75524 Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). 

6See Securities Exchange Act Release Nos. 56148 

(July 26, 2007); 72 FR 42146 (Aug. 1, 2007) (order 

approving the Agreement), 56147 (July 26, 2007); 72 

FR 42166 (Aug. 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 (Aug. 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. 

Comments may be submitted by any 

of the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/other.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number S7–06–09 on the subject line; 

or 

• Use the Federal eRulemaking Portal 

(http://www.regulations.gov/). Follow 

the instructions for submitting 

comments. 

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 S7–06–09. This file number 

should be included on the subject line 

if e-mail is used. To help us process and 

review your comments more efficiently, 

please use only one method. We will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/other.shtml). Comments are also 

available for Web site viewing and 

printing 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. All comments received 

will be posted without change; we do 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. 

III. Conclusion 

It is hereby ordered, pursuant to 

Section 36(a) of the Exchange Act, that, 

until July 16, 2011, the following 

exemptions connected with CDS 

clearing by CME contained in the March 

2010 CME Exemptive Order are 

extended: (i) The temporary conditional 

exemption granted to CME from clearing 

agency registration under Section 17A 

of the Exchange Act solely to perform 

the functions of a clearing agency for 

certain non-excluded CDS; (ii) the 

temporary conditional exemption of 

CME and certain of its clearing members 

from the registration requirements of 

Sections 5 and 6 of the Exchange Act 

solely in connection with the 

calculation of mark-to-market prices for 

certain non-excluded CDS cleared by 

CME; (iii) the temporary conditional 

exemption of CME and certain eligible 

contract participants from certain 

Exchange Act requirements with respect 

to certain non-excluded CDS cleared by 

CME; (iv) the temporary conditional 

exemption of certain CME clearing 

members that receive customer 

collateral in connection with certain 

non-excluded CDS cleared by CME from 

certain Exchange Act requirements; and 

(v) the temporary conditional exemption 

from certain Exchange Act requirements 

granted to registered broker-dealers with 

respect to certain non-excluded CDS. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–30374 Filed 12–2–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63381; File No. SR– 

NYSEAMEX–2010–106] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending NYSE Amex 

Equities Rule 5190 To Correspond 

With Rule Changes Filed by the 

Financial Industry Regulatory 

Authority, Inc. 

November 29, 2010. 

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 November 

19, 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 NYSE Amex. The 

Exchange has designated the proposed 

rule change as constituting a ‘‘noncontroversial’’ rule change under 

Section 19(b)(3)(A) of the Act,4 and Rule 

19b–4(f)(6) thereunder,5 which renders 

the proposal effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

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 5190 to 

correspond with rule changes filed by 

the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) and approved 

by the Commission. 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, 

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 

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 

The purpose of the proposed rule 

changes is to amend NYSE Amex 

Equities Rule 5190 (Notification 

Requirements for Offering Participants) 

to correspond with rule changes filed by 

FINRA and approved by the 

Commission. 

Background: 

On July 30, 2007, FINRA’s 

predecessor, 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’’), 

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’’). 

NYSE Amex LLC (‘‘NYSE Amex’’) 

became a party to the Agreement 

effective December 15, 2008.6

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 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Notices 75525 

7FINRA’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. 

8See Securities Exchange Act Release No. 62970 

(Sept. 22, 2010); 75 FR 59771 (Sept. 28, 2010) (SR– 

FINRA–2010–37). 

9See Securities Exchange Act Release No. 59975 

(May 26, 2009); 74 FR 26449 (June 2, 2009) (SR– 

NYSEALTR–2009–26). 

10NYSE has submitted a companion rule filing 

amending its rules in accordance with FINRA’s rule 

changes. See SR–NYSE–2010–73. 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

13 15 U.S.C. 78s(b)(3)(A)(iii). 

14 17 CFR 240.19b–4(f)(6). 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6)(iii). 

17For 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). 

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.7

Proposed Conforming Amendments to 

NYSE Amex Equities Rules: 

FINRA recently amended FINRA Rule 

5190 to amend the notice requirements 

applicable to distributions of securities 

that are considered ‘‘actively traded’’ 

and thus are not subject to a restricted 

period under Rule 101 of Regulation M.8

As approved, the substance of the 

information that must be provided in 

the notice did not change, only the 

timing of the notice. 

The Exchange previously adopted 

NYSE Amex Equities Rule 5190 to 

harmonize the notification requirements 

for offering participants with FINRA 

Rule 5190.9 In order to harmonize the 

NYSE Amex Equities Rules with the 

approved FINRA Rules, the Exchange 

proposes to amend NYSE Amex Equities 

Rule 5190 to conform to the recently 

approved amendments to FINRA Rule 

5190.10 Accordingly, the Exchange 

similarly proposes to amend NYSE 

Amex Equities Rule 5190(d) to provide 

that member organizations will be 

required to provide a single notice 

under subparagraphs (1) and (2) of Rule 

5190(d). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with Section 6(b) of the Act,11 in 

general, and further the objectives of 

Section 6(b)(5) of the Act,12 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 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 

FINRA Rules (including Common Rules) 

of similar purpose, resulting in less 

burdensome and more efficient 

regulatory compliance for Dual 

Members. To the extent the Exchange 

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 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 13 and Rule 

19b–4(f)(6) thereunder.14 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. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 15 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),16 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 notes that the proposed 

rule change would bring NYSE Amex 

Equity Rule 5190 into harmony with 

FINRA Rule 5190. For this reason, the 

Commission believes that waiving the 

30-day operative delay 17 is consistent 

with the protection of investors and the 

public interest. Therefore, the 

Commission designates the proposal 

operative upon filing. 

At any time within the 60-day period 

beginning on the date of the filing of the 

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 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an e-mail to rule-comments@

sec.gov. Please include File Number SR– 

NYSEAMEX–2010–106 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–2010–106. 

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 

mstockstill on DSKH9S0YB1PROD with NOTICES

75526 Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Notices 

18 17 CFR 200.30–3(a)(12). 

1 15 U.S.C.78s(b)(1). 

2 17 CFR 240.19b–4. 

3The rules of BATS Options, including rules 

applicable to BATS Options’ participation in the 

Penny Pilot, were approved on January 26, 2010. 

See Securities Exchange Act Release No. 61419 

(January 26, 2010), 75 FR 5157 (February 1, 2010) 

(SR–BATS–2009–031). BATS Options commenced 

operations on February 26, 2010. 

4See Securities Exchange Act Release No. 61097 

(December 2, 2009), 74 FR 64788 (December 8, 

2009) (SR–BATS–2009–031) (Notice of Filing of 

Proposed Rule Change To Establish Rules 

Governing the Trading of Options on the BATS 

Options Exchange). 

5See Securities Exchange Act Release No. 62595 

(July 29, 2010), 75 FR 47043 (August 4, 2010) (SR– 

BATS–2010–019); Securities Exchange Act Release 

No. 62033 (May 4, 2010), 75 FR 26301 (May 11, 

2010) (SR–BATS–2010–009). 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

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, 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 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–2010–106 and should be 

submitted on or before December 27, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–30317 Filed 12–2–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63385; File No. SR–BATS– 

2010–035] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Penny 

Pilot Program 

November 29, 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 November 

19, 2010, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange is filing with the 

Commission a proposal for the BATS 

Exchange Options Market (‘‘BATS 

Options’’) to extend the Penny Pilot 

Program (‘‘Penny Pilot’’) in options 

classes in certain issues (‘‘Pilot 

Program’’) previously approved by the 

Commission through December 31, 

2011.3

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.batstrading.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

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 

Exchange 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 these 

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 purpose of this filing is to extend 

the Penny Pilot Program (‘‘Penny Pilot’’) 

in options classes in certain issues 

(‘‘Pilot Program’’) previously approved 

by the Commission through December 

31, 2011, and to provide revised dates 

for adding replacement issues to the 

Pilot Program. The Exchange proposes 

that the semi-annual dates to replace 

issues that have been delisted be revised 

to the second trading day following 

January 1, 2011 and July 1, 2011. The 

Exchange also wishes to clarify that the 

replacement issues will be selected 

based on trading activity for the six 

month period beginning June 1, 2010 

and ending November 30, 2010 for the 

January 2011 replacement and the six 

month period beginning December 1, 

2010 and May 31, 2011 for the July 2011 

replacement. 

In the Exchange’s filing to propose the 

rules to govern BATS Options,4 the 

Exchange proposed commencing 

operations for BATS Options by trading 

all options classes that were, as of such 

date, traded by other options exchanges 

pursuant to the Penny Pilot and then 

expanding the Penny Pilot on a 

quarterly basis, 75 classes at a time, 

through August 2010. Consistent with 

this proposal, since it commenced 

operations the Exchange has twice 

expanded the options classes subject to 

the Penny Pilot.5 The Exchange 

represents that the Exchange has the 

necessary system capacity to continue to 

support operation of the Penny Pilot. 

The Exchange agrees to provide 

reports that will analyze the impact of 

the Pilot Program on market quality and 

options capacity. These reports will 

include: (1) Data and analysis on the 

number of quotations generated for 

options included in the report; (2) an 

assessment of the quotation spreads for 

the options included in the report; (3) 

an assessment of the impact of the Pilot 

Program on the capacity of the 

Exchange’s automated systems; (4) data 

reflecting the size and depth of markets, 

and (5) any capacity problems or other 

problems that arose related to the 

operation of the Pilot Program and how 

the Exchange addressed them. 

The Exchange believes the benefits to 

public customers and other market 

participants who will be able to express 

their true prices to buy and sell options 

have been demonstrated to outweigh the 

increase in quote traffic. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with the 

requirements of the Act and the rules 

and regulations thereunder that are 

applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6(b) of the Act.6

In particular, the proposal is consistent 

with Section 6(b)(5) of the Act,7 because 

it would promote just and equitable 

principles of trade, remove 

impediments to, and perfect the 

mechanism of, a free and open market 

mstockstill on DSKH9S0YB1PROD with NOTICES