Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by New York Stock Exchange LLC Amending the Rule Governing the Issuance of Trading Licenses, 5367-5369 [2010-2090]
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Federal Register / Vol. 75, No. 21 / Tuesday, February 2, 2010 / Notices
OCC.5 Second, any fully paid or excess
margin securities held by a member to
secure a customer’s obligations may be
posted as margin with OCC to the extent
of 140% of the difference between the
daily marking price deposits 6 and the
original proceeds of the customer’s
transaction.7 This proposed rule change
permits members to deposit customer
fully paid or excess margin securities in
these two circumstances as well as in
any future circumstances identified by
no-action relief or interpretive guidance
from the Commission or interpretive
guidance from an SRO.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
III. Discussion
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
New York Stock Exchange LLC
Amending the Rule Governing the
Issuance of Trading Licenses
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a registered clearing
agency. In particular, the Commission
believes that by amending its rules to
allow members to deposit customer
fully paid or excess margin securities to
the extent that activity is consistent
with Rule 15c3–3 under the Act and is
permitted by no-action relief or
interpretive guidance from the
Commission or interpretive guidance
from an SRO, the proposal is consistent
with the requirements of Section
17A(b)(3)(F),8 which requires, among
other things, that the rules of a clearing
agency are designed to promote the
prompt and accurate clearance and
settlement of securities transactions.
IV. Conclusion
mstockstill on DSKH9S0YB1PROD with NOTICES
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 9
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (File No. SR–
OCC–2009–18) be, and hereby is,
approved.11
5 New York Stock Exchange, New York Stock
Exchange Rule Interpretations Handbook 505
(2004) (Interpretation 01 of Securities Exchange Act
Rule 15c3–3(c) citing Chicago Board Options
Exchange, Inc., SEC No-Action Letter (Feb. 19,
1975)).
6 As required by OCC of its member.
7 New York Stock Exchange, New York Stock
Exchange Rule Interpretations Handbook 505
(2004)(Interpretation 020 of Securities Exchange
Act Rule 15c3–3(c)).
8 15 U.S.C. 78q–1(b)(3)(F).
9 15 U.S.C. 78q–1.
10 15 U.S.C. 78s(b)(2).
11 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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18:55 Feb 01, 2010
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[FR Doc. 2010–2091 Filed 2–1–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61424; File No. SR–NYSE–
2010–03]
January 26, 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
13, 2010, New York Stock Exchange
LLC (‘‘NYSE’’ 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 selfregulatory 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
Exchange Rule 300 (Trading Licenses) to
provide that a member organization
shall be ineligible to purchase a trading
license, either in the annual offering or
subsequently, if such member
organization is three months in arrears
in paying monthly installments of the
trading license fee payable in respect of
any previously purchased trading
license. The Exchange also proposes to
amend Rule 309 (Failure to Pay
Exchange Fees) to provide that failure to
pay trading license fee installments will
be governed by proposed Rule 300(h).
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.nyse.com), at the
Exchange’s Office of the Secretary and
at the Commission’s Public Reference
room.
12 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
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5367
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
Exchange Rule 300 provides that
member organizations may buy trading
licenses in the annual offering and may
buy licenses at any other time in the
year, provided that the maximum
number of 1366 licenses has not been
issued and subject to limitations on the
number of licenses a single member
organization may hold. Rule 300
provides that member organizations
must pay for their trading licenses in 12
monthly installments, with the first
installment due prior to the
commencement of the applicable year.
The Exchange has experienced
difficulty in collecting trading license
fee installments promptly from a small
number of member organizations.
Consequently, the Exchange now
proposes to amend Rule 300 by adding
proposed new subparagraph (h),
providing that a member organization
shall be ineligible to purchase a trading
license, either in the annual offering or
subsequently, if, at the time of such
proposed purchase, such member
organization remains three months in
arrears in paying monthly installments
of the trading license fee payable in
respect of any previously purchased
trading license.
Any trading license purchased by a
member organization in the annual
auction for the calendar year
commencing January 1, 2010, will be
subject to automatic revocation at the
close of business on March 31, 2010, if
the member organization that holds
such license remains three months in
arrears in making such payments at that
time. The Exchange believes that this
transitional approach for 2010 is
appropriate as it will enable it to give
the affected member organizations
adequate notice and a reasonable period
in which to pay their overdue trading
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02FEN1
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Federal Register / Vol. 75, No. 21 / Tuesday, February 2, 2010 / Notices
mstockstill on DSKH9S0YB1PROD with NOTICES
license fee installments to avoid losing
their floor trading privileges. Upon
approval of this filing, the Exchange
intends to distribute an Information
Memorandum to its member
organizations to inform them of the rule
change.4 Member organizations receive
monthly trading license bills, which
reflect unpaid balances from previous
periods, so member organizations that
are three months in arrears are aware of
that fact.
The acceptability proceedings
requirements of Rule 308 will not be
applicable to any denial or revocation of
a trading license under proposed Rule
300(h). Instead, Rule 300(h) will include
its own appeal procedure. One calendar
month prior to the effective date of any
potential denial of renewal or
revocation of a trading license (the
‘‘Expiration Date’’) pursuant to Rule
300(h), the Exchange will notify each
applicable member organization that is
currently two months or more in arrears
in paying monthly installments of the
trading license fee payable in respect of
any previously purchased trading
license of the amount of then overdue
trading license installment payments
and the possibility of denial of renewal
or revocation of the trading license on
the Expiration Date. The notice
referenced in the immediately preceding
sentence must include a description of
the appeal process described below. If
the member organization believes the
Exchange’s records are incorrect, the
member organization must submit a
written appeal within five business days
of receipt of the Exchange’s notice to the
officer of the Exchange identified for
that purpose in such notice, providing
an explanation as to why it believes the
Exchange’s records are incorrect, and
providing copies of any relevant
documentation. The Exchange must
provide a final determination in writing
in response to any such appeal no later
than 15 calendar days prior to the
effective date of the potential denial of
renewal or revocation of the applicable
trading license.5 This written
determination shall be final and
conclusive action by the Exchange. If
4 The first such notice will be sent to member
organizations that are two months or more in
arrears as of the end of February 2010. This notice
will state that the revocation of any trading licenses
pursuant to proposed Rule 300(h) on April 1, 2010,
will be contingent upon SEC approval of SR–
NYSE–2010–03 prior to that date. See email from
John Carey, Chief Counsel—U.S. Equities, NYSE
Euronext LLC, to David Liu, Assistant Director, and
Leigh W. Duffy, Attorney-Adviser, Commission,
dated January 25, 2010.
5 If the Exchange denies a member organization’s
appeal under Rule 300(h), the Exchange will notify
the Commission in the manner required by
Exchange Act Rule 19d–1.
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16:52 Feb 01, 2010
Jkt 220001
the Exchange denies the appeal, its
written final determination must
specifically address the arguments made
by the member organization in its
submission. A written record shall be
kept of any proceedings under Rule
300(h). As the appeal procedures under
proposed Rule 300(h) will not include
any provision for an oral hearing, the
Exchange expects that the written
record will generally consist of (i) the
written appeal and supporting
documents (if any) submitted by the
member organization and (ii) the
Exchange’s written determination.
Rule 309 (‘‘Failure to Pay Exchange
Fees’’) will not apply to the nonpayment
of trading license fee installments,
which will be dealt with solely under
proposed Rule 300(h). The adoption of
proposed Rule 300(h) will not in any
way limit the application of Rule 309 in
the event of the nonpayment by a
member organization of any fee other
than a trading license fee or any other
sum due to the Exchange. The Exchange
also proposes to amend Rule 309 to
explicitly provide that failure to pay
trading license fee installments will be
governed by proposed Rule 300(h).
The Exchange notes that it relies in
part on the revenues from trading
license fees to pay for the maintenance
of the trading floor and to fund its
trading floor regulatory activities. If
some member organizations consistently
fail to pay their trading license fee bills,
the Exchange will be forced to impose
higher fees on those member
organizations which do pay their bills.
The Exchange believes that the
proposed rule change will cause
member organizations to pay their bills
more promptly and thereby enable the
Exchange to avoid imposing the cost of
the nonpayment by a small number of
member organizations on the majority of
other member organizations that
routinely pay on time. It is neither the
intention nor the expectation of the
Exchange that a significant number of
member organizations will lose their
ability to conduct a trading floor
business as a result of this amendment.
Rather, the Exchange believes that most
member organizations that are late in
paying their bills will respond to the
possibility of losing their access to the
floor by paying off their outstanding
balances. The Exchange notes that any
member organization which forfeits its
trading licenses as of March 31, 2010
will only owe the pro rata license fee for
2010 through that date. In addition, any
member organization which forfeits its
trading licenses in 2010 or is ineligible
to purchase trading licenses thereafter
may purchase trading licenses (to the
extent there are available unsold
PO 00000
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Fmt 4703
Sfmt 4703
licenses) at such time as it is no longer
three months in arrears in its payments.
2. Statutory Basis
The bases under the Act for this
proposed rule change are the
requirement under Section 6(b)(4) 6 that
an exchange have rules that provide for
the equitable allocation of reasonable
dues, fees and other charges among its
members, listed companies and other
persons using its facilities and the
requirement under Section 6(b)(5) 7 that
an exchange have rules that are not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers. The
Exchange believes that the proposed
amendment provides for an equitable
allocation of fees among member
organizations, as it will deprive member
organizations of floor access only if they
do not pay the trading license fees
applicable to all member organizations
with a trading floor business.
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve the proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
6 15
7 15
E:\FR\FM\02FEN1.SGM
U.S.C. 78f(b)(4).
U.S.C. 78f(b)(5).
02FEN1
Federal Register / Vol. 75, No. 21 / Tuesday, February 2, 2010 / Notices
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
No. SR–NYSE–2010–03 on the subject
line.
Paper Comments
mstockstill on DSKH9S0YB1PROD with NOTICES
• 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–NYSE–2010–03. 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,8 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. 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–NYSE–2010–03 and should be
submitted on or before February 23,
2010.
8 The text of the proposed rule change is available
on the Commission’s Web site at https://
www.sec.gov.
VerDate Nov<24>2008
18:55 Feb 01, 2010
Jkt 220001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–2090 Filed 2–1–10; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
[Docket OST–2010–0025]
Approved Information Collection
Extension Request; Disadvantaged
Business Enterprise
Office of the Secretary, DOT.
Notice and Request for
Comments.
AGENCY:
ACTION:
SUMMARY: In accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35, as amended) this
notice announces the Department of
Transportation’s (DOT) intention to
request extension for a currently
approved information collection.
DATES: Comments on this notice must be
received by April 5, 2010.
ADDRESSES: To ensure that you do not
duplicate your docket submissions,
please submit them by only one of the
following means:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov and follow
the online instructions for submitting
comments.
• Mail: Docket Management Facility,
U.S. Department of Transportation, 1200
New Jersey Ave., SE., West Building
Ground Floor, Room W12–140,
Washington, DC 20590–0001;
• Hand delivery: West Building
Ground Floor, Room W–12–140, 1200
New Jersey Ave., SE., between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays. The telephone
number is 202–366–9329.
FOR FURTHER INFORMATION CONTACT: Mr.
Robert C. Ashby, Office of the Secretary,
Office of Assistant General Counsel for
Regulation and Enforcement,
Department of Transportation, 1200
New Jersey Ave., SE., Washington, DC
20590, (202) 366–9310 (voice), 202–
366–9313 (fax) or at bob.ashby@dot.gov.
SUPPLEMENTARY INFORMATION:
Title: Report of DBE Awards and
Commitments.
OMB Control Number: 2105–0510.
Type of Request: Extension to a
currently approved information
collection.
Abstract: 49 CFR Part 26 establishes
requirements for the Department of
9 17
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CFR 200.30–3(a)(12).
Frm 00091
Fmt 4703
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5369
Transportation (DOT) so as to comply
with the mandate by statute including
1101 (b) of the Safe, Accountable,
Flexible, Efficient Transportation Equity
Act: A Legacy for Users Public Law
109–59 and 49 U.S.C. 47113, Public Law
105–178. The key part of the collection
is a requirement that state and local
governments subject to the DBE program
report to the Secretary of Transportation
on DBE participation, as well as
maintain a directory of DBE firms and
report to the Secretary concerning the
composition of the directory. If these
reporting requirements were not
available, firms controlled by minorities
would not achieve the appropriate
participation in DOT programs, and the
Department would not be able to
identify its recipients and evaluate the
extent to which financial assistance
recipients have been awarded a
reasonable amount of contracting
dollars to DBEs.
In order to minimize the burden on
DOT recipients the Department has
limited its informational request and
reporting frequency to that necessary to
meet its program and administrative
monitoring requirements. The
information request consists of 17 data
items on one page and one attachment,
to be completed on a semi-annual basis
(for FHWA and FTA programs) or an
annual basis (for FAA programs).
Respondents: DOT financiallyassisted state and local transportation
agencies.
Estimated Number of Respondents:
1,057.
Estimated Total Burden on
Respondents: 1,311,000.
The information collection is
available for inspection in
regulations.gov, as noted in the
ADDRESSES section of this document.
Comments are Invited on: (a) Whether
the collection of information is
necessary for the proper performance of
the functions of the Department,
including whether the information will
have practical utility; (b) the accuracy of
the Department’s estimate of the burden
of the proposed information collection;
(c) ways to enhance the quality, utility
and clarity of the information to be
collected; and (d) ways to minimize the
burden of the collection of information
on respondents, including the use of
automated collection techniques or
other forms of information technology.
All responses to this notice will be
summarized and included in the request
for OMB approval. All comments will
also become a matter of public record.
E:\FR\FM\02FEN1.SGM
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Agencies
[Federal Register Volume 75, Number 21 (Tuesday, February 2, 2010)]
[Notices]
[Pages 5367-5369]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2090]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61424; File No. SR-NYSE-2010-03]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by New York Stock Exchange LLC Amending the Rule Governing the
Issuance of Trading Licenses
January 26, 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 13, 2010, New York Stock Exchange LLC (``NYSE''
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 300 (Trading Licenses)
to provide that a member organization shall be ineligible to purchase a
trading license, either in the annual offering or subsequently, if such
member organization is three months in arrears in paying monthly
installments of the trading license fee payable in respect of any
previously purchased trading license. The Exchange also proposes to
amend Rule 309 (Failure to Pay Exchange Fees) to provide that failure
to pay trading license fee installments will be governed by proposed
Rule 300(h).
The text of the proposed rule change is available on the Exchange's
Web site (https://www.nyse.com), at the Exchange's Office of the
Secretary 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
Exchange Rule 300 provides that member organizations may buy
trading licenses in the annual offering and may buy licenses at any
other time in the year, provided that the maximum number of 1366
licenses has not been issued and subject to limitations on the number
of licenses a single member organization may hold. Rule 300 provides
that member organizations must pay for their trading licenses in 12
monthly installments, with the first installment due prior to the
commencement of the applicable year. The Exchange has experienced
difficulty in collecting trading license fee installments promptly from
a small number of member organizations. Consequently, the Exchange now
proposes to amend Rule 300 by adding proposed new subparagraph (h),
providing that a member organization shall be ineligible to purchase a
trading license, either in the annual offering or subsequently, if, at
the time of such proposed purchase, such member organization remains
three months in arrears in paying monthly installments of the trading
license fee payable in respect of any previously purchased trading
license.
Any trading license purchased by a member organization in the
annual auction for the calendar year commencing January 1, 2010, will
be subject to automatic revocation at the close of business on March
31, 2010, if the member organization that holds such license remains
three months in arrears in making such payments at that time. The
Exchange believes that this transitional approach for 2010 is
appropriate as it will enable it to give the affected member
organizations adequate notice and a reasonable period in which to pay
their overdue trading
[[Page 5368]]
license fee installments to avoid losing their floor trading
privileges. Upon approval of this filing, the Exchange intends to
distribute an Information Memorandum to its member organizations to
inform them of the rule change.\4\ Member organizations receive monthly
trading license bills, which reflect unpaid balances from previous
periods, so member organizations that are three months in arrears are
aware of that fact.
---------------------------------------------------------------------------
\4\ The first such notice will be sent to member organizations
that are two months or more in arrears as of the end of February
2010. This notice will state that the revocation of any trading
licenses pursuant to proposed Rule 300(h) on April 1, 2010, will be
contingent upon SEC approval of SR-NYSE-2010-03 prior to that date.
See email from John Carey, Chief Counsel--U.S. Equities, NYSE
Euronext LLC, to David Liu, Assistant Director, and Leigh W. Duffy,
Attorney-Adviser, Commission, dated January 25, 2010.
---------------------------------------------------------------------------
The acceptability proceedings requirements of Rule 308 will not be
applicable to any denial or revocation of a trading license under
proposed Rule 300(h). Instead, Rule 300(h) will include its own appeal
procedure. One calendar month prior to the effective date of any
potential denial of renewal or revocation of a trading license (the
``Expiration Date'') pursuant to Rule 300(h), the Exchange will notify
each applicable member organization that is currently two months or
more in arrears in paying monthly installments of the trading license
fee payable in respect of any previously purchased trading license of
the amount of then overdue trading license installment payments and the
possibility of denial of renewal or revocation of the trading license
on the Expiration Date. The notice referenced in the immediately
preceding sentence must include a description of the appeal process
described below. If the member organization believes the Exchange's
records are incorrect, the member organization must submit a written
appeal within five business days of receipt of the Exchange's notice to
the officer of the Exchange identified for that purpose in such notice,
providing an explanation as to why it believes the Exchange's records
are incorrect, and providing copies of any relevant documentation. The
Exchange must provide a final determination in writing in response to
any such appeal no later than 15 calendar days prior to the effective
date of the potential denial of renewal or revocation of the applicable
trading license.\5\ This written determination shall be final and
conclusive action by the Exchange. If the Exchange denies the appeal,
its written final determination must specifically address the arguments
made by the member organization in its submission. A written record
shall be kept of any proceedings under Rule 300(h). As the appeal
procedures under proposed Rule 300(h) will not include any provision
for an oral hearing, the Exchange expects that the written record will
generally consist of (i) the written appeal and supporting documents
(if any) submitted by the member organization and (ii) the Exchange's
written determination.
---------------------------------------------------------------------------
\5\ If the Exchange denies a member organization's appeal under
Rule 300(h), the Exchange will notify the Commission in the manner
required by Exchange Act Rule 19d-1.
---------------------------------------------------------------------------
Rule 309 (``Failure to Pay Exchange Fees'') will not apply to the
nonpayment of trading license fee installments, which will be dealt
with solely under proposed Rule 300(h). The adoption of proposed Rule
300(h) will not in any way limit the application of Rule 309 in the
event of the nonpayment by a member organization of any fee other than
a trading license fee or any other sum due to the Exchange. The
Exchange also proposes to amend Rule 309 to explicitly provide that
failure to pay trading license fee installments will be governed by
proposed Rule 300(h).
The Exchange notes that it relies in part on the revenues from
trading license fees to pay for the maintenance of the trading floor
and to fund its trading floor regulatory activities. If some member
organizations consistently fail to pay their trading license fee bills,
the Exchange will be forced to impose higher fees on those member
organizations which do pay their bills. The Exchange believes that the
proposed rule change will cause member organizations to pay their bills
more promptly and thereby enable the Exchange to avoid imposing the
cost of the nonpayment by a small number of member organizations on the
majority of other member organizations that routinely pay on time. It
is neither the intention nor the expectation of the Exchange that a
significant number of member organizations will lose their ability to
conduct a trading floor business as a result of this amendment. Rather,
the Exchange believes that most member organizations that are late in
paying their bills will respond to the possibility of losing their
access to the floor by paying off their outstanding balances. The
Exchange notes that any member organization which forfeits its trading
licenses as of March 31, 2010 will only owe the pro rata license fee
for 2010 through that date. In addition, any member organization which
forfeits its trading licenses in 2010 or is ineligible to purchase
trading licenses thereafter may purchase trading licenses (to the
extent there are available unsold licenses) at such time as it is no
longer three months in arrears in its payments.
2. Statutory Basis
The bases under the Act for this proposed rule change are the
requirement under Section 6(b)(4) \6\ that an exchange have rules that
provide for the equitable allocation of reasonable dues, fees and other
charges among its members, listed companies and other persons using its
facilities and the requirement under Section 6(b)(5) \7\ that an
exchange have rules that are not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers. The
Exchange believes that the proposed amendment provides for an equitable
allocation of fees among member organizations, as it will deprive
member organizations of floor access only if they do not pay the
trading license fees applicable to all member organizations with a
trading floor business.
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\6\ 15 U.S.C. 78f(b)(4).
\7\ 15 U.S.C. 78f(b)(5).
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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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
[[Page 5369]]
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 No. SR-NYSE-2010-03 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-NYSE-2010-03. 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,\8\ 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. 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-NYSE-2010-03 and should be
submitted on or before February 23, 2010.
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\8\ 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.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2090 Filed 2-1-10; 8:45 am]
BILLING CODE 8011-01-P