Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE Amex Equities Rule 5190 To Correspond With Rule Changes Filed by the Financial Industry Regulatory Authority, Inc., 75524-75526 [2010-30317]
Download as PDF
<![CDATA[
75524
Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Notices
Comments may be submitted by any
of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/other.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number S7–06–09 on the subject line;
or
• Use the Federal eRulemaking Portal
(https://www.regulations.gov/). Follow
the instructions for submitting
comments.
mstockstill on DSKH9S0YB1PROD with 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 S7–06–09. This file number
should be included on the subject line
if e-mail is used. To help us process and
review your comments more efficiently,
please use only one method. We will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/other.shtml). Comments are also
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. All comments received
will be posted without change; we do
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
III. Conclusion
It is hereby ordered, pursuant to
Section 36(a) of the Exchange Act, that,
until July 16, 2011, the following
exemptions connected with CDS
clearing by CME contained in the March
2010 CME Exemptive Order are
extended: (i) The temporary conditional
exemption granted to CME from clearing
agency registration under Section 17A
of the Exchange Act solely to perform
the functions of a clearing agency for
certain non-excluded CDS; (ii) the
temporary conditional exemption of
CME and certain of its clearing members
from the registration requirements of
Sections 5 and 6 of the Exchange Act
solely in connection with the
calculation of mark-to-market prices for
certain non-excluded CDS cleared by
CME; (iii) the temporary conditional
exemption of CME and certain eligible
contract participants from certain
Exchange Act requirements with respect
to certain non-excluded CDS cleared by
CME; (iv) the temporary conditional
VerDate Mar<15>2010
16:09 Dec 02, 2010
Jkt 223001
exemption of certain CME clearing
members that receive customer
collateral in connection with certain
non-excluded CDS cleared by CME from
certain Exchange Act requirements; and
(v) the temporary conditional exemption
from certain Exchange Act requirements
granted to registered broker-dealers with
respect to certain non-excluded CDS.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–30374 Filed 12–2–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63381; File No. SR–
NYSEAMEX–2010–106]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Amending NYSE Amex
Equities Rule 5190 To Correspond
With Rule Changes Filed by the
Financial Industry Regulatory
Authority, Inc.
November 29, 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 November
19, 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 NYSE Amex. The
Exchange has designated the proposed
rule change as constituting a ‘‘noncontroversial’’ rule change under
Section 19(b)(3)(A) of the Act,4 and Rule
19b–4(f)(6) thereunder,5 which renders
the proposal effective upon filing with
the Commission. 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 Equities Rule 5190 to
correspond with rule changes filed by
the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) and approved
by the Commission. The text of the
proposed rule change is available at the
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(6).
2 15
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
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,
NYSE Amex 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
changes is to amend NYSE Amex
Equities Rule 5190 (Notification
Requirements for Offering Participants)
to correspond with rule changes filed by
FINRA and approved by the
Commission.
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 Securities Exchange
Act of 1934, as amended (the ‘‘Act’’),
NYSE, NYSER and FINRA entered into
an agreement (the ‘‘Agreement’’) to
reduce regulatory duplication for their
members by allocating to FINRA certain
regulatory responsibilities for certain
NYSE rules and rule interpretations
(‘‘FINRA Incorporated NYSE Rules’’).
NYSE Amex LLC (‘‘NYSE Amex’’)
became a party to the Agreement
effective December 15, 2008.6
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
6 See Securities Exchange Act Release Nos. 56148
(July 26, 2007); 72 FR 42146 (Aug. 1, 2007) (order
approving the Agreement), 56147 (July 26, 2007); 72
FR 42166 (Aug. 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 (Aug. 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.
E:\FR\FM\03DEN1.SGM
03DEN1
Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Notices
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.7
Proposed Conforming Amendments to
NYSE Amex Equities Rules:
FINRA recently amended FINRA Rule
5190 to amend the notice requirements
applicable to distributions of securities
that are considered ‘‘actively traded’’
and thus are not subject to a restricted
period under Rule 101 of Regulation M.8
As approved, the substance of the
information that must be provided in
the notice did not change, only the
timing of the notice.
The Exchange previously adopted
NYSE Amex Equities Rule 5190 to
harmonize the notification requirements
for offering participants with FINRA
Rule 5190.9 In order to harmonize the
NYSE Amex Equities Rules with the
approved FINRA Rules, the Exchange
proposes to amend NYSE Amex Equities
Rule 5190 to conform to the recently
approved amendments to FINRA Rule
5190.10 Accordingly, the Exchange
similarly proposes to amend NYSE
Amex Equities Rule 5190(d) to provide
that member organizations will be
required to provide a single notice
under subparagraphs (1) and (2) of Rule
5190(d).
2. Statutory Basis
mstockstill on DSKH9S0YB1PROD with NOTICES
The Exchange believes that the
proposed rule changes are consistent
with Section 6(b) of the Act,11 in
general, and further the objectives of
Section 6(b)(5) of the Act,12 in
particular, in that they are 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
7 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 (‘‘Dual Members’’), 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.
8 See Securities Exchange Act Release No. 62970
(Sept. 22, 2010); 75 FR 59771 (Sept. 28, 2010) (SR–
FINRA–2010–37).
9 See Securities Exchange Act Release No. 59975
(May 26, 2009); 74 FR 26449 (June 2, 2009) (SR–
NYSEALTR–2009–26).
10 NYSE has submitted a companion rule filing
amending its rules in accordance with FINRA’s rule
changes. See SR–NYSE–2010–73.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
VerDate Mar<15>2010
16:09 Dec 02, 2010
Jkt 223001
general, to protect investors and the
public interest.
The Exchange believes that the
proposed rule changes support the
objectives of the Act by providing
greater harmonization among NYSE
Rules, NYSE Amex Equities Rules, and
FINRA Rules (including Common Rules)
of similar purpose, resulting in less
burdensome and more efficient
regulatory compliance for Dual
Members. To the extent the Exchange
has proposed changes that differ from
the FINRA version of the Rules, such
changes are technical in nature and do
not change the substance of the
proposed NYSE Amex Equities Rules.
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 13 and Rule
19b–4(f)(6) thereunder.14 Because the
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
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),16 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
13 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
14 17
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
75525
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The
Commission notes that the proposed
rule change would bring NYSE Amex
Equity Rule 5190 into harmony with
FINRA Rule 5190. For this reason, the
Commission believes that waiving the
30-day operative delay 17 is consistent
with the protection of investors and the
public interest. Therefore, the
Commission designates the proposal
operative upon filing.
At any time within the 60-day period
beginning on the date 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 rule-comments@
sec.gov. Please include File Number SR–
NYSEAMEX–2010–106 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEAMEX–2010–106.
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
17 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).
E:\FR\FM\03DEN1.SGM
03DEN1
75526
Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Notices
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 will
also be available for inspection and
copying at the NYSE’s principal office
and on its Internet Web site at https://
www.nyse.com. 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–
NYSEAMEX–2010–106 and should be
submitted on or before December 27,
2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–30317 Filed 12–2–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63385; File No. SR–BATS–
2010–035]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Penny
Pilot Program
mstockstill on DSKH9S0YB1PROD with NOTICES
November 29, 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 November
19, 2010, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS’’) 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.
18 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
16:09 Dec 02, 2010
Jkt 223001
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange is filing with the
Commission a proposal for the BATS
Exchange Options Market (‘‘BATS
Options’’) to extend the Penny Pilot
Program (‘‘Penny Pilot’’) in options
classes in certain issues (‘‘Pilot
Program’’) previously approved by the
Commission through December 31,
2011.3
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, 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
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 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 purpose of this filing is to extend
the Penny Pilot Program (‘‘Penny Pilot’’)
in options classes in certain issues
(‘‘Pilot Program’’) previously approved
by the Commission through December
31, 2011, and to provide revised dates
for adding replacement issues to the
Pilot Program. The Exchange proposes
that the semi-annual dates to replace
issues that have been delisted be revised
to the second trading day following
January 1, 2011 and July 1, 2011. The
Exchange also wishes to clarify that the
replacement issues will be selected
based on trading activity for the six
month period beginning June 1, 2010
and ending November 30, 2010 for the
January 2011 replacement and the six
month period beginning December 1,
3 The rules of BATS Options, including rules
applicable to BATS Options’ participation in the
Penny Pilot, were approved on January 26, 2010.
See Securities Exchange Act Release No. 61419
(January 26, 2010), 75 FR 5157 (February 1, 2010)
(SR–BATS–2009–031). BATS Options commenced
operations on February 26, 2010.
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
2010 and May 31, 2011 for the July 2011
replacement.
In the Exchange’s filing to propose the
rules to govern BATS Options,4 the
Exchange proposed commencing
operations for BATS Options by trading
all options classes that were, as of such
date, traded by other options exchanges
pursuant to the Penny Pilot and then
expanding the Penny Pilot on a
quarterly basis, 75 classes at a time,
through August 2010. Consistent with
this proposal, since it commenced
operations the Exchange has twice
expanded the options classes subject to
the Penny Pilot.5 The Exchange
represents that the Exchange has the
necessary system capacity to continue to
support operation of the Penny Pilot.
The Exchange agrees to provide
reports that will analyze the impact of
the Pilot Program on market quality and
options capacity. These reports will
include: (1) Data and analysis on the
number of quotations generated for
options included in the report; (2) an
assessment of the quotation spreads for
the options included in the report; (3)
an assessment of the impact of the Pilot
Program on the capacity of the
Exchange’s automated systems; (4) data
reflecting the size and depth of markets,
and (5) any capacity problems or other
problems that arose related to the
operation of the Pilot Program and how
the Exchange addressed them.
The Exchange believes the benefits to
public customers and other market
participants who will be able to express
their true prices to buy and sell options
have been demonstrated to outweigh the
increase in quote traffic.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the Act.6
In particular, the proposal is consistent
with Section 6(b)(5) of the Act,7 because
it would promote just and equitable
principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
4 See Securities Exchange Act Release No. 61097
(December 2, 2009), 74 FR 64788 (December 8,
2009) (SR–BATS–2009–031) (Notice of Filing of
Proposed Rule Change To Establish Rules
Governing the Trading of Options on the BATS
Options Exchange).
5 See Securities Exchange Act Release No. 62595
(July 29, 2010), 75 FR 47043 (August 4, 2010) (SR–
BATS–2010–019); Securities Exchange Act Release
No. 62033 (May 4, 2010), 75 FR 26301 (May 11,
2010) (SR–BATS–2010–009).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
E:\FR\FM\03DEN1.SGM
03DEN1
]]>Agencies
[Federal Register Volume 75, Number 232 (Friday, December 3, 2010)]
[Notices]
[Pages 75524-75526]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-30317]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63381; File No. SR-NYSEAMEX-2010-106]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE
Amex Equities Rule 5190 To Correspond With Rule Changes Filed by the
Financial Industry Regulatory Authority, Inc.
November 29, 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 November 19, 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 NYSE Amex. The Exchange
has designated the proposed rule change as constituting a ``non-
controversial'' rule change under Section 19(b)(3)(A) of the Act,\4\
and Rule 19b-4(f)(6) thereunder,\5\ which renders the proposal
effective upon filing with the Commission. 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.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 5190 to
correspond with rule changes filed by the Financial Industry Regulatory
Authority, Inc. (``FINRA'') and approved by the Commission. 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, NYSE Amex 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule changes is to amend NYSE Amex
Equities Rule 5190 (Notification Requirements for Offering
Participants) to correspond with rule changes filed by FINRA and
approved by the Commission.
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
Securities Exchange Act of 1934, as amended (the ``Act''), NYSE, NYSER
and FINRA entered into an agreement (the ``Agreement'') to reduce
regulatory duplication for their members by allocating to FINRA certain
regulatory responsibilities for certain NYSE rules and rule
interpretations (``FINRA Incorporated NYSE Rules''). NYSE Amex LLC
(``NYSE Amex'') became a party to the Agreement effective December 15,
2008.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release Nos. 56148 (July 26,
2007); 72 FR 42146 (Aug. 1, 2007) (order approving the Agreement),
56147 (July 26, 2007); 72 FR 42166 (Aug. 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 (Aug. 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
[[Page 75525]]
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.\7\
---------------------------------------------------------------------------
\7\ 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 (``Dual Members''), 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.
---------------------------------------------------------------------------
Proposed Conforming Amendments to NYSE Amex Equities Rules:
FINRA recently amended FINRA Rule 5190 to amend the notice
requirements applicable to distributions of securities that are
considered ``actively traded'' and thus are not subject to a restricted
period under Rule 101 of Regulation M.\8\ As approved, the substance of
the information that must be provided in the notice did not change,
only the timing of the notice.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 62970 (Sept. 22,
2010); 75 FR 59771 (Sept. 28, 2010) (SR-FINRA-2010-37).
---------------------------------------------------------------------------
The Exchange previously adopted NYSE Amex Equities Rule 5190 to
harmonize the notification requirements for offering participants with
FINRA Rule 5190.\9\ In order to harmonize the NYSE Amex Equities Rules
with the approved FINRA Rules, the Exchange proposes to amend NYSE Amex
Equities Rule 5190 to conform to the recently approved amendments to
FINRA Rule 5190.\10\ Accordingly, the Exchange similarly proposes to
amend NYSE Amex Equities Rule 5190(d) to provide that member
organizations will be required to provide a single notice under
subparagraphs (1) and (2) of Rule 5190(d).
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release No. 59975 (May 26,
2009); 74 FR 26449 (June 2, 2009) (SR-NYSEALTR-2009-26).
\10\ NYSE has submitted a companion rule filing amending its
rules in accordance with FINRA's rule changes. See SR-NYSE-2010-73.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule changes are consistent
with Section 6(b) of the Act,\11\ in general, and further the
objectives of Section 6(b)(5) of the Act,\12\ in particular, in that
they are 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule changes support the
objectives of the Act by providing greater harmonization among NYSE
Rules, NYSE Amex Equities Rules, and FINRA Rules (including Common
Rules) of similar purpose, resulting in less burdensome and more
efficient regulatory compliance for Dual Members. To the extent the
Exchange has proposed changes that differ from the FINRA version of the
Rules, such changes are technical in nature and do not change the
substance of the proposed NYSE Amex Equities Rules.
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\16\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission notes that
the proposed rule change would bring NYSE Amex Equity Rule 5190 into
harmony with FINRA Rule 5190. For this reason, the Commission believes
that waiving the 30-day operative delay \17\ is consistent with the
protection of investors and the public interest. Therefore, the
Commission designates the proposal operative upon filing.
---------------------------------------------------------------------------
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ 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 the 60-day period beginning on the date 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 rule-comments@sec.gov. Please include
File Number SR-NYSEAMEX-2010-106 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEAMEX-2010-106. 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
[[Page 75526]]
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 will also be available for
inspection and copying at the NYSE's principal office and on its
Internet Web site at https://www.nyse.com. 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-NYSEAMEX-2010-106 and should be
submitted on or before December 27, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-30317 Filed 12-2-10; 8:45 am]
BILLING CODE 8011-01-P
