[Federal Register Volume 74, Number 200 (Monday, October 19, 2009)]
[Notices]
[Pages 53537-53539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-25112]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60811; File No. SR-NYSEAmex-2009-68]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE
Amex Equities Rule 14 To Be Consistent With the New System Capability
To Receive Orders for Execution on the Exchange Containing Settlement
Instructions of ``Cash,'' ``Next Day'' and ``Seller's Option'' Directly
to a Floor Broker's Hand-Held Device
October 9, 2009.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on October 1, 2009, NYSE Amex LLC (``Exchange'' or ``NYSE Amex'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and
[[Page 53538]]
III 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 proposes to amend NYSE Amex Equities Rule 14 (``Non-
Regular Way Settlement Instructions for Orders'') to be consistent with
the new system capability to receive orders for execution on the
Exchange containing settlement instructions of ``cash,'' ``next day''
and ``seller's option'' directly to a Floor broker's hand-held device.
The text of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, and www.nyse.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend NYSE Amex Equities Rule 14 (``Non-
Regular Way Settlement Instructions for Orders'') to be consistent with
its new system capability to receive orders containing settlement
instructions of ``cash,'' ``next day'' and ``seller's option''
(collectively referred to herein as ``non-regular way settlement'' \4\)
directly to a Floor broker's hand-held device.\5\
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\4\ Orders indicating cash settlement instructions require
delivery of the securities on the same day as the trade date. Next
day settlement instructions require delivery of the securities on
the first business day following the trade date. Orders that have
settlement instructions of seller's option afford the seller the
right to deliver the security or bond at any time within a specified
period, ranging from not less than two business days to not more
than sixty days for securities and not less than two business days
and no more than sixty days for U.S. government securities.
Odd-lot orders containing non-regular way settlement
instructions are not permitted.
\5\ The Exchange notes that parallel changes are proposed to be
made to the rules of New York Stock Exchange LLC. See SR-NYSE-2009-
102.
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Currently, Designated Market Maker units do not have order handling
responsibility for orders containing non-regular way settlement
instructions. Moreover, Exchange systems that route orders to the
Display Book do not accept orders containing non-regular way
instructions. Routing orders directly to a Floor broker booth location
via the Broker Booth Support System (``BBSS'') for representation on
the Floor is the only acceptable way for orders with non-regular way
settlement instructions to be transmitted to the Exchange.
Pursuant to NYSE Amex Equities Rule 14 customers that seek to
execute orders containing non-regular way settlement instructions must
directly transmit those orders via BBSS directly to a Floor broker for
representation in the trading crowd because at the time the Exchange
established this capability, BBSS was the only Exchange system capable
of accepting such orders. As a result customers are currently
prohibited from transmitting orders containing non-regular settlement
instructions directly to a Floor broker's hand-held device.
The Exchange has currently enhanced its systems to enable hand-held
devices to receive and process orders containing non-regular way
settlement instructions.\6\ As such, through this filing the Exchange
seeks to provide its customers that seek to execute orders containing
non-regular way settlement instructions with an additional systemic
option for transmitting such orders to a Floor broker for
representation on the Floor. The Exchange therefore proposes to amend
NYSE Amex Equities Rule 14(a)(ii) to remove the words ``booth system''
and permit customers to transmit orders containing non-regular way
settlement instructions to a Floor broker via either BBSS or a Floor
broker's hand-held device.
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\6\ Orders sent directly to the hand-held device, including
those containing non-regular way settlement instructions, are
systemically transmitted to the ``Front End Systemic Capture''
(``FESC'') consistent with the requirements of NYSE Amex Equities
Rule 123, which requires floor brokers to enter the details of an
order, including any modification or cancellation, into a system
which electronically timestamps the time of entry prior to
representing or executing that order on the Floor.
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The Exchange believes that the instant proposal better facilitates
the needs of its customers to submit orders containing instructions for
non-regular way settlement and maintains effective representation of
such customer orders in the Exchange's current market.
The Exchange will commence installation of the new technology in
Floor broker hand-held devices on or about October 5, 2009, with
expected completion no later than October 30, 2009.
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Act'')
[sic] for this proposed rule change is the requirement under Section
6(b)(5) \7\ 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 instant filing accomplishes these goals by providing its customers
with an additional method to enter orders containing non-regular way
settlement instructions, without changing the ability of such orders to
be represented at the point of sale in the Exchange's auction market.
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\7\ 15 U.S.C. 78f(b)(5).
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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 proposed rule change is filed pursuant to paragraph (A) of
Section 19(b)(3) \8\ and Rule 19b-4(f)(5).\9\ This proposed rule change
effects a change in an existing order entry or trading system of a
self-regulatory organization that: (A) Does not significantly affect
the
[[Page 53539]]
protection of investors or the public interest; (B) does not impose any
significant burden on competition, and (C) does not have the effect of
limiting the access to or availability of the system. The Exchange
believes that the instant proposal is consistent with these provisions
in that the enhancements to Exchange systems allow Floor broker hand-
held devices to receive and process orders containing non-regular way
instruction and do not change the operation of the rule in any other
way.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(5).
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At any time within 60 days of the filing of such 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-2009-68 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-2009-68. 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 such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make publicly available. All
submissions should refer to File Number SR-NYSEAmex-2009-68 and should
be submitted on or before November 9, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25112 Filed 10-16-09; 8:45 am]
BILLING CODE 8011-01-P