Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE Amex Equities Rule 123C(9)(a)(1) To Extend the Operation of the Pilot Operating Pursuant the Rule Until the Earlier of Securities and Exchange Commission Approval To Make Such Pilot Permanent or June 1, 2010, 10530-10532 [2010-4735]

Download as PDF 10530 Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Notices facilitate dialogue from industry participants. The respondents to the questionnaire are Securities Law Practitioners, Securities Law Professors and Securities Industry Participants. The total estimated reporting burden of the questionnaire is approximately twenty-two and a half (22.5) hours semiannually. It is estimated that it will take each respondent approximately thirty (30) minutes to complete the questionnaire. Assuming that all fortyfive (45) individuals respond, the total estimated burden will be twenty-two and a half (22.5) hours semi-annually. This was calculated by multiplying the total number of respondents times how long it is estimated to take to complete the questionnaire (45 respondents × 30 minutes = 22 hours and 30 minutes). Since the information collection is intended to be sent out semi-annually, the total yearly burden will be forty-five hours (45), totaling one (1) hour per respondent annually. Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Please direct your written comments to Charles Boucher, Director/Chief Information Officer, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send an e-mail to: PRA_Mailbox@sec.gov. March 1, 2010. Florence E. Harmon, Deputy Secretary. srobinson on DSKHWCL6B1PROD with NOTICES [FR Doc. 2010–4741 Filed 3–5–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61611; File No. SR– NYSEAmex–2010–15] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE Amex Equities Rule 123C(9)(a)(1) To Extend the Operation of the Pilot Operating Pursuant the Rule Until the Earlier of Securities and Exchange Commission Approval To Make Such Pilot Permanent or June 1, 2010 March 1, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on February 24, 2010, 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 Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Amex Equities Rule 123C(8)(a)(1) to extend the operation of the pilot to temporarily suspend certain NYSE Amex Equities Rule requirements relating to the closing of securities on the Exchange until the earlier of Securities and Exchange Commission approval to make such pilot permanent or March 1, 2010. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and https:// www.nyse.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the 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. 1 15 2 17 VerDate Nov<24>2008 17:12 Mar 05, 2010 Jkt 220001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00076 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose NYSE Amex LLC (‘‘NYSE Amex’’ or the ‘‘Exchange’’), formerly the American Stock Exchange LLC, proposes to amend NYSE Amex Equities Rule 123C(9)(a)(1) 3 to extend the operation of the pilot operating pursuant the Rule until the earlier of Securities and Exchange Commission approval to make such pilot permanent or June 1, 2010. NYSE Amex Equities Rule 123C(9)(a)(1) allows the Exchange to temporarily suspend certain rule requirements at the close when extreme order imbalances may cause significant dislocation to the closing price. The rule has operated on a pilot basis since April 2009 (‘‘Extreme Order Imbalances Pilot’’ or ‘‘Pilot’’).4 Through this filing, NYSE Amex proposes to extend the Pilot until the earlier of Securities and Exchange Commission approval to make such Pilot permanent or June 1, 2010.5 Background Pursuant to NYSE Amex Equities Rule 123C(9)(a)(1), the Exchange may suspend NYSE Amex Equities Rules 52 (Hours of Operation) to resolve an extreme order imbalance that may result in a closing price dislocation at the close as a result of an order entered into Exchange systems, or represented to a DMM orally at or near the close. The provisions of NYSE Amex Equities Rule 123C(9)(a)(1) operate as the Extreme Order Imbalance Pilot. As a condition of the approval to operate the Pilot, the Exchange committed to provide the Commission with information regarding: (i) How often a Rule 52 temporary suspension pursuant to the Pilot was invoked during the six months following its approval; and (ii) the Exchange’s determination as to how to proceed with technical modifications to reconfigure Exchange systems to accept orders electronically after 4 p.m.. The Extreme Order Imbalance Pilot is scheduled to end operation on March 1, 2010.6 The Exchange is currently 3 See Securities Exchange Release No. 61244 (December 28, 2009), 75 FR 479 (January 5, 2010) (SR–NYSEAmex–2009–81) (Modify the closing process and renumbering 123C(8) to 123C(9)). The Exchange anticipates operation of these changes to commence on or about March 1, 2010. 4 See Securities Exchange Act Release No. 59755 (April 13, 2009), 74 FR 18009 (April 20, 2009) (SR– NYSEALTR–2009–15). 5 The Exchange notes that parallel changes are proposed to be made to the rules of New York Stock Exchange LLC. See SR–NYSE–2010–11. 6 See Securities and Exchange Act Release No. 61265 (December 31, 2009), 75 FR 1094 (January 8, E:\FR\FM\08MRN1.SGM 08MRN1 Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Notices srobinson on DSKHWCL6B1PROD with NOTICES preparing a rule filing seeking permission to make the provisions of the Pilot permanent with certain modifications but does not expect that filing to be completed and approved by the Commission before March 1, 2010. Proposal To Extend the Operation of the Extreme Order Imbalance Pilot The Exchange established the Extreme Order Imbalance Pilot to create a mechanism for ensuring a fair and orderly close when interest is received at or near the close that could negatively affect the closing transaction. The Exchange believes that this tool has proved very useful to resolve an extreme order imbalance that may result in a closing price dislocation at the close as a result of an order entered into Exchange systems, or represented to a DMM orally at or near the close. As the Exchange has previously stated, NYSE Amex Equities Rule 123C(9) will be invoked to attract offsetting interest in rare circumstances where there exists an extreme imbalance at the close such that a DMM is unable to close the security without significantly dislocating the price. This is evidenced by the fact that during the course of the Pilot, the Exchange invoked the provisions of NYSE Amex Equities Rule 123C(9), including the provisions of the Extreme Order Imbalance Pilot pursuant to NYSE Amex Equities Rule 123C(9)(a)(1), in only two securities on June 26, 2009, the date of the annual rebalancing of Russell Indexes. In addition, during the operation of the Pilot, the Exchange determined that it would not be as onerous as previously believed to modify Exchange systems to accept orders electronically after 4 p.m. The Exchange has completed the system modifications and is now in the process of testing the modifications. The Exchange anticipates that its quality assurance review process will be completed by June 1, 2010. Given the above, the Exchange believes that provisions governing the Extreme Order Imbalance Pilot should be made permanent. Through this filing the Exchange seeks to extend the current operation of the Pilot in order to allow the Exchange to formally submit a filing to the Commission to convert the provisions governing the Pilot to permanent rules and complete the technological modifications required to accept orders electronically after 4 p.m. The Exchange therefore requests an extension from the current expiration 2010) (SR–NYSEAmex–2009–96) (extending the operation of the pilot from December 31, 2009 to March 1, 2010). VerDate Nov<24>2008 17:12 Mar 05, 2010 Jkt 220001 date of March 1, 2010, until the earlier of Securities and Exchange Commission approval to make such Pilot permanent or June 1, 2010. 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) 7 that an Exchange have rules that are designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. The Exchange believes that the instant filing is consistent with these principles. Specifically an extension will allow the Exchange to: (i) Prepare and submit a filing to make the provisions governing the Extreme Order Imbalance Pilot permanent; (ii) have such filing complete public notice and comment period; and (iii) complete the 19b–4 approval process. The rule operates to protect investors and the public interest by ensuring that the closing price at the Exchange is not significantly dislocated from the last sale price by virtue of an extreme order imbalance at or near the close. 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 8 and Rule 19b–4(f)(6) thereunder.9 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 7 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(3)(A)(iii). 9 17 CFR 240.19b–4(f)(6). 8 15 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 10531 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) normally does not become operative prior to 30 days after the date of the filing.10 However, pursuant to Rule 19b4(f)(6)(iii), the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange requested that the Commission waive the 30-day operative delay, as specified in Rule 19b–4(f)(6)(iii),11 which would make the rule change operative immediately. The Exchange believes that continuation of the Pilot does not burden competition and would operate to protect investors and the public interest by ensuring that the closing price at the Exchange is not significantly dislocated from the last sale price by virtue of an extreme order imbalance at or near the close. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it would allow the Pilot to continue without interruption while the Exchange works towards submitting a separate proposal to make the Pilot permanent. Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.12 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.13 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: 10 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 19b–4(f)(6)(iii) requires the self-regulatory organization to give the Commission 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. NYSE Amex has satisfied this requirement. 11 17 CFR 240.19b–4(f)(6)(iii). 12 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 13 15 U.S.C. 78s(b)(3)(C). E:\FR\FM\08MRN1.SGM 08MRN1 10532 Federal Register / Vol. 75, No. 44 / Monday, March 8, 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 Number SR–NYSEAmex–2010–15 on the subject line. Paper Comments SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61615; File No. SR– NYSEAmex–2010–10] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex, LLC Amending Its Fee Schedule March 1, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that, on February 1, 2010, NYSE Amex LLC (‘‘NYSE Amex’’ or the ‘‘Exchange’’) filed with the All submissions should refer to File Securities and Exchange Commission Number SR–NYSEAmex–2010–15. This (the ‘‘Commission’’) the proposed rule file number should be included on the change as described in Items I, II, and subject line if e-mail is used. To help the III below, which Items have been prepared by the Exchange. The Commission process and review your Commission is publishing this notice to comments more efficiently, please use only one method. The Commission will solicit comments on the proposed rule post all comments on the Commission’s change from interested persons. Internet Web site (https://www.sec.gov/ I. Self-Regulatory Organization’s rules/sro.shtml). Copies of the Statement of the Terms of Substance of submission,14 all subsequent the Proposed Rule Change amendments, all written statements The Exchange proposes to amend its with respect to the proposed rule Schedule of Fees and Charges (the change that are filed with the ‘‘Schedule’’) effective February 1, 2010. Commission, and all written The text of the proposed rule change is communications relating to the attached as Exhibit 5 to the 19b–4 form. proposed rule change between the Commission and any person, other than A copy of this filing is available on the Exchange’s Web site at https:// those that may be withheld from the www.nyse.com, at the Exchange’s public in accordance with the principal office and at the Commission’s provisions of 5 U.S.C. 552, will be Public Reference Room. available for Web site viewing and printing in the Commission’s Public II. Self-Regulatory Organization’s Reference Room, on official business Statement of the Purpose of, and days between the hours of 10 a.m. and Statutory Basis for, the Proposed Rule 3 p.m. Copies of the filing also will be Change available for inspection and copying at In its filing with the Commission, the the principal office of the Exchange. All self-regulatory organization included comments received will be posted statements concerning the purpose of, without change; the Commission does and basis for, the proposed rule change not edit personal identifying and discussed any comments it received information from submissions. You on the proposed rule change. The text should submit only information that of those statements may be examined at you wish to make available publicly. All the places specified in Item IV below. submissions should refer to File The Exchange has prepared summaries, Number SR–NYSEAmex–2010–15 and set forth in sections A, B, and C below, should be submitted on or before March of the most significant aspects of such 29, 2010. statements. 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. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–4735 Filed 3–5–10; 8:45 am] BILLING CODE 8011–01–P 14 The text of the proposed rule change is available on the Commission’s Web site at https:// www.sec.gov/rules/sro.shtml. 15 17 CFR 200.30–3(a)(12). VerDate Nov<24>2008 17:12 Mar 05, 2010 Jkt 220001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose NYSE Amex proposes to make multiple changes to its Schedule effective February 1, 2010. A more U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. Frm 00078 Fmt 4703 Average National Daily Customer Contracts per issue: Monthly base rate: 0 to 2,000 ..................... 2,001 to 5,000 .............. 5,001 to 15,000 ............ 15,001 to 100,000 ........ Over 100,000 ................ [$150] $75 [$400] $200 [$750] $375 [$1,500] $750 [$3,000] $1,500 Non-Directed Market Maker Fee and Market Maker Fee Cap: The Exchange is also proposing to increase the per contract rate paid by Non-Directed Market Makers from $.17 to $.18 per contract. Concurrently, the Exchange also proposes to introduce a fee cap for all Market Makers.3 The fee cap will be set at $250,000 per month plus an incremental rate of $.01 per contract for all Specialist, e-Specialist and Market Maker (both Directed and non-Directed) volume executed in excess of 2,500,000 contracts per month. For example, today a Non-Directed Market Maker who executes 3,000,000 contracts in a given month would pay $510,000 (3,000,000 × $.17). The introduction of the fee change would result in the same Non-Directed Market Maker paying $255,000 (3,000,000 × $.18 = $540,000 which is then reduced to $250,000 plus 500,000 [incremental volume over 2,500,000] × $.01 = $5,000 resulting in the monthly charge of $255,000). Specialist, e-Specialist, and Market Marker (both Directed and nonDirected) fees will be aggregated for purposes of the cap. The Exchange will exclude any fees or volume associated with a Strategy Trade (reversals and conversions, dividend spreads, box spreads, short stock interest spreads, merger spreads, and jelly rolls). Any fees or volume attributable to a Strategy Trade will not be counted towards either the $250,000 fee cap, or the volume threshold of 2,500,000 contracts. All Royalty Fees will 3 Market Makers include all Specialists, eSpecialists, Non-Directed Market Makers and Directed Market Makers. 1 15 PO 00000 detailed description of the proposed changes follows. Specialists, E-Specialists and DOMM Rights Fee: Presently we charge to Specialists, ESpecialists and Directed Order Market Makers, on a pro rata basis, a monthly rights fee that is based on a tiered scale according to how much Average Daily National Customer Volume was executed during a rolling 3 month period. Effective February 1, 2010, the Exchange will reduce the rights fee by 50% in each tier as shown below. Sfmt 4703 E:\FR\FM\08MRN1.SGM 08MRN1

Agencies

[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Notices]
[Pages 10530-10532]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-4735]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61611; File No. SR-NYSEAmex-2010-15]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE 
Amex Equities Rule 123C(9)(a)(1) To Extend the Operation of the Pilot 
Operating Pursuant the Rule Until the Earlier of Securities and 
Exchange Commission Approval To Make Such Pilot Permanent or June 1, 
2010

March 1, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on February 24, 2010, 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 Exchange. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 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 
123C(8)(a)(1) to extend the operation of the pilot to temporarily 
suspend certain NYSE Amex Equities Rule requirements relating to the 
closing of securities on the Exchange until the earlier of Securities 
and Exchange Commission approval to make such pilot permanent or March 
1, 2010. The text of the proposed rule change is available at the 
Exchange, the Commission's Public Reference Room, and https://www.nyse.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the 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
    NYSE Amex LLC (``NYSE Amex'' or the ``Exchange''), formerly the 
American Stock Exchange LLC, proposes to amend NYSE Amex Equities Rule 
123C(9)(a)(1) \3\ to extend the operation of the pilot operating 
pursuant the Rule until the earlier of Securities and Exchange 
Commission approval to make such pilot permanent or June 1, 2010.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Release No. 61244 (December 28, 
2009), 75 FR 479 (January 5, 2010) (SR-NYSEAmex-2009-81) (Modify the 
closing process and renumbering 123C(8) to 123C(9)). The Exchange 
anticipates operation of these changes to commence on or about March 
1, 2010.
---------------------------------------------------------------------------

    NYSE Amex Equities Rule 123C(9)(a)(1) allows the Exchange to 
temporarily suspend certain rule requirements at the close when extreme 
order imbalances may cause significant dislocation to the closing 
price. The rule has operated on a pilot basis since April 2009 
(``Extreme Order Imbalances Pilot'' or ``Pilot'').\4\ Through this 
filing, NYSE Amex proposes to extend the Pilot until the earlier of 
Securities and Exchange Commission approval to make such Pilot 
permanent or June 1, 2010.\5\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 59755 (April 13, 
2009), 74 FR 18009 (April 20, 2009) (SR-NYSEALTR-2009-15).
    \5\ The Exchange notes that parallel changes are proposed to be 
made to the rules of New York Stock Exchange LLC. See SR-NYSE-2010-
11.
---------------------------------------------------------------------------

Background
    Pursuant to NYSE Amex Equities Rule 123C(9)(a)(1), the Exchange may 
suspend NYSE Amex Equities Rules 52 (Hours of Operation) to resolve an 
extreme order imbalance that may result in a closing price dislocation 
at the close as a result of an order entered into Exchange systems, or 
represented to a DMM orally at or near the close. The provisions of 
NYSE Amex Equities Rule 123C(9)(a)(1) operate as the Extreme Order 
Imbalance Pilot.
    As a condition of the approval to operate the Pilot, the Exchange 
committed to provide the Commission with information regarding: (i) How 
often a Rule 52 temporary suspension pursuant to the Pilot was invoked 
during the six months following its approval; and (ii) the Exchange's 
determination as to how to proceed with technical modifications to 
reconfigure Exchange systems to accept orders electronically after 4 
p.m..
    The Extreme Order Imbalance Pilot is scheduled to end operation on 
March 1, 2010.\6\ The Exchange is currently

[[Page 10531]]

preparing a rule filing seeking permission to make the provisions of 
the Pilot permanent with certain modifications but does not expect that 
filing to be completed and approved by the Commission before March 1, 
2010.
---------------------------------------------------------------------------

    \6\ See Securities and Exchange Act Release No. 61265 (December 
31, 2009), 75 FR 1094 (January 8, 2010) (SR-NYSEAmex-2009-96) 
(extending the operation of the pilot from December 31, 2009 to 
March 1, 2010).
---------------------------------------------------------------------------

Proposal To Extend the Operation of the Extreme Order Imbalance Pilot
    The Exchange established the Extreme Order Imbalance Pilot to 
create a mechanism for ensuring a fair and orderly close when interest 
is received at or near the close that could negatively affect the 
closing transaction. The Exchange believes that this tool has proved 
very useful to resolve an extreme order imbalance that may result in a 
closing price dislocation at the close as a result of an order entered 
into Exchange systems, or represented to a DMM orally at or near the 
close.
    As the Exchange has previously stated, NYSE Amex Equities Rule 
123C(9) will be invoked to attract offsetting interest in rare 
circumstances where there exists an extreme imbalance at the close such 
that a DMM is unable to close the security without significantly 
dislocating the price. This is evidenced by the fact that during the 
course of the Pilot, the Exchange invoked the provisions of NYSE Amex 
Equities Rule 123C(9), including the provisions of the Extreme Order 
Imbalance Pilot pursuant to NYSE Amex Equities Rule 123C(9)(a)(1), in 
only two securities on June 26, 2009, the date of the annual 
rebalancing of Russell Indexes.
    In addition, during the operation of the Pilot, the Exchange 
determined that it would not be as onerous as previously believed to 
modify Exchange systems to accept orders electronically after 4 p.m. 
The Exchange has completed the system modifications and is now in the 
process of testing the modifications. The Exchange anticipates that its 
quality assurance review process will be completed by June 1, 2010.
    Given the above, the Exchange believes that provisions governing 
the Extreme Order Imbalance Pilot should be made permanent. Through 
this filing the Exchange seeks to extend the current operation of the 
Pilot in order to allow the Exchange to formally submit a filing to the 
Commission to convert the provisions governing the Pilot to permanent 
rules and complete the technological modifications required to accept 
orders electronically after 4 p.m. The Exchange therefore requests an 
extension from the current expiration date of March 1, 2010, until the 
earlier of Securities and Exchange Commission approval to make such 
Pilot permanent or June 1, 2010.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \7\ that an Exchange have rules that 
are designed to promote just and equitable principles of trade, to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system and, in general, to protect 
investors and the public interest. The Exchange believes that the 
instant filing is consistent with these principles. Specifically an 
extension will allow the Exchange to: (i) Prepare and submit a filing 
to make the provisions governing the Extreme Order Imbalance Pilot 
permanent; (ii) have such filing complete public notice and comment 
period; and (iii) complete the 19b-4 approval process. The rule 
operates to protect investors and the public interest by ensuring that 
the closing price at the Exchange is not significantly dislocated from 
the last sale price by virtue of an extreme order imbalance at or near 
the close.
---------------------------------------------------------------------------

    \7\ 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 \8\ and Rule 19b-4(f)(6) thereunder.\9\ 
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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative prior to 30 days after the date of the filing.\10\ 
However, pursuant to Rule 19b4(f)(6)(iii), the Commission may designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange requested that the 
Commission waive the 30-day operative delay, as specified in Rule 19b-
4(f)(6)(iii),\11\ which would make the rule change operative 
immediately. The Exchange believes that continuation of the Pilot does 
not burden competition and would operate to protect investors and the 
public interest by ensuring that the closing price at the Exchange is 
not significantly dislocated from the last sale price by virtue of an 
extreme order imbalance at or near the close.
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the 
Commission 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. NYSE Amex has satisfied this requirement.
    \11\ 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 it would allow the Pilot to continue without interruption while 
the Exchange works towards submitting a separate proposal to make the 
Pilot permanent. Accordingly, the Commission designates the proposed 
rule change as operative upon filing with the Commission.\12\
---------------------------------------------------------------------------

    \12\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 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.\13\
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    \13\ 15 U.S.C. 78s(b)(3)(C).
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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 10532]]

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-2010-15 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-2010-15. 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,\14\ 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 Web site viewing and printing in the Commission's Public 
Reference Room, 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-NYSEAmex-2010-15 and should 
be submitted on or before March 29, 2010.
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    \14\ The text of the proposed rule change is available on the 
Commission's Web site at https://www.sec.gov/rules/sro.shtml.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-4735 Filed 3-5-10; 8:45 am]
BILLING CODE 8011-01-P
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