80556 Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Notices 

29See Rule 980NY(e)(3) and note 13, supra. 

30 15 U.S.C. 78s(b)(2). 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(1). 

5The current FINRA rulebook consists of (1) 

FINRA Rules; (2) NASD Rules; and (3) rules 

incorporated from NYSE (‘‘Incorporated NYSE 

Rules’’) (together, the NASD Rules and Incorporated 

NYSE Rules are referred to as the ‘‘Transitional 

Rulebook’’). While the NASD Rules generally apply 

to all FINRA members, the Incorporated NYSE 

Rules apply only to those members of FINRA that 

are also members of the NYSE (‘‘Dual Members’’). 

The FINRA Rules apply to all FINRA members, 

unless such rules have a more limited application 

by their terms. For more information about the 

rulebook consolidation process, see Information 

Notice, March 12, 2008 (Rulebook Consolidation 

Process). 

6See Securities Exchange Act Release No. 63150 

(October 21, 2010), 75 FR 66173 (October 27, 2010) 

(Order Approving Proposed Rule Change; File No. 

SR–FINRA–2009–058). 

7See Securities Exchange Act Release No. 61819 

(March 31, 2010), 75 FR 17806 (April 7, 2010) 

(Order Approving Proposed Rule Change; File No. 

SR–FINRA–2009–061). 

8 15 U.S.C. 78o–3(b)(6). 

Exchange. The execution sequence for 

Stock/Complex Orders in Rule 980NY, 

Commentary .03(b) for orders submitted 

to the Exchange’s CME is consistent 

with the execution sequence set forth in 

CBOE Rule 6.53C, Commentary .06(c), 

and the requirement in Rule 980NY, 

Commentary .03(d) to trade with 

Customer orders only if there are 

Customer orders at the Exchange’s best 

quote for each of the options legs of a 

Stock/Complex Order is consistent with 

CBOE Rule 6.53C, Commentary .06(f). 

Rule 980NY, Commentary .04 

provides that a pattern or practice of 

submitting unrelated orders that cause a 

COA to conclude early will be deemed 

conduct inconsistent with just and 

equitable principles of trade, as will the 

dissemination to third parties of 

information related to COA-eligible 

orders. These provisions, which are 

comparable to CBOE Rule 6.53C, 

Commentary .05, will require the 

Exchange to surveil for, and should help 

to deter, potential abuses of the COA 

process. Finally, the Commission notes 

that the order exposure obligations in 

Rule 935NY apply to orders submitted 

to a COA, and that these order exposure 

obligations are separate from the 

duration of the Response Time 

Interval.29

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,30 that the 

proposed rule change (File No. SR– 

NYSEAmex–2010–100) is approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32089 Filed 12–21–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63561; File No. SR–FINRA– 

2010–066] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Update a CrossReference in FINRA Rule 2232 

(Customer Confirmations) 

December 16, 2010. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on December 

13, 2010, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) (f/k/a 

National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

‘‘constituting a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule’’ under 

Section 19(b)(3)(A)(i) of the Act 3 and 

Rule 19b–4(f)(1) thereunder,4 which 

renders the proposal effective upon 

receipt of this filing by 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 

FINRA is proposing to update a 

certain cross-reference in FINRA Rule 

2232 (Customer Confirmations) to 

reflect changes adopted in the 

consolidated FINRA rulebook. 

The text of the proposed rule change 

is available on FINRA’s website at 

http://www.finra.org, at the principal 

office of FINRA, on the Commission’s 

Web site at http://www.sec.gov, 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, 

FINRA 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. FINRA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

FINRA is in the process of developing 

a new consolidated rulebook 

(‘‘Consolidated FINRA Rulebook’’).5 As 

part of that process, the SEC recently 

approved the adoption of FINRA Rule 

2232 (Customer Confirmations) in the 

Consolidated FINRA Rulebook.6

The proposed rule change updates a 

certain cross-reference in FINRA Rule 

2232 to reflect recent changes adopted 

in the Consolidated FINRA Rulebook, 

specifically, the transfer of the 

definition of ‘‘direct participation 

program’’ from former FINRA Rule 6642 

to current FINRA Rule 6420.7

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

implementation date of FINRA Rule 

2232 will be June 17, 2011. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,8 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes the 

proposed rule change will provide 

greater clarity to members and the 

public regarding FINRA’s rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Notices 80557 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(1). 

11 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a et seq. 

3 17 CFR 240.19b–4. 

4The amendments proposed herein are similar to 

changes approved for the Chicago Board Options 

Exchange (‘‘CBOE’’). See Securities Exchange Act 

Release No. 63202 (October 28, 2010), 75 FR 67794 

(November 3, 2010) (SR–CBOE–2010–080). 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 9 and paragraph (f)(1) of Rule 

19b–4 thereunder.10 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–FINRA–2010–066 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–FINRA–2010–066. 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 website 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 such filing also will be 

available for inspection and copying at 

the principal office of FINRA. 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 publicly available. All 

submissions should refer to File 

Number SR–FINRA–2010–066 and 

should be submitted on or before 

January 12, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32090 Filed 12–21–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63555; File No. SR– 

NYSEAmex–2010–118] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Commentary 

.11(a) to NYSE Amex Options Rule 915 

To Permit Trading Options on 

Leveraged Exchange-Traded Notes 

and Broaden the Definition of Futures 

Linked Securities 

December 15, 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 December 

9, 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 

Commentary .11(a) to NYSE Amex 

Options Rule 915 to: (1) Permit trading 

options on leveraged (multiple or 

inverse) exchange-traded notes, and (2) 

broaden the definition of ‘‘FuturesLinked [sic]. 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 

The Exchange proposes to amend 

Commentary .11(a) to NYSE Amex 

Options Rule 915 to: (1) Permit trading 

options on leveraged (multiple or 

inverse) exchange-traded notes 

(‘‘ETNs’’), and (2) broaden the definition 

of ‘‘Futures-Linked Securities.’’ 4 ETNs 

are also known as ‘‘Index-Linked 

Securities,’’ which are designed for 

investors who desire to participate in a 

specific market segment by providing 

exposure to one or more identifiable 

underlying securities, commodities, 

currencies, derivative instruments, or 

market indexes of the foregoing. IndexLinked Securities are the nonconvertible 

debt of an issuer that have a term of at 

least one (1) year but not greater than 

thirty (30) years. Despite the fact that 

Index-Linked Securities are linked to an 

underlying index, each trade as a single 

exchange-listed security. Accordingly, 

rules pertaining to the listing and 

trading of standard equity options apply 

to Index-Linked Securities. 

Leveraged ETN Options 

The Exchange proposes to amend 

Commentary .11(a) to NYSE Amex 

Options Rule 915 to permit the listing 

of options on leveraged (multiple or 

inverse) ETNs. Multiple leveraged ETNs 

seek to provide investment results that 

correspond to a specified multiple of the 

percentage performance on a given day 

of a particular Reference Asset. Inverse 

leveraged ETNs seek to provide 

investment results that correspond to 


srobinson on DSKHWCL6B1PROD with NOTICES