Self-Regulatory Organizations; NYSE Amex LLC; Order Approving a Proposed Rule Change Deleting Rule 446-NYSE Amex Equities and Adopting New Rule 4370-NYSE Amex Equities To Correspond With Rule Changes Filed by the Financial Industry Regulatory Authority, Inc., 25901-25902 [2010-10952]
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Federal Register / Vol. 75, No. 89 / Monday, May 10, 2010 / Notices
Act 12 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 13
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
requested that the Commission waive
the 30-day operative delay to allow the
Exchange to begin listing options
overlying the S&P 500 Annual Dividend
Index beginning on Tuesday, May 25,
2010.
The Commission believes that
acceleration of the operative date is
consistent with the protection of
investors and the public interest
because the Commission has previously
considered and approved the listing of
options on the S&P 500 Annual
Dividend Index and the current
proposal raises no new regulatory
issues. Acceleration of the operative
date will allow the Exchange to list
options on the S&P 500 Annual
Dividend Index on May 25, 2010,
thereby providing investors with an
additional investment tool and greater
flexibility in meeting their investment
objectives without delay. For these
reasons, the Commission designates that
the proposed rule change become
operative on May 25, 2010.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File No.
SR–CBOE–2010–039. 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, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
CBOE. 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–2010–039 and should be
submitted on or before June 1, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
Electronic Comments
jlentini on DSKJ8SOYB1PROD with NOTICES
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:
[FR Doc. 2010–10956 Filed 5–7–10; 8:45 am]
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–CBOE–2010–039 on the subject
line.
BILLING CODE 8010–01–P
CFR 240.19b–4(f)(6).
CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
17:18 May 07, 2010
Jkt 220001
[Release No. 34–62014; File No. SR–
NYSEAMEX–2010–26]
Self-Regulatory Organizations; NYSE
Amex LLC; Order Approving a
Proposed Rule Change Deleting Rule
446—NYSE Amex Equities and
Adopting New Rule 4370—NYSE Amex
Equities To Correspond With Rule
Changes Filed by the Financial
Industry Regulatory Authority, Inc.
April 30, 2010.
I. Introduction
On March 11, 2010, NYSE Amex LLC
(‘‘NYSE Amex’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) pursuant
to Section 19(b)(1) 1 of the Securities
Exchange Act of 1934 (the ‘‘Act’’) 2 and
Rule 19b–4 thereunder,3 a proposed rule
change to delete Rule 446—NYSE Amex
Equities and adopt new Rule 4370—
NYSE Amex Equities to correspond
with rule changes filed by the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) and approved by the
Commission.4 The proposed rule change
was published for comment in the
Federal Register on March 26, 2009.5
The Commission received no comments
regarding the proposal. This order
approves the proposed rule change.
II. Description of the Proposal
The Exchange proposes to delete Rule
446—NYSE Amex Equities and adopt
new Rule 4370—NYSE Amex Equities
to correspond with rule changes filed by
the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) and approved
by the Commission.6
III. Background
On July 30, 2007, FINRA’s
predecessor, the National Association of
Securities Dealers, Inc. (‘‘NASD’’), and
NYSE Regulation, Inc. (‘‘NYSER’’)
consolidated their member firm
regulation operations into a combined
organization, FINRA. Pursuant to Rule
17d–2 under the Act, the New York
Stock Exchange LLC (‘‘NYSE’’), NYSER
and FINRA entered into an agreement
(‘‘Agreement’’) to reduce regulatory
duplication for their members by
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
4 See Securities Exchange Act Release No. 60534
(August 19, 2009), 74 FR 44410 (August 28, 2009)
(order approving SR–FINRA–2009–036) (‘‘Release
No. 34–60534’’).
5 See Securities Exchange Act Release No. 61744
(March 19, 2010), 75 FR 14648.
6 See Release No. 34–60534, supra note 4.
2 15
13 17
VerDate Mar<15>2010
SECURITIES AND EXCHANGE
COMMISSION
1 15
12 17
15 17
PO 00000
CFR 200.30–3(a)(12).
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E:\FR\FM\10MYN1.SGM
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Federal Register / Vol. 75, No. 89 / Monday, May 10, 2010 / Notices
allocating to FINRA certain regulatory
responsibilities for certain NYSE rules
and rule interpretations (‘‘FINRA
Incorporated NYSE Rules’’). The
Exchange became a party to the
Agreement effective December 15,
2008.7
As part of its effort to reduce
regulatory duplication and relieve firms
that are members of FINRA, NYSE and
NYSE Amex of conflicting or
unnecessary regulatory burdens, FINRA
is now engaged in the process of
reviewing and amending the NASD and
FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA
rulebook.8
In 2008, FINRA deleted FINRA
Incorporated NYSE Rule 446 (Business
Continuity and Contingency Plans) as
substantively duplicative of NASD
Rules 3510 (Business Continuity Plans)
and 3520 (Emergency Contact
Information).9 Correspondingly, the
Exchange amended Rule 446—NYSE
Amex Equities (Business Continuity and
Contingency Plans) to remove the
existing text and incorporate NASD
Rules 3510 and 3520 by reference.10
Subsequently, FINRA adopted, subject
to certain amendments, NASD Rules
3510 and 3520 as consolidated FINRA
Rule 4370 (Business Continuity Plans
and Emergency Contact Information).11
The Exchange correspondingly
proposes to delete Rule 446—NYSE
Amex Equities and replace it with
proposed Rule 4370—NYSE Amex
Equities, which is substantially similar
to the new FINRA Rule.12 The Exchange
jlentini on DSKJ8SOYB1PROD with NOTICES
7 See
Securities Exchange Act Release Nos. 56148
(July 26, 2007), 72 FR 42146 (August 1, 2007) (order
approving the Agreement); 56147 (July 26, 2007), 72
FR 42166 (August 1, 2007) (SR–NASD–2007–054)
(order approving the incorporation of certain NYSE
Rules as ‘‘Common Rules’’); and 60409 (July 30,
2009), 74 FR 39353 (August 6, 2009) (order
approving the amended and restated Agreement,
adding NYSE Amex LLC as a party). Paragraph 2(b)
of the Agreement sets forth procedures regarding
proposed changes by FINRA, NYSE or NYSE Amex
to the substance of any of the Common Rules.
8 FINRA’s rulebook currently has three sets of
rules: (1) NASD Rules, (2) FINRA Incorporated
NYSE Rules, and (3) consolidated FINRA Rules.
The FINRA Incorporated NYSE Rules apply only to
those members of FINRA that are also members of
the NYSE, while the consolidated FINRA Rules
apply to all FINRA members. For more information
about the FINRA rulebook consolidation process,
see FINRA Information Notice, March 12, 2008.
9 See Securities Exchange Act Release No. 58533
(September 12, 2008), 73 FR 54652 (September 22,
2008) (order approving SR–FINRA–2008–036).
10 See Securities Exchange Act Release No. 59022
(November 26, 2008), 73 FR 73683 (December 3,
2008) (order approving SR–NYSEALTR–2008–10).
11 See Release No. 34–60534, supra note 4.
12 New York Stock Exchange LLC submitted a
companion rule filing amending its rules in
accordance with FINRA’s rule changes, which the
Commission has approved. See Securities Exchange
Act Release No. 62015 (April 30, 2010)(SR–NYSE–
2010–23).
VerDate Mar<15>2010
17:18 May 07, 2010
Jkt 220001
states that the purpose of this is to
harmonize the NYSE Amex Equities
Rules with the consolidated FINRA
Rules. The Exchange states that, as
proposed, Rule 4370—NYSE Amex
Equities adopts the same language as
FINRA Rule 4370, except for
substituting for or adding to, as needed,
the term ‘‘member organization’’ for the
term ‘‘member,’’ and making
corresponding technical changes that
reflect the difference between NYSE
Amex’s and FINRA’s membership
structures. The Exchange also states
that, in paragraph (f)(2) to proposed
NYSE Rule 4370—NYSE Amex Equities,
the Exchange has added a crossreference to Rule 416A—NYSE Amex
Equities to ensure that those Exchange
members and member organizations that
are not FINRA members are required to
update the contact information for
emergency personnel in accordance
with NYSE Amex Equities Rules.
The Exchange also proposes to add
Supplementary Material .01 to Rule
4370—NYSE Amex Equities to provide
that, for the purposes of the rule, the
term ‘‘associated person’’ shall have the
same meaning as the terms ‘‘person
associated with a member’’ or
‘‘associated person of a member’’ as
defined in Article I (rr) of the FINRA ByLaws. The Exchange states that this
change is necessary to ensure that both
proposed Rule 4370—NYSE Amex
Equities and FINRA Rule 4370 are fully
harmonized.
Finally, the Exchange proposes that
the effective date for the proposed rule
changes be retroactive to December 14,
2009, the same effective date for the
corresponding FINRA rule changes.13
As a result, there should be no
regulatory gaps between the FINRA and
NYSE Amex Equities Rules and that, as
applicable, the NYSE Amex Equities
Rules would maintain their status as
Common Rules under the Agreement.14
IV. Discussion and Commission
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
securities exchange. Specifically, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,15 which requires,
among other things, that the rules of a
13 See FINRA Regulatory Notice 09–60 (October
15, 2009).
14 As provided in paragraph 2(b) of the
Agreement, FINRA and NYSE will amend the list
of Common Rules to conform to the rule changes
proposed herein.
15 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
national securities exchange be
designed to prevent fraudulent and
manipulative acts and practices, 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.16
The Commission believes that the
proposed rule change provides greater
harmonization between NYSE Amex
Equities Rules and FINRA Rules of
similar purpose, resulting in less
burdensome and more efficient
regulatory compliance for NYSE Amex
members. In addition, the Commission
believes that retroactive application of
the proposed rule change to December
14, 2009, is appropriate to assure that
there are no regulatory gaps between
FINRA and NYSE Amex Equities Rules,
and that, as applicable, the NYSE Amex
Rules would maintain their status as
Common Rules under the Agreement.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,17 that the
proposed rule change (SR–NYSEAmex–
2010–26), be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–10952 Filed 5–7–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62015; File No. SR–NYSE–
2010–23]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Approving Proposed Rule Change
Deleting NYSE Rule 446 and Adopting
New Rule 4370 To Correspond With
Rule Changes Filed by the Financial
Industry Regulatory Authority, Inc.
April 30, 2010.
I. Introduction
On March 11, 2010, the New York
Stock Exchange LLC (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) 1 of the Securities Exchange Act
16 In approving the proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition and capital
formation. See 15 U.S.C. 78c(f).
17 15 U.S.C. 78s(b)(2).
18 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
E:\FR\FM\10MYN1.SGM
10MYN1
]]>Agencies
[Federal Register Volume 75, Number 89 (Monday, May 10, 2010)]
[Notices]
[Pages 25901-25902]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-10952]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62014; File No. SR-NYSEAMEX-2010-26]
Self-Regulatory Organizations; NYSE Amex LLC; Order Approving a
Proposed Rule Change Deleting Rule 446--NYSE Amex Equities and Adopting
New Rule 4370--NYSE Amex Equities To Correspond With Rule Changes Filed
by the Financial Industry Regulatory Authority, Inc.
April 30, 2010.
I. Introduction
On March 11, 2010, NYSE Amex LLC (``NYSE Amex'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'')
pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934
(the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ a proposed rule change
to delete Rule 446--NYSE Amex Equities and adopt new Rule 4370--NYSE
Amex Equities to correspond with rule changes filed by the Financial
Industry Regulatory Authority, Inc. (``FINRA'') and approved by the
Commission.\4\ The proposed rule change was published for comment in
the Federal Register on March 26, 2009.\5\ The Commission received no
comments regarding the proposal. This order approves the proposed rule
change.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ See Securities Exchange Act Release No. 60534 (August 19,
2009), 74 FR 44410 (August 28, 2009) (order approving SR-FINRA-2009-
036) (``Release No. 34-60534'').
\5\ See Securities Exchange Act Release No. 61744 (March 19,
2010), 75 FR 14648.
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposes to delete Rule 446--NYSE Amex Equities and
adopt new Rule 4370--NYSE Amex Equities to correspond with rule changes
filed by the Financial Industry Regulatory Authority, Inc. (``FINRA'')
and approved by the Commission.\6\
---------------------------------------------------------------------------
\6\ See Release No. 34-60534, supra note 4.
---------------------------------------------------------------------------
III. Background
On July 30, 2007, FINRA's predecessor, the National Association of
Securities Dealers, Inc. (``NASD''), and NYSE Regulation, Inc.
(``NYSER'') consolidated their member firm regulation operations into a
combined organization, FINRA. Pursuant to Rule 17d-2 under the Act, the
New York Stock Exchange LLC (``NYSE''), NYSER and FINRA entered into an
agreement (``Agreement'') to reduce regulatory duplication for their
members by
[[Page 25902]]
allocating to FINRA certain regulatory responsibilities for certain
NYSE rules and rule interpretations (``FINRA Incorporated NYSE
Rules''). The Exchange became a party to the Agreement effective
December 15, 2008.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release Nos. 56148 (July 26,
2007), 72 FR 42146 (August 1, 2007) (order approving the Agreement);
56147 (July 26, 2007), 72 FR 42166 (August 1, 2007) (SR-NASD-2007-
054) (order approving the incorporation of certain NYSE Rules as
``Common Rules''); and 60409 (July 30, 2009), 74 FR 39353 (August 6,
2009) (order approving the amended and restated Agreement, adding
NYSE Amex LLC as a party). Paragraph 2(b) of the Agreement sets
forth procedures regarding proposed changes by FINRA, NYSE or NYSE
Amex to the substance of any of the Common Rules.
---------------------------------------------------------------------------
As part of its effort to reduce regulatory duplication and relieve
firms that are members of FINRA, NYSE and NYSE Amex of conflicting or
unnecessary regulatory burdens, FINRA is now engaged in the process of
reviewing and amending the NASD and FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA rulebook.\8\
---------------------------------------------------------------------------
\8\ FINRA's rulebook currently has three sets of rules: (1) NASD
Rules, (2) FINRA Incorporated NYSE Rules, and (3) consolidated FINRA
Rules. The FINRA Incorporated NYSE Rules apply only to those members
of FINRA that are also members of the NYSE, while the consolidated
FINRA Rules apply to all FINRA members. For more information about
the FINRA rulebook consolidation process, see FINRA Information
Notice, March 12, 2008.
---------------------------------------------------------------------------
In 2008, FINRA deleted FINRA Incorporated NYSE Rule 446 (Business
Continuity and Contingency Plans) as substantively duplicative of NASD
Rules 3510 (Business Continuity Plans) and 3520 (Emergency Contact
Information).\9\ Correspondingly, the Exchange amended Rule 446--NYSE
Amex Equities (Business Continuity and Contingency Plans) to remove the
existing text and incorporate NASD Rules 3510 and 3520 by
reference.\10\ Subsequently, FINRA adopted, subject to certain
amendments, NASD Rules 3510 and 3520 as consolidated FINRA Rule 4370
(Business Continuity Plans and Emergency Contact Information).\11\
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release No. 58533 (September 12,
2008), 73 FR 54652 (September 22, 2008) (order approving SR-FINRA-
2008-036).
\10\ See Securities Exchange Act Release No. 59022 (November 26,
2008), 73 FR 73683 (December 3, 2008) (order approving SR-NYSEALTR-
2008-10).
\11\ See Release No. 34-60534, supra note 4.
---------------------------------------------------------------------------
The Exchange correspondingly proposes to delete Rule 446--NYSE Amex
Equities and replace it with proposed Rule 4370--NYSE Amex Equities,
which is substantially similar to the new FINRA Rule.\12\ The Exchange
states that the purpose of this is to harmonize the NYSE Amex Equities
Rules with the consolidated FINRA Rules. The Exchange states that, as
proposed, Rule 4370--NYSE Amex Equities adopts the same language as
FINRA Rule 4370, except for substituting for or adding to, as needed,
the term ``member organization'' for the term ``member,'' and making
corresponding technical changes that reflect the difference between
NYSE Amex's and FINRA's membership structures. The Exchange also states
that, in paragraph (f)(2) to proposed NYSE Rule 4370--NYSE Amex
Equities, the Exchange has added a cross-reference to Rule 416A--NYSE
Amex Equities to ensure that those Exchange members and member
organizations that are not FINRA members are required to update the
contact information for emergency personnel in accordance with NYSE
Amex Equities Rules.
---------------------------------------------------------------------------
\12\ New York Stock Exchange LLC submitted a companion rule
filing amending its rules in accordance with FINRA's rule changes,
which the Commission has approved. See Securities Exchange Act
Release No. 62015 (April 30, 2010)(SR-NYSE-2010-23).
---------------------------------------------------------------------------
The Exchange also proposes to add Supplementary Material .01 to
Rule 4370--NYSE Amex Equities to provide that, for the purposes of the
rule, the term ``associated person'' shall have the same meaning as the
terms ``person associated with a member'' or ``associated person of a
member'' as defined in Article I (rr) of the FINRA By-Laws. The
Exchange states that this change is necessary to ensure that both
proposed Rule 4370--NYSE Amex Equities and FINRA Rule 4370 are fully
harmonized.
Finally, the Exchange proposes that the effective date for the
proposed rule changes be retroactive to December 14, 2009, the same
effective date for the corresponding FINRA rule changes.\13\ As a
result, there should be no regulatory gaps between the FINRA and NYSE
Amex Equities Rules and that, as applicable, the NYSE Amex Equities
Rules would maintain their status as Common Rules under the
Agreement.\14\
---------------------------------------------------------------------------
\13\ See FINRA Regulatory Notice 09-60 (October 15, 2009).
\14\ As provided in paragraph 2(b) of the Agreement, FINRA and
NYSE will amend the list of Common Rules to conform to the rule
changes proposed herein.
---------------------------------------------------------------------------
IV. Discussion and Commission 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 securities exchange.
Specifically, the Commission finds that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\15\ which requires, among
other things, that the rules of a national securities exchange be
designed to prevent fraudulent and manipulative acts and practices, 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.\16\
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f(b)(5).
\16\ In approving the proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition and
capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
The Commission believes that the proposed rule change provides
greater harmonization between NYSE Amex Equities Rules and FINRA Rules
of similar purpose, resulting in less burdensome and more efficient
regulatory compliance for NYSE Amex members. In addition, the
Commission believes that retroactive application of the proposed rule
change to December 14, 2009, is appropriate to assure that there are no
regulatory gaps between FINRA and NYSE Amex Equities Rules, and that,
as applicable, the NYSE Amex Rules would maintain their status as
Common Rules under the Agreement.
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\17\ that the proposed rule change (SR-NYSEAmex-2010-26), be, and
hereby is, approved.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-10952 Filed 5-7-10; 8:45 am]
BILLING CODE 8011-01-P
