[Federal Register Volume 76, Number 63 (Friday, April 1, 2011)]
[Notices]
[Pages 18283-18285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7651]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64130; File No. SR-NYSEAmex-2011-17]


Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Deleting Rule 346--
NYSE Amex Equities and Adopting New Rule 3270--NYSE Amex Equities To 
Correspond With Rule Changes Filed by the Financial Industry Regulatory 
Authority, Inc.

March 28, 2011.
    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 March 14, 2011, NYSE Amex LLC (the ``SRO'' 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 substantially prepared by the SRO. 
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 SRO proposes to delete Rule 346--NYSE Amex Equities and adopt 
new Rule 3270--NYSE Amex Equities to correspond with rule changes filed 
by the Financial Industry Regulatory Authority, Inc. (``FINRA'') and 
approved by the Securities and Exchange

[[Page 18284]]

Commission (the ``Commission'').\4\ The text of the proposed rule 
change is available at the NYSE Amex, at the Commission's Public 
Reference Room, and on NYSE Amex's Web site at http://www.nyse.com.
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    \4\ See Securities Exchange Act Release No. 62762 (August 23, 
2010), 75 FR 53362 (August 31, 2010) (approval order).
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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, NYSE Amex 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 SRO 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 change, to delete Rule 346--NYSE 
Amex Equities (Limitations--Employment and Association with Members and 
Member Organizations) and adopt new Rule 3270--NYSE Amex Equities 
(Outside Business Activities of Registered Persons), is to correspond 
with rule changes filed by FINRA and approved by the Commission.
Background
    On July 30, 2007, FINRA's predecessors, the National Association of 
Securities Dealers, Inc. (``NASD'') and NYSE Regulation, Inc. 
(``NYSER''), consolidated their member firm regulation operations into 
a combined organization, FINRA. Pursuant to Rule 17d-2 under the 
Securities Exchange Act of 1934, as amended (the ``Act''), the New York 
Stock Exchange LLC (``NYSE''), NYSER and FINRA entered into an 
agreement (the ``Agreement'') to reduce regulatory duplication for 
their members by allocating to FINRA certain regulatory 
responsibilities for certain NYSE rules and rule interpretations 
(``FINRA Incorporated NYSE Rules''). The SRO became a party to the 
Agreement effective December 15, 2008.\5\
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    \5\ See Securities Exchange Act Release Nos. 56148 (July 26, 
2007), 72 FR 42146 (August 1, 2007) (order approving the Agreement); 
56147 (July 26, 2007), 72 FR 42166 (August 1, 2007) (SR-NASD-2007-
054) (order approving the incorporation of certain NYSE Rules as 
``Common Rules''); and 60409 (July 30, 2009), 74 FR 39353 (August 6, 
2009) (order approving the amended and restated Agreement, adding 
NYSE Amex LLC as a party). Paragraph 2(b) of the Agreement sets 
forth procedures regarding proposed changes by FINRA, NYSE or NYSE 
Amex to the substance of any of the Common Rules.
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    As part of its effort to reduce regulatory duplication and relieve 
firms that are members of FINRA, NYSE and NYSE Amex of conflicting or 
unnecessary regulatory burdens, FINRA is now engaged in the process of 
reviewing and amending the NASD and FINRA Incorporated NYSE Rules in 
order to create a consolidated FINRA rulebook.\6\
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    \6\ FINRA's rulebook currently has three sets of rules: (1) NASD 
Rules, (2) FINRA Incorporated NYSE Rules, and (3) consolidated FINRA 
Rules. The FINRA Incorporated NYSE Rules apply only to those members 
of FINRA that are also members of the NYSE (``Dual Members''), while 
the consolidated FINRA Rules apply to all FINRA members. For more 
information about the FINRA rulebook consolidation process, see 
FINRA Information Notice, March 12, 2008.
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Proposed Conforming Amendments to NYSE Amex Equities Rules
    FINRA adopted NASD Rule 3030 (Outside Business Activities of an 
Associated Person), which prohibits any registered person from being 
employed by or accepting any compensation from any person as a result 
of any outside business activity, other than passive investments, 
unless he has provided prompt written notice to his member firm, as 
consolidated FINRA Rule 3270 requires, subject to certain 
modifications. FINRA also deleted Incorporated NYSE Rule 346 as it is 
substantially similar to consolidated FINRA Rule 3270.\7\
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    \7\ See fn. 4.
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    To harmonize the NYSE Amex Equities Rules with the approved 
consolidated FINRA Rules, the SRO correspondingly proposes to delete 
Rule 346--NYSE Amex Equities and replace it with proposed Rule 3270--
NYSE Amex Equities, which is substantially similar to the new FINRA 
Rule.\8\ As proposed, Rule 3270--NYSE Amex Equities adopts the same 
language as FINRA Rule 3270, except for substituting for or adding to, 
as needed, the term ``member organization'' for the term ``member,'' 
and making corresponding technical changes.
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    \8\ The NYSE has submitted a companion rule filing amending its 
rules in accordance with FINRA's rule changes. See SR-NYSE-2011-12.
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2. Statutory Basis
    The SRO believes that the proposed rule changes are consistent with 
the provisions of Section 6(b) of the Act,\9\ in general, and further 
the objectives of Section 6(b)(5) of the Act,\10\ 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.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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    The SRO believes that the proposed rule changes support the 
objectives of the Act by providing greater harmonization between NYSE 
Amex Equities Rules and FINRA Rules (including Common Rules) of similar 
purpose, resulting in less burdensome and more efficient regulatory 
compliance for Dual Members. To the extent the SRO has proposed changes 
that differ from the FINRA version of the 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 SRO 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, as amended.

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 by the SRO with 
respect to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The SRO 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) \13\ normally 
does not

[[Page 18285]]

become operative prior to 30 days after the date of the filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The SRO has asked the 
Commission to waive the 30-day operative delay so that the proposal may 
become operative immediately upon filing.
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    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
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    The SRO believes that this filing is non-controversial because it 
raises no novel issues and is consistent with the FINRA rule filing 
previously approved by the Commission on which it is based.\15\ In 
particular, the purpose of the proposed rule changes is to conform the 
NYSE Amex Equities Rules to FINRA's adoption of consolidated FINRA Rule 
3270 in furtherance of the consolidation of the member firm regulation 
functions of NYSER and FINRA. Except as specifically noted, and subject 
to such technical changes as are necessary to apply the Rule to the 
SRO, NYSE Amex proposes to adopt the rule changes in the form that they 
were approved by the Commission for FINRA. Accordingly, the SRO 
believes that these rule changes are eligible for immediately effective 
treatment under the Commission's current procedures for processing rule 
filings.\16\ The SRO requested an accelerated operative date for the 
proposed rule changes in order to avoid regulatory gaps between the 
FINRA and NYSE Amex Equity Rules and to further ensure that, as 
applicable, the NYSE Amex Equity Rules maintain their status as Common 
Rules under the Agreement.\17\ The Commission believes it is consistent 
with the protection of investors and the public interest to waive the 
30-day operative delay for this reason, and hereby grants such a 
waiver.\18\
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    \15\ See fn. 4.
    \16\ See Securities Exchange Act Release No. 58092 (July 3, 
2008), 73 FR 40143 (July 11, 2008) (concerning 17 CFR 200 and 241).
    \17\ As provided in paragraph 2(b) of the Agreement, FINRA and 
NYSE will amend the list of Common Rules to conform to the rule 
changes proposed herein. See fn. 5.
    \18\ For purposes of waiving the 30-day operative delay, the 
Commission has considered the proposed rule change'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 such proposed rule 
change, the Commission summarily may temporarily suspend 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

    <bullet> Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an e-mail to <a href="/cdn-cgi/l/email-protection#abd9dec7ce86c8c4c6c6cec5dfd8ebd8cec885ccc4dd"><span class="__cf_email__" data-cfemail="5a282f363f77393537373f342e291a293f39743d352c">[email protected]</span></a>. Please include 
File Number SR-NYSEAmex-2011-17 on the subject line.

Paper Comments

    <bullet> 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-2011-17. 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 Section, 100 
F Street, NE., Washington, DC 20549-1090. Copies of the filing will 
also be available for inspection and copying at the NYSE's principal 
office and on its Internet Web site at http://www.nyse.com. 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-2011-17 and should 
be submitted on or before April 22, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-7651 Filed 3-31-11; 8:45 am]
BILLING CODE 8011-01-P


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