Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Amex Rule 953NY To Provide That the Exchange Will Halt Trading When an Underlying Security Is the Subject of a Trading Pause, 34495-34496 [2010-14607]

Download as PDF Federal Register / Vol. 75, No. 116 / Thursday, June 17, 2010 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62273; File No. SR– NYSEAmex–2010–55] Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Amex Rule 953NY To Provide That the Exchange Will Halt Trading When an Underlying Security Is the Subject of a Trading Pause June 10, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 10, 2010, NYSE Amex LLC (the ‘‘Exchange’’ or ‘‘NYSE Amex’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the 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 NYSE Amex Rule 953NY to provide that the Exchange will halt trading when an underlying security is the subject of a trading pause. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, on the Commission’s Web site at https://www.sec.gov, and at https:// www.nyse.com. mstockstill on DSKH9S0YB1PROD with 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 self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 16:13 Jun 16, 2010 Jkt 220001 1. Purpose The Exchange proposes to amend Rule 953NY governing Trading Halts and Suspensions to add a new subsection to the rule that would provide that the Exchange shall halt trading in any options contract when the underlying security has been paused by the primary market. The Exchange proposes this rule to provide for how the Exchange will respond when trading in any underlying security has paused, as set forth in the stock-by-stock circuit breakers proposed by the equities markets to respond to extraordinary market volatility in individual securities.3 The Exchange believes that when trading has paused on the equities markets pursuant to these proposed rules, trading should also be halted in the options markets. Accordingly, the Exchange proposes to add a new subsection to Rule 953NY to provide that trading on the Exchange in any option contract shall be halted whenever trading in the underlying security has been paused by the primary market. The Exchange proposes that trading in such options contracts may be resumed upon a determination by the Exchange that the conditions that led to the pause are no longer present and that the interests of a fair and orderly market are best served by a resumption of trading. However, under no circumstances would trading resume before the Exchange has received notification that the underlying security has resumed trading. 2. Statutory Basis The statutory basis for the proposed rule change is Section 6(b)(5) of the Securities Exchange Act of 1934 (the ‘‘Act’’),4 which requires the rules of an 3 See Securities Exchange Act Release Notice Nos. 62121 (May 19, 2010), 75 FR 28834 (May 24, 2010) (SR–BATS–2010–14); 62122 (May 19, 2010), 75 FR 28833 (May 24, 2010) (SR–EDGA–2010–1); 62123 (May 19, 2010), 75 FR 28844 (May 24, 2010) (SR– EDGX–2010–1); 62124 (May 19, 2010), 75 FR 28828 (May 24, 2010) (SR–BX–2010–37); 62125 (May 19, 2010), 75 FR 28836 (May 24, 2010) (SR–ISE–2010– 48); 62126 (May 19, 2010), 75 FR 28831 (May 24, 2010) (SR–NYSE–2010–39); 62127 (May 19, 2010), 75 FR 28837 (May 24, 2010) (SR–NYSEAmex– 2010–46); 62128 (May 19, 2010), 75 FR 28830 (May 24, 2010) (SR–NYSEArca–2010–41); 62129 (May 19, 2010), 75 FR 28839 (May 24, 2010) (SR–Nasdaq– 2010–061); 62130 (May 19, 2010), 75 FR 28842 (May 24, 2010) (SR–CHX–2010–10); 62131 (May 19, 2010), 75 FR 28845 (May 24, 2010) (SR–NSX–2010– 05); 62132 (May 19, 2010), 75 FR 28847 (May 24, 2010) (SR–CBOE–2010–47); 62133 (May 19, 2010), 75 FR 28841 (May 19, 2010), 75 FR 28841 (May 24, 2010) (SR–FINRA–2010–25). 4 15 U.S.C. 78f(b)(5). PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 34495 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)5 of the Act in that it seeks to assure fair competition among brokers and dealers and among exchange markets. The Exchange believes that the proposed rule meets these requirements in that it promotes a fair and orderly market so that when trading is paused in the equities markets, options contracts related to that security are also paused. 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 proposed rule change: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) does not become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, provided that the selfregulatory organization has given the Commission written notice of its intent to file 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 proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act6 and Rule 19b–4(f)(6) thereunder.7 A proposed rule change filed under Rule 19b–4(f)(6) normally does not become operative for 30 days after the date of filing.8 However, Rule 19b– 5 15 U.S.C. 78k–1(a)(1). U.S.C. 78s(b)(3)(A). 7 17 CFR 240.19b–4(f)(6). The Commission notes that the Exchange has met this requirement. 8 17 CFR 240.19b–4(f)(6). 6 15 E:\FR\FM\17JNN1.SGM 17JNN1 34496 Federal Register / Vol. 75, No. 116 / Thursday, June 17, 2010 / Notices 4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange requested that the Commission waive the 30-day operative delay, as specified in Rule 19b– 4(f)(6)(iii),9 which would make the rule change effective and operative upon filing. The Commission approved filings from the exchanges and the Financial Industry Regulatory Authority to institute a single stock trading pause for equity securities that experience a 10% change in price during a five minute period.10 The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it will allow NYSE Amex to halt trading for individual equity options at the same time that the primary listing market implements the pilot for eligible underlying stocks.11 At any time within 60 days of the filing of such 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: mstockstill on DSKH9S0YB1PROD 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–2010–55 on the subject line. 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 publicly available. All submissions should refer to File Number SR– NYSEAmex–2010–55 and should be submitted on or before July 8, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–14607 Filed 6–16–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62288; File No. SR–FINRA– 2010–028] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of a Proposed Rule Change, as Modified by Amendment No. 1, To Adopt NASD Rule 3210 (Short Sale Delivery Requirements) as FINRA Rule 4320 in the Consolidated FINRA Rulebook Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File June 11, 2010. Number SR–NYSEAmex–2010–55. This Pursuant to Section 19(b)(1) of the file number should be included on the Securities Exchange Act of 1934 subject line if e-mail is used. To help the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 21, 9 17 CFR 240.19b–4(f)(6)(iii). 2010, Financial Industry Regulatory 10 See Securities Exchange Act Release Nos. Authority, Inc. (‘‘FINRA’’) (f/k/a 62251 and 62252 (June 10, 2010). 11 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. See 15 U.S.C. 78c(f). VerDate Mar<15>2010 16:13 Jun 16, 2010 Jkt 220001 12 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 National Association of Securities Dealers, Inc. (‘‘NASD’’)) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by FINRA. On June 11, 2010, FINRA filed Amendment No. 1 to the proposed rule change.3 The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 1, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing to adopt NASD Rule 3210 (Short Sale Delivery Requirements), with minor changes, as FINRA Rule 4320 in the consolidated FINRA rulebook. The text of the proposed rule change is available on FINRA’s Web site at https://www.finra.org, at the principal office of FINRA 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, FINRA 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. FINRA 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 As part of the process of developing a new consolidated rulebook (‘‘Consolidated FINRA Rulebook’’),4 3 Amendment No. 1 was a partial amendment that makes minor clarifications, provides additional detail and makes technical edits to the purpose section of the proposed rule change. 4 The current FINRA rulebook consists of (1) FINRA Rules; (2) NASD Rules; and (3) rules incorporated from NYSE (‘‘Incorporated NYSE Rules’’) (together, the NASD Rules and Incorporated NYSE Rules are referred to as the ‘‘Transitional Rulebook’’). While the NASD Rules generally apply to all FINRA members, the Incorporated NYSE Rules apply only to those members of FINRA that are also members of the NYSE (‘‘Dual Members’’). The FINRA Rules apply to all FINRA members, unless such rules have a more limited application by their terms. For more information about the rulebook consolidation process, see Information Notice, March 12, 2008 (Rulebook Consolidation Process). E:\FR\FM\17JNN1.SGM 17JNN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 75, Number 116 (Thursday, June 17, 2010)]
[Notices]
[Pages 34495-34496]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-14607]



[[Page 34495]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62273; File No. SR-NYSEAmex-2010-55]


Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Amex 
Rule 953NY To Provide That the Exchange Will Halt Trading When an 
Underlying Security Is the Subject of a Trading Pause

June 10, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on June 10, 2010, NYSE Amex LLC (the ``Exchange'' or ``NYSE Amex'') 
filed with the Securities and Exchange Commission (the ``Commission'') 
the proposed rule change as described in Items I and II below, which 
Items have been prepared by the 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\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Amex Rule 953NY to provide that 
the Exchange will halt trading when an underlying security is the 
subject of a trading pause. The text of the proposed rule change is 
available at the Exchange, the Commission's Public Reference Room, on 
the Commission's Web site at https://www.sec.gov, and at 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 Rule 953NY governing Trading Halts 
and Suspensions to add a new subsection to the rule that would provide 
that the Exchange shall halt trading in any options contract when the 
underlying security has been paused by the primary market.
    The Exchange proposes this rule to provide for how the Exchange 
will respond when trading in any underlying security has paused, as set 
forth in the stock-by-stock circuit breakers proposed by the equities 
markets to respond to extraordinary market volatility in individual 
securities.\3\ The Exchange believes that when trading has paused on 
the equities markets pursuant to these proposed rules, trading should 
also be halted in the options markets.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release Notice Nos. 62121 (May 
19, 2010), 75 FR 28834 (May 24, 2010) (SR-BATS-2010-14); 62122 (May 
19, 2010), 75 FR 28833 (May 24, 2010) (SR-EDGA-2010-1); 62123 (May 
19, 2010), 75 FR 28844 (May 24, 2010) (SR-EDGX-2010-1); 62124 (May 
19, 2010), 75 FR 28828 (May 24, 2010) (SR-BX-2010-37); 62125 (May 
19, 2010), 75 FR 28836 (May 24, 2010) (SR-ISE-2010-48); 62126 (May 
19, 2010), 75 FR 28831 (May 24, 2010) (SR-NYSE-2010-39); 62127 (May 
19, 2010), 75 FR 28837 (May 24, 2010) (SR-NYSEAmex-2010-46); 62128 
(May 19, 2010), 75 FR 28830 (May 24, 2010) (SR-NYSEArca-2010-41); 
62129 (May 19, 2010), 75 FR 28839 (May 24, 2010) (SR-Nasdaq-2010-
061); 62130 (May 19, 2010), 75 FR 28842 (May 24, 2010) (SR-CHX-2010-
10); 62131 (May 19, 2010), 75 FR 28845 (May 24, 2010) (SR-NSX-2010-
05); 62132 (May 19, 2010), 75 FR 28847 (May 24, 2010) (SR-CBOE-2010-
47); 62133 (May 19, 2010), 75 FR 28841 (May 19, 2010), 75 FR 28841 
(May 24, 2010) (SR-FINRA-2010-25).
---------------------------------------------------------------------------

    Accordingly, the Exchange proposes to add a new subsection to Rule 
953NY to provide that trading on the Exchange in any option contract 
shall be halted whenever trading in the underlying security has been 
paused by the primary market. The Exchange proposes that trading in 
such options contracts may be resumed upon a determination by the 
Exchange that the conditions that led to the pause are no longer 
present and that the interests of a fair and orderly market are best 
served by a resumption of trading. However, under no circumstances 
would trading resume before the Exchange has received notification that 
the underlying security has resumed trading.
2. Statutory Basis
    The statutory basis for the proposed rule change is Section 6(b)(5) 
of the Securities Exchange Act of 1934 (the ``Act''),\4\ 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)\5\ of the Act 
in that it seeks to assure fair competition among brokers and dealers 
and among exchange markets. The Exchange believes that the proposed 
rule meets these requirements in that it promotes a fair and orderly 
market so that when trading is paused in the equities markets, options 
contracts related to that security are also paused.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b)(5).
    \5\ 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 proposed rule change: (i) Does not significantly affect 
the protection of investors or the public interest; (ii) does not 
impose any significant burden on competition; and (iii) does not become 
operative for 30 days after the date of the filing, or such shorter 
time as the Commission may designate if consistent with the protection 
of investors and the public interest, provided that the self-regulatory 
organization has given the Commission written notice of its intent to 
file 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 proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act\6\ and Rule 19b-
4(f)(6) thereunder.\7\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6). The Commission notes that the 
Exchange has met this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing.\8\ However, 
Rule 19b-

[[Page 34496]]

4(f)(6)(iii) permits the Commission to designate a shorter time if such 
action is consistent with the protection of investors and the public 
interest. The Exchange requested that the Commission waive the 30-day 
operative delay, as specified in Rule 19b-4(f)(6)(iii),\9\ which would 
make the rule change effective and operative upon filing. The 
Commission approved filings from the exchanges and the Financial 
Industry Regulatory Authority to institute a single stock trading pause 
for equity securities that experience a 10% change in price during a 
five minute period.\10\ The Commission believes that waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest because it will allow NYSE Amex to halt trading for 
individual equity options at the same time that the primary listing 
market implements the pilot for eligible underlying stocks.\11\
---------------------------------------------------------------------------

    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ See Securities Exchange Act Release Nos. 62251 and 62252 
(June 10, 2010).
    \11\ 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. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such 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-NYSEAmex-2010-55 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAmex-2010-55. 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 
publicly available. All submissions should refer to File Number SR-
NYSEAmex-2010-55 and should be submitted on or before July 8, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-14607 Filed 6-16-10; 8:45 am]
BILLING CODE 8010-01-P

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