[Federal Register Volume 75, Number 5 (Friday, January 8, 2010)]
[Notices]
[Pages 1104-1105]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-76]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61268; File No. SR-NYSE-2009-128]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Extending the Pilot Period To Receive Inbound Routes of Certain 
Equities Orders From Archipelago Securities LLC

December 31, 2009.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on December 22, 2009, New York Stock Exchange LLC (``NYSE'' or 
the ``Exchange'') 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\ 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 extend the pilot period of the Exchange's 
prior approvals to receive inbound routes of certain equities orders 
from Archipelago Securities LLC (``Arca Securities''), an NYSE 
affiliated member. 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 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
    Currently, Arca Securities is the approved outbound order routing 
facility of the Exchange.\3\ Arca Securities is also the approved 
outbound order routing facility of NYSE Arca and NYSE Amex LLC (``NYSE 
Amex'').\4\ The Exchange has also been previously approved to receive 
inbound routes of equities orders by Arca Securities in its capacity as 
an order routing facility of NYSE Arca and NYSE Amex.\5\ The Exchange's 
authority to receive inbound routes of equities orders by Arca 
Securities is subject to a pilot period ending December 31, 2009.\6\ 
The Exchange hereby seeks to extend the previously approved pilot 
period (with the attendant obligations and conditions) for an 
additional 3 months, through March 31, 2010.
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    \3\ See Securities Exchange Act Release No. 55590 (April 5, 
2007), 72 FR 18707 (April 13, 2007) (notice of immediate 
effectiveness of SR-NYSE-2007-29); see also, Securities and [sic] 
Exchange Act Release No. 58680 (September 29, 2008), 73 FR 58283 
(October 6, 2008) (order approving SR-NYSE-2008-76).
    \4\ See Securities Exchange Act Release No. 53238 (July 28, 
2006), 71 FR 44758 (August 7, 2006) (order approving SR-NYSEArca-
2006-13); see also, Securities Exchange Act Release No. 52497 
(September 22, 2005), 70 FR 56949 (September 29, 2005) (SR-PCX-2005-
90); see also, Securities Exchange Act Release No. 44983 (October 
25, 2001), 66 FR 55225 (November 1, 2001) (SR-PCX-00-25); see also, 
Securities Exchange Act Release No. 58681 (September 29, 2008), 73 
FR 58285 (October 6, 2008) (order approving NYSEArca-2008-90). See 
Securities Exchange Act Release No. 59009 (November 24, 2008), 73 FR 
73363 (December 2, 2008) (order approving SR-NYSEALTR-2008-07); see 
also, Securities and [sic] Exchange Act Release No. 59473 (February 
27, 2009), 74 FR 9853 (March 6, 2009) (order approving SR-NYSEALTR-
2009-18).
    \5\ See Securities and [sic] Exchange Act Release No. 58680 
(September 29, 2008), 73 FR 58283 (October 6, 2008) (order approving 
SR-NYSE-2008-76); see Securities Exchange Act Release No. 59011 
(November 24, 2008) 73 FR 73360 (December 2, 2008) (order approving 
SR-NYSE-2008-122); see also Securities and [sic] Exchange Act 
Release No. 60255 (July 7, 2009) 74 FR 34065 (July 14, 2009) (order 
approving SR-NYSE-2009-58).
    \6\ See Securities Exchange Act Release No. 60752 (September 30, 
2009), 74 FR 51641 (October 7, 2009) (notice of immediate 
effectiveness of SR-NYSE-2009-101).
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \7\ of the 
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers 
the

[[Page 1105]]

objectives of Section 6(b)(5) \8\ in particular in that it is 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 facilitating transactions in 
securities, and to remove impediments to and perfect the mechanism of a 
free and open market and a national market system. Specifically, the 
proposed rule change will allow the Exchange to continue receiving 
inbound routes of equities orders from Arca Securities acting in its 
capacity as a facility of the NYSE Arca and NYSE Amex, in a manner 
consistent with prior approvals and established protections. The 
Exchange believes that extending the previously approved pilot period 
for three months will permit both the Exchange and the Commission to 
further assess the impact of the Exchange's authority to receive direct 
inbound routes of equities orders via Arca Securities (including the 
attendant obligations and conditions).\9\
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ The Exchange is currently analyzing the condition regarding 
non-public information and system changes in order to better reflect 
the operation of Arca Securities.
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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

    Because the foregoing rule change does not: (1) Significantly 
affect the protection of investors or the public interest; (2) impose 
any significant burden on competition; and (3) become operative for 30 
days after the date of this filing, or such shorter time as the 
Commission may designate, it has become effective pursuant to Section 
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing.\12\ 
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay. The Exchange notes that 
the proposal will allow the Exchange to continue receiving inbound 
routes of equities orders from Arca Securities, in a manner consistent 
with prior approvals and established protections, while also permitting 
the Exchange and the Commission to assess the impact of the pilot.\14\ 
The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because such waiver would allow the pilot period to be extended without 
interruption through March 31, 2010. For this reason, the Commission 
designates the proposed rule change to be operative upon filing with 
the Commission.\15\
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    \12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to 
the Commission written notice of its 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.
    \13\ Id.
    \14\ See supra note 9 and accompanying text.
    \15\ For the purposes only of waiving the 30-day operative 
delay, the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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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-NYSE-2009-128 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-NYSE-2009-128. 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 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 
available publicly. All submissions should refer to File Number SR-
NYSE-2009-128 and should be submitted on or before January 29, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-76 Filed 1-7-10; 8:45 am]
BILLING CODE 8011-01-P