Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending Rule 390, 13623-13625 [2010-6150]
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Federal Register / Vol. 75, No. 54 / Monday, March 22, 2010 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition 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 proposed rule change is
designated by the Exchange as
establishing or changing a due, fee, or
other charge, thereby qualifying for
effectiveness on filing pursuant to
Section 19(b)(3)(A)(ii) 6 of the Act and
subparagraph (f)(2) of Rule 19b–4 7
thereunder.
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:
pwalker on DSK8KYBLC1PROD with 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–CBOE–2010–022 on the
subject line.
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro/shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing 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
will also 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 No. SR–CBOE–
2010–022 and should be submitted on
or before April 12, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–6148 Filed 3–19–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61705; File No. SR–
NYSEAmex–2010–23]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Amending Rule 390
March 15, 2010.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
Paper Comments
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
• Send paper comments in triplicate
notice is hereby given that, on March 5,
to Secretary, Securities and Exchange
2010, NYSE Amex LLC (‘‘NYSE Amex’’
Commission, 100 F Street, NE.,
or the ‘‘Exchange’’) filed with the
Washington, DC 20549–1090.
Securities and Exchange Commission
All submissions should refer to File
(the ‘‘Commission’’) the proposed rule
Number SR–CBOE–2010–022. This file
change as described in Items I and II,
number should be included on the
below, which Items have been prepared
subject line if e-mail is used. To help the by the self-regulatory organization. The
Commission process and review your
8 17 CFR 200.30–3(a)(12).
comments more efficiently, please use
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
6 15
U.S.C. 78s(b)(3)(A)(ii).
7 17 CFR 240.19b–4(f)(2).
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13623
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 its
sharing in accounts rule to harmonize
its requirements with those of the
Financial Industry Regulatory Authority
(‘‘FINRA’’). 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. The text of the
proposed rule change is below.
Proposed new language is in italics and
proposed deletions are in [brackets].
Rules of NYSE Amex, Inc.
*
*
*
*
*
Rule 390. [Assumption of Loss
Prohibited] Prohibition Against
Guarantees and Sharing in Accounts
(a) Prohibition Against Guarantees
No member or member organization
shall guarantee any customer against
loss in his account. [or take or receive
directly or indirectly a share in the
profits of any customer’s account or
share in any losses sustained in any
such account. For the purposes of this
rule the term customer shall not be
deemed to include the member or
member organization or any joint,
group, or syndicate account with such
member or member organization.]
(b) Sharing in Accounts; Extent
Permissible
(1)(A) Except as provided in
paragraph (2) no member or person
associated with a member shall share
directly or indirectly in the profits or
losses in any account of a customer
carried by the member or any other
member; provided, however, that a
member or person associated with a
member may share in the profits or
losses in such an account if
(i) such person associated with a
member obtains prior written
authorization from the member
employing the associated person;
(ii) such member or person associated
with a member obtains prior written
authorization from the customer; and
(iii) such member or person
associated with a member shares in the
profits or losses in any account of such
customer only in direct proportion to
the financial contributions made to such
account by either the member or person
associated with a member.
(B) Exempt from the direct
proportionate share limitation of
paragraph (1)(A)(iii) are accounts of the
immediate family of such member or
person associated with a member. For
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Federal Register / Vol. 75, No. 54 / Monday, March 22, 2010 / Notices
purposes of this Rule, the term
‘‘immediate family’’ shall include
parents, mother-in-law or father-in-law,
husband or wife, children or any
relative to whose support the member or
person associated with a member
otherwise contributes directly or
indirectly.
(2) Notwithstanding the prohibition of
paragraph (1), a member or person
associated with a member that is acting
as an investment adviser (whether or
not registered as such) may receive
compensation based on a share in
profits or gains in an account if
(A) such person associated with a
member seeking such compensation
obtains prior written authorization from
the member employing the associated
person;
(B) such member or person associated
with a member seeking such
compensation obtains prior written
authorization from the customer; and
(C) all of the conditions in Rule 205–
3 of the Investment Advisers Act of 1940
(as the same may be amended from time
to time) are satisfied.
*
*
*
*
*
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.
pwalker on DSK8KYBLC1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Pursuant to Rule 17d–2 under the
Securities Exchange Act of 1934, the
American Stock Exchange, LLC (n/k/a
NYSE Amex, LLC), the Boston Stock
Exchange, Inc., the Chicago Board
Options Exchange, Inc., the
International Securities Exchange, LLC,
Financial Industry Regulatory
Authority, Inc., The NASDAQ Stock
Market LLC, the New York Stock
Exchange, LLC, NYSE Arca, Inc., and
the Philadelphia Stock Exchange, Inc.
(collectively the ‘‘Options Self
Regulatory Council’’), entered into an
agreement dated June 5, 2008 (the ‘‘17d–
2 Agreement’’) to allocate regulatory
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16:41 Mar 19, 2010
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responsibility for common rules. By this
proposal, the Exchange seeks to
harmonize its ‘Sharing in Accounts’ rule
with FINRA’s rule for purposes of the
17d–2 Agreement.
In order to maintain substantial
similarity with FINRA rules, the
Exchange proposes to delete the
language of NYSE Amex Rule 390
related to sharing in the profits and
losses of a customer account, and
replace it with the language of FINRA
2150(c), Sharing in Accounts; Extent
Permissible. FINRA Rule 2150(c)
contains the same prohibition against
sharing in accounts as NYSE Amex Rule
390, but with additional limited
exceptions. The general prohibition
contained in NYSE Amex Rule 390
against sharing in the profits or losses of
a customer account is currently covered
by the 17d–2 Agreement. However, the
limited exceptions of FINRA Rule
2150(c) are not covered by the 17d–2
Agreement. The Exchange proposes to
add those limited exceptions in order to
harmonize its rule with the FINRA rule
and add those limited exceptions to the
17d–2 Agreement. The portion of the
rule prohibiting the guarantee of a
customer against loss will remain in
place.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 4 of the Act,
in general, and furthers the objectives of
Section 6(b)(5) 5 in particular in that it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system. Specifically, the changes
proposed herein, by harmonizing NYSE
Amex rules with FINRA rules, provide
NYSE Amex Members with a clearer
regulatory scheme. The Exchange
further notes that the changes proposed
herein are neither novel nor
controversial and are modeled on
existing FINRA rules.
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.
4 15
5 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00142
Fmt 4703
Sfmt 4703
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 6 and Rule
19b–4(f)(6) thereunder.7 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 8 and Rule 19b–4(f)(6)(iii)
thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),11 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest.
The Exchange requests that the
Commission waive the 30-day preoperative waiting period contained in
Exchange Act Rule 19b–4(f)(6)(iii).12
The Exchange requests this waiver so
that these changes can be both
immediately effective and operative,
thus minimizing any possible
confusion. The Exchange believes that
by harmonizing NYSE Amex rules with
FINRA rules, NYSE Amex Members will
be provided with a clearer regulatory
scheme. The Commission believes that
waiving the 30-day operative delay will
permit the Exchange to harmonize its
rules with the corresponding FINRA
rule immediately, thus promoting
6 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
8 15 U.S.C. 78s(b)(3)(A).
9 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.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 17 CFR 240.19b–4(f)(6)(iii).
7 17
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Federal Register / Vol. 75, No. 54 / Monday, March 22, 2010 / Notices
clarity with respect and minimizing
confusion with respect to the
requirements regarding guarantees and
sharing in accounts.13 The Commission
notes that the FINRA financial
responsibility rules are currently in
operation. For these reasons, the
Commission designates the proposed
rule change as operative upon filing. 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:
pwalker on DSK8KYBLC1PROD with 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–2010–23 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–2010–23. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Section, 100 F Street, NE.,
Washington, DC 20549 on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing will
also be available for inspection and
copying at the NYSE’s principal office
and on its Internet Web site at https://
www.nyse.com. 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–2010–23 and should be
submitted on or before April 12, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–6150 Filed 3–19–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Approving a
Proposed Rule Change Relating to CoLocation Service Fees
I. Introduction
On January 28, 2010, Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and Rule
19b–4 thereunder,2 a proposed rule
change relating to co-location services
and related fees. The proposed rule
change was published for comment in
the Federal Register on February 10,
2010.3 The Commission received no
comment letters on the proposal. This
order approves the proposed rule
change.
II. Description
For a monthly fee, the Exchange
provides members with cabinet space in
CBOE’s building for placement of
network and server hardware. The fee is
$10 per month per ‘‘U’’ of shelf space
(which is equal to 1.75 inches).4 A
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 61489
(February 4, 2010), 75 FR 6764 (‘‘Notice’’).
4 See Securities Exchange Act Release No. 57191
(January 24, 2008), 73 FR 5611 (January 30, 2008).
1 15
13 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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13625
member also receives power, cooling,
security and assistance with installation
and connection of the equipment to the
Exchange’s servers, at no additional
charge. This ‘‘co-location service’’
provides members with close physical
proximity to the Exchange’s electronic
trading system, which helps meet their
need for high performance processing
and low latency.
The co-location service is available to
any member that requests the service
and pays the monthly fee.5 In the
Notice, the Exchange represented that it
believes that for the foreseeable future,
it has sufficient space to accommodate
all members who may request the colocation service. In addition, the
Exchange represented that, other than
the co-location service, the Exchange
does not provide any co-locating
member with any advantage over any
other co-locating member or any non-colocating member with respect to access
to the Exchange’s trading system.
Further, the Exchange represented that
its systems are designed to minimize, to
the extent possible, any advantage for
one member over another. The
Exchange noted that the above
representations apply equally to both
inbound and outbound data.
The proposal clarifies the Exchange’s
Fee Schedule relating to co-location fees
in two respects. First, the Exchange
proposes to move the co-location fees
from Section 17 of the Fees Schedule
(Hybrid Fees) to Section 8 (Facility
Fees) because it believes that these fees
are more accurately described as facility
fees. Second, the Exchange proposes to
clarify that the co-location fees are
charged in increments of 4 ‘‘U’’ (which
is equal to 7 inches) because the cabinet
space is available in 4 U increments.
III. Discussion and Commission’s
Findings
After careful review, 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 national
The fee for a Sponsored User is $20 per month per
‘‘U.’’ See Securities Exchange Act Release No. 58189
(July 18, 2008), 73 FR 43274 (July 24, 2008).
5 A member using the co-location service may
also pay certain CBOEdirect Connectivity Charges
that are set forth in Section 16 of the Fee Schedule.
The Exchange represents that these fees are charged
for member connectivity to CBOEdirect regardless
of whether or not a member is using the co-location
service. These fees include a $40 per month ‘‘CMi
Application Server’’ fee for server hardware used to
connect to the CBOE CMi API, a $40 per month
‘‘Network Access Port’’ fee for use of the CMi API,
and a $40 per month ‘‘FIX Port’’ fee for use of the
FIX API. See Securities Exchange Act Release No.
57191, supra note 1. Each of the foregoing fees is
$80 per month for a Sponsored User. See Securities
Exchange Act Release No. 58189, supra note 1.
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]]>Agencies
[Federal Register Volume 75, Number 54 (Monday, March 22, 2010)]
[Notices]
[Pages 13623-13625]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-6150]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61705; File No. SR-NYSEAmex-2010-23]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending Rule
390
March 15, 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 March 5, 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 and
II, below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its sharing in accounts rule to
harmonize its requirements with those of the Financial Industry
Regulatory Authority (``FINRA''). 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. The
text of the proposed rule change is below. Proposed new language is in
italics and proposed deletions are in [brackets].
Rules of NYSE Amex, Inc.
* * * * *
Rule 390. [Assumption of Loss Prohibited] Prohibition Against
Guarantees and Sharing in Accounts
(a) Prohibition Against Guarantees
No member or member organization shall guarantee any customer
against loss in his account. [or take or receive directly or indirectly
a share in the profits of any customer's account or share in any losses
sustained in any such account. For the purposes of this rule the term
customer shall not be deemed to include the member or member
organization or any joint, group, or syndicate account with such member
or member organization.]
(b) Sharing in Accounts; Extent Permissible
(1)(A) Except as provided in paragraph (2) no member or person
associated with a member shall share directly or indirectly in the
profits or losses in any account of a customer carried by the member or
any other member; provided, however, that a member or person associated
with a member may share in the profits or losses in such an account if
(i) such person associated with a member obtains prior written
authorization from the member employing the associated person;
(ii) such member or person associated with a member obtains prior
written authorization from the customer; and
(iii) such member or person associated with a member shares in the
profits or losses in any account of such customer only in direct
proportion to the financial contributions made to such account by
either the member or person associated with a member.
(B) Exempt from the direct proportionate share limitation of
paragraph (1)(A)(iii) are accounts of the immediate family of such
member or person associated with a member. For
[[Page 13624]]
purposes of this Rule, the term ``immediate family'' shall include
parents, mother-in-law or father-in-law, husband or wife, children or
any relative to whose support the member or person associated with a
member otherwise contributes directly or indirectly.
(2) Notwithstanding the prohibition of paragraph (1), a member or
person associated with a member that is acting as an investment adviser
(whether or not registered as such) may receive compensation based on a
share in profits or gains in an account if
(A) such person associated with a member seeking such compensation
obtains prior written authorization from the member employing the
associated person;
(B) such member or person associated with a member seeking such
compensation obtains prior written authorization from the customer; and
(C) all of the conditions in Rule 205-3 of the Investment Advisers
Act of 1940 (as the same may be amended from time to time) are
satisfied.
* * * * *
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
Pursuant to Rule 17d-2 under the Securities Exchange Act of 1934,
the American Stock Exchange, LLC (n/k/a NYSE Amex, LLC), the Boston
Stock Exchange, Inc., the Chicago Board Options Exchange, Inc., the
International Securities Exchange, LLC, Financial Industry Regulatory
Authority, Inc., The NASDAQ Stock Market LLC, the New York Stock
Exchange, LLC, NYSE Arca, Inc., and the Philadelphia Stock Exchange,
Inc. (collectively the ``Options Self Regulatory Council''), entered
into an agreement dated June 5, 2008 (the ``17d-2 Agreement'') to
allocate regulatory responsibility for common rules. By this proposal,
the Exchange seeks to harmonize its `Sharing in Accounts' rule with
FINRA's rule for purposes of the 17d-2 Agreement.
In order to maintain substantial similarity with FINRA rules, the
Exchange proposes to delete the language of NYSE Amex Rule 390 related
to sharing in the profits and losses of a customer account, and replace
it with the language of FINRA 2150(c), Sharing in Accounts; Extent
Permissible. FINRA Rule 2150(c) contains the same prohibition against
sharing in accounts as NYSE Amex Rule 390, but with additional limited
exceptions. The general prohibition contained in NYSE Amex Rule 390
against sharing in the profits or losses of a customer account is
currently covered by the 17d-2 Agreement. However, the limited
exceptions of FINRA Rule 2150(c) are not covered by the 17d-2
Agreement. The Exchange proposes to add those limited exceptions in
order to harmonize its rule with the FINRA rule and add those limited
exceptions to the 17d-2 Agreement. The portion of the rule prohibiting
the guarantee of a customer against loss will remain in place.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \4\ of the
Act, in general, and furthers the objectives of Section 6(b)(5) \5\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system. Specifically, the changes proposed
herein, by harmonizing NYSE Amex rules with FINRA rules, provide NYSE
Amex Members with a clearer regulatory scheme. The Exchange further
notes that the changes proposed herein are neither novel nor
controversial and are modeled on existing FINRA rules.
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\4\ 15 U.S.C. 78f(b).
\5\ 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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
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 \8\ and Rule 19b-
4(f)(6)(iii) thereunder.\9\
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6).
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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.
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
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The Exchange requests that the Commission waive the 30-day pre-
operative waiting period contained in Exchange Act Rule 19b-
4(f)(6)(iii).\12\ The Exchange requests this waiver so that these
changes can be both immediately effective and operative, thus
minimizing any possible confusion. The Exchange believes that by
harmonizing NYSE Amex rules with FINRA rules, NYSE Amex Members will be
provided with a clearer regulatory scheme. The Commission believes that
waiving the 30-day operative delay will permit the Exchange to
harmonize its rules with the corresponding FINRA rule immediately, thus
promoting
[[Page 13625]]
clarity with respect and minimizing confusion with respect to the
requirements regarding guarantees and sharing in accounts.\13\ The
Commission notes that the FINRA financial responsibility rules are
currently in operation. For these reasons, the Commission designates
the proposed rule change as operative upon filing. 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.
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\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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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:
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-2010-23 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-2010-23. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Section, 100
F Street, NE., Washington, DC 20549 on official business days between
the hours of 10 a.m. and 3 p.m. Copies of the filing will also be
available for inspection and copying at the NYSE's principal office and
on its Internet Web site at https://www.nyse.com. 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-2010-23 and should be submitted
on or before April 12, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-6150 Filed 3-19-10; 8:45 am]
BILLING CODE 8011-01-P
