Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Extending the Operation of the Pilot Program That Allows Nasdaq Stock Market Securities to be Traded on the Exchange Pursuant to a Grant of Unlisted Trading Privileges, 82117-82119 [2010-32734]
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Federal Register / Vol. 75, No. 249 / Wednesday, December 29, 2010 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
NSCC has not solicited and does not
intend to solicit comments regarding
this proposed rule change. NSCC has
not received any unsolicited written
comments from members or other
interested parties. However, NSCC has
worked with NSCC Members and
Limited Members in designing this
service.
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
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.
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 NSCC’s principal office and
NSCC’s Web site (https://www.dtcc.com/
legal/rule_filings/nscc/2010.php). All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–NSCC–2010–18 and should be
submitted by January 19, 2011.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.5
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–32787 Filed 12–28–10; 8:45 am]
BILLING CODE 8011–01–P
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:
• Electronic comments may be
submitted by using the Commission’s
Internet comment form (https://
www.sec.gov/rules/sro.shtml), or send
an e-mail to rule-comment@sec.gov.
Please include File No. SR–NSCC–
2010–18 on the subject line.
• Paper comments should be sent in
triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington DC 20549–1090.
All submissions should refer to File No.
SR–NSCC–2010–18. 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
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63601; File No.
SR–NYSEAmex–2010–124]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Extending the Operation of
the Pilot Program That Allows Nasdaq
Stock Market Securities to be Traded
on the Exchange Pursuant to a Grant
of Unlisted Trading Privileges
December 22, 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 December
20, 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 Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
5 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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82117
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 500 to extend
the operation of the pilot program that
allows Nasdaq Stock Market (‘‘Nasdaq’’)
securities to be traded on the Exchange
pursuant to a grant of unlisted trading
privileges. The pilot is currently
scheduled to expire on January 31,
2011; the Exchange proposes to extend
it until the earlier of Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) approval to make such
pilot permanent or August 1, 2011. The
text of the proposed rule change is
available at the principal office of the
Exchange, on the Commission’s Web
site at https://www.sec.gov, at 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
NYSE Amex Equities Rules 500–525,
as a pilot program, govern the trading of
any Nasdaq-listed security on the
Exchange pursuant to unlisted trading
privileges (‘‘UTP Pilot Program’’).3 The
Exchange hereby seeks to extend the
operation of the UTP Pilot Program,
currently scheduled to expire on
January 31, 2011, until the earlier of
3 See Securities Exchange Act Release No. 62479
(July 9, 2010), 75 FR 41264 (July 15, 2010) (SR–
NYSEAmex–2010–31) (Notice of Filing of
Amendment Nos. 2 and 3, and Order Granting
Accelerated Approval to a Proposed Rule Change,
as Modified by Amendment Nos. 1, 2, and 3
Thereto, To Adopt as a Pilot Program a New Rule
Series for the Trading of Securities Listed on the
Nasdaq Stock Market Pursuant to Unlisted Trading
Privileges). See also Securities Exchange Act
Release No. 62857 (September 7, 2010), 75 FR
55837 (September 14, 2010) (SR–NYSEAmex–2010–
89) (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Extend the Pilot Program
That Allows Nasdaq Stock Market Securities To Be
Traded on the Exchange Pursuant to UTP).
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Federal Register / Vol. 75, No. 249 / Wednesday, December 29, 2010 / Notices
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Commission approval to make such
pilot permanent or August 1, 2011.
The UTP Pilot Program includes any
security listed on Nasdaq that (i) is
designated as an ‘‘eligible security’’
under the Joint Self-Regulatory
Organization Plan Governing the
Collection, Consolidation and
Dissemination of Quotation and
Transaction Information for NasdaqListed Securities Traded on Exchanges
on an Unlisted Trading Privilege Basis,
as amended (‘‘UTP Plan’’),4 and (ii) has
been admitted to dealings on the
Exchange pursuant to a grant of unlisted
trading privileges in accordance with
Section 12(f) of the Securities Exchange
Act of 1934, as amended (the ‘‘Act’’),5
(collectively, ‘‘Nasdaq Securities’’).6
The Exchange notes that its New
Market Model Pilot (‘‘NMM Pilot’’),
which, among other things, eliminated
the function of specialists on the
Exchange and created a new category of
market participant, the Designated
Market Maker (‘‘DMM’’),7 is also
scheduled to end on January 31, 2011.8
The timing of the operation of the UTP
Pilot Program was designed to
correspond to that of the NMM Pilot. In
approving the UTP Pilot Program, the
Commission acknowledged that the
rules relating to DMM benefits and
duties in trading Nasdaq Securities on
the Exchange pursuant to the UTP Pilot
Program are consistent with the Act 9
and noted the similarity to the NMM
Pilot, particularly with respect to DMM
obligations and benefits.10 Furthermore,
the UTP Pilot Program rules pertaining
to the assignment of securities to DMMs
4 See Securities Exchange Act Release No. 58863
(October 27, 2008), 73 FR 65417 (November 3, 2008)
(Notice of filing and immediate effectiveness of
Amendment No. 20 to the UTP Plan). The
Exchange’s predecessor, the American Stock
Exchange LLC, joined the UTP Plan in 2001. See
Securities Exchange Act Release No. 55647 (April
19, 2007), 72 FR 2091 (April 27, 2007) (S7–24–89).
In March 2009, the Exchange changed its name to
NYSE Amex LLC. See Securities Exchange Act
Release No. 59575 (March 13, 2009), 74 FR 11803
(March 19, 2009) (SR–NYSEALTR–2009–24).
5 15 U.S.C. 78l.
6 ‘‘Nasdaq Securities’’ is included within the
definition of ‘‘security’’ as that term is used in the
NYSE Amex Equities Rules. See NYSE Amex
Equities Rule 3. In accordance with this definition,
Nasdaq Securities are admitted to dealings on the
Exchange on an ‘‘issued,’’ ‘‘when issued,’’ or ‘‘when
distributed’’ basis. See NYSE Amex Equities Rule
501.
7 See NYSE Amex Equities Rule 103.
8 See Securities Exchange Act Release No. 60758
(October 1, 2009), 74 FR 51639 (October 7, 2009)
(SR–NYSEAmex–2009–65). See also Securities
Exchange Act Release Nos. 61030 (November 19,
2009), 74 FR 62365 (November 27, 2009) (SR–
NYSEAmex–2009–83); 61725 (March 17, 2010), 75
FR 14223 (March 24, 2010) (SR–NYSEAmex–2010–
28); and 62820 (September 1, 2010), 75 FR 54935
(September 9, 2010) (SR–NYSEAmex–2010–86).
9 15 U.S.C. 78.
10 See supra note 1, at 41271.
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are substantially similar to the rules
implemented through the NMM Pilot.11
The Exchange has similarly filed to
extend the operation of the NMM Pilot
until the earlier of Commission approval
to make the NMM Pilot permanent or
August 1, 2011.12
Extension of the UTP Pilot Program in
tandem with the NMM Pilot, both from
January 31, 2011 until the earlier of
Commission approval to make such
pilots permanent or August 1, 2011, will
provide for the uninterrupted trading of
Nasdaq Securities on the Exchange on a
UTP basis and thus continue to
encourage the additional utilization of,
and interaction with, the NYSE Amex
Equities market, and provide market
participants with improved price
discovery, increased liquidity, more
competitive quotes and greater price
improvement for Nasdaq Securities.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange. In particular, the Exchange
believes that its proposal is consistent
with (i) Section 6(b) of the Act,13 in
general, and furthers the objectives of
Section 6(b)(5) of the Act,14 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; (ii) Section 11A(a)(1) of
the Act,15 in that it seeks to ensure the
economically efficient execution of
securities transactions and fair
competition among brokers and dealers
and among exchange markets; and (iii)
Section 12(f) of the Act,16 which
governs the trading of securities
pursuant to UTP consistent with the
maintenance of fair and orderly markets,
the protection of investors and the
public interest, and the impact of
extending the existing markets for such
securities. Under the UTP Pilot Program
Nasdaq Securities trade on the Exchange
pursuant to rules governing the trading
of Exchange-Listed securities that
previously have been approved by the
Commission. NYSE Amex made certain
minor modifications to the operation of
11 Id.
12 See
SR–NYSEAmex–2010–122.
U.S.C. 78f(b).
14 15 U.S.C. 78f(b)(5).
15 15 U.S.C. 78k–1(a)(1).
16 15 U.S.C. 78l(f).
13 15
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these rules, and added certain new
rules, to accommodate the trading of
Nasdaq Securities on a UTP basis; the
Commission also approved all of these
modifications and additions.
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 17 and Rule
19b–4(f)(6) thereunder.18 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 19 and Rule 19b–4(f)(6)
thereunder.20
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
17 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
19 15 U.S.C. 78s(b)(3)(A).
20 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of 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 Exchange
has satisfied this requirement.
18 17
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Federal Register / Vol. 75, No. 249 / Wednesday, December 29, 2010 / Notices
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–NYSEAmex–2010–124 on
the subject line.
Paper Comments
srobinson on DSKHWCL6B1PROD with NOTICES
• 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–2010–124.
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–
NYSEAmex–2010–124 and should be
submitted on or before January 19, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–32734 Filed 12–28–10; 8:45 am]
BILLING CODE 8011–01–P
21 17
CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63599; File No. SR–MSRB–
2010–16]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Order Granting Approval of
Amendments to Rule G–5, on
Disciplinary Actions by Appropriate
Regulatory Agencies, Remedial
Notices by Registered Securities
Associations; and Rule G–17, on
Conduct of Municipal Securities
Activities
December 22, 2010.
I. Introduction
On November 1, 2010, the Municipal
Securities Rulemaking Board (‘‘MSRB’’),
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Exchange Act’’),1
and Rule 19b–4 thereunder,2 a proposed
rule change which consists of
amendments to Rule G–5, on
disciplinary actions by appropriate
regulatory agencies, and Rule G–17, the
Board’s basic fair practice rule, to apply
the rules to municipal advisors. The
proposed rule change was published for
comment in the Federal Register on
November 18, 2010.3 The Commission
received one comment letter about the
proposed rule change which supported
the proposed rule change.4
This order approves the proposed rule
change.
II. Description of the Proposed Rule
Change
Rule G–5 currently provides that
brokers, dealers, and municipal
securities dealers (‘‘dealers’’) may not
engage in municipal securities activities
in contravention of restrictions imposed
on them by the Commission, a
registered securities association, or
another appropriate regulatory agency.
The purpose of the portion of the
proposed rule change consisting of
amendments to Rule G–5 are a) to
remove a reference to an outdated
National Association of Securities
Dealers (‘‘NASD’’) 5 rule and b) to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 63309
(November 12, 2010), 75 FR 70756 (the
‘‘Commission’s Notice’’).
4 See letter from the National Association of
Independent Public Finance Advisors, dated
December 9, 2010.
5 In 2007, the NASD merged with the New York
Stock Exchange’s regulation committee to form the
Financial Industry Regulatory Authority, or FINRA.
See Securities Exchange Act Release No. 56145
(July 26, 2007), 72 FR 42169 (August 1, 2007).
2 17
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82119
provide that municipal advisors and
their associated persons may not engage
in the municipal advisory activities
described in Section 15B(e)(4)(A)(i) and
(ii) of the Act in contravention of
restrictions imposed upon them by the
Commission.
Rule G–17 currently provides that, in
the conduct of its municipal securities
activities, each dealer shall deal fairly
with all persons and shall not engage in
any deceptive, dishonest, or unfair
practice. The purpose of the portion of
the proposed rule change consisting of
amendments to Rule G–17 is to apply
the MSRB’s core fair dealing rule to
municipal advisors in the same manner
that it currently applies to dealers.
A more complete description of the
proposal is contained in the
Commission’s Notice.
The proposed rule change shall be
effective upon Commission approval.
III. Discussion and Commission
Findings
The Commission has carefully
considered the proposed rule change
and finds that the proposed rule change
is consistent with the requirements of
the Exchange Act and the rules and
regulations thereunder applicable to the
MSRB 6 and, in particular, the
requirements of Section 15B(b)(2) of the
Exchange Act 7 and the rules and
regulations thereunder. Section
15B(b)(2)(C) of the Exchange Act
requires, among other things, that the
MSRB’s rules be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
municipal securities and municipal
financial products, to remove
impediments to and perfect the
mechanism of a free and open market in
municipal securities and municipal
financial products, and, in general, to
protect investors, municipal entities,
obligated persons and the public
interest.8 Section 15B(b)(2)(L) of the
Exchange Act requires, among other
things, that the rules of the MSRB not
impose a regulatory burden on small
municipal advisors that is not necessary
or appropriate in the public interest and
for the protection of investors,
municipal entities, and obligated
6 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition
and capital formation. 15 U.S.C. 78c(f).
7 15 U.S.C. 78o–4(b)(2).
8 15 U.S.C. 78o–4(b)(2)(C).
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]]>Agencies
[Federal Register Volume 75, Number 249 (Wednesday, December 29, 2010)]
[Notices]
[Pages 82117-82119]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32734]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63601; File No. SR-NYSEAmex-2010-124]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Extending the
Operation of the Pilot Program That Allows Nasdaq Stock Market
Securities to be Traded on the Exchange Pursuant to a Grant of Unlisted
Trading Privileges
December 22, 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 December 20, 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 Exchange. 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 Equities Rule 500 to
extend the operation of the pilot program that allows Nasdaq Stock
Market (``Nasdaq'') securities to be traded on the Exchange pursuant to
a grant of unlisted trading privileges. The pilot is currently
scheduled to expire on January 31, 2011; the Exchange proposes to
extend it until the earlier of Securities and Exchange Commission
(``SEC'' or ``Commission'') approval to make such pilot permanent or
August 1, 2011. The text of the proposed rule change is available at
the principal office of the Exchange, on the Commission's Web site at
https://www.sec.gov, at 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
NYSE Amex Equities Rules 500-525, as a pilot program, govern the
trading of any Nasdaq-listed security on the Exchange pursuant to
unlisted trading privileges (``UTP Pilot Program'').\3\ The Exchange
hereby seeks to extend the operation of the UTP Pilot Program,
currently scheduled to expire on January 31, 2011, until the earlier of
[[Page 82118]]
Commission approval to make such pilot permanent or August 1, 2011.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 62479 (July 9,
2010), 75 FR 41264 (July 15, 2010) (SR-NYSEAmex-2010-31) (Notice of
Filing of Amendment Nos. 2 and 3, and Order Granting Accelerated
Approval to a Proposed Rule Change, as Modified by Amendment Nos. 1,
2, and 3 Thereto, To Adopt as a Pilot Program a New Rule Series for
the Trading of Securities Listed on the Nasdaq Stock Market Pursuant
to Unlisted Trading Privileges). See also Securities Exchange Act
Release No. 62857 (September 7, 2010), 75 FR 55837 (September 14,
2010) (SR-NYSEAmex-2010-89) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change To Extend the Pilot Program
That Allows Nasdaq Stock Market Securities To Be Traded on the
Exchange Pursuant to UTP).
---------------------------------------------------------------------------
The UTP Pilot Program includes any security listed on Nasdaq that
(i) is designated as an ``eligible security'' under the Joint Self-
Regulatory Organization Plan Governing the Collection, Consolidation
and Dissemination of Quotation and Transaction Information for Nasdaq-
Listed Securities Traded on Exchanges on an Unlisted Trading Privilege
Basis, as amended (``UTP Plan''),\4\ and (ii) has been admitted to
dealings on the Exchange pursuant to a grant of unlisted trading
privileges in accordance with Section 12(f) of the Securities Exchange
Act of 1934, as amended (the ``Act''),\5\ (collectively, ``Nasdaq
Securities'').\6\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 58863 (October 27,
2008), 73 FR 65417 (November 3, 2008) (Notice of filing and
immediate effectiveness of Amendment No. 20 to the UTP Plan). The
Exchange's predecessor, the American Stock Exchange LLC, joined the
UTP Plan in 2001. See Securities Exchange Act Release No. 55647
(April 19, 2007), 72 FR 2091 (April 27, 2007) (S7-24-89). In March
2009, the Exchange changed its name to NYSE Amex LLC. See Securities
Exchange Act Release No. 59575 (March 13, 2009), 74 FR 11803 (March
19, 2009) (SR-NYSEALTR-2009-24).
\5\ 15 U.S.C. 78l.
\6\ ``Nasdaq Securities'' is included within the definition of
``security'' as that term is used in the NYSE Amex Equities Rules.
See NYSE Amex Equities Rule 3. In accordance with this definition,
Nasdaq Securities are admitted to dealings on the Exchange on an
``issued,'' ``when issued,'' or ``when distributed'' basis. See NYSE
Amex Equities Rule 501.
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The Exchange notes that its New Market Model Pilot (``NMM Pilot''),
which, among other things, eliminated the function of specialists on
the Exchange and created a new category of market participant, the
Designated Market Maker (``DMM''),\7\ is also scheduled to end on
January 31, 2011.\8\ The timing of the operation of the UTP Pilot
Program was designed to correspond to that of the NMM Pilot. In
approving the UTP Pilot Program, the Commission acknowledged that the
rules relating to DMM benefits and duties in trading Nasdaq Securities
on the Exchange pursuant to the UTP Pilot Program are consistent with
the Act \9\ and noted the similarity to the NMM Pilot, particularly
with respect to DMM obligations and benefits.\10\ Furthermore, the UTP
Pilot Program rules pertaining to the assignment of securities to DMMs
are substantially similar to the rules implemented through the NMM
Pilot.\11\ The Exchange has similarly filed to extend the operation of
the NMM Pilot until the earlier of Commission approval to make the NMM
Pilot permanent or August 1, 2011.\12\
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\7\ See NYSE Amex Equities Rule 103.
\8\ See Securities Exchange Act Release No. 60758 (October 1,
2009), 74 FR 51639 (October 7, 2009) (SR-NYSEAmex-2009-65). See also
Securities Exchange Act Release Nos. 61030 (November 19, 2009), 74
FR 62365 (November 27, 2009) (SR-NYSEAmex-2009-83); 61725 (March 17,
2010), 75 FR 14223 (March 24, 2010) (SR-NYSEAmex-2010-28); and 62820
(September 1, 2010), 75 FR 54935 (September 9, 2010) (SR-NYSEAmex-
2010-86).
\9\ 15 U.S.C. 78.
\10\ See supra note 1, at 41271.
\11\ Id.
\12\ See SR-NYSEAmex-2010-122.
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Extension of the UTP Pilot Program in tandem with the NMM Pilot,
both from January 31, 2011 until the earlier of Commission approval to
make such pilots permanent or August 1, 2011, will provide for the
uninterrupted trading of Nasdaq Securities on the Exchange on a UTP
basis and thus continue to encourage the additional utilization of, and
interaction with, the NYSE Amex Equities market, and provide market
participants with improved price discovery, increased liquidity, more
competitive quotes and greater price improvement for Nasdaq Securities.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange. In particular,
the Exchange believes that its proposal is consistent with (i) Section
6(b) of the Act,\13\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\14\ 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; (ii)
Section 11A(a)(1) of the Act,\15\ in that it seeks to ensure the
economically efficient execution of securities transactions and fair
competition among brokers and dealers and among exchange markets; and
(iii) Section 12(f) of the Act,\16\ which governs the trading of
securities pursuant to UTP consistent with the maintenance of fair and
orderly markets, the protection of investors and the public interest,
and the impact of extending the existing markets for such securities.
Under the UTP Pilot Program Nasdaq Securities trade on the Exchange
pursuant to rules governing the trading of Exchange-Listed securities
that previously have been approved by the Commission. NYSE Amex made
certain minor modifications to the operation of these rules, and added
certain new rules, to accommodate the trading of Nasdaq Securities on a
UTP basis; the Commission also approved all of these modifications and
additions.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
\15\ 15 U.S.C. 78k-1(a)(1).
\16\ 15 U.S.C. 78l(f).
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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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \17\ and Rule 19b-4(f)(6) thereunder.\18\
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 \19\ and Rule 19b-
4(f)(6) thereunder.\20\
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\17\ 15 U.S.C. 78s(b)(3)(A)(iii).
\18\ 17 CFR 240.19b-4(f)(6).
\19\ 15 U.S.C. 78s(b)(3)(A).
\20\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of 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
Exchange has satisfied this requirement.
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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
[[Page 82119]]
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-2010-124 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-2010-124. 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-
NYSEAmex-2010-124 and should be submitted on or before January 19,
2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
Florence E. Harmon,
Deputy Secretary.
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\21\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2010-32734 Filed 12-28-10; 8:45 am]
BILLING CODE 8011-01-P
