Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC Amending Rule 70 in Order To Update Functionality Relating to the Entry of D-Quotes and Pegging E-Quotes, 18929-18931 [2010-8363]
Download as PDF
<![CDATA[
Federal Register / Vol. 75, No. 70 / Tuesday, April 13, 2010 / Notices
18929
ISE rule(s)
FINRA (NASD) or SEC section
2114. Doing Business with the Public 2 ...................................................
NASD Rules 2310 Recommendations to Customers (Suitability); 2320
Best Execution and Interpositioning; 2330 Customers’ Securities or
Funds; 2340 Customer Account Statements; 2341 Margin Disclosure
Statement; 2350 Broker/Dealer Conduct on the Premises of Financial Institutions; 2360 Approval Procedures for Day-Trading Accounts; 2361 Day-Trading Risk Disclosure Statement; 2370 Borrowing From or Lending to Customers.
1 FINRA
shall have Regulatory Responsibilities for Dual Members to the extent that a Dual Member is, and remains, a member of SIPC.
connection with the approval of ISE Rule 2114, the Commission noted that since ISE is requiring Equity EAMs that do business with the
public to become members of NASD (n/k/a FINRA), those ISE members are required to comply with FINRA (NASD) rules that govern the practice of members when doing business with the public. The Commission noted that, among other things, these members would be obligated to
comply with these listed FINRA (NASD) Rules. See Exchange Act Release No. 54401 (September 1, 2006), 71 FR 53483 (September 11, 2006)
(Order Granting Accelerated Approval of SR–ISE–2006–53).
2 In
*
*
*
*
Paper Comments
*
III. Date of Effectiveness of the
Proposed Plan and Timing for
Commission Action
Pursuant to Section 17(d)(1) of the
Act 15 and Rule 17d–2 thereunder,16
after April 28, 2010, the Commission
may, by written notice, declare the plan
submitted by ISE and FINRA, File No.
4–596, to be effective if the Commission
finds that the plan is necessary or
appropriate in the public interest and
for the protection of investors, to foster
cooperation and coordination among
self-regulatory organizations, or to
remove impediments to and foster the
development of the national market
system and a national system for the
clearance and settlement of securities
transactions and in conformity with the
factors set forth in Section 17(d) of the
Act.
IV. Solicitation of Comments
In order to assist the Commission in
determining whether to approve the
17d–2 Plan and to relieve ISE of the
responsibilities which would be
assigned to FINRA, interested persons
are invited to submit written data,
views, and arguments concerning the
foregoing. Comments may be submitted
by any of the following methods:
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:
sroberts on DSKD5P82C1PROD 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
No. 4–596 on the subject line.
15 15
U.S.C. 78q(d)(1).
16 17 CFR 240.17d–2.
VerDate Nov<24>2008
17:33 Apr 12, 2010
Jkt 220001
• 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.
4–596. 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,17 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 the plan also
will be available for inspection and
copying at the principal offices of ISE
and FINRA. 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. 4–596 and
should be submitted on or before April
28, 2010.
17 The text of the proposed rule change is
available on the Commission’s Web site at https://
www.sec.gov.
18 17 CFR 200.30–3(a)(12).
PO 00000
Frm 00147
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–8350 Filed 4–12–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61848; File No. SR–NYSE–
2010–31]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
Stock Exchange LLC Amending Rule
70 in Order To Update Functionality
Relating to the Entry of D-Quotes and
Pegging E-Quotes
April 6, 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 April 1,
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 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 70 in order to update functionality
relating to the entry of d-Quotes and
pegging e-Quotes. The text of the
proposed rule change is available at the
Exchange, on the Commission’s Web
site at https://www.sec.gov, the
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
E:\FR\FM\13APN1.SGM
13APN1
18930
Federal Register / Vol. 75, No. 70 / Tuesday, April 13, 2010 / Notices
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.
sroberts on DSKD5P82C1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
rules to provide that d-Quotes and
pegging e-Quotes that are entered 10
seconds or less before the scheduled
close will automatically be rejected by
Exchange systems. Accordingly, on a
regular trading day, Exchange systems
will reject d-Quotes or pegging e-Quotes
entered at or after 3:59:50 p.m. On days
where trading closes at 1 p.m., e.g., the
day after Thanksgiving, Exchange
systems will reject d-Quotes or pegging
e-Quotes eligible for the close entered at
or after 12:59:50 p.m.4
The Exchange believes that the 10
second cut-off will contribute to a more
orderly closing process, by providing an
opportunity for contra-side interest,
including the new Closing Offset (‘‘CO’’)
order, to flow into the Exchange market.
This proposed change is consistent with
the Exchange’s ongoing effort to
streamline the closing process and
enhance transparency at the close. In
light of recent enhancements to the
imbalance feed information, the
Exchange believes that designating a
cut-off time before the close for the
entry of d-Quotes and pegging e-Quotes
will contribute to these objectives.
Currently, d-Quotes and pegging eQuotes are added to the pre-close data
feed beginning at 3:55 p.m., and
updated every five seconds until the
close. The Exchange believes that a 10
second cut-off prior to the close for
entry of d-Quotes and pegging e-Quotes
will provide sufficient time for all
market participants to electronically
4 NYSE Amex LLC has filed a companion rule
proposal to conform its equities rules to the changes
proposed in this filing. See SR–NYSEAmex–2010–
34.
VerDate Nov<24>2008
17:33 Apr 12, 2010
Jkt 220001
recognize and respond to this
information by entering offsetting
interest to mitigate market impact, by
entering limit orders or the new CO
order.5 The Exchange further believes
that the 10-second cut off will not
materially impact a Floor broker’s
ability to represent customer interest in
the closing transaction because, like
other market participants, Floor brokers
can enter offsetting market-on-close or
limit-on-close orders or CO orders in
that 10-second period. Floor brokers
also continue to have the ability to
represent interest orally at the close.
However, the Exchange believes that the
proposed cut-off period will have
minimal impact on current trading
practices of Floor brokers because the
manual entry process for d-Quotes in
the handheld devices creates physical
constraints that naturally limit the
number of d-Quotes that can be sent in
the last 10 seconds. Therefore, the cutoff time should not impose a significant
limitation on Floor brokers that is not
already present because of the manual
aspect of d-Quote entry. The proposed
change is also consistent with ongoing
regulatory guidance that encourages all
market participants, including Floor
brokers, to avoid holding back large
interest until at or near the close.6
To effect this change, the Exchange
proposes to amend Rules 70.25(a)(ii)
and 70.26(iii) to provide that Exchange
systems will reject d-Quotes or pegging
e-Quotes, as applicable, that are entered
10 seconds or less before the scheduled
close. The Exchange also proposes to
add to Rule 70(h)(i) to cross reference
Supplementary Material .25 and .26 of
Rule 70 to reflect that those rules also
impact how Floor broker agency interest
interacts in the closing process. The
Exchange notes that any d-Quotes or
pegging e-Quotes eligible for the close
that were entered before this proposed
cut-off time remain eligible to
participate in the close. The Exchange
will notify members and member
organizations, including Floor brokers,
of these rule changes and the date they
will be implemented by issuing a Trader
Notice and/or publication of an
Information Memorandum.
2. Statutory Basis
The statutory basis for the proposed
rule change is Section 6(b)(5) of the
Act,7 which requires the rules of an
exchange 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 proposed rule
change also is designed to support the
principles of Section 11A(a)(1) 8 of the
Act in that it seeks to assure fair
competition among brokers and dealers
and among exchange markets and the
practicability of brokers executing
investor’s orders in the best market. The
Exchange believes that the proposed
updates to Floor broker functionality
meet such goals as it will contribute to
a more orderly closing process, by
providing an opportunity for contra-side
interest to flow into the Exchange
market.
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
Because the foregoing 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 for 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, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 9 and Rule 19b–4(f)(6) thereunder.10
At any time within 60 days of the
filing of the proposed rule change, the
7 15
U.S.C. 78f(b)(5).
U.S.C. 78k–1(a)(1).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the self-regulatory organization
to submit to the Commission written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
8 15
5 See Securities Exchange Act Release Nos. 61233
(Dec. 23, 2009), 74 FR 69169 (Dec. 30, 2009) (SR–
NYSE–2009–111); 61244 (Dec. 28, 2009), 75 FR
4797 [sic] (Jan. 5, 2010) (SR–NYSEAmex–2009–81).
The Exchange implemented these rule changes for
both NYSE and NYSE Amex Equities on March 1,
2010.
6 See e.g., NYSE Regulation Information Memo
09–29 (June 19, 2009), published at https://
www.nyse.com.
PO 00000
Frm 00148
Fmt 4703
Sfmt 4703
E:\FR\FM\13APN1.SGM
13APN1
Federal Register / Vol. 75, No. 70 / Tuesday, April 13, 2010 / Notices
Number SR–NYSE–2010–31 and should
be submitted on or before May 4, 2010.
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
IV. Solicitation of Comments
[FR Doc. 2010–8363 Filed 4–12–10; 8:45 am]
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:
BILLING CODE 8011–01–P
Electronic Comments
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Add a Note to Rule
4.11 Advising the Delta-Based Equity
Hedge Exemption Is Not Currently
Available for Customers
• 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–NYSE–2010–31 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61857; File No. SR–CBOE–
2010–030]
April 7, 2010.
Paper Comments
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 March
26, 2010, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
All submissions should refer to File
Exchange Commission (the
Number SR–NYSE–2010–31. This file
‘‘Commission’’) the proposed rule
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
Commission process and review your
prepared by the Exchange. The
comments more efficiently, please use
Exchange has designated this proposal
only one method. The Commission will as one constituting a stated policy,
post all comments on the Commission’s practice, or interpretation with respect
Internet Web site (https://www.sec.gov/
to the meaning, administration, or
rules/sro.shtml). Copies of the
enforcement of an existing rule under
submission, all subsequent
Section 19(b)(3)(A)(i) of the Act, and
amendments, all written statements
Rule 19b–4(f)(1) thereunder, which
with respect to the proposed rule
renders the proposal effective upon
change that are filed with the
filing with the Commission. The
Commission, and all written
Commission is publishing this notice to
communications relating to the
solicit comments on the proposed rule
proposed rule change between the
change from interested persons.
Commission and any person, other than
I. Self-Regulatory Organization’s
those that may be withheld from the
Statement of the Terms of Substance of
public in accordance with the
the Proposed Rule Change
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
CBOE proposes to add a note to the
printing in the Commission’s Public
beginning of Interpretation and Policy
Reference Room on official business
.04 (c) to Rule 4.11, Delta-Based Equity
days between the hours of 10 a.m. and
Hedge Exemption, advising that this
3 p.m. Copies of such filing also will be
exemption is not currently available to
available for inspection and copying at
customers. The text of the rule proposal
the principal office of the Exchange. All is available on the Exchange’s Web site
comments received will be posted
(https://www.cboe.org/legal), at the
without change; the Commission does
Exchange’s Office of the Secretary and
not edit personal identifying
at the Commission.
information from submissions. You
should submit only information that
11 17 CFR 200.30–3(a)(12).
you wish to make available publicly. All
1 15 U.S.C. 78s(b)(1).
submissions should refer to File
2 17 CFR 240.19b–4.
sroberts on DSKD5P82C1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
VerDate Nov<24>2008
17:33 Apr 12, 2010
Jkt 220001
PO 00000
Frm 00149
Fmt 4703
Sfmt 4703
18931
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Commission previously approved
CBOE’s proposed rule change, as
modified [sic] Amendment No. 1, to
extend the delta hedging exemption
from equity option position limits to
positions of customers who hedge those
positions in accordance with a pricing
model maintained and operated by the
Options Clearing Corporation.3
Consistent with Amendment No. 1 and
the approval order, which provided that
CBOE was adopting the delta hedging
exemption for customers but not
implementing it immediately, the
purpose of this rule change is to add a
note the beginning of Interpretation and
Policy .04 (c) to Rule 4.11, Delta-Based
Equity Hedge Exemption, advising that
this exemption is not currently available
to customers. Specifically, the Exchange
proposes to add the following language,
* Note: The Delta-Based Equity Hedge
Exemption for customers is not currently
available and customers may not seek to rely
on the Delta-Based Equity Hedge Exemption.
The Exchange will issue a Regulatory
Circular to announce when the Delta-Based
Equity Hedge Exemption is available to
customers.
2. Statutory Basis
The Exchange believes this rule
proposal is consistent with the Act and
the rules and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.4
Specifically, the Exchange believes that
the proposed rule change is consistent
with the Section 6(b)(5) Act 5
requirements that the rules of an
3 See Securities Exchange Act Release No. 60555
(August 21, 2009), 74 FR 43741 (August 27, 2009).
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
E:\FR\FM\13APN1.SGM
13APN1
]]>Agencies
[Federal Register Volume 75, Number 70 (Tuesday, April 13, 2010)]
[Notices]
[Pages 18929-18931]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8363]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61848; File No. SR-NYSE-2010-31]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC
Amending Rule 70 in Order To Update Functionality Relating to the Entry
of D-Quotes and Pegging E-Quotes
April 6, 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 April 1, 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
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 Rule 70 in order to update
functionality relating to the entry of d-Quotes and pegging e-Quotes.
The text of the proposed rule change is available at the Exchange, on
the Commission's Web site at https://www.sec.gov, the
[[Page 18930]]
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its rules to provide that d-Quotes
and pegging e-Quotes that are entered 10 seconds or less before the
scheduled close will automatically be rejected by Exchange systems.
Accordingly, on a regular trading day, Exchange systems will reject d-
Quotes or pegging e-Quotes entered at or after 3:59:50 p.m. On days
where trading closes at 1 p.m., e.g., the day after Thanksgiving,
Exchange systems will reject d-Quotes or pegging e-Quotes eligible for
the close entered at or after 12:59:50 p.m.\4\
---------------------------------------------------------------------------
\4\ NYSE Amex LLC has filed a companion rule proposal to conform
its equities rules to the changes proposed in this filing. See SR-
NYSEAmex-2010-34.
---------------------------------------------------------------------------
The Exchange believes that the 10 second cut-off will contribute to
a more orderly closing process, by providing an opportunity for contra-
side interest, including the new Closing Offset (``CO'') order, to flow
into the Exchange market. This proposed change is consistent with the
Exchange's ongoing effort to streamline the closing process and enhance
transparency at the close. In light of recent enhancements to the
imbalance feed information, the Exchange believes that designating a
cut-off time before the close for the entry of d-Quotes and pegging e-
Quotes will contribute to these objectives.
Currently, d-Quotes and pegging e-Quotes are added to the pre-close
data feed beginning at 3:55 p.m., and updated every five seconds until
the close. The Exchange believes that a 10 second cut-off prior to the
close for entry of d-Quotes and pegging e-Quotes will provide
sufficient time for all market participants to electronically recognize
and respond to this information by entering offsetting interest to
mitigate market impact, by entering limit orders or the new CO
order.\5\ The Exchange further believes that the 10-second cut off will
not materially impact a Floor broker's ability to represent customer
interest in the closing transaction because, like other market
participants, Floor brokers can enter offsetting market-on-close or
limit-on-close orders or CO orders in that 10-second period. Floor
brokers also continue to have the ability to represent interest orally
at the close. However, the Exchange believes that the proposed cut-off
period will have minimal impact on current trading practices of Floor
brokers because the manual entry process for d-Quotes in the handheld
devices creates physical constraints that naturally limit the number of
d-Quotes that can be sent in the last 10 seconds. Therefore, the cut-
off time should not impose a significant limitation on Floor brokers
that is not already present because of the manual aspect of d-Quote
entry. The proposed change is also consistent with ongoing regulatory
guidance that encourages all market participants, including Floor
brokers, to avoid holding back large interest until at or near the
close.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 61233 (Dec. 23,
2009), 74 FR 69169 (Dec. 30, 2009) (SR-NYSE-2009-111); 61244 (Dec.
28, 2009), 75 FR 4797 [sic] (Jan. 5, 2010) (SR-NYSEAmex-2009-81).
The Exchange implemented these rule changes for both NYSE and NYSE
Amex Equities on March 1, 2010.
\6\ See e.g., NYSE Regulation Information Memo 09-29 (June 19,
2009), published at https://www.nyse.com.
---------------------------------------------------------------------------
To effect this change, the Exchange proposes to amend Rules
70.25(a)(ii) and 70.26(iii) to provide that Exchange systems will
reject d-Quotes or pegging e-Quotes, as applicable, that are entered 10
seconds or less before the scheduled close. The Exchange also proposes
to add to Rule 70(h)(i) to cross reference Supplementary Material .25
and .26 of Rule 70 to reflect that those rules also impact how Floor
broker agency interest interacts in the closing process. The Exchange
notes that any d-Quotes or pegging e-Quotes eligible for the close that
were entered before this proposed cut-off time remain eligible to
participate in the close. The Exchange will notify members and member
organizations, including Floor brokers, of these rule changes and the
date they will be implemented by issuing a Trader Notice and/or
publication of an Information Memorandum.
2. Statutory Basis
The statutory basis for the proposed rule change is Section 6(b)(5)
of the Act,\7\ which requires the rules of an exchange 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
proposed rule change also is designed to support the principles of
Section 11A(a)(1) \8\ of the Act in that it seeks to assure fair
competition among brokers and dealers and among exchange markets and
the practicability of brokers executing investor's orders in the best
market. The Exchange believes that the proposed updates to Floor broker
functionality meet such goals as it will contribute to a more orderly
closing process, by providing an opportunity for contra-side interest
to flow into the Exchange market.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(5).
\8\ 15 U.S.C. 78k-1(a)(1).
---------------------------------------------------------------------------
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
Because the foregoing 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 for 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, it
has become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and
Rule 19b-4(f)(6) thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the self-regulatory organization to submit to the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the
[[Page 18931]]
Commission may summarily abrogate such rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2010-31 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-NYSE-2010-31. 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 Room 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
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-
NYSE-2010-31 and should be submitted on or before May 4, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-8363 Filed 4-12-10; 8:45 am]
BILLING CODE 8011-01-P
