Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 2.3, 2178-2179 [2010-545]
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Federal Register / Vol. 75, No. 9 / Thursday, January 14, 2010 / Notices
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61313; File No. SR–
NYSEArca–2009–116]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 2.3
January 7, 2010.
19(b)(1) 1
Pursuant to Section
of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on December
22, 2009, NYSE Arca, Inc. (‘‘NYSE Arca’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization.
NYSE Arca filed the proposed rule
change as a ‘‘non-controversial’’
proposal pursuant to Section 19(b)(3)(A)
of the Act 4 and Rule 19b–4(f)(6)
thereunder,5 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Equities Rule 2.3 governing
ETP Application Procedures. The text of
the proposed rule change is available on
the Exchange’s Web site at https://
www.nyse.com, on the Commission’s
Web site at https://www.sec.gov, at the
Exchange, and at the Commission’s
Public Reference Room. A copy of this
filing is available on the Exchange’s
Web site at https://www.nyse.com, at the
Exchange’s principal office and at the
Commission’s Public Reference Room.
pwalker on DSK8KYBLC1PROD with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(6).
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
NYSE Arca Equities Rule 2.3 to permit
the Exchange to offer an expedited
application process for Equity Trading
Permit (‘‘ETP’’) 6 applicants that are
current NYSE Arca Options Trading
Permit (‘‘OTP’’) Holders.
Currently, the NYSE Arca ETP
application process does not take into
consideration an applicant’s OTP status.
This creates a duplicative application
review because the requirements to
become a NYSE Arca OTP Holder are
substantially similar to the NYSE Arca
ETP requirements and satisfy the
criteria reviewed in the NYSE Arca ETP
application process. Additionally, the
rules related to registration are
substantially similar for both ETP and
OTP applicants. This proposed rule
would eliminate inefficiencies and
unnecessary burdens by creating an
expedited application process for
applicants who are NYSE Arca OTP
Holders.
This proposal is substantially similar
to previously approved Nasdaq Rule
1013(a)(5)(C) and Nasdaq OMX BX Rule
1013(a)(5)(C). Accordingly, the
Exchange proposes to revise NYSE Arca
Equities Rule 2.3 by adding the
following as new subsection (b):
An applicant that is an approved NYSE
Arca OTP Holder may apply to become an
ETP Holder through an expedited process, by
submitting a Short Form ETP Holder
Application and an NYSE Arca Equities User
Agreement. The Short Form ETP Holder
Application shall contain information
sufficient to establish the identity of the
applicant as an approved NYSE Arca OTP
Holder, its proposed activity on the
Exchange, and certain contact personnel, in
addition to any other information that may be
required by the Exchange.
In doing so, the Exchange will offer
NYSE Arca OTP Holders an expedited
and efficient ETP application process
consistent with procedures established
on other exchanges.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 7 of the
Securities Exchange Act of 1934 (the
1 15
2 15
VerDate Nov<24>2008
17:36 Jan 13, 2010
6 See NYSE Arca Equities Rule 1.1(m) (definition
of ETP); see also NYSE Arca Equities Rule 1.1(n)
(definition of ETP Holder).
7 15 U.S.C. 78f(b).
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Frm 00074
Fmt 4703
Sfmt 4703
‘‘Exchange Act’’), in general, and
furthers the objectives of Section
6(b)(5) 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 foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. The exchange seeks to revise its
membership rules so that ETP
applicants are not unnecessarily
burdened by duplicative review
procedures.
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 11 and
Rule 19b–4(f)(6)(iii) thereunder.12
At any time within 60 days of the
filing of the proposed rule change, the
8 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A)(iii).
10 17 CFR 240.19b–4(f)(6).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires a self-regulatory
organization to provide the Commission with
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 fulfilled this
requirement.
9 15
E:\FR\FM\14JAN1.SGM
14JAN1
Federal Register / Vol. 75, No. 9 / Thursday, January 14, 2010 / Notices
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.
should be submitted on or before
February 4, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–545 Filed 1–13–10; 8:45 am]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2009–116 on
the subject line.
pwalker on DSK8KYBLC1PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Approving
Proposed Rule Change To Amend the
Deficient Claims Rules of the Codes of
Arbitration Procedure for Customer
and Industry Disputes
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2009–116. 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 also will be available
for inspection and copying at the
principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2009–116 and
VerDate Nov<24>2008
17:36 Jan 13, 2010
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61311; File No. SR–FINRA–
2009–072]
January 7, 2010.
I. Introduction
On October 28, 2009, Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) (f/k/a National Association of
Securities Dealers, Inc. (‘‘NASD’’)) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to amend Rule
12307 of the Code of Arbitration for
Customer Disputes (the ‘‘Customer
Code’’) and Rule 13307 of the Code of
Arbitration for Industry Disputes (the
‘‘Industry Code’’) (collectively, the
‘‘Codes’’) to clarify the date of filing of
an arbitration claim once a deficiency is
corrected. The proposed Rule change
was published for comment in the
Federal Register on December 2, 2009.3
The Commission received two comment
letters, both of which supported the
proposed rule change.4 This order
approves the proposed rule change.
II. Description of the Proposal
When parties initiate arbitration
claims in FINRA’s arbitration forum,
they must file a signed and dated
submission agreement, pay all required
filing fees, and provide a statement of
claim explaining the facts and outlining
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 74 FR 63167 (Dec. 2, 2009).
4 See letters from William A. Jacobson, Esq.,
Associate Clinical Professor of Law, Director,
Cornell Securities Law Clinic and Sang Joon Kim,
student, dated December 9, 2009, and Scott R.
Shewan, President, Public Investors Arbitration Bar
Association, dated December 17, 2009.
1 15
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Frm 00075
Fmt 4703
Sfmt 4703
2179
the remedies requested.5 If a party’s
claims do not comply with the
Customer Code or Industry Code, as
applicable, those claims are considered
deficient.6 FINRA received inquiries
from constituents on how the arbitration
forum determines the date of filing of a
claim that was deficient when filed, but
is later corrected.
To address these constituents’
concerns, FINRA proposed to amend
Rules 12307(b) of the Customer Code
and 13307(b) of the Industry Code to
clarify the date of filing of a deficient
claim when the deficiency is corrected
within 30 days from the time the party
receives notice of the deficiency (the
‘‘Deficiency Period’’). As amended, these
rules would provide that if the
deficiency is corrected within the
Deficiency Period, the claim will be
considered filed on the date the initial
statement of claim was filed.
Two commenters addressed the
proposed rule change and both urged
the Commission to approve it.
III. Discussion and Commission
Findings
The Commission finds the proposed
rule change to be consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities association.7 In
particular, the Commission finds that
the proposed rule change is consistent
with Section 15A(b)(6) of the Act in that
it is designed, among other things, to
promote just and equitable principles of
trade and to protect investors and the
public interest.
The Commission believes it is
important to provide persons using
FINRA’s arbitration forum clear
guidance on how to determine the date
of filing of a deficient claim. The
proposed rule change should eliminate
confusion, provide transparency
concerning forum practice, and enhance
the efficiency of case administration.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–FINRA–
2009–072) be, and hereby is, approved.
5 Rule 12302(a)(1) of the Customer Code and Rule
13302(a)(1) of the Industry Code.
6 A claim may be deficient because, for example,
the party failed to file a properly signed and dated
submission agreement, failed to pay all required
filing fees, or failed to file the correct number of
copies of the submission agreement, statement of
claim or other supporting documents.
7 In approving the proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
8 15 U.S.C. 78s(b)(2).
E:\FR\FM\14JAN1.SGM
14JAN1
]]>Agencies
[Federal Register Volume 75, Number 9 (Thursday, January 14, 2010)]
[Notices]
[Pages 2178-2179]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-545]
[[Page 2178]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61313; File No. SR-NYSEArca-2009-116]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Rule 2.3
January 7, 2010.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on December 22, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. NYSE Arca filed the proposed rule change as a ``non-
controversial'' proposal pursuant to Section 19(b)(3)(A) of the Act \4\
and Rule 19b-4(f)(6) thereunder,\5\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Arca Equities Rule 2.3
governing ETP Application Procedures. The text of the proposed rule
change is available on the Exchange's Web site at https://www.nyse.com,
on the Commission's Web site at https://www.sec.gov, at the Exchange,
and at the Commission's Public Reference Room. A copy of this filing is
available on the Exchange's Web site at https://www.nyse.com, at the
Exchange's principal office and at the Commission's Public Reference
Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend NYSE Arca Equities Rule 2.3 to
permit the Exchange to offer an expedited application process for
Equity Trading Permit (``ETP'') \6\ applicants that are current NYSE
Arca Options Trading Permit (``OTP'') Holders.
---------------------------------------------------------------------------
\6\ See NYSE Arca Equities Rule 1.1(m) (definition of ETP); see
also NYSE Arca Equities Rule 1.1(n) (definition of ETP Holder).
---------------------------------------------------------------------------
Currently, the NYSE Arca ETP application process does not take into
consideration an applicant's OTP status. This creates a duplicative
application review because the requirements to become a NYSE Arca OTP
Holder are substantially similar to the NYSE Arca ETP requirements and
satisfy the criteria reviewed in the NYSE Arca ETP application process.
Additionally, the rules related to registration are substantially
similar for both ETP and OTP applicants. This proposed rule would
eliminate inefficiencies and unnecessary burdens by creating an
expedited application process for applicants who are NYSE Arca OTP
Holders.
This proposal is substantially similar to previously approved
Nasdaq Rule 1013(a)(5)(C) and Nasdaq OMX BX Rule 1013(a)(5)(C).
Accordingly, the Exchange proposes to revise NYSE Arca Equities Rule
2.3 by adding the following as new subsection (b):
An applicant that is an approved NYSE Arca OTP Holder may apply
to become an ETP Holder through an expedited process, by submitting
a Short Form ETP Holder Application and an NYSE Arca Equities User
Agreement. The Short Form ETP Holder Application shall contain
information sufficient to establish the identity of the applicant as
an approved NYSE Arca OTP Holder, its proposed activity on the
Exchange, and certain contact personnel, in addition to any other
information that may be required by the Exchange.
In doing so, the Exchange will offer NYSE Arca OTP Holders an
expedited and efficient ETP application process consistent with
procedures established on other exchanges.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Securities Exchange Act of 1934 (the ``Exchange Act''), in general, and
furthers the objectives of Section 6(b)(5) \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 foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
The exchange seeks to revise its membership rules so that ETP
applicants are not unnecessarily burdened by duplicative review
procedures.
---------------------------------------------------------------------------
\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 \11\ and Rule 19b-
4(f)(6)(iii) thereunder.\12\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires a self-regulatory organization to provide the
Commission with 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 fulfilled this requirement.
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the
[[Page 2179]]
Commission may summarily abrogate such rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2009-116 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2009-116. 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 also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2009-116 and should
be submitted on or before February 4, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-545 Filed 1-13-10; 8:45 am]
BILLING CODE 8011-01-P
