[Federal Register Volume 74, Number 158 (Tuesday, August 18, 2009)]
[Notices]
[Pages 41778-41780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-19731]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60458; File No. SR-NYSEAMEX-2009-52]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC Deleting Rule 
409A--NYSE Amex Equities and Adopting New Rule 2266--NYSE Amex Equities 
To Conform to Proposed Rule Changes Submitted in a Companion Filing by 
the New York Stock Exchange LLC

August 7, 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 28, 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 and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange, formerly the American Stock Exchange LLC and NYSE 
Alternext US LLC,\4\ proposes to delete Rule 409A--NYSE Amex Equities 
and to adopt new Rule 2266--NYSE Amex Equities to conform to proposed 
rule changes submitted in a companion filing by the New York Stock 
Exchange LLC (``NYSE'').\5\ The text of the proposed rule change is 
available at the Exchange, the Commission's Public Reference Room, and 
http://www.nyse.com.
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    \4\ The Exchange changed its name to NYSE Amex in March 2009. 
See Securities Exchange Act Release No. 59575 (March 13, 2009), 74 
FR 11803 (March 19, 2009) (SR-NYSEALTR-2009-24).
    \5\ See SR-NYSE-2009-76, formally submitted on July 28, 2009.
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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.

[[Page 41779]]

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 the proposed rule changes is to delete Rule 409A--
NYSE Amex Equities and to adopt new Rule 2266--NYSE Amex Equities to 
conform to proposed rule changes submitted in a companion filing by the 
NYSE.
Background
    As described more fully in a related rule filing,\6\ 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, a subsidiary of AMC, became a subsidiary of NYSE 
Euronext called NYSE Alternext US LLC, and continues to operate as a 
national securities exchange registered under Section 6 of the Act.\7\ 
The effective date of the Merger was October 1, 2008.
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    \6\ See 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).
    \7\ 15 U.S.C. 78f.
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    In connection with the Merger, on December 1, 2008, the Exchange 
relocated all equities trading conducted on the Exchange legacy trading 
systems and facilities located at 86 Trinity Place, New York, New York, 
to trading systems and facilities located at 11 Wall Street, New York, 
New York (the ``Equities Relocation''). The Exchange's equity trading 
systems and facilities at 11 Wall Street (the ``NYSE Amex Trading 
Systems'') are operated by the NYSE on behalf of the Exchange.\8\
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    \8\ See Securities Exchange Act Release No. 58705 (October 1, 
2008), 73 FR 58995 (October 8, 2008) (SR-Amex 2008-63) (approving 
the Equities Relocation).
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    As part of the Equities Relocation, NYSE Amex adopted NYSE Rules 1-
1004, subject to such changes as necessary to apply the Rules to the 
Exchange, as the NYSE Amex Equities Rules to govern trading on the NYSE 
Amex Trading Systems.\9\ The NYSE Amex Equities Rules, which became 
operative on December 1, 2008, are substantially identical to the 
current NYSE Rules 1-1004 and the Exchange continues to update the NYSE 
Amex Equities Rules as necessary to conform with rule changes to 
corresponding NYSE Rules filed by the NYSE.
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    \9\ See Securities Exchange Act Release Nos. 58705 (October 1, 
2008), 73 FR 58995 (October 8, 2008) (SR-Amex 2008-63); 58833 
(October 22, 2008), 73 FR 64642 (October 30, 2008) (SR-NYSE-2008-
106); 58839 (October 23, 2008), 73 FR 64645 (October 30, 2008) (SR-
NYSEALTR-2008-03); 59022 (November 26, 2008), 73 FR 73683 (December 
3, 2008) (SR-NYSEALTR-2008-10); and 59027 (November 28, 2008), 73 FR 
73681 (December 3, 2008) (SR-NYSEALTR-2008-11).
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Proposed Conforming Amendments to NYSE Amex Equities Rules
    As noted above, the Exchange proposes to delete Rule 409A--NYSE 
Amex Equities and to adopt new Rule 2266--NYSE Amex Equities to conform 
to proposed rule changes submitted in a companion filing by the NYSE. 
As discussed in more detail below, the NYSE is filing the proposed rule 
changes to harmonize these NYSE Rules with changes to corresponding 
Incorporated NYSE Rules filed by the Financial Industry Regulatory 
Authority, Inc. (``FINRA'') and approved by the Commission.\10\ Unless 
specifically noted, the Exchange is proposing to adopt the NYSE's 
proposed rule changes in the form that they have been approved for 
filing by the Commission, subject to such technical changes as are 
necessary to apply the changes to the Exchange. The Exchange further 
proposes that the operative date of these rule changes be the same as 
the operative date of the NYSE's proposed rule changes on which this 
filing is based.
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    \10\ See Securities Exchange Act Release No. 59987 (May 27, 
2009), 74 FR 26902 (June 4, 2009) (order approving FINRA 2009-016).
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    In relevant part, FINRA adopted NASD Rule 2342 (SIPC Information) 
as consolidated FINRA Rule 2266 and, because it is substantively 
similar to this new rule, deleted FINRA Incorporated NYSE Rule 409A 
(SIPC Disclosures).\11\ FINRA Rule 2266 requires all FINRA members, 
except for those members that are not Securities Investor Protection 
Corporation (``SIPC'') members or whose business consists exclusively 
of the sale of investments that are not subject to SIPC protection, to 
advise all new customers in writing at the time they open an account 
that they may obtain information about SIPC by contacting SIPC and to 
provide such customers with SIPC's contact information.\12\ Such 
information must also be provided annually to all existing customers. 
Where both an introducing firm and a clearing firm service the same 
account, the firms may assign these requirements to one or the other 
firm.\13\
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    \11\ In its filing, FINRA also adopted NASD Rules 2130 
(Obtaining an Order of Expungement of Customer Dispute Information 
from the Central Registration Depository (CRD System)), 2810 (Direct 
Participation Programs) and 3115 (Requirements for Alternative 
Trading Systems to Record and Transmit Order and Execution 
Information for Security Futures) as consolidated FINRA Rules 2080, 
2310 and 4551, respectively. See Securities Exchange Act Release No. 
59987 (May 27, 2009), 74 FR 26902 (June 4, 2009). Neither the 
Exchange nor NYSE is adopting these FINRA Rules.
    \12\ FINRA Incorporated NYSE Rule 409A did not contain these 
exclusions. See Securities Exchange Act Release No. 59987 (May 27, 
2009), 74 FR 26902 (June 4, 2009).
    \13\ See Securities Exchange Act Release No. 59987 (May 27, 
2009), 74 FR 26902 (June 4, 2009).
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    NYSE correspondingly proposes to delete NYSE Rule 409A and to adopt 
new Rule 2266 to conform to FINRA's approved amendments to its Rules. 
As proposed, NYSE Rule 2266 adopts the same language as FINRA Rule 
2266, except for substituting for or adding to, as needed, the term 
``member organization'' for the term ``member'', and making 
corresponding technical changes. As with the consolidated FINRA Rule, 
under proposed NYSE Rule 2266 Exchange members and member organizations 
will be required to provide SIPC disclosures to all new customers upon 
opening an account and to existing customers on an annual basis.
    The Exchange proposes to correspondingly delete Rule 409A--NYSE 
Amex Equities and to adopt new Rule 2266--NYSE Amex Equities in the 
form proposed by the NYSE, subject to adding ``-NYSE Amex Equities'' to 
the title of the Rule.
2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with Section 6(b) of the Act,\14\ in general, and further the 
objectives of Section 6(b)(5) of the Act,\15\ 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. The proposed rule changes also support the principles 
of Section 11A(a)(1) \16\ of the Act in that they seek to ensure the 
economically efficient execution of securities transactions and fair 
competition among brokers and dealers and among exchange markets.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
    \16\ 15 U.S.C. 78k-1(a)(1).
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    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

[[Page 41780]]

FINRA Rules of similar purpose, resulting in less burdensome and more 
efficient regulatory compliance for their common members and member 
organizations. To the extent the Exchange has proposed changes that 
differ from the NYSE version of these 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 \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 and Rule 19b-
4(f)(6)(iii) thereunder.\19\
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    \17\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \18\ 17 CFR 240.19b-4(f)(6).
    \19\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied the requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \20\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\21\ 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 believes 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest. Acceleration of the operative date 
will allow the immediate change of the NYSE Amex's rule to make it 
consistent with the FINRA rule, thereby making compliance for dual 
members less burdensome. For these reasons, the Commission designates 
the proposal to be effective and operative upon filing.\22\
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    \20\ 17 CFR 240.19b-4(f)(6).
    \21\ 17 CFR 240.19b-4(f)(6)(iii).
    \22\ For purposes only of waiving the 30-day operative delay of 
the proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition and capital formation. 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-NYSEAMEX-2009-52 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-2009-52. 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 change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Room, 100 F Street, 
NE., Washington, DC 20549, on official business days between the hours 
of 10 a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of NYSE.
    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-
52 and should be submitted on or before September 8, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19731 Filed 8-17-09; 8:45 am]
BILLING CODE 8010-01-P