Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE Amex Equities Rule 18 To Eliminate the $500 Minimum Net Loss Requirement for a Member Organization To Seek Compensation in the Event of an Exchange System Failure, 1670-1672 [2010-299]
Download as PDF
<![CDATA[
1670
Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices
more inclusive and provide more
opportunities for member organizations
to be compensated for losses sustained
in relation to an Exchange system
failure thus protecting investors and the
public interest.
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.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
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 19b–4(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 believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because doing so will allow member
organizations to immediately seek
compensation for losses of less than
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).
15:14 Jan 11, 2010
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make publicly available. All
submissions should refer to File
Number SR–NYSE–2009–135 and
should be submitted on or before
February 2, 2010.
IV. Solicitation of Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2009–135 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2009–135. 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
16 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposal’s impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
13 17
VerDate Nov<24>2008
$500 sustained in relation to an
Exchange system failure. For this
reason, the Commission designates that
the proposed rule change become
immediately operative.16
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.
Jkt 220001
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
[FR Doc. 2010–301 Filed 1–11–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61293; File No. SR–
NYSEAmex–2009–100]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Amending NYSE Amex
Equities Rule 18 To Eliminate the $500
Minimum Net Loss Requirement for a
Member Organization To Seek
Compensation in the Event of an
Exchange System Failure
January 6, 2010.
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 prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Amex Equities Rule 18
(‘‘Compensation in Relation to Exchange
System Failure’’) to eliminate the $500
minimum net loss requirement for a
member organization to seek
17 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.
1 15
E:\FR\FM\12JAN1.SGM
12JAN1
Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices
compensation in the event of an
Exchange System failure. The text of the
proposed rule change is available at the
Exchange, the Commission’s Public
Reference Room, the Commission’s Web
site at https://www.sec.gov, and the
Exchange’s Web site at https://
www.nyse.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Through this filing, the Exchange
proposes to amend NYSE Amex Equities
Rule 18 (‘‘Compensation in Relation to
Exchange System Failure’’) to eliminate
the $500 minimum net loss requirement
for a member organization to seek
compensation in the event of an
Exchange System failure. Member
organizations would therefore be
permitted to submit a claim for
compensations without having to meet
a minimum net loss threshold as long as
such claims meet the other criteria of
NYSE Amex Equities Rule 18.4
NYSE Amex Equities Rule 18 was
established to provide a mechanism for
member organizations to receive
compensation for losses sustained in
relation to an Exchange system failure.
It provides that member organizations
that sustain a loss in relation to an
Exchange system failure are eligible to
submit a claim, per incident, for
compensation to the Exchange if certain
requirements are met. Specifically,
pursuant to NYSE Amex Equities Rule
18(a), claim is eligible for compensation
if the Exchange determines that: (i) A
valid order was accepted by the
Exchange’s systems; (ii) an Exchange
system failure, as defined in NYSE
Amex Equities Rule 18(b), occurred
during the execution of said order; (iii)
a member organization sustained a loss
4 The
Exchange notes that similar changes are
proposed to the rules of its affiliate, New York
Stock Exchange LLC. See SR–NYSE–2009–135.
VerDate Nov<24>2008
15:14 Jan 11, 2010
Jkt 220001
related to an Exchange system failure;
(iv) the net loss was at least $500; and
(v) the Exchange or its designee received
from the member organizations that
sustained such loss, verbal 5 notice by
the market opening on the next business
day following the system failure and
written notice by the end of the third
business day following the system
failure.
The provision that the member
organization sustain a minimum net
total loss of $500 requires the member
organization to deduct any profits
received in relation to the same incident
before submitting the claim amount.6
Member organizations are not permitted
to aggregate losses incurred as a result
of more than one system failure in order
to satisfy the $500 minimum claim
requirement. As a result, certain
member organizations have been
precluded from submitting claims for
losses sustained in relation to an
Exchange system failure.
The Exchange seeks to have the rule
be even more inclusive of its member
organizations that may sustain a loss in
the event of an Exchange system failure.
Based on its experience, the Exchange
has concluded that it is no longer
necessary to prescribe a minimum net
loss in order for its member
organizations to be eligible to submit
claims. Accordingly, the Exchange seeks
to eliminate the minimum net loss
provision of NYSE Amex Equities Rule
18. The Exchange believes that this will
allow more member organizations
opportunities to seek compensation for
losses sustained in relation to an
Exchange system failure.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Securities Exchange Act of 1934
(the ‘‘Act’’),7 in general, and furthers the
objectives of Section 6(b)(5) of the Act,8
in particular, in that 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
5 Through this filing the Exchange further seeks
to change the word ‘‘verbal’’ to the word ‘‘oral’’ to
make clear that the initial notice is not required in
writing.
6 See Securities Exchange Release No. 59482
(March 2, 2009), 74 FR 10114 (March 9, 2009) (SR–
NYSEALTR–2009–13) (Clarifying, among other
things, that if members and member organizations
retain profits from a system malfunction, then they
are required to net such profits against any losses
from the same malfunction before submitting any
claims).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
1671
general, to protect investors and the
public interest. The Exchange believes
the proposed rule change is in keeping
with these principles in that it serves to
eliminate the minimum net loss
threshold requirement in relation to an
Exchange system failure in order to be
more inclusive and provide more
opportunities for member organizations
to be compensated for losses sustained
in relation to an Exchange system
failure thus protecting investors and the
public interest.
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 9 and Rule
19b-4(f)(6) thereunder.10 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) 11 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b-4(f)(6)(iii),12 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
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
10 17
E:\FR\FM\12JAN1.SGM
12JAN1
1672
Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices
become operative immediately upon
filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because doing so will allow member
organizations to immediately seek
compensation for losses of less than
$500 sustained in relation to an
Exchange system failure. For this
reason, the Commission designates that
the proposed rule change become
immediately operative.13
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.
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make publicly available. All
submissions should refer to File
Number SR–NYSEAmex–2009–100 and
should be submitted on or before
February 2, 2010.
IV. Solicitation of Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
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–2009–100 on
the subject line.
WReier-Aviles on DSKGBLS3C1PROD 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–2009–100.
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
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposal’s impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
VerDate Nov<24>2008
15:14 Jan 11, 2010
Jkt 220001
[FR Doc. 2010–299 Filed 1–11–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61302; File No. SR–FINRA–
2009–095]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change To Adopt
FINRA Rule 3240 (Borrowing From or
Lending to Customers) in the
Consolidated FINRA Rulebook
January 6, 2010.
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 31, 2009,
Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) 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
substantially prepared by FINRA. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to adopt NASD
Rule 2370 (Borrowing From or Lending
to Customers) as FINRA Rule 3240
(Borrowing From or Lending to
Customers) in the Consolidated FINRA
Rulebook 3 with certain changes and to
delete Incorporated NYSE Rules 352(e)
(Limitations on Borrowing From or
Lending to Customers), (f) (Loan
Procedures) and (g). The proposed rule
change also would add a Supplementary
Material section regarding record
retention requirements to proposed
FINRA Rule 3240.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA 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,
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
As part of the process of developing
a new consolidated rulebook
(‘‘Consolidated FINRA Rulebook’’),4
FINRA is proposing to adopt NASD
Rule 2370 as FINRA Rule 3240 in the
Consolidated FINRA Rulebook with
certain changes as described below. The
proposed rule change also would delete
Incorporated NYSE Rules 352(e)
3 See
supra note 4 and accompanying text.
current FINRA rulebook consists of (1)
FINRA Rules; (2) NASD Rules; and (3) rules
incorporated from NYSE (‘‘Incorporated NYSE
Rules’’) (together, the NASD Rules and Incorporated
NYSE Rules are referred to as the ‘‘Transitional
Rulebook’’). While the NASD Rules generally apply
to all FINRA members, the Incorporated NYSE
Rules apply only to those members of FINRA that
are also members of the NYSE (‘‘Dual Members’’).
The FINRA Rules apply to all FINRA members,
unless such rules have a more limited application
by their terms. For more information about the
rulebook consolidation process, see Information
Notice, March 12, 2008 (Rulebook Consolidation
Process).
4 The
E:\FR\FM\12JAN1.SGM
12JAN1
]]>Agencies
[Federal Register Volume 75, Number 7 (Tuesday, January 12, 2010)]
[Notices]
[Pages 1670-1672]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-299]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61293; File No. SR-NYSEAmex-2009-100]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE
Amex Equities Rule 18 To Eliminate the $500 Minimum Net Loss
Requirement for a Member Organization To Seek Compensation in the Event
of an Exchange System Failure
January 6, 2010.
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 prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Amex Equities Rule 18
(``Compensation in Relation to Exchange System Failure'') to eliminate
the $500 minimum net loss requirement for a member organization to seek
[[Page 1671]]
compensation in the event of an Exchange System failure. The text of
the proposed rule change is available at the Exchange, the Commission's
Public Reference Room, the Commission's Web site at https://www.sec.gov,
and the Exchange's Web site at https://www.nyse.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
Through this filing, the Exchange proposes to amend NYSE Amex
Equities Rule 18 (``Compensation in Relation to Exchange System
Failure'') to eliminate the $500 minimum net loss requirement for a
member organization to seek compensation in the event of an Exchange
System failure. Member organizations would therefore be permitted to
submit a claim for compensations without having to meet a minimum net
loss threshold as long as such claims meet the other criteria of NYSE
Amex Equities Rule 18.\4\
---------------------------------------------------------------------------
\4\ The Exchange notes that similar changes are proposed to the
rules of its affiliate, New York Stock Exchange LLC. See SR-NYSE-
2009-135.
---------------------------------------------------------------------------
NYSE Amex Equities Rule 18 was established to provide a mechanism
for member organizations to receive compensation for losses sustained
in relation to an Exchange system failure. It provides that member
organizations that sustain a loss in relation to an Exchange system
failure are eligible to submit a claim, per incident, for compensation
to the Exchange if certain requirements are met. Specifically, pursuant
to NYSE Amex Equities Rule 18(a), claim is eligible for compensation if
the Exchange determines that: (i) A valid order was accepted by the
Exchange's systems; (ii) an Exchange system failure, as defined in NYSE
Amex Equities Rule 18(b), occurred during the execution of said order;
(iii) a member organization sustained a loss related to an Exchange
system failure; (iv) the net loss was at least $500; and (v) the
Exchange or its designee received from the member organizations that
sustained such loss, verbal \5\ notice by the market opening on the
next business day following the system failure and written notice by
the end of the third business day following the system failure.
---------------------------------------------------------------------------
\5\ Through this filing the Exchange further seeks to change the
word ``verbal'' to the word ``oral'' to make clear that the initial
notice is not required in writing.
---------------------------------------------------------------------------
The provision that the member organization sustain a minimum net
total loss of $500 requires the member organization to deduct any
profits received in relation to the same incident before submitting the
claim amount.\6\ Member organizations are not permitted to aggregate
losses incurred as a result of more than one system failure in order to
satisfy the $500 minimum claim requirement. As a result, certain member
organizations have been precluded from submitting claims for losses
sustained in relation to an Exchange system failure.
---------------------------------------------------------------------------
\6\ See Securities Exchange Release No. 59482 (March 2, 2009),
74 FR 10114 (March 9, 2009) (SR-NYSEALTR-2009-13) (Clarifying, among
other things, that if members and member organizations retain
profits from a system malfunction, then they are required to net
such profits against any losses from the same malfunction before
submitting any claims).
---------------------------------------------------------------------------
The Exchange seeks to have the rule be even more inclusive of its
member organizations that may sustain a loss in the event of an
Exchange system failure. Based on its experience, the Exchange has
concluded that it is no longer necessary to prescribe a minimum net
loss in order for its member organizations to be eligible to submit
claims. Accordingly, the Exchange seeks to eliminate the minimum net
loss provision of NYSE Amex Equities Rule 18. The Exchange believes
that this will allow more member organizations opportunities to seek
compensation for losses sustained in relation to an Exchange system
failure.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\7\ in
general, and furthers the objectives of Section 6(b)(5) of the Act,\8\
in particular, in that 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 the proposed rule change is in keeping with these principles
in that it serves to eliminate the minimum net loss threshold
requirement in relation to an Exchange system failure in order to be
more inclusive and provide more opportunities for member organizations
to be compensated for losses sustained in relation to an Exchange
system failure thus protecting investors and the public interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\12\ 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
[[Page 1672]]
become operative immediately upon filing.
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because doing so will allow member organizations to immediately seek
compensation for losses of less than $500 sustained in relation to an
Exchange system failure. For this reason, the Commission designates
that the proposed rule change become immediately operative.\13\
---------------------------------------------------------------------------
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposal's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEAmex-2009-100 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-2009-100. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make publicly available. All
submissions should refer to File Number SR-NYSEAmex-2009-100 and should
be submitted on or before February 2, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-299 Filed 1-11-10; 8:45 am]
BILLING CODE 8010-01-P
