Federal Register / Vol. 75, No. 244 / Tuesday, December 21, 2010 / Notices 80087 

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

2 17 CFR 240.19b–4. 

3A MOC order is a market order in a security that, 

by its terms, is to be executed in its entirety at the 

closing price. If not executed due to tick restrictions 

or a trading halt, the order will be cancelled. See 

Rule 13—NYSE Amex Equities (Definitions of 

Orders). 

4A LOC order is a limit order in a security that 

is entered for execution at the closing price of the 

security on the Exchange provided that the closing 

price is at or within the specified limit. If not 

executed due to a trading halt or because, by its 

terms it is not marketable at the closing price, the 

order will be cancelled. See Rule 13—NYSE Amex 

Equities (Definitions of Orders). 

5See Information Memos 09–12 and 10–11, 

respectively. 

6See email from Clare F. Saperstein, Vice 

President, Regulatory Policy and Management, 

NYSE Regulation, Inc., to Nathan Saunders, Special 

Counsel, Division of Trading and Markets, 

Commission, dated December 10, 2010 (amending 

the proposed rule change by replacing the reference 

to ‘‘Rule 123C(2) and (3)’’ with ‘‘Rule 123C(2)(b)(ii) 

and 123C(2)(c)(iii)’’). 

7See id. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63537; File No. SR– 

NYSEAmex–2010–110] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Rule 123C— 

NYSE Amex Equities To Clarify That 

Exchange Systems Enforce Rule 123C 

With Respect to Market At-The-Close 

and Limit At-The-Close Order Entry 

After 3:45 p.m. 

December 14, 2010. 

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 

6, 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 self-regulatory 

organization. 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 

Rule 123C—NYSE Amex Equities to 

clarify that Exchange systems enforce 

Rule 123C with respect to Market AtThe-Close (‘‘MOC’’) and Limit At-TheClose (‘‘LOC’’) order entry after 3:45 p.m. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to amend Rule 123C—NYSE 

Amex Equities to clarify that Exchange 

systems enforce Rule 123C with respect 

to MOC 3 and LOC4 order entry after 

3:45 p.m. 

Rule 123C governs certain closing 

procedures on the Exchange, including 

MOC, LOC and CO order entry, 

cancellation of such orders and the 

calculation and publication of 

imbalances. In particular, Rule 

123C(2)(b) currently provides that MOC/ 

LOC interest may be entered after 3:45 

p.m. only to offset a Mandatory MOC/ 

LOC Imbalance Publication. The rule 

therefore suggests that members or 

member organizations entering MOC or 

LOC orders are actively responsible for 

compliance therewith (e.g., ‘‘orders may 

be entered’’). However, Exchange 

systems enforce compliance with this 

rule pursuant to system functionality 

that allows only the entry of offsetting 

MOC/LOC interest after 3:45 p.m. and 

blocks the entry of all MOC/LOC orders 

that would join the same side of a 

published MOC/LOC imbalance and the 

entry of MOC/LOC orders after 3:45 

p.m. for securities for which there has 

not been a Mandatory MOC/LOC 

Imbalance Publication.5 Exchange 

systems also enforce compliance with 

this rule pursuant to system 

functionality that allows or blocks, 

depending upon the circumstances, 

MOC/LOC order entry in the event of a 

Trading Halt. 

The Exchange proposes to amend 

Rule 123C(2) and (3) generally to clarify 

that Exchange systems enforce 

compliance with the rules, and therefore 

clarify that members and member 

organizations are not responsible for 

ensuring compliance with this aspect of 

the rule. 

The Exchange proposes additional 

clean-up amendments to Rule 123C. 

Specifically, the Exchange proposes to 

delete certain text in Rule 

123C(2)(b)(ii) 6 and 123C(2)(c)(iii) 7

pertaining to a ‘‘no imbalance’’ 

notification after dissemination of an 

Informational Imbalance as well as the 

text of current Rule 123C(2)(b)(iii), 

because these provisions are no longer 

necessary due to the system-enforced 

compliance with MOC/LOC order entry. 

In addition, the Exchange proposes to 

amend Rule 123C(3)(c) to clarify that 

Exchange systems will reject 

cancellations of MOC, LOC and CO 

orders after 3:58 p.m. and to add a 

reference to Rule 123C(9), which 

pertains to alternative procedures in the 

case of extreme order imbalances at the 

close. 

Because the Exchange previously 

disclosed this system functionality to 

member organizations, the Exchange 

believes that this rule proposal would 

not require technical programming and/ 

or modification by members or member 

organizations. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,9

in particular, in that it is 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. Specifically, the changes 

proposed herein would reflect that 

Exchange systems enforce compliance 

with Rule 123C(2) and (3) and therefore 

clarify that Exchange members and 

member organizations are not 

responsible for ensuring such 

compliance. 

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. 


srobinson on DSKHWCL6B1PROD with NOTICES
80088 Federal Register / Vol. 75, No. 244 / Tuesday, December 21, 2010 / Notices 

10 15 U.S.C. 78s(b)(3)(A)(i). 

11 17 CFR 240.19b–4(f)(1). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 59281 

(January 22, 2009), 74 FR 5014 (January 28, 2009) 

(order approving SR–NYSE–2008–120) (‘‘Approval 

Order’’). 

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 foregoing proposed rule change 

will take effect upon filing with the 

Commission pursuant to Section 

19(b)(3)(A)(i) of the Act 10 and Rule 19b– 

4(f)(1) thereunder,11 because it 

constitutes a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule. 

Specifically, the change proposed 

herein would reflect that Exchange 

systems enforce compliance with Rule 

123C(2) and (3) and therefore clarify 

that Exchange members and member 

organizations are not responsible for 

ensuring such compliance. 

At any time within 60 days 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 rulecomments@sec.gov. Please include File 

Number SR–NYSEAmex–2010–110 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–2010–110. 

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, 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 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–2010–110 and should be 

submitted on or before January 11, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31926 Filed 12–20–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63545; File No. SR–NYSE– 

2010–82] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Extend for 

12 Months the Pilot Program 

Permitting the Exchange’s Ownership 

Interest in BIDS Holdings L.P. (BIDS) 

and the Affiliation of BIDS With the 

New York Block Exchange LLC 

December 14, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’)F 1F and Rule 19b–4 thereunder,2

notice is hereby given that, on December 

9, 2010, the 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 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to extend for 

an additional 12 months the January 22, 

2011 expiration date of the pilot 

program that provides an exception to 

NYSE Rule 2B by permitting the 

Exchange’s equity ownership interest in 

BIDS Holdings L.P. (‘‘BIDS’’), which is 

the parent company of a member of the 

Exchange, and BIDS’s affiliation with 

the New York Block Exchange LLC, an 

affiliate of the Exchange. There is no 

proposed rule text. 

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 

On January 22, 2009, the Commission 

approved the governance structure 

proposed by the Exchange with respect 

to the New York Block Exchange 

(‘‘NYBX’’), a new electronic trading 

facility of the Exchange for NYSE-listed 

securities that was established by means 

of a joint venture between the Exchange 

and BIDS.3 The governance structure 

that was approved is reflected in the 

Limited Liability Company Agreement 

of New York Block Exchange LLC (the 

‘‘Company’’), the entity that owns and 

operates NYBX. Under the governance 

structure approved by the Commission, 

the Exchange and BIDS each own a 50% 

economic interest in the Company. In 


srobinson on DSKHWCL6B1PROD with NOTICES