[Federal Register Volume 74, Number 153 (Tuesday, August 11, 2009)]
[Notices]
[Pages 40273-40278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-19140]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60428; File No. SR-NYSEAmex-2009-46]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by NYSE Amex LLC Amending NYSE Amex Equities Rule 1000 To Allow 
Exchange Systems to Access CCS Interest to Partially Fill an Incoming 
Limit Order

August 4, 2009.
    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 July 20, 2009, 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, II, 
and III 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend NYSE Amex Equities Rule 1000 to 
allow Exchange systems to access CCS interest to partially fill an 
incoming limit order. The text of the proposed rule change is available 
at the Exchange, the Commission's Public Reference Room, and http://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 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 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 LLC (``NYSE Amex'' or the ``Exchange''), formerly the 
American Stock Exchange LLC, proposes to amend NYSE Amex Equities Rule 
1000 to allow Exchange systems to access CCS interest to partially fill 
an incoming limit order.
    The Exchange notes that parallel changes are proposed to be made to 
the rules of New York Stock Exchange LLC.\4\
---------------------------------------------------------------------------

    \4\ See SR-NYSE-2009-71.
---------------------------------------------------------------------------

Background
    NYSE Amex adopted sweeping changes to its market rules and 
execution technology designed to improve execution quality on the 
Exchange as a result of its merger with the New York Stock Exchange 
LLC.\5\ Among the elements of the adopted enhanced Exchange market 
model, NYSE Amex eliminated the function of specialists on the Exchange 
creating a

[[Page 40274]]

new category of market participant, the Designated Market Maker or DMM. 
The DMM, like specialists, have affirmative obligations to make an 
orderly market, including continuous quoting requirements and 
obligations to re-enter the market when reaching across to execute 
against trading interest. In view of the Exchange's electronic 
execution functionality, the DMM, unlike the specialist, would no 
longer be deemed the agent for every incoming order. The Exchange also 
responded to customer demand to create additional undisplayed reserve 
interest.
---------------------------------------------------------------------------

    \5\ NYSE Euronext acquired The Amex Membership Corporation 
(``AMC'') pursuant to an Agreement and Plan of Merger, dated January 
17, 2008 (the ``Merger''). In connection with the Merger, the 
Exchange's predecessor, the American Stock Exchange LLC (``Amex''), 
a subsidiary of AMC, became a subsidiary of NYSE Euronext called 
NYSE Alternext US LLC. Securities Exchange Act Release No. 58673 
(September 29, 2008), 73 FR 57707 (October 3, 2008) (SR-NYSE-2008-60 
and SR-Amex-2008-62) (approving the Merger). Subsequently NYSE 
Alternext US LLC was renamed NYSE Amex LLC and continues to operate 
as a national securities exchange registered under Section 6 of the 
Securities Exchange Act of 1934, as amended (the ``Act''). NYSE 
Alternext US LLC was subsequently renamed NYSE Amex LLC. See 
Securities Exchange Act Release No. 59575 (March 13, 2009), 74 FR 
11803 (March 19, 2009) (SR-NYSEALTR-2009-24).
---------------------------------------------------------------------------

    In another enhancement to the Exchange's market model, designed to 
encourage DMMs to add liquidity, the Exchange implemented a system 
change that allowed DMMs to create a schedule of additional non-
displayed liquidity at various price points where the DMM is willing to 
interact with interest and provide price improvement to orders in the 
Exchange's system. This schedule is known as the DMM Capital Commitment 
Schedule (``CCS'').\6\ CCS provides the Display Book[supreg] \7\ with 
the amount of shares that the DMM is willing to trade at price points 
outside, at and inside the Exchange BBO. CCS interest is separate and 
distinct from other DMM interest in that it serves as the interest of 
last resort.
---------------------------------------------------------------------------

    \6\ The provisions of NYSE [sic] Rule 1000 relating to CCS are 
in effect pursuant to a pilot that commenced on October 2008 and is 
scheduled to end on October 1, 2009.
    \7\ The Display Book\[reg]\ system is an order management and 
execution facility. The Display Book system receives and displays 
orders to the DMMs, contains the order information, and provides a 
mechanism to execute and report transactions and publish the results 
to the Consolidated Tape. The Display Book system is connected to a 
number of other Exchange systems for the purposes of comparison, 
surveillance, and reporting information to customers and other 
market data and national market systems.
---------------------------------------------------------------------------

    When an order is entered for an amount of shares that exceeds the 
liquidity available at the Exchange BBO, Exchange systems review all 
the liquidity available on the Display Book including CCS interest to 
determine the final price point at which the order can be fully 
executed (the ``completion price''). Exchange systems determine the 
completion price by calculating the unfilled volume of the incoming 
order (i.e., the volume of the incoming order that exceeds the volume 
available to execute against it that is then present in the Exchange 
bid or offer) and reviewing the additional displayed and non-displayed 
interest available in the Display Book, which may be at more than one 
price point, including the CCS interest submitted by the DMM unit that 
is available at the completion price if the CCS interest were to 
participate at the completion price. Exchange systems also review any 
protected bids or offers on markets other than the Exchange (``away 
interest'') and determines the price at which the remaining volume of 
the contra side order can be executed in full.
    Exchange systems then review the amount of liquidity offered by CCS 
to determine if the number of shares provided via the DMM's CCS at the 
completion price is less than the number of CCS shares provided at the 
next different price that has interest that is one minimum price 
variation (``MPV'') (as that term is defined in Exchange Rule 62 \8\) 
or more higher (in the case of an order to sell) or at the next 
different price that has interest that is one MPV or more lower (in the 
case of an order to buy) (hereinafter collectively referred to as 
``better price'').
---------------------------------------------------------------------------

    \8\ See NYSE [sic] Rule 62, Supplementary Material .10, which 
provides that the minimum price variation (MPV) for quoting and 
entry of orders in equity securities admitted to dealings on the 
Exchange shall be as follows (see table above):

------------------------------------------------------------------------
                                                               Minimum
                 Price of order or interest                     price
                                                              variation
------------------------------------------------------------------------
Less Than $1.00............................................       $.0001
$1.00 to 99,999.99.........................................        .01
$100,000 or greater........................................        .10
------------------------------------------------------------------------

    If the volume of CCS interest that would be accessed is the same at 
the completion price and the better price, Exchange systems access CCS 
interest at the completion price with CCS interest yielding to any 
other interest in Exchange systems at the completion price.
    If the number of shares that would be allocated to the CCS interest 
at the better price is more than the number of shares that would be 
allocated to the DMM's CCS interest at the completion price, then 
Exchange systems will access the CCS liquidity available at the better 
price with CCS interest yielding to any other interest in Exchange 
systems (both displayed and undisplayed reserve interest) at the better 
price. Any remaining balance of the incoming order is executed at the 
completion price against displayable and non-displayable interest 
pursuant to NYSE Amex Equities Rule 72 (``Priority of Bids and Offers 
and Allocation of Executions'').\9\
---------------------------------------------------------------------------

    \9\ Pursuant to NYSE Amex Equities Rule 72 round-lot executions 
on the Exchange are allocated on an equal basis, i.e. parity, among 
market participants at a price point unless one of the participants 
has established priority. Priority is established when the 
participant is the only interest displayed at the price point when 
such price is or becomes the best bid or offer published by the 
Exchange. A participant that establishes priority for the displayed 
portion of his or her order is allocated the first 15% of any 
execution (a minimum of one round lot). Any DMM non-CCS interest 
included in the displayed quantity and non-displayed quantity is 
also executed pursuant to NYSE [sic] Rule 72.
---------------------------------------------------------------------------

    Exchange systems can access CCS interest only once to participate 
in the execution of an incoming order. As such, CCS interest that may 
exist at the completion price is inaccessible to Exchange systems to 
trade with any remaining balance of the incoming order if Exchange 
systems included the DMM's CCS interest in the execution of any portion 
of such order at the better price. Moreover, Exchange systems will only 
access CCS interest to participate in the execution of an incoming 
order where the incoming order will be executed in full.
Proposed Amendment to NYSE Amex Equities Rule 1000
    The Exchange proposes to allow Exchange systems to access CCS 
interest to participate in executions where the incoming order will 
only be partially executed. The purpose of this change is to provide 
additional liquidity to the incoming order.
    As illustrated in the example below, because Exchange systems are 
permitted to access CCS interest only where an incoming order would be 
executed in full, there are times when the incoming order exhausts the 
displayed and reserve interest on the Display Book at various price 
points and the remaining shares of the order are quoted. In these 
instances Exchange systems cannot access the CCS interest available at 
the price point where the remaining shares of the order will be quoted 
to partially fill the incoming limit order.
Example of Current CCS Operation
    The Exchange Market is 200 shares bid at the price of $20.05 and 
200 shares offered at a price of $20.10. At the price points of $20.04, 
$20.03, $20.02, $20.01 and $20.00 there are 100 shares bid. The CCS 
interest file is willing to provide 200 shares of additional bid 
liquidity at each of those price points as well. A customer sends the 
Exchange a sell order for 1200 shares with a limit price of $20.00. 
Given the current operation of CCS, the order will execute against the 
200 shares at the Exchange bid price of $20.05 and all the shares 
indicated in italic typeface at each price point down to the orders 
limit price of $20.00 will be executed against the order for a total 
execution of 700 shares. The remaining 500 shares of the order will be 
filed in Display Book at its limit price of $20.00.

[[Page 40275]]



----------------------------------------------------------------------------------------------------------------
   CCS interest        Shares bid         Bid price         Offer price       Shares offered      CCS interest
----------------------------------------------------------------------------------------------------------------
                   .................  .................          $20.10                200                200
           200                200             $20.05     .................  .................  .................
           200                100             $20.04     .................  .................  .................
           200                100             $20.03     .................  .................  .................
           200                100             $20.02     .................  .................  .................
           200                100             $20.01     .................  .................  .................
           200                100             $20.00     .................  .................  .................
----------------------------------------------------------------------------------------------------------------

    The Exchange proposes to modify the operation of CCS interest to 
allow Exchange systems to access and execute CCS interest designated to 
partially fill an incoming limit order. This will create an additional 
processing action for Exchange systems. Exchange systems will continue 
to review all the liquidity available on the Display Book and any away 
market centers; however, once it determines that the order cannot be 
executed in full, it will also review the DMM CCS interest file to 
determine if any of the liquidity is eligible to partially fill the 
incoming limit order at the price where any remaining shares of the 
order would be quoted.
    In order for the DMM CCS interest to participate in a partial 
execution of an incoming limit order that exceeds the liquidity 
available at the Exchange BBO the DMM must designate interest available 
in the CCS interest file eligible for partial execution by including a 
``PF'' indicator on the shares provided at the price point. All 
liquidity provided in the CCS interest file will continue to be 
eligible to participate in executions of incoming limit orders in full. 
Only DMM CCS interest containing the PF indicator will be available to 
participate in an execution to provide a partial execution of an 
incoming limit order that exceeds the liquidity available at the 
Exchange BBO. In this way incoming limit orders will have another 
opportunity to receive fuller executions prior to quoting.
Example of Proposed CCS Partial Fill at the Price the Remaining Shares 
Will be Quoted
    The Exchange Market is 200 shares bid at the price of $20.05 and 
200 shares offered at a price of $20.10. At the price points of $20.04, 
$20.03, $20.02, $20.01 and $20.00 there are 100 shares bid. The CCS 
interest file is willing to provide 200 shares of additional bid 
liquidity at each of those price points as well. The CCS interest at 
$20.00 is designated for partial fill. A customer sends the Exchange a 
sell order for 1200 shares with a limit price of $20.00. Enabling 
Exchange systems to access CCS interest to partially fill the order, 
the incoming limit order will execute against the 200 shares at the 
Exchange bid price of $20.05. The order would then execute against all 
the shares bid, indicated in italic typeface at each price point down 
to the orders limit price of $20.00, Exchange systems would execute an 
additional 200 shares of the order against the CCS interest at $20.00 
designated for partial fill. The incoming limit order receives a total 
execution of 900 shares and the remaining 300 shares of the order will 
be filed in Display Book at its limit price of $20.00.

 
----------------------------------------------------------------------------------------------------------------
   CCS interest        Shares bid         Bid price         Offer price      Shares  offered      CCS interest
----------------------------------------------------------------------------------------------------------------
                   .................  .................          $20.10                200                200
           200                200             $20.05     .................  .................  .................
           200                100             $20.04     .................  .................  .................
           200                100             $20.03     .................  .................  .................
           200                100             $20.02     .................  .................  .................
           200                100             $20.01     .................  .................  .................
        200 PF                100             $20.00     .................  .................  .................
----------------------------------------------------------------------------------------------------------------

    When Exchange systems access the CCS interest in order to provide a 
partial execution of an incoming order, CCS interest will participate 
at the price point where the remaining shares will be quoted as 
illustrated in the example above. If, however, the incoming order 
reaches a Liquidity Replenishment Point (``LRP'') \10\ prior to being 
executed in full, then Exchange systems will execute the CCS interest 
at the LRP price, as illustrated in the example below, and the 
remaining shares of the order will be quoted thereafter at its limit 
price. In the case of a market order it will be quoted at the LRP 
price.
---------------------------------------------------------------------------

    \10\ LRPs are pre-determined price points that temporarily 
convert the automatic Exchange market to an auction market in order 
to dampen volatility when the market is experiencing a large price 
movement based on a security's typical trading characteristics or 
market conditions over short periods of time during the trading day. 
LRPs allow the DMM to solicit additional liquidity.
---------------------------------------------------------------------------

Example of Proposed CCS Partial Fill at the LRP Price
CCS Partial Fill at the LRP 1
    The Exchange Market is 200 shares bid at the price of $20.10 and 
200 shares offered at a price of $20.15. The price point of $20.05 is a 
designated LRP. At the price points of $20.09 down to $20.05 there are 
100 shares bid. The CCS interest file is willing to provide 200 shares 
of additional bid liquidity at the price points of $20.09 down to 
$20.05.\11\ In addition, the CCS interest file indicates that the 
interest at the prices $20.08, $20.07 and $20.05 is available to 
provide a partial fill. A customer sends the Exchange a sell order for 
1200 shares with a limit price of $20.00. Enabling Exchange systems to 
access CCS interest to partially fill the order, the incoming limit 
order would execute against the 200 shares at the Exchange bid price of 
$20.10. The order would then execute against all the shares bid 
(indicated in italic typeface) at each price point down to the LRP 
price of $20.05. Exchange systems

[[Page 40276]]

would execute an additional 200 shares of the order against the CCS 
interest at the LRP price of $20.05 for a total 900 shares of the 
incoming limit order executed. The original order will execute a total 
of 900 shares above its limit price before the remaining 300 shares of 
the order is posted on the Display Book at its limit price of $20.00.
---------------------------------------------------------------------------

    \11\ A DMM cannot provide CCS interest past the LRPs because 
that interest will not be executed. Pursuant to current NYSE [sic] 
Rules, once an LRP is reached interest may not trade through the 
price point.

----------------------------------------------------------------------------------------------------------------
   CCS interest        Shares bid         Bid price         Offer price      Shares  offered      CCS interest
----------------------------------------------------------------------------------------------------------------
                   .................  .................          $20.15                200                200
           200                200             $20.10     .................  .................  .................
           200                100             $20.09     .................  .................  .................
       200\PF\                100             $20.08     .................  .................  .................
       200\PF\                100             $20.07     .................  .................  .................
           200                100             $20.06     .................  .................  .................
        200 PF                100         $20.05 LRP     .................  .................  .................
             0                  0             $20.04     .................  .................  .................
             0                  0             $20.03     .................  .................  .................
             0                  0             $20.02     .................  .................  .................
             0                  0             $20.01     .................  .................  .................
             0                  0             $20.00     .................  .................  .................
----------------------------------------------------------------------------------------------------------------

CCS Partial Fill at the LRP  2
    The Exchange Market is 200 shares bid at the price of $20.10 and 
200 shares offered at a price of $20.15. The price point of $20.05 is a 
designated LRP. At the price points of $20.09 and $20.08 there are 100 
shares bid. The CCS interest file is willing to provide 200 shares of 
additional bid liquidity at the price points of $20.09 down to $20.05. 
In addition, the CCS interest file indicates that the interest at the 
prices $20.08, $20.07 and $20.05 is available to provide a partial 
fill. A customer sends the Exchange a sell order for 700 \12\ shares 
with a limit price of $20.00. Enabling Exchange systems to access CCS 
interest to partially fill the order, the incoming limit order would 
execute against the 200 shares at the Exchange bid price of $20.10. The 
order would then execute 100 shares against the shares bid at $20.09 
and $20.08. Exchange systems would execute an additional 200 shares of 
the order against the CCS interest at the LRP price of $20.05 for a 
total 600 shares of the incoming limit order executed. The remaining 
100 shares of the order will be posted on the Display Book at its limit 
price of $20.00.
---------------------------------------------------------------------------

    \12\ If the order were for 600 shares Exchange systems would 
have executed 200 shares at the bid price of $20.10, 100 shares at 
the price of $20.09. The Exchange will execute the remaining 300 
shares at the price of $20.08 against the 100 shares of ``Shares 
Bid'' and CCS interest at the price point. However, because the 700 
share order could not be completely filled at the price of $20.08 
including CCS interest, it is executed based on the rules governing 
partial executions and will thus be executed as illustrated in the 
example.

----------------------------------------------------------------------------------------------------------------
   CCS interest        Shares bid         Bid price         Offer price       Shares offered      CCS interest
----------------------------------------------------------------------------------------------------------------
                   .................  .................          $20.15                200                200
           200                200             $20.10     .................  .................  .................
           200                100             $20.09     .................  .................  .................
      200 \PF\                100             $20.08     .................  .................  .................
      200 \PF\                  0             $20.07     .................  .................  .................
           200                  0             $20.06     .................  .................  .................
        200 PF                  0         $20.05 LRP     .................  .................  .................
             0                  0             $20.04     .................  .................  .................
             0                  0             $20.03     .................  .................  .................
             0                  0             $20.02     .................  .................  .................
             0                  0             $20.01     .................  .................  .................
             0                  0             $20.00     .................  .................  .................
----------------------------------------------------------------------------------------------------------------

    When accessing CCS interest to partially execute an order, Exchange 
systems will not review the liquidity available at one minimum price 
variation better than the execution price to determine if the number of 
shares that CCS interest is willing to provide at the better price is 
greater than the number of shares at the price point where the order 
would execute and then post. The order will be executed against the CCS 
interest where the remaining shares of the order will ultimately be 
quoted or in the event an LRP is reached, at the LRP price.\13\
---------------------------------------------------------------------------

    \13\ If the DMM did not designate the CCS interest eligible for 
partial fill, then the CCS interest would not participate in the 
execution and the remaining shares of the order would be quoted.
---------------------------------------------------------------------------

    Whether the order is executed at the price where the remaining 
shares will be quoted or at the LRP price, Exchange systems will not 
access CCS interest designated PF until all other interest on the 
Display Book up to the price point is executed in full. CCS interest 
therefore, remains the interest of last resort because Exchange systems 
will access CCS interest to provide a partial execution to an incoming 
limit order only after all it has satisfied protected interest on away 
market centers and all other interest on the Display Book eligible to 
be executed against the order is executed in full. In all instances 
where Exchange systems access CCS to provide a partial execution of an 
order, the customer order is afforded the ability for price improvement 
within the parameters of the rule.
    The Exchange therefore proposes to amend NYSE Amex Equities Rule 
1000, to allow Exchange systems to access available CCS interest in 
order to provide an incoming order with a fuller execution. The 
Exchange proposes to amend NYSE Amex Equities Rule 1000(e)(iii)(A)(4) 
to include this provision and renumber former subparagraph 
(e)(iii)(A)(4) to (e)(iii)(A)(5).

[[Page 40277]]

    The Exchange believes that the instant proposal to maximize an 
order's partial execution by allowing Exchange systems to access CCS 
interest removes the current impediment from a limit order accessing 
all the liquidity available on the Display Book. The proposed 
modification increases the opportunities for executing a greater number 
of shares of the incoming order and exposes it to additional 
opportunity for price improvement. The Exchange believes that the 
proposal therefore contributes to perfect the mechanism of a free and 
open market and ultimately protects investors and the public interest.
Administrative Amendments to NYSE Amex Equities Rule 1000
    The Exchange further proposes to include references to its Do Not 
Ship Order \14\ in NYSE Amex Equities Rule 1000 subparagraphs (e)(ii), 
(e)(ii)(C) and (e)(iii)(A)(5) to illustrate the additional order type 
that requires the same execution handling as Reg. NMS-compliant IOC.
---------------------------------------------------------------------------

    \14\ See NYSE Amex Equities Rule 13.
---------------------------------------------------------------------------

    Finally, the Exchange proposes to delete the redundant text of NYSE 
Amex Equities Rule 1000 subparagraph (e)(ii)(D) because it restates the 
information contained in subparagraph (e)(ii) above it.
2. Statutory Basis
    The basis under the Securities Exchange Act of 1934 (the ``Act'') 
\15\ for these proposed rule changes is the requirement under Section 
6(b)(5) \16\ that an Exchange have rules that are designed 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 supports these principles in that it seeks to 
protect the investor and the public interest by allowing an incoming 
limit order to execute against all the liquidity available on the 
Exchange.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78a.
    \16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition 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 35 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 the 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. In addition, the Commission seeks 
comment on whether the proposed handling of incoming orders receiving 
partial fills that include CCS interest is consistent with the Act and, 
in particular, whether the proposed rule changes are designed to 
promote just and equitable principles of trade and, in general, to 
protect investors and the public interest.
    Specifically, in certain situations, the Exchange's proposal would 
allow the DMM's CCS interest to participate in partial fills at the 
best possible price (from the DMM's perspective), even when this price 
is inferior to all the non-CCS interest participating in the same 
execution. Currently, NYSE Amex's rules allow for CCS participation 
only when the incoming order will be completely filled, and the DMM's 
CCS interest may not participate in an execution at a price inferior to 
the completion price.
    The Commission notes the fact pattern presented above under the 
heading ``CCS Partial Fill at the LRP 2'' where, under NYSE 
Amex's current rules, an incoming order of 600 shares would be 
completed at $20.08 (200, 100, and 100 shares of non-CCS interest at 
$20.10, $20.09, and $20.08 respectively, and 200 shares of CCS interest 
also at $20.08).\17\ In contrast, under the proposal, an incoming order 
of 700 shares that outsizes the available non-CCS interest would be 
partially completed by CCS interest at the LRP price, and thus would 
receive an execution of 200 shares against CCS interest at $20.05, 
rather than $20.08, before the system quotes the residual 100 shares at 
$20.05, the LRP.\18\
---------------------------------------------------------------------------

    \17\ See supra note 12.
    \18\ See supra text accompanying note 12.
---------------------------------------------------------------------------

    Absent the proposed rule change, a 700-share incoming order would 
result in a partial fill without any CCS participation, with 300 shares 
unexecuted and quoting at the LRP. Thus, the Commission notes that the 
proposal may benefit the incoming order by immediately and 
automatically executing additional shares at the order's limit price or 
at the LRP price, as applicable. However, the Commission is interested 
in commenters' views on the proposed expansion of DMMs' CCS 
capabilities for partial fills and, in particular, on the proposed 
execution of CCS interest at the limit price of the order or the LRP 
price, as the case may be, even when no other interest resides at that 
price. To illustrate, in the ``CCS Partial Fill at the LRP 2'' 
example above, the proposal would result in a CCS interest execution at 
$20.05 (i.e., the LRP price). Is another price more appropriate? For 
example, should such CCS interest be executed at $20.08 (the last price 
at which there is non-CCS interest)? Another price? Why or why not?
    Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-NYSEAmex-2009-46 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEAmex-2009-46. 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 (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule

[[Page 40278]]

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 am and 3 pm. 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-2009-46 and should be submitted on or before September 1, 
2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19140 Filed 8-10-09; 8:45 am]
BILLING CODE 8010-01-P