10 and .20 to FINRA Incorporated NYSE Rule 445 are
substantially the same as Supplementary Material .01 to consolidated
FINRA Rule 3310. Finally, read together, part (4) and Supplementary
Material .30 to FINRA Incorporated NYSE Rule 445 are substantially the
same as Supplementary Material .02 to consolidated FINRA Rule 3310 with
respect to the notification of AML compliance person designations.\8\
---------------------------------------------------------------------------
\8\ Id.
---------------------------------------------------------------------------
To harmonize the NYSE Amex Equities Rules with the approved
consolidated FINRA Rules, the Exchange correspondingly proposes to
delete Rule 445--NYSE Amex Equities and replace it with proposed Rule
3310--NYSE Amex Equities, which is substantially similar to the new
FINRA Rule.\9\ As proposed, Rule 3310--NYSE Amex Equities adopts the
same language as FINRA Rule 3310, except for substituting for or adding
to, as needed, the term ``member organization'' for the term
``member,'' and making corresponding technical changes that reflect the
difference between NYSE Amex's and FINRA's membership structures. In
addition, in Supplementary Material .02 to proposed Rule 3310, the
Exchange added a cross-reference to Rule 416A--NYSE Amex Equities to
ensure that those Exchange members and member organizations that are
not FINRA members are required to update the contact information for
anti-money laundering compliance personnel in accordance with NYSE Amex
Equities Rules.
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\9\ NYSE has submitted a companion rule filing amending its
rules in accordance with FINRA's rule changes. See SR-NYSE-2009-134.
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Finally, in order to ensure that both proposed Rule 3310--NYSE Amex
Equities and FINRA Rule 3310 are fully harmonized, the Exchange also
proposes to add Supplementary Material .03 to Rule 3310--NYSE Amex
Equities to provide that, for the purposes of the rule, the term
``associated person of the member or member organization'' shall have
the same meaning as the terms ``person associated with a member'' or
``associated person of a member'' as defined in Article I (rr) of the
FINRA By-Laws.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and further the
objectives of Section 6(b)(5) of the Act,\11\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
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.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change supports the
objectives of the Act by providing greater harmonization between NYSE
Amex Equities Rules and FINRA Rules of similar purpose, resulting in
less burdensome and more efficient regulatory compliance for joint
members. To the extent the Exchange's proposal differs from FINRA'
version of the Rules, such changes are technical in nature and do not
change the substance of the proposed NYSE Amex Equities Rules.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\
Because the 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 prior to
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, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission notes that
the proposed rule change is substantially identical to a rule change
proposed by FINRA and approved by the Commission after an opportunity
for public comment, and does not raise any new substantive issues.\16\
For these reasons, the Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest because it will promote
[[Page 1101]]
greater harmonization between NYSE Amex Equities Rules and FINRA Rules
of similar purpose, resulting in less burdensome and more efficient
regulatory compliance for joint members and greater harmonization
between NYSE Amex Equities Rules and FINRA Rules. Therefore, the
Commission designates the proposed rule change effective and operative
upon filing.\17\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii). 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.
\16\ See supra note 7.
\17\ For purposes only of waiving the 30-day operative delay,
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-NYSEAmex-2009-99 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-2009-99. 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 the filing will also be available for
inspection and copying at the NYSE's principal office and on its
Internet Web site at https://www.nyse.com. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEAmex-2009-99 and should be submitted
on or before January 29, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-79 Filed 1-7-10; 8:45 am]
BILLING CODE 8011-01-P
