Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending Rule 975NY, 4435-4436 [2010-1607]
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Federal Register / Vol. 75, No. 17 / Wednesday, January 27, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–1604 Filed 1–26–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61394; File No. SR–
NYSEAmex–2010–02]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Amending Rule 975NY
January 21, 2010.
19(b)(1) 1
Pursuant to Section
of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on January
8, 2010, NYSE Amex LLC (‘‘NYSE
Amex’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘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 Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
srobinson on DSKHWCL6B1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Exchange Rule 975NY—Obvious Errors
and Catastrophic Errors. The text of the
proposed rule change is attached as
Exhibit 5 to the 19b–4 form. 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.
28 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.
16:22 Jan 26, 2010
1. Purpose
The Exchange is proposing certain
changes to Rule 975NY—Obvious Errors
and Catastrophic Errors. Under the
current rule, an obvious error occurs
when the execution price of an
electronic transaction is above or below
the Theoretical Price for the series by a
specified amount. The ‘‘Theoretical
Price’’ of an option series is currently
defined in Rule 975NY(a)(2) as the last
bid price with respect to an erroneous
sell transaction and the last offer price
with respect to an erroneous buy
transaction, just prior to the trade, that
comprise the National Best Bid/Offer
(‘‘NBBO’’) as disseminated by the
Options Price Reporting Authority
(‘‘OPRA’’). If there are no quotes for
comparison, the Theoretical Price is
determined by a designated Trading
Official.4
The Exchange is now proposing to
permit Trading Officials to establish the
Theoretical Price when the NBBO for
the affected series, just prior to the
erroneous transaction, is at least two
times the permitted bid/ask differential
pursuant to the guidelines contained in
Rule 925NY(b)(4)–(5). This provision is
similar to Rule 1092(b)(ii) of Nasdaq
OMX Phlx (‘‘PHLX’’) and Rule
6.25(a)(1)(iv) of The Chicago Board
Options Exchange (‘‘CBOE’’).
2. Statutory Basis
This proposed rule change is designed
to allow an Exchange officer to review
a transaction in order to provide the
opportunity for potential relief to a
party affected by an obvious error. The
Exchange believes that for these reasons
the proposed rule change is consistent
with Section 6(b) of the Act 5 in general,
and furthers the objectives of Section
6(b)(5) of the Act 6 in particular, because
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 proposed rule change will
incorporate a uniform approach in
determining obvious errors that is
4 Trading Officials are employees or officers of the
Exchange and are not affiliated with ATP Holders.
5 15 U.S.C. 78f (b).
6 15 U.S.C. 78f(b)(5).
1 15
VerDate Nov<24>2008
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
Jkt 220001
PO 00000
Frm 00100
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Sfmt 4703
4435
consistent with other national options
exchanges.
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 7 and Rule
19b–4(f)(6) thereunder.8 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 9 and Rule 19b–4(f)(6)(iii)
thereunder.10
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:
7 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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 the pre-filing requirement.
8 17
E:\FR\FM\27JAN1.SGM
27JAN1
4436
Federal Register / Vol. 75, No. 17 / Wednesday, January 27, 2010 / Notices
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
No. SR–NYSEAmex–2010–02 on the
subject line.
Paper Comments
srobinson on DSKHWCL6B1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
and C below, of the most significant
aspects of such statements.
[Release No. 34–61392; File No. SR–CHX–
2010–02]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change To
Implement a Cancellation Fee
January 21, 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 January
All submissions should refer to File No. 13, 2010, Chicago Stock Exchange, Inc.
(‘‘Exchange’’ or ‘‘CHX’’) filed with the
SR–NYSEAmex–2010–02. This file
Securities and Exchange Commission
number should be included on the
subject line if e-mail is used. To help the (‘‘Commission’’) the proposed rule
change as described in Items I, II, and
Commission process and review your
III below, which Items have been
comments more efficiently, please use
only one method. The Commission will prepared by the Exchange. CHX has
post all comments on the Commission’s filed the proposal pursuant to Section
19(b)(3)(A) of the Act 3 and Rule 19b–
Internet Web site (https://www.sec.gov/
4(f)(2) thereunder,4 which renders the
rules/sro.shtml). Copies of the
proposal effective upon filing with the
submission,11 all subsequent
Commission. The Commission is
amendments, all written statements
publishing this notice to solicit
with respect to the proposed rule
comments on the proposed rule change
change that are filed with the
from interested persons.
Commission, and all written
communications relating to the
I. Self-Regulatory Organization’s
proposed rule change between the
Statement of the Terms of Substance of
Commission and any person, other than the Proposed Rule Change
those that may be withheld from the
The CHX proposes to amend its
public in accordance with the
Schedule of Participant Fees and
provisions of 5 U.S.C. 552, will be
Assessments (the ‘‘Fee Schedule’’),
available for inspection and copying in
effective January 25, 2010, to implement
the Commission’s Public Reference
a cancellation fee for Participants
Room, 100 F Street, NE., Washington,
entering and subsequently cancelling
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. orders under certain circumstances. The
text of this proposed rule change is
Copies of such filing also will be
available on the Exchange’s Web site at
available for inspection and copying at
https://www.chx.com/rules/
the principal office of NYSE Amex. All
proposed_rules.htm and in the
comments received will be posted
Commission’s Public Reference Room,
without change; the Commission does
100 F Street, NE., Washington, DC
not edit personal identifying
20549.
information from submissions. You
should submit only information that
II. Self-Regulatory Organization’s
you wish to make available publicly. All Statement of the Purpose of, and
submissions should refer to File No.
Statutory Basis for, the Proposed Rule
SR–NYSEAmex–2010–02 and should be Change
submitted on or before February 17,
In its filing with the Commission, the
2010.
CHX included statements concerning
For the Commission, by the Division of
the purpose of and basis for the
Trading and Markets, pursuant to delegated
proposed rule changes and discussed
authority.12
any comments it received regarding the
Florence E. Harmon,
proposal. The text of these statements
Deputy Secretary.
may be examined at the places specified
in Item IV below. The CHX has prepared
[FR Doc. 2010–1607 Filed 1–26–10; 8:45 am]
summaries, set forth in sections A, B
BILLING CODE 8011–01–P
11 The text of the proposed rule change is
available on the Commission’s Web site at https://
www.sec.gov.
12 17 CFR 200.30–3(a)(12).
VerDate Nov<24>2008
16:22 Jan 26, 2010
Jkt 220001
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
2 17
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
1. Purpose
Through this filing, the Exchange
would amend its Fee Schedule, effective
January 25, 2010, to impose a charge for
order cancellations in issues priced
$1.00 per share or more submitted by
Participants whose orders rarely are at
or near the National Best Bid or Offering
(‘‘NBBO’’).5 The Exchange believes that
the order cancellation fee will either
incent Participants to submit orders
which are closer to the NBBO or
compensate the Exchange for the
systems and operational costs and
burdens associated with handling and
recording orders which rarely execute.
In determining whether the order
cancellation fee would be imposed upon
a given Participant, the Exchange would
utilize a formula which subtracts the
number of Quotable or ‘‘Q’’ orders
submitted by the Participant in the
Regular Trading Session in a particular
month from the number of Wide or ‘‘W’’
orders. Q orders are defined as provide
orders in issues priced $1.00 per share
or more submitted by the Participant in
the Regular Trading Session which are
priced at the relevant side of the NBBO
up to (but not including) two (2) cents
inferior to the relevant side of the NBBO
(bid for buy orders; offer for sell orders)
at the time the order is received by the
Matching System.6 W orders are defined
as those submitted by the Participant in
the Regular Trading Session in issues
priced $1.00 per share or more which
are two (2) or more cents inferior to the
relevant side of the NBBO at the time
the order is received by the Matching
System.7 The difference between these
two values is then divided by ‘‘E,’’ which
is defined as the greater of (a) one (1) or
(b) the number of all provide orders (W
and Q) which are submitted and
executed (in whole or in part) in the
Regular Trading Session (excluding
cross transactions) within the Matching
System during the calendar month in
5 We are excluding orders and cancellations in
issues priced under $1 per share from this proposal
as it does not appear that the activity in those issues
gives rise to the same concerns as expressed herein
for issues priced at or greater than $1 per share.
6 Provide orders are those which, for some period
of time, reside in our Matching System prior to
trade execution. They contrast with ‘‘take’’ orders,
which interact with orders resting in our book.
7 As a result, W order can only be ‘‘provide’’
orders and never ‘‘takers’’ of liquidity residing in our
Matching System.
E:\FR\FM\27JAN1.SGM
27JAN1
]]>Agencies
[Federal Register Volume 75, Number 17 (Wednesday, January 27, 2010)]
[Notices]
[Pages 4435-4436]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-1607]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61394; File No. SR-NYSEAmex-2010-02]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending Rule
975NY
January 21, 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 January 8, 2010, NYSE Amex LLC (``NYSE Amex'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``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 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 Exchange Rule 975NY--Obvious Errors
and Catastrophic Errors. The text of the proposed rule change is
attached as Exhibit 5 to the 19b-4 form. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing certain changes to Rule 975NY--Obvious
Errors and Catastrophic Errors. Under the current rule, an obvious
error occurs when the execution price of an electronic transaction is
above or below the Theoretical Price for the series by a specified
amount. The ``Theoretical Price'' of an option series is currently
defined in Rule 975NY(a)(2) as the last bid price with respect to an
erroneous sell transaction and the last offer price with respect to an
erroneous buy transaction, just prior to the trade, that comprise the
National Best Bid/Offer (``NBBO'') as disseminated by the Options Price
Reporting Authority (``OPRA''). If there are no quotes for comparison,
the Theoretical Price is determined by a designated Trading
Official.\4\
---------------------------------------------------------------------------
\4\ Trading Officials are employees or officers of the Exchange
and are not affiliated with ATP Holders.
---------------------------------------------------------------------------
The Exchange is now proposing to permit Trading Officials to
establish the Theoretical Price when the NBBO for the affected series,
just prior to the erroneous transaction, is at least two times the
permitted bid/ask differential pursuant to the guidelines contained in
Rule 925NY(b)(4)-(5). This provision is similar to Rule 1092(b)(ii) of
Nasdaq OMX Phlx (``PHLX'') and Rule 6.25(a)(1)(iv) of The Chicago Board
Options Exchange (``CBOE'').
2. Statutory Basis
This proposed rule change is designed to allow an Exchange officer
to review a transaction in order to provide the opportunity for
potential relief to a party affected by an obvious error. The Exchange
believes that for these reasons the proposed rule change is consistent
with Section 6(b) of the Act \5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \6\ in particular, because 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 proposed rule change will incorporate a uniform approach in
determining obvious errors that is consistent with other national
options exchanges.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f (b).
\6\ 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 \7\ and Rule 19b-4(f)(6) thereunder.\8\
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 \9\ and Rule 19b-
4(f)(6)(iii) thereunder.\10\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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 the pre-filing requirement.
---------------------------------------------------------------------------
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:
[[Page 4436]]
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 No. SR-NYSEAmex-2010-02 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 No. SR-NYSEAmex-2010-02. 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,\11\ 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 NYSE Amex. 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 No. SR-NYSEAmex-2010-02 and should be
submitted on or before February 17, 2010.
---------------------------------------------------------------------------
\11\ The text of the proposed rule change is available on the
Commission's Web site at https://www.sec.gov.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1607 Filed 1-26-10; 8:45 am]
BILLING CODE 8011-01-P
