[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Notices]
[Pages 10535-10537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4785]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61614; File No. SR-NYSEAmex-2010-17]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC as Modified by 
Amendment No. 1 Thereto Clarifying the Implementation Date of the 
Amendments to NYSE Amex Equities Rule 123C To Modify the Procedures for 
Its Closing Process and Make Conforming Changes to NYSE Amex Equities 
Rules 13 and 15

March 1, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on February 25, 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. On March 1, 
2010, the Exchange filed Amendment No. 1 to the proposed rule change. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended, 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 clarify the implementation date of the 
amendments to NYSE Amex Equities Rule 123C (Market On The Close Policy 
And Expiration Procedures) to modify the procedures for its closing 
process; and make conforming changes to NYSE Amex Equities Rules 13 
(``Definitions of Orders'') and 15 (``Pre-Opening Indications''). The 
text of the proposed rule change is available at the Exchange, the 
Commission's Public Reference Room, and http://www.nyse.com.

[[Page 10536]]

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    NYSE Amex LLC (``NYSE Amex'' or the ``Exchange'') submits this 
filing to clarify the implementation date of amendments to NYSE Amex 
Equities Rule 123C (Market On The Close Policy And Expiration 
Procedures) to modify the procedures for its closing process; and make 
conforming changes to NYSE Amex Equities Rules 13 (``Definitions of 
Orders'') and 15 (``Pre-Opening Indications'') approved by the 
Securities and Exchange Commission on December 23, 2009 (``Close \3\ 
Modifications'').\4\
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    \3\ Included in these amendments were conforming changes related 
to the information disseminated prior to the opening transaction are 
also proposed in this filing.
    \4\ See Securities Exchange Release No. 61244 (December 28, 
2009), 75 FR 479 (January 5, 2010) (SR-NYSEAmex-2009-81).
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    The Exchange notes that similar changes are proposed to the rules 
of its affiliate, New York Stock Exchange LLC (``NYSE'').\5\
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    \5\ See SR-NYSE-2010-12.
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Background
    In 2009, NYSE Amex implemented changes designed to streamline and 
improve the efficiency of its closing process, which included 
establishing a single print for the closing transactions, activating 
systemic compliance filters for market at-the-close (``MOC'') and limit 
at-the-close (``LOC'') orders and enhancing the transparency of its 
informational data feed for imbalances by including d-Quotes \6\ and 
all other e-Quotes \7\ containing pegging instructions eligible to 
participate in the closing transaction in the NYSE Amex Order Imbalance 
Information datafeed.\8\
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    \6\ See definition of d-Quotes NYSE Amex Equities Rule 70, 
Supplementary Material .25.
    \7\ See definition of e-Quotes NYSE Amex Equities Rule 70(a).
    \8\ See Securities Exchange Release No. 59360 (February 4, 
2009), 74 FR 6936 (February 11, 2009) (SR-NYSEALTR-2009-06) 
(Establishing a single print for the closing transaction). See also, 
Securities Exchange Release No. 60151 (June 19, 2009), 74 FR 30653 
(June 29,2009) (SR-NYSEAmex-2009-29) (Inclusion of d-Quotes and all 
other e-Quotes containing pegging instructions eligible to 
participate in the closing transaction NYSE Amex Order Imbalance 
Information datafeed).
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    In addition, on December 23, 2009, the SEC approved the Exchanges 
filing to implement Close Modifications designed to further streamline 
the closing process, enhance transparency on the close and allow for 
greater customer participation when there is an imbalance in a security 
prior to the closing transaction. Pursuant to the Close Modifications, 
NYSE Amex amended NYSE Amex Equities Rule 123C to: (i) Extend the time 
for the entry of MOC/LOC orders \9\ from 3:40 p.m. to 3:45 p.m.; (ii) 
amend the procedures for the entry of MOC/LOC orders in response to 
imbalance publications and regulatory trading halts; (iii) change to 
the cancellation time for MOC/LOC orders to 3:58 p.m.; (iv) require 
only one mandatory imbalance publication; (v) rescind the provisions 
governing Expiration Friday Auxiliary Procedures for the Opening and 
Due Diligence Requirements; (vi) modify the dissemination of Order 
Imbalance Information pursuant to NYSE Amex Equities Rule 123C(6) to 
commence at 3:45 p.m.; (vii) include additional information in both the 
pre-opening and pre-closing Order Imbalance Information data feeds; 
(viii) amend NYSE Amex Equities Rule 13 to create a conditional-
instruction limit order type called the Closing Offset Order (``CO 
order''), which may only be used to offset an existing imbalance of 
orders on the close; (ix) delete the ``At the Close'' order type from 
NYSE Amex Equities Rule 13 and replace it with the specific definitions 
of MOC/LOC orders; and (x) codify the hierarchy of allocation of 
interest in the closing transaction in NYSE Amex Equities Rule 123(C).
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    \9\ In the NYSE Amex Equities Rules and for the purposes of this 
discussion, the terms ``market-on-close'' and ``limit-on-close'' are 
used interchangeably with ``market-at-the-close'' and ``limit-at-
the-close''.
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Implementation of Closing Modifications
    The Exchange has not made operative the amendments described above. 
Based on feedback from the member firm community, NYSE Amex has delayed 
the implementation of the Closing Modifications to March 1, 2010. The 
Exchange believes that commencing operation of the Closing 
Modifications on March 1, 2010, will provide participants with 
additional time to ensure that member firms community will be 
systemically ready for to comply with the new provisions of the Rule.
    The Exchange anticipates that the Close Modifications will be 
operative in all securities effective March 1, 2010; however, should 
conditions arise to delay the implementation of the Close 
Modifications, the Exchange will provide information to its 
constituents about changes to the start date via its Trader Update 
Notices that are sent via e-mail to subscribers and posted on the 
Exchange's Web site.
Deletion of Erroneously Included Text
    The Exchange further proposes to delete NYSE Amex Equities Rule 
123C(5)(d). Specifically, NYSE Amex Equities Rule 123C(5)(d) is 
duplicative rule text. It addresses the publication of the Order 
Imbalance Information data feed in the event of an early close. NYSE 
Amex Equities Rule 123C(5)(d) is the exact same language as NYSE Amex 
Equities Rule 123C(6)(a)(v) (``Publication of Order Imbalance 
Information Data Feed''). The paragraph was inadvertently copied into 
the wrong section and should therefore be deleted.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \10\ 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 proposal is in keeping 
with these principles in that it provides transparency to market 
participants by explaining the anticipated operation date of the Close 
Modifications and the locations where market participants.
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    \10\ 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.

[[Page 10537]]

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 \11\ and Rule 19b-4(f)(6) thereunder.\12\ 
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.
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    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative prior to 30 days after the date of the filing.\13\ 
However, pursuant to Rule 19b4(f)(6)(iii), the Commission may designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange requested that the 
Commission waive the 30-day operative delay, as specified in Rule 19b-
4(f)(6)(iii),\14\ which would make the rule change operative 
immediately. The Exchange believes that waiver of the operative delay 
is appropriate because the proposed rule change is merely a 
clarification of the operative date of previously approved amendments 
to the Exchange's rules.
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    \13\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the 
Commission 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. NYSE Amex has satisfied this requirement.
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it merely clarifies the operative date of a previously approved 
rule change. Accordingly, the Commission designates the proposed rule 
change, as amended, as operative upon filing with the Commission.\15\
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    \15\ For purposes only of waiving the operative delay for this 
proposal, 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 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.\16\
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    \16\ 15 U.S.C. 78s(b)(3)(C).
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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-2010-17 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-2010-17. 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 Web site 
viewing and printing in the Commission's Public Reference Room, 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-2010-17 and should be submitted on or before 
March 29, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-4785 Filed 3-5-10; 8:45 am]
BILLING CODE 8011-01-P