Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of a Proposed Rule Change Amending NYSE Amex Equities Rule 104 To Adopt Pricing Obligations for Designated Market Makers, 58453-58455 [2010-23970]
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Federal Register / Vol. 75, No. 185 / Friday, September 24, 2010 / Notices
• Rule 4521 (Notifications,
Questionnaires and Reports) replaced,
in relevant part, old Rule 421;
• Rule 4560 (Short-Interest Reporting)
replaced old Rules 421(1) and 421.10;
and
• Rule 5190 (Notification
Requirements for Offering Participants)
replaced old Rule 392.4
These old Rules, or certain provisions
thereof, are subject to the Exchange’s
Minor Rule Violation Plan under NYSE
Rule 476A. At the time the new Rules
were adopted to replace the old
Exchange Rules, however, they were not
added to the Exchange’s Minor Rule
Violation Plan. The Exchange therefore
proposes to update the Exchange’s
Minor Rule Violation Plan under NYSE
Rule 476A by adding the new rule
references identified above.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with,
and furthers the objectives of, Section
6(b)(5) of the Act,5 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. The proposed rule
change also furthers the objectives of
Section 6(b)(6) of the Act,6 in that it
provides for appropriate discipline for
violations of Exchange rules and
regulations.
The Exchange believes that the
proposed rule change will provide the
Exchange with greater regulatory
flexibility to enforce the prescriptions of
certain rules in a more informal manner
while also preserving the Exchange’s
discretion to seek formal discipline for
more serious transgressions as
warranted.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
srobinson on DSKHWCL6B1PROD with NOTICES
4 See Securities Exchange Act Release Nos. 59965
(May 21, 2009), 74 FR 25783 (May 29, 2009) (SR–
NYSE–2009–25) (adopting, inter alia, NYSE Rules
3130, 4560, 5190); 61158 (December 11, 2009), 74
FR 67942 (December 21, 2009) (SR–NYSE–2009–
123) (adopting NYSE Rule 2150); 61273 (December
31, 2009), 75 FR 1091 (January 8, 2010) (SR–NYSE–
2009–134) (adopting NYSE Rule 3310); 61557
(February 22, 2010), 75 FR 9472 (March 2, 2010)
(SR–NYSE–2010–10) (adopting, inter alia, NYSE
Rules 4110, 4521). See also NYSE and NYSE Amex
Information Memoranda 09–24 (June 2, 2009); 10–
09 (February 18, 2010); 10–12 (March 11, 2010).
5 15 U.S.C. 78f(b)(5).
6 15 U.S.C. 78f(b)(6).
16:12 Sep 23, 2010
Jkt 220001
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(3) thereunder.8 Because the
proposed rule change is concerned
solely with the administration of the
Exchange, the proposed rule change has
become immediately effective upon
filing pursuant to Section 19(b)(3)(A) of
the Act and Rule 19b–4(f)(3) thereunder.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend 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–NYSE–2010–66 on the
subject line.
Paper Comments
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
VerDate Mar<15>2010
necessary or appropriate in furtherance
of the purposes of the Act.
• 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–2010–66. 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 the 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–
2010–66 and should be submitted on or
before October 15, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–23908 Filed 9–23–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62947; File No. SR–
NYSEAmex–2010–96]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing of a
Proposed Rule Change Amending
NYSE Amex Equities Rule 104 To
Adopt Pricing Obligations for
Designated Market Makers
September 20, 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
September 17, 2010, NYSE Amex LLC
(‘‘NYSE Amex’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
9 17
CFR 200.30–3(a)(12); 200.30–3(a)(44).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
7 15
U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(3).
PO 00000
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58453
1 15
Sfmt 4703
E:\FR\FM\24SEN1.SGM
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58454
Federal Register / Vol. 75, No. 185 / Friday, September 24, 2010 / Notices
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 Equities Rule 104 to adopt
pricing obligations for Designated
Market Makers (‘‘DMMs’’). The text of
the proposed rule change is available at
the Exchange, the 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
srobinson on DSKHWCL6B1PROD with NOTICES
1. Purpose
The Exchange proposes to amend
NYSE Amex Equities Rule 104 to adopt
pricing obligations for DMMs. Under the
proposal, the Exchange will require
DMMs to continuously maintain twosided bid and offer interest within a
Designated Percentage 3 from the
National Best Bid and National Best
Offer (‘‘NBBO’’) for each security in
which they are registered. These pricing
obligations are intended to eliminate
trade executions against DMM
placeholder quotations traditionally
priced far away from the inside market,
commonly known as ‘‘stub quotes.’’
They are also intended to augment and
work in conjunction with Trading
Pauses in individual securities due to
extraordinary market volatility, which
are already in place on a pilot basis for
stocks in the S&P 500® Index and the
Russell 1000® Index, under Exchange
Rule 80C.4
3 The term Designated Percentage is defined in
proposed Rule 104(a)(1)(B)(iii).
4 See Securities Exchange Act Release No. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR–
NYSEAmex–2010–46). See also Securities
Exchange Act Release No. 62884 (September 10,
2010), 75 FR 56618 (September 16, 2010) (SR–
NYSEAmex–2010–63). See also Rule 80C.
VerDate Mar<15>2010
16:12 Sep 23, 2010
Jkt 220001
Under the proposal, the Exchange will
require DMMs to enter and maintain
quotes priced no more than the
Designated Percentage away from the
NBBO. Permissible quotes are
determined by the individual character
of the security, the time of day in which
the quote is entered, and other factors
which are summarized below.
For purposes of the proposed rule,
Designated Percentage shall mean the
Threshold Move as defined under Rule
80C less two (2) percentage points.
Because the Threshold Move across all
exchanges is currently 10%, a DMM’s
quote in a security may not be more
than 8% away from NBBO. Once a
permissible quote is entered, it may rest
without adjustment until such time as it
is more than the Defined Limit away
from the NBBO. For purposes of the
proposed rule, the Designated Limit
shall mean the Threshold Move as
defined under Rule 80C less one-half
percentage point (i.e. 9.5%). If the
DMM’s resting interest exceeds the
Defined Limit the DMM must enter new
interest at a price not more than the
Designated Percentage of 8% away from
the NBBO (or identify to the Exchange
current resting interest that satisfies the
DMM’s obligation). For times during the
trading day when a Trading Pause is not
in effect under Rule 80C (e.g., before
9:45 a.m. and after 3:35 p.m.), the
Designated Percentage calculation will
assume a trigger percentage of 22%.
Therefore, a DMM must maintain a
quote no further than 20% away from
the NBBO and the quote may rest
without adjustment until it is more than
21.5% from the NBBO. In the absence
of an NBBO, the above calculations will
remain the same, but will use the last
reported sale from the single plan
processor responsible for consolidation
of information for the security pursuant
to Rule 603 of Regulation NMS.5
For securities that are not subject to
Trading Pauses, the Designated
Percentage will assume a trigger
percentage of 32% and apply the same
2% reduction. Thus, DMMs registered
in those securities shall be required to
maintain quotes no more than 30%
away from NBBO. As with securities
subject to Trading Pauses, once a
permissible quote is entered it may rest
without adjustment until such time as it
becomes more than the Defined Limit
away from the NBBO (31.5%),
whereupon the DMM must enter new
interest at a price not more than the
Designated Percentage of 30% away
from the NBBO (or identify to the
Exchange current resting interest that
satisfies the DMM’s obligation). The
5 17
PO 00000
CFR 240.603.
Frm 00108
Fmt 4703
Sfmt 4703
Exchange proposes that these
requirements shall apply to NMS Stocks
(as defined in Rule 600 under
Regulation NMS) 6 during the trading
day.
Nothing in the proposal shall
preclude a DMM from quoting at price
levels that are closer to the NBBO than
the levels required under the proposal.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Securities Exchange Act of 1934
(the ‘‘Act’’),7 in general, and furthers the
objectives of Section 6(b)(5) of the Act,8
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. The Exchange believes
that the proposed rule change also is
consistent with the principles of Section
11A(a)(1) 9 of the Act in that it seeks to
assure fair competition among brokers
and dealers and among exchange
markets. The Exchange believes the
proposed rule change meets these
requirements in that it promotes
transparency and uniformity concerning
pricing obligations across markets for
certain market participants.
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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
6 17
CFR 240.600.
U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
9 15 U.S.C. 78k–1(a)(1).
7 15
E:\FR\FM\24SEN1.SGM
24SEN1
Federal Register / Vol. 75, No. 185 / Friday, September 24, 2010 / Notices
organization consents, the Commission
will:
(A) By order approve or disapprove
such proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
should be submitted on or before
October 15, 2010.
of the most significant parts of such
statements.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2010–23970 Filed 9–23–10; 8:45 am]
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–2010–96 on
the subject line.
srobinson on DSKHWCL6B1PROD with NOTICES
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:
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of a Proposed Rule Change
Amending Rule 104 To Adopt Pricing
Obligations for Designated Market
Makers
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–2010–96. 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 inspection and copying 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–2010–96 and
VerDate Mar<15>2010
16:12 Sep 23, 2010
Jkt 220001
58455
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62948; File No. SR–NYSE–
2010–69]
September 20, 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
September 17, 2010, New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. 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 104 to adopt pricing obligations for
Designated Market Makers (‘‘DMMs’’).
The text of the proposed rule change is
available at the Exchange, the
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,
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
1. Purpose
The Exchange proposes to amend
Rule 104 to adopt pricing obligations for
DMMs. Under the proposal, the
Exchange will require DMMs to
continuously maintain two-sided bid
and offer interest within a Designated
Percentage 3 from the National Best Bid
and National Best Offer (‘‘NBBO’’) for
each security in which they are
registered. These pricing obligations are
intended to eliminate trade executions
against DMM placeholder quotations
traditionally priced far away from the
inside market, commonly known as
‘‘stub quotes.’’ They are also intended to
augment and work in conjunction with
Trading Pauses in individual securities
due to extraordinary market volatility,
which are already in place on a pilot
basis for stocks in the S&P 500® Index
and the Russell 1000® Index, under
Exchange Rule 80C.4
Under the proposal, the Exchange will
require DMMs to enter and maintain
quotes priced no more than the
Designated Percentage away from the
NBBO. Permissible quotes are
determined by the individual character
of the security, the time of day in which
the quote is entered, and other factors
which are summarized below.
For purposes of the proposed rule,
Designated Percentage shall mean the
Threshold Move as defined under Rule
80C less two (2) percentage points.
Because the Threshold Move across all
exchanges is currently 10%, a DMM’s
quote in a security may not be more
than 8% away from NBBO. Once a
permissible quote is entered, it may rest
without adjustment until such time as it
is more than the Defined Limit away
from the NBBO. For purposes of the
proposed rule, the Designated Limit
shall mean the Threshold Move as
defined under Rule 80C less one-half
percentage point (i.e. 9.5%). If the
DMM’s resting interest exceeds the
Defined Limit the DMM must enter new
interest at a price not more than the
Designated Percentage of 8% away from
the NBBO (or identify to the Exchange
current resting interest that satisfies the
3 The term Designated Percentage is defined in
proposed Rule 104(a)(1)(B)(iii).
4 See Securities Exchange Act Release No. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR–
NYSE–2010–39). See also Securities Exchange Act
Release No. 62884 (September 10, 2010), 75 FR
56618 (September 16, 2010) (SR–NYSE–2010–49).
See also Rule 80C.
E:\FR\FM\24SEN1.SGM
24SEN1
]]>Agencies
[Federal Register Volume 75, Number 185 (Friday, September 24, 2010)]
[Notices]
[Pages 58453-58455]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-23970]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62947; File No. SR-NYSEAmex-2010-96]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
of a Proposed Rule Change Amending NYSE Amex Equities Rule 104 To Adopt
Pricing Obligations for Designated Market Makers
September 20, 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 September 17, 2010, NYSE Amex LLC (``NYSE Amex'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to
[[Page 58454]]
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 Equities Rule 104 to adopt
pricing obligations for Designated Market Makers (``DMMs''). The text
of the proposed rule change is available at the Exchange, the
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 NYSE Amex Equities Rule 104 to adopt
pricing obligations for DMMs. Under the proposal, the Exchange will
require DMMs to continuously maintain two-sided bid and offer interest
within a Designated Percentage \3\ from the National Best Bid and
National Best Offer (``NBBO'') for each security in which they are
registered. These pricing obligations are intended to eliminate trade
executions against DMM placeholder quotations traditionally priced far
away from the inside market, commonly known as ``stub quotes.'' They
are also intended to augment and work in conjunction with Trading
Pauses in individual securities due to extraordinary market volatility,
which are already in place on a pilot basis for stocks in the S&P
500[reg] Index and the Russell 1000[reg] Index, under Exchange Rule
80C.\4\
---------------------------------------------------------------------------
\3\ The term Designated Percentage is defined in proposed Rule
104(a)(1)(B)(iii).
\4\ See Securities Exchange Act Release No. 62252 (June 10,
2010), 75 FR 34186 (June 16, 2010) (SR-NYSEAmex-2010-46). See also
Securities Exchange Act Release No. 62884 (September 10, 2010), 75
FR 56618 (September 16, 2010) (SR-NYSEAmex-2010-63). See also Rule
80C.
---------------------------------------------------------------------------
Under the proposal, the Exchange will require DMMs to enter and
maintain quotes priced no more than the Designated Percentage away from
the NBBO. Permissible quotes are determined by the individual character
of the security, the time of day in which the quote is entered, and
other factors which are summarized below.
For purposes of the proposed rule, Designated Percentage shall mean
the Threshold Move as defined under Rule 80C less two (2) percentage
points. Because the Threshold Move across all exchanges is currently
10%, a DMM's quote in a security may not be more than 8% away from
NBBO. Once a permissible quote is entered, it may rest without
adjustment until such time as it is more than the Defined Limit away
from the NBBO. For purposes of the proposed rule, the Designated Limit
shall mean the Threshold Move as defined under Rule 80C less one-half
percentage point (i.e. 9.5%). If the DMM's resting interest exceeds the
Defined Limit the DMM must enter new interest at a price not more than
the Designated Percentage of 8% away from the NBBO (or identify to the
Exchange current resting interest that satisfies the DMM's obligation).
For times during the trading day when a Trading Pause is not in effect
under Rule 80C (e.g., before 9:45 a.m. and after 3:35 p.m.), the
Designated Percentage calculation will assume a trigger percentage of
22%. Therefore, a DMM must maintain a quote no further than 20% away
from the NBBO and the quote may rest without adjustment until it is
more than 21.5% from the NBBO. In the absence of an NBBO, the above
calculations will remain the same, but will use the last reported sale
from the single plan processor responsible for consolidation of
information for the security pursuant to Rule 603 of Regulation NMS.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 240.603.
---------------------------------------------------------------------------
For securities that are not subject to Trading Pauses, the
Designated Percentage will assume a trigger percentage of 32% and apply
the same 2% reduction. Thus, DMMs registered in those securities shall
be required to maintain quotes no more than 30% away from NBBO. As with
securities subject to Trading Pauses, once a permissible quote is
entered it may rest without adjustment until such time as it becomes
more than the Defined Limit away from the NBBO (31.5%), whereupon the
DMM must enter new interest at a price not more than the Designated
Percentage of 30% away from the NBBO (or identify to the Exchange
current resting interest that satisfies the DMM's obligation). The
Exchange proposes that these requirements shall apply to NMS Stocks (as
defined in Rule 600 under Regulation NMS) \6\ during the trading day.
---------------------------------------------------------------------------
\6\ 17 CFR 240.600.
---------------------------------------------------------------------------
Nothing in the proposal shall preclude a DMM from quoting at price
levels that are closer to the NBBO than the levels required under the
proposal.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\7\ in
general, and furthers the objectives of Section 6(b)(5) of the Act,\8\
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. The Exchange
believes that the proposed rule change also is consistent with the
principles of Section 11A(a)(1) \9\ of the Act in that it seeks to
assure fair competition among brokers and dealers and among exchange
markets. The Exchange believes the proposed rule change meets these
requirements in that it promotes transparency and uniformity concerning
pricing obligations across markets for certain market participants.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ 15 U.S.C. 78k-1(a)(1).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory
[[Page 58455]]
organization consents, the Commission will:
(A) By order approve or disapprove such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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-2010-96 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-2010-96. 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 inspection
and copying 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-2010-96 and should
be submitted on or before October 15, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-23970 Filed 9-23-10; 8:45 am]
BILLING CODE 8010-01-P
