Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Rule 6.82, 32529-32531 [2010-13765]
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32529
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–ISE–2010–56 on the subject
line.
allocation of reasonable dues, fees, and
other charges among members and
issuers and other persons using its
facilities.
As described more fully above, ISE
Paper Comments
recently amended DECN’s fee schedule
• Send paper comments in triplicate
for ISE Members pursuant to SR–ISE–
to Elizabeth M. Murphy, Secretary,
2010–55 (the ‘‘Member Fee Filing’’). The
Securities and Exchange Commission,
fee change made pursuant to the
100 F Street, NE., Washington, DC
Member Fee Filing became operative on
20549–1090.
June 1, 2010. DECN receives rebates and
All submissions should refer to File
is charged fees for transactions it
Number SR–ISE–2010–56. This file
executes on EGDX or EDGA in its
number should be included on the
capacity as an introducing broker for its
subject line if e-mail is used. To help the
non-ISE member subscribers. The
Commission process and review your
current proposal, which will apply
comments more efficiently, please use
beginning on June 1, 2010, will allow
only one method. The Commission will
DECN to pass through the revised fee to
post all comments on the Commission’s
the non-ISE member subscribers for
Internet Web site (https://www.sec.gov/
which it acts an introducing broker. The
rules/sro.shtml). Copies of the
Commission finds that the proposal is
submission, all subsequent
consistent with the Act because it will
amendments, all written statements
charge fees to non-ISE member
with respect to the proposed rule
subscribers that are equivalent to those
change that are filed with the
established for ISE member subscribers
Commission, and all written
in the Member Fee Filing.
communications relating to the
ISE has requested that the
proposed rule change between the
Commission and any person, other than Commission find good cause for
approving the proposed rule change
those that may be withheld from the
prior to the thirtieth day after
public in accordance with the
publication of notice of filing thereof in
provisions of 5 U.S.C. 552, will be
the Federal Register. As discussed
available for Web site viewing and
above, the proposal will allow DECN to
printing in the Commission’s Public
pass through to non-ISE member
Reference Room, 100 F Street, NE.,
subscribers the revised fee established
Washington, DC 20549, on official
for ISE member subscribers in the
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also Member Fee Filing, resulting in
equivalent fees for ISE member and nonwill be available for inspection and
member subscribers. In addition,
copying at the principal office of the
because the proposal will apply the
ISE. All comments received will be
posted without change; the Commission revised fee beginning on June 1, 2010,
the revised fees will have the same
does not edit personal identifying
effective date, thereby promoting
information from submissions. You
consistency in the DECN’s fee schedule.
should submit only information that
you wish to make available publicly. All Accordingly, the Commission finds
good cause, pursuant to Section 19(b)(2)
submissions should refer to File
Number SR–ISE–2010–56 and should be of the Act, for approving the proposed
rule change prior to the thirtieth day
submitted on or before June 29, 2010.
after the date of publication of notice of
IV. Commission’s Findings and Order
filing thereof in the Federal Register.
Granting Accelerated Approval of
Proposed Rule Change
V. Conclusion
The Commission finds that the
It is therefore ordered, pursuant to
proposed rule change is consistent with
Section 19(b)(2) of the Act,10 that the
the requirements of the Act and the
proposed rule change (SR–ISE–2010–56)
rules and regulations thereunder
is approved on an accelerated basis.
applicable to a national securities
8 Specifically, the
For the Commission, by the Division of
exchange.
Trading and Markets, pursuant to delegated
Commission finds that the proposed
authority.11
rule change is consistent with Section
Florence E. Harmon,
6(b)(4) 9 of the Act, which requires that
the rules of a national securities
Deputy Secretary.
exchange provide for the equitable
[FR Doc. 2010–13767 Filed 6–7–10; 8:45 am]
8 In approving this proposal, the Commission has
considered its impact on efficiency, competition,
and capital formation. 15 U.S.C 78c(f).
9 15 U.S.C. 78f(b)(4).
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16:31 Jun 07, 2010
Jkt 220001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62209; File No. SR–
NYSEArca–2010–42]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. Amending Rule 6.82
June 2, 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 May 18,
2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 6.82 by revising the minimum
financial requirements of Lead Market
Makers. The text of the proposed rule
change is below. Proposed new
language is italicized; proposed
deletions are in brackets:
Rules of NYSE Arca, Inc.
*
*
*
*
(a)–(b) No Change
(c) Obligations of Lead Market
Makers:
Each LMM must meet the following
obligations:
(1)–(11) No Change
(12) Maintain a cash or liquid asset
position of at least $1,000,000.
[$350,000, plus $25,000 for each issue
over 8 issues that has been allocated to
the LMM.] In the event that two or more
LMMs are associated with each other
and deal for the same LMM account,
this requirement will apply to such
LMMs collectively, rather than to each
LMM individually;
(13)–(14) No Change
(d)–(h) No Change
*
*
*
*
*
BILLING CODE 8011–01–P
1 15
10 15
U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(12).
PO 00000
Frm 00175
Fmt 4703
Sfmt 4703
*
Rule 6.82. Lead Market Makers
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
E:\FR\FM\08JNN1.SGM
08JNN1
32530
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Notices
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
Exchange 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 these
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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to revise
Rule 6.82. Specifically, NYSE Arca
proposes to revise the minimum
financial requirements of a Lead Market
Maker (‘‘LMM’’) contained in Rule
6.82(c)(12).
emcdonald on DSK2BSOYB1PROD with NOTICES
Minimum Financial Requirement for
LMMs
LMMs on NYSE Arca are required to
maintain a cash or net liquid asset
position of at least $350,000. In
addition, LMMs that have more than
eight allocated issues are required to
have an additional $25,000 in cash or
net liquid assets for each additional
allocated issue. The Exchange now
proposes that instead of the base
minimum financial requirement of
$350,000 plus an additional $25,000 for
each issue over eight, all LMMs will
now be required to maintain cash or net
liquidating balance of at least
$1,000,000 (‘‘$1 million’’). The $1
million requirement will apply
regardless of the number of issues an
LMM is allocated.
Establishing a $1 million minimum
financial requirement, applicable to
LMMs regardless of the number of
issues they may be allocated, is
consistent with the financial obligations
rules for Options Specialists on NYSE
Amex LLC.4 The rights and obligations
of LMMs pursuant to the rules of NYSE
Arca 5 are substantially similar to the
rights and obligations of Specialists
contained in the rules of NYSE Amex.6
Accordingly, establishing a $1 million
minimum financial requirement for
Arca would further harmonize the rules
of the two exchanges.
The Exchange notes that the proposed
requirement to maintain at least $1
million in cash or liquid assets
represents only the minimum financial
obligation of an LMM. When allocating
options issues to LMMs, the Exchange
takes into consideration the ‘‘adequacy
of capital’’ 7 of each LMM and could
require an LMM to have a cash or liquid
assets balance in excess of the $1
million, as a condition of being
allocated a given options issue(s). Also,
the Exchange may reallocate an options
issue(s) if an LMM is to incur a material
change to its financial situation.8
Financial requirements established by
the Exchange as a condition of issue
allocation are separate from the $1
million minimum financial requirement
of Rule 6.8(c)(12).
In addition to any LMM-specific
financial obligation or requirement
established by NYSE Arca, LMMs must
maintain net capital sufficient to
comply with the requirements of
Exchange Act Rule 15c3–1.
The Exchange has conducted an
analysis of financial positions for all
OTP Holders presently registered as an
LMM. Based on this analysis, the
Exchange has determined that certain
LMMs will realize a decrease in their
present minimum financial
requirement, while others may realize
an increase. However, due to the fact
that LMMs are represented by highly
capitalized OTP Holders, the Exchange
has concluded that any increase in the
minimum financial requirement will not
impose undue hardships on any OTP
Holders at this time. In addition, the
Exchange does not believe that the
change to the minimum financial
requirement creates an unnecessary
burden, or onerous barrier to entry, for
OTP Holders who in the future may
seek approval to operate as an LMM.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Securities Exchange Act of 1934
(the ‘‘Act’’),9 in general, and furthers the
objectives of Section 6(b)(5) of the Act,10
in particular, in that it is 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
7 See
4 See
NYSE Amex Rule 927NY(c)(10).
5 See NYSE Arca Rules 6.82(c)–(d).
6 See NYSE Amex Rules 927NY(c)–(d).
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16:31 Jun 07, 2010
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NYSE Arca Rule 6.82(e)(1).
NYSE Arca Rule 6.82(f)(1)(B).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
public interest. This rule change is
designed to make the minimum
financial requirement for LMMs
consistent with similar requirements at
NYSE Amex while still maintaining a
standard designed to ensure that OTP
Holders on NYSE Arca are adequately
capitalized to fulfill their obligations as
LMMs.
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 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
Written comments were neither
solicited nor received.
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, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) thereunder.12
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
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 rulecomments@sec.gov. Please include File
Number SR–NyseArca–2010–42.
8 See
PO 00000
Frm 00176
Fmt 4703
Sfmt 4703
11 15
12 17
E:\FR\FM\08JNN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
08JNN1
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Notices
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–NYSEArca–2010–42. 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
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–
NYSEArca–2010–42 and should be
submitted on or before June 29, 2010.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–13765 Filed 6–7–10; 8:45 am]
emcdonald on DSK2BSOYB1PROD with NOTICES
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62195; File No. SR–ISE–
2010–46]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
May 28, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 18,
2010, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
its Schedule of Fees. The text of the
proposed rule change is available on the
Exchange’s Web site at https://
www.ise.com, at the principal office of
the Exchange, on the Commission’s Web
site at https://www.sec.gov, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
(a) Purpose—The Exchange currently
identifies on its Schedule of Fees certain
ETF products whose options are listed
only on ISE and for which the Exchange
charges a fee of $0.18 per contract for
1 15
13 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:31 Jun 07, 2010
2 17
Jkt 220001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00177
Fmt 4703
customer transactions. Currently, the
First Trust ISE Water ETF (‘‘FIW’’), the
Claymore China Technology ETF
(‘‘CQQQ’’), the ProShares UltraPro Short
Dow30 (‘‘SDOW’’), the ProShares
UltraPro Dow30 (‘‘UDOW’’), the
ProShares UltraPro Short MidCap400
(‘‘SMDD’’), the ProShares UltraPro
MidCap400 (‘‘UMDD’’), the ProShares
UltraPro Short Russell2000 (‘‘SRTY’’),
the ProShares UltraPro Russell2000
(‘‘URTY’’), the First Trust ISE Global
Copper Index Fund (‘‘CU’’) and the First
Trust ISE Global Platinum Index Fund
(‘‘PLTM’’) are the only such ETFs listed
on the Exchange’s fee schedule. On May
18, 2010, ISE began listing options on
the First Trust Amex Biotechnology
Index Fund (‘‘FBT’’), the First Trust
Financials AlphaDEX Fund (‘‘FXO’’) and
the First Trust NASDAQ 100 Weighted
Index Fund (‘‘QQEW’’). As of the date of
this filing, FBT, FXO and QQEW are
singly listed on ISE. The Exchange
therefore proposes to charge a fee of
$0.18 per contract for customer
transactions in options on FBT, FXO
and QQEW. The Exchange also proposes
to charge a Payment for Order Flow fee
for transactions in options on these
products.
(b) Basis—The Exchange believes that
the proposed rule change is consistent
with the objectives of Section 6 of the
Act,3 in general, and furthers the
objectives of Section 6(b)(4),4 in
particular, in that it is designed to
provide for the equitable allocation of
reasonable dues, fees and other charges
among its members and other persons
using its facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
3 15
4 15
Sfmt 4703
32531
E:\FR\FM\08JNN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
08JNN1
]]>Agencies
[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Notices]
[Pages 32529-32531]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-13765]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62209; File No. SR-NYSEArca-2010-42]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Rule
6.82
June 2, 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 May 18, 2010, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 6.82 by revising the minimum
financial requirements of Lead Market Makers. The text of the proposed
rule change is below. Proposed new language is italicized; proposed
deletions are in brackets:
Rules of NYSE Arca, Inc.
* * * * *
Rule 6.82. Lead Market Makers
(a)-(b) No Change
(c) Obligations of Lead Market Makers:
Each LMM must meet the following obligations:
(1)-(11) No Change
(12) Maintain a cash or liquid asset position of at least
$1,000,000. [$350,000, plus $25,000 for each issue over 8 issues that
has been allocated to the LMM.] In the event that two or more LMMs are
associated with each other and deal for the same LMM account, this
requirement will apply to such LMMs collectively, rather than to each
LMM individually;
(13)-(14) No Change
(d)-(h) No Change
* * * * *
[[Page 32530]]
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 Exchange 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 these 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 aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to revise Rule 6.82. Specifically,
NYSE Arca proposes to revise the minimum financial requirements of a
Lead Market Maker (``LMM'') contained in Rule 6.82(c)(12).
Minimum Financial Requirement for LMMs
LMMs on NYSE Arca are required to maintain a cash or net liquid
asset position of at least $350,000. In addition, LMMs that have more
than eight allocated issues are required to have an additional $25,000
in cash or net liquid assets for each additional allocated issue. The
Exchange now proposes that instead of the base minimum financial
requirement of $350,000 plus an additional $25,000 for each issue over
eight, all LMMs will now be required to maintain cash or net
liquidating balance of at least $1,000,000 (``$1 million''). The $1
million requirement will apply regardless of the number of issues an
LMM is allocated.
Establishing a $1 million minimum financial requirement, applicable
to LMMs regardless of the number of issues they may be allocated, is
consistent with the financial obligations rules for Options Specialists
on NYSE Amex LLC.\4\ The rights and obligations of LMMs pursuant to the
rules of NYSE Arca \5\ are substantially similar to the rights and
obligations of Specialists contained in the rules of NYSE Amex.\6\
Accordingly, establishing a $1 million minimum financial requirement
for Arca would further harmonize the rules of the two exchanges.
---------------------------------------------------------------------------
\4\ See NYSE Amex Rule 927NY(c)(10).
\5\ See NYSE Arca Rules 6.82(c)-(d).
\6\ See NYSE Amex Rules 927NY(c)-(d).
---------------------------------------------------------------------------
The Exchange notes that the proposed requirement to maintain at
least $1 million in cash or liquid assets represents only the minimum
financial obligation of an LMM. When allocating options issues to LMMs,
the Exchange takes into consideration the ``adequacy of capital'' \7\
of each LMM and could require an LMM to have a cash or liquid assets
balance in excess of the $1 million, as a condition of being allocated
a given options issue(s). Also, the Exchange may reallocate an options
issue(s) if an LMM is to incur a material change to its financial
situation.\8\ Financial requirements established by the Exchange as a
condition of issue allocation are separate from the $1 million minimum
financial requirement of Rule 6.8(c)(12).
---------------------------------------------------------------------------
\7\ See NYSE Arca Rule 6.82(e)(1).
\8\ See NYSE Arca Rule 6.82(f)(1)(B).
---------------------------------------------------------------------------
In addition to any LMM-specific financial obligation or requirement
established by NYSE Arca, LMMs must maintain net capital sufficient to
comply with the requirements of Exchange Act Rule 15c3-1.
The Exchange has conducted an analysis of financial positions for
all OTP Holders presently registered as an LMM. Based on this analysis,
the Exchange has determined that certain LMMs will realize a decrease
in their present minimum financial requirement, while others may
realize an increase. However, due to the fact that LMMs are represented
by highly capitalized OTP Holders, the Exchange has concluded that any
increase in the minimum financial requirement will not impose undue
hardships on any OTP Holders at this time. In addition, the Exchange
does not believe that the change to the minimum financial requirement
creates an unnecessary burden, or onerous barrier to entry, for OTP
Holders who in the future may seek approval to operate as an LMM.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\9\ in
general, and furthers the objectives of Section 6(b)(5) of the Act,\10\
in particular, in that it is 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. This rule change
is designed to make the minimum financial requirement for LMMs
consistent with similar requirements at NYSE Amex while still
maintaining a standard designed to ensure that OTP Holders on NYSE Arca
are adequately capitalized to fulfill their obligations as LMMs.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition 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
Written comments were neither solicited nor received.
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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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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:
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-NyseArca-2010-42.
[[Page 32531]]
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-NYSEArca-2010-42. 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
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-
NYSEArca-2010-42 and should be submitted on or before June 29, 2010.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-13765 Filed 6-7-10; 8:45 am]
BILLING CODE 8010-01-P
